As the National Association of Convenience Stores (NACS) Show approaches, it’s crucial to look to the latest traffic trends within the convenience store (C-store) channel. VideoMining’s data reveals a concerning decline in the average total store path to purchase, indicating that C-store operators and brands must be proactive in addressing these challenges, which means reframing the questions we typically ask ourselves, and the types of solutions we intend to seek.
In the first half of 2024, VideoMining’s Convenience Channel Shopper Insights (CSI) program reported a 3% decrease in average weekly parking lot visitors compared to the previous year. Out of approximately 10,683 weekly forecourt visitors, there was also a 2% drop in the number of customers who entered the store. Even more troubling, the conversion rate of in-store visitors to buyers fell by 4% year-over-year.
This trend highlights a critical issue: the decline in visitor numbers begins at the top of the funnel, with fewer customers even entering the forecourt. As a result, the potential pool of in-store buyers is already reduced before we even begin talking baskets and total trip productivity.
Implications of the Decline
The implications of this decline are significant. With a smaller base of shoppers, convenience stores must strive to make each visit more profitable and productive. The decrease in in-store conversions often points to economic sensitivity and tighter consumer wallets, prompting C-store operators to ask: What are visitors doing if they don’t make a purchase?
Common behaviors include using restrooms, ATMs, or simply browsing without buying. A critical insight is identifying those who enter with the intent to shop but leave empty-handed due to dissatisfaction with product availability, pricing, or selection. Addressing these issues requires a tailored approach that varies by chain, emphasizing the importance of analyzing the traffic trends and shopper flows to pinpoint those pain points that are unique to your business.
Time Spent in Store: A Downward Trend
VideoMining also measures the average time spent in-store, which has decreased year-over-year. While checkout times have stabilized, representing about 14% of the total time in-store, the active shopping time has dropped significantly. In the first half of 2024, shoppers spent 6% less time actively engaging with products compared to the same period in 2023.
This trend indicates a shift toward "tunnel vision" shopping, where consumers are focused on quick transactions rather than exploring options. For consumer packaged goods (CPG) brands looking to increase basket share, this presents an urgent need to disrupt the shoppers’ experience, draw them deeper into the aisle, and snap them out of autopilot in favor of a more open and exploratory mentality.
Strategic Questions for the NACS Show
The traffic trends reported by VideoMining can be a powerful reminder to reframe the questions you’re asking ahead of the NACS Show, and guide more productive discussions around improving the path to purchase and the role of the c-store of the future:
- What can be done to reverse the decline at the top of the funnel?
It’s essential to understand who the shoppers are, who is being lost, and where gaps exist. Redefining the C-store experience and enhancing the value proposition will be critical for driving more forecourt visitors into the store. Fresh ideas, coupled with a willingness to experiment and iterate, will be vital for engaging consumers and breathing life into the channel. - What insights can shopper footsteps provide?
Understanding shopper behavior goes beyond basket data. Analyzing how shoppers interact with products and what influences their purchasing decisions can reveal essential trends. For instance, recognizing how to engage shoppers at primary shelves or how to facilitate impulse purchases can significantly impact sales. - Who are the potential shoppers we can attract?
With overall visits declining, it's essential to rethink the definition of the channel and target new customer segments. Many chains have focused on value deals to lure customers from quick-service restaurants (QSRs), but a deeper understanding of these shoppers’ profiles and preferences is necessary to effectively capture the visits not just once, but to become the preferred format for future trips.
Conclusion
The challenges facing the convenience store industry are multifaceted, and looking holistically at the total store path to purchase is a vital first step in defining the opportunities and reframing the questions to ask. Above all else, a shopper-centric approach is essential to winning with today, and tomorrow’s shoppers. The emphasis should be on adapting to changing consumer behaviors, redefining the channel’s role in the day-to-day lives of consumers, and enhancing the overall shopping experience. Remember, the best insights often come directly from the shoppers themselves.
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