Stocking convenience stores with the latest on-trend products can be a challenge. Consumer tastes change rapidly, and this week’s TikTok-made-me-buy-it product could be old news by the time you get it on your retail shelf. But convenience retailers also need to stay ahead of their competition and offer a product assortment that attracts customers with novelty while meeting customers’ expectations that their current favorite products will be stocked.

So how can convenience retailers strike a balance between investing in the latest craze and supplying timeless c-store staples? And how do category managers even find out what products are trending? 

Talk to Me

If you’re wondering what products your customers want, it may be as simple as … asking them.

“We speak with [our customers] daily,” said Rachel Krupa, owner of The Goods Mart, a three-location New York City-based c-store chain that stocks better-for-you products. “The incredible team members in our store talk with our customers, asking for feedback and what we’re missing or should add,” she said.

At Loop Neighborhood stores, a mid-sized convenience retailer based in California, employees are encouraged to share any feedback they receive from customers with their managers, which eventually makes its way up to the corporate office.

“We give them several outlets to let us know what is working, what isn’t and what we can do differently for the customer,” said Pervez Pir, president of retail for Loop, adding that the company also sends out automated surveys to its loyalty program members so that it can learn about their shopping experiences and whether Loop should offer something different to meet their needs.

An example of a product that Loop took a leap on carrying in its stores is the drug Narcan (naloxone). Narcan is a nasal spray that reverses drug overdoses, and in late March, the Food and Drug Administration approved the drug for sale without a prescription.

“As soon as we heard this, we started planning out where we would purchase from, where in the set should we put it, age restrictions, etc.,” Pir said.

Even large convenience retailers with millions of customers make it a priority to talk to those who walk into their locations. 

“My favorite way to connect with guests is through direct engagement at the store. Our team members are in the field on a near constant basis, asking questions and really listening,” said Jason Wakley, director of general merchandise, truck supply and electronics, Pilot Company, which has more than 870 locations and serves an average of 1.3 million guests per day.

Wakley says that continuous engagement allows Pilot Company to learn about any issues customers may have and find solutions. 

“Seeing new and varied ideas inevitably leads to innovation.”

“We can tailor our product assortment based on direct guest feedback to further improve guest experience,” he said. And like Loop, Pilot Company also surveys both customers and employees to see how it stacks up across a range of metrics.

“When companies listen to their audience and deliver the goods that are important, those positive interactions build, resulting in repeat guests and increasing brand loyalty,” he said.

Get Social

Along with talking to your customers in person, try connecting with them and/or your target audience on social media.

“The team is engaged on several platforms, looking to see what’s getting the most attention, what new products folks have found and are talking about and even taking feedback on our product assortment,” said Wakley. “Drivers are the best resource for offering creative solutions to the challenges they face. By following them closely, we can take steps to help to provide those solutions to our broad base of guests.”

Kay Segal, president and managing executive, Business Accelerator Team, suggests following industry and research leaders on LinkedIn to stay abreast on product trends, like Mark DiDomenico at Elohi Strategic Advisors, Kelley Fechner at Datassential and David Portalatin at Circana.

Segal also says retailers should subscribe to online news feeds from various industry publications. Depending on a retailer’s product strategy, this could be news about the grocery industry, foodservice, refrigerated or frozen foods, private label, specialty foods or others, she said.

Take a Look Around

A savvy convenience store operator knows it’s vital to understand what’s going on next door or down the street at a competitor. Understanding why some customers choose that outlet over yours is a growth opportunity, and taking a look at their product assortment can breed new ideas.

“Visit competitors, other stores within your sector and stores that have no crossover,” said Wakley. “Seeing new and varied ideas inevitably leads to innovation.”

“We find the manufacturer and begin to build a relationship.”

Loop also checks out its competition often, especially in the foodservice space.

“With food, we look at what new fast feeders/restaurants are popping up, their menu offerings and the advertising themes that are in the marketplace,” said Pir.

Loop also makes a point to visit a variety of food outlets, such as grocery stores and food trucks, that service people from all backgrounds so it can find unique items for its customers. For example, poki bowls are growing in popularity in the areas Loop operates in, so Loop began offering the menu item to stay competitive.

“Another example would be when we rolled out cha siu bao [pork barbecue filled buns] a few years back. We realized this would be something that would serve the community well and is unrepresented in c-stores,” said Pir.

How to Get What You Want

Once you’ve spotted a product to carry, how do you get it in your stores? Krupa at The Goods Mart says she works directly with the brands themselves.

“The majority of the brands we carry are not with distributors, so we work with brands directly,” she said. “We don’t rely on our suppliers to keep us up to date with what customers want—that’s our job.”

“Like many of the best specialty retailers, we go directly to the sources of innovative ideas. We may find those ideas online, at a trade show or out in stores as we trend shop. From there, we find the manufacturer and begin to build a relationship,” said Wakley. “Traditionally, innovation in our industry was brought to us by distributors that specialize in our line of business. However, with the need to evolve and differentiate, we have expanded our internal sourcing of on-trend products.”

But what if you’re unable to work with a brand directly and are at the mercy of what your distributor can supply you with?

“Depending upon a retailer’s positioning or the specific needs of its customer base, it may need products that its distributor does not typically carry,” said Segal.

Segal suggests three tactics if a c-store’s distributor does not agree to slot certain items. The first is to discuss with your distribution partner which of your customers’ needs you are working to fulfill. 

“They already have a truck coming to your facility. If they can add some needed products, this is a good approach,” said Segal.

Sometimes, retailers need to just go for it and take the risk on certain items.

Small retailers could also create their own cross-dock, she suggests. She has visited with owners of chains as small as 10 stores with a cross-dock.

“Some start simply with shelf-stable items as well as supplies. Once routes are running smoother, it may make sense to move into refrigerated or frozen,” Segal said. “The retailer may even determine that the best way to start is to find a partner with a service to pick up and deliver the products, allowing the retailer to focus on purchasing the products, picking the individual store orders and staging the orders for a distribution partner.”

Her third suggestion is simple. “If your current distribution partner cannot slot the products desired, look at other distributors.”

Final Thoughts

Ultimately, a retailer’s product assortment should address the needs of the customer and be based on facts, according to Segal. 

“Items should never be brought in based solely on a belief that they will sell. The research needs to support that demand exists,” she said, adding that it’s imperative that retailers understand the overall %ACV (all commodities volume) for desired products in a trading area, in addition to the need states of its customers.

“I truly think you have to immerse yourself in your community and society to get the real gem to surface that separates you from the pack,” said Pir.

Offering on-trend products is not an exact science, according to Wakley. There are benefits and risks to supplying trendy items, but sometimes, retailers need to just go for it and take the risk on certain items, he said.

“The important message is that trendy items we find in the market aren’t always successful, but we have the willingness to try, and if they fall short, learn from that experience,” he said. “This ensures that our assortment will continue to evolve.”