Across the country, convenience stores have proven once again to be essential to their communities. During the coronavirus pandemic, more Americans are turning to convenience retailers for pantry items. More than half of convenience stores (52%) have seen grocery sales rise during the time of social distancing and stay-at-home orders, according to a NACS survey.

Convenience stores also started stocking more at-home products, such as cleaning and toiletry items (52%), as well as offering more multi-pack or bulk items (28%). “The massive disruption of COVID-19 has created an emergency-type need for grocery items from convenience retailers,” said Jayme Gough, NACS analyst. “These retailers have become a key outlet for customers to get necessities during this time of social distancing and isolation.”

Porky’s Convenience Store, Deli & Restaurant in Mound Valley, Kansas, always offered groceries because of its rural small town location. “We try to offer last-minute staples needed for any meal because the nearest Walmart is 20 minutes away,” owner Jayme Winters said. But the pandemic has increased the amount of groceries the store is stocking.

Located in a college town, Convenient Deli & Café in New Paltz, New York, provided groceries to help its customers avoid a trip uptown to the supermarkets. “We have many students and residents within walking distance of our store,” owner Khalil Jamal said. However, with the university closed, Jamal pivoted to more curbside pickups of grocery essentials to stay in business.

COVID-19 has created an emergency-type need for grocery items from convenience retailers.

An Essential Outlet

Designated as “essential retail” by Congress, convenience stores have been able to remain open with modified procedures during the pandemic. “This has enabled convenience retailers to continue to aid the public and the communities in which they serve,” Gough said. “Grocery has always been a tricky category for convenience retailers. Typically, the category is designed for fill-in trips or travelers/vacationers looking to stock up on daily necessities.”

The coronavirus has impacted how some grocery items are shelved. For example, Jamal started wrapping individual pieces of produce in plastic wrap to help facilitate a safer shopping experience during the pandemic. “We also started ordering more varieties of fruit, such as clementines, oranges, grapes and strawberries to try to keep our customers as healthy as possible,” he said.

While Jamal ran into a few restocking issues from his regular suppliers at the beginning of the stay-at-home orders, he quickly found other sources for those items. “Being an independent store, I was able to overcome the outages with a few phone calls,” Jamal said.

At Porky’s, the pandemic has meant adding some extra items to provide better service to customers. “For example, we brought in five-pound rolls of ground beef,” Winters said. “We also adjusted our order quantities of other items as the needs have changed.”

Winters also has had supply issues for some essential items, such as hand sanitizer, disinfectant spray and flour. “I never had an issue getting flour before, but it’s been ‘out of stock’ at my supplier each week,” she said. While Porky’s doesn’t have express limits on any particular item, “we do make it clear we expect our customers to all be courteous to others in the area who may also need the same items.”

Suppliers are stepping up to help retailers meet the need for more groceries during the coronavirus pandemic. “We’ve partnered with convenience chains and independents to offer wholesome grocery, pantry staples and snacks,” said Robert Agnew, senior vice president of sales for Bob’s Red Mill, which produces pantry staples like flour, rolled oats and sugar.

StarKist has worked with retailers “to place a greater emphasis on healthy, convenient, portable products, which many convenience retailers are embracing,” said Andy Mecs, vice president of marketing and innovation. For example, Sheetz featured StarKist Tuna Creations pouches in the refrigerated area near the front doors, while some Circle K divisions positioned StarKist pouches by the bread. “The retailers are all on board with placing an emphasis on healthy, convenient products in their stores because everybody recognizes that many consumers have shifted in this direction,” he said.

We want to help out as much as we can by shopping locally first.

Selling Perishable

The perishable grocery section has been growing at convenience stores even before the pandemic upped the demand for produce and deli items. Perishable grocery accounted for $11,997 sales per store in 2019, with 40.25% in average gross margins, according to NACS State of the Industry 2019 data. “Prior to the current supply chain disruption as a result of coronavirus, retailers often used the grocery category to highlight locally sourced items,” Gough said.

Convenient Deli & Café buys locally as much as possible for its produce and eggs. “We want to help out as much as we can by shopping locally first,” Jamal said. He promotes the grocery items on the store’s Facebook, Instagram and LinkedIn accounts, as well as in local community groups. “We want to let customers know we are stocked and capable of fulfilling any of their grocery needs.”

The stay-at-home edicts during the pandemic meant more people bought perishable grocery items from Porky’s deli department. Winters increased the amount she ordered because of higher demand for deli items. One way she boosted sales of perishable items is by advertising her selection with photos on social media. “Social media has been a great asset to our small store,” she said. “For example, we get several calls a day for delivery or curbside pickup of fresh deli meats and cheeses.”

Edible Interest

Most convenience stores have an edible grocery section, but this time of stay-at-home edicts has drawn more attention from customers to those products. Edible grocery brought in $5,910 in gross profit per store in 2019, with a gross margin average of 43.70%, according to NACS State of the Industry 2019 data.

Due to market shifting toward better-for-you options, edible grocery products with natural and more nutritious ingredients are gaining popularity. For example, Bob’s Red Mill line of single-serve oatmeal cups mixes oats with chia and flax seeds in a variety of flavors. “Customers love these cups for a quick, wholesome breakfast or snack,” Agnew said.

Spicy flavors have migrated to the edible grocery category as well, such as StarKist’s Tuna Creations Bold lineup that includes hot buffalo style, jalapeño, sriracha and Thai chili style flavors. “The spicier flavors tend to be very popular with the millennial crowd,” Mecs said.

Groceries to Go

The expansion of online grocery delivery has threatened the edible and perishable grocery category at convenience stores in the past. “However, typically consumers do not use convenience retailers to replace their grocery trip but to supplement it instead,” Gough said.

With social distancing the new normal, many convenience stores have added or ramped up curbside pickup or delivery options, especially for the grocery category. “Curbside pickup has always been an option because we have a lot of elderly people in our little community,” Winters said. “But we have done more promoting of this service since the social distancing.”

Convenient Deli & Café partnered with a local company to provide home delivery for its customers during the pandemic, in addition to adding curbside pickup. “We got on that right away by posting signs everywhere and advertising on social media, too,” Jamal said.

The delivery menu is slightly different, but customers can order anything in the store for curbside takeout. “Delivery and curbside orders are picking up more each day because customers don’t want to leave their homes and/or don't want to get out of their vehicles,” Jamal said.

After the Storm

Convenience stores provide much-needed grocery necessities for their communities, especially during the pandemic, and customers will continue to be reminded that c-stores' grocery offer will always be there when they need it. “During the time of social distancing, convenience stores served as a primary grocer for a large percentage of consumers who are sticking closer to home and limiting the number of trips they take,” Agnew said. “Currently, shelf-stable products are reliable and comforting, but c-store shoppers are also seeking fresh and better-for-you foods to nourish their families on an ongoing basis.”

The grocery category at convenience stores had begun to evolve as time-starved consumers were migrating toward healthier and more convenient food options. “The current pandemic has induced trial of new types of products as consumers were grabbing whatever was on the shelf,” Mecs said. “The future will bring less of an emphasis on the traditional grocery section and more of an emphasis on bringing healthy, convenient grocery items to the perimeter of the store as consumers seek grab-and-go options.”

For Jamal, the social distancing has helped him see how to redefine the grocery section. “I will expand my selection of fruits and veggies once my customer base grows with school being back in session and people leaving their homes again,” he said.

Overall, the coronavirus pandemic has made people realize how necessary stores like Porky’s are to their communities. “Especially in a small community like ours, I believe this pandemic has put more value on our store,” Winters said. “While Walmart and other chain stores have run out of items, we have been able to keep them in stock by reaching out to as many different resources as possible to make sure our customers are not lacking in any of their needs.”

The NACS Convenience Tracking Program (CTP) comprises consumer behavior analytics from more than 10,000 convenience store shoppers across 42 states, representing the most comprehensive consumer-driven metrics available to the industry.

To learn more about CTP and how to participate, contact Leroy Kelsey, director of industry analytics, at [email protected] or visit www.convenience.org/ctp.