Fewer shoppers filling their tanks at convenience stores mean fewer shoppers filling their stomachs with higher-margin goods inside the store. Additionally, alternative gasoline retailers, including supercenters, supermarkets, and warehouse clubs, are chipping away at the convenience store industry’s gasoline shopper base.

Recent TNS Retail Forward ShopperScape™ survey results indicate that one-third of shoppers are buying most of their gasoline at alternative outlets. Alternative gasoline retailers now capture an estimated 13% of US gasoline sales. Industry experts projects this figure will grow to 16–17% by 2012.

“Aggressive fuel-reward programs combined with the convenience of one-stop shopping makes it no surprise that more shoppers are filling up at these alternative outlets,” stated Jennifer Halterman, Senior Consultant with TNS Retail Forward.

“Campaigns that tie fuel rewards to high-margin purchases such as private brands, non-grocery general merchandise items or in-store services will be critical going forward,” Halterman adds.  Convenience stores also need to pay attention to the growing number of small-store food concepts rising on the scene.

Halterman concludes: “C-stores must deliver a differentiated offer that not only delivers convenience but adds destination appeal. Ultimately, convenience stores that reduce their reliance on gasoline by focusing efforts inside the store will be best positioned for the future.”