3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry.
With the conflicts in Iran and Ukraine dragging on, trade wars escalating and U.S. consumers carefully watching their wallets, it would be easy to expect pessimism in the retail sector. But a recent survey by retail technology company Toast suggests the opposite.
According to a new survey of 340 convenience store, grocery and liquor store operators, 94% rate their business health as good or excellent.
In this week’s “3 Big Numbers,” we dig deeper into the report and see how c-stores in specific are faring.
62%
The percentage of convenience retailers who said they’re likely to open a new store in the next year
While convenience retail industry headlines have often focused on smaller companies exiting the industry, retailers of all sizes are opening new stores at a regular clip across the U.S.
According to Toast’s survey, 62% of convenience retailers said they plan to open a new location in the next 12 months. That notable number is four points higher than last year’s, though it fell below grocery retailers and liquor store operators, with 69% and 70% of those companies planning new stores, respectively.
59%
The percentage of c-store operators who said they find it difficult to stand out from the crowd.
As retailers grow their capabilities and expand into new markets, being able to differentiate from competitors becomes increasingly important — and even more difficult.
According to the survey, 59% of convenience retailers said they have trouble standing out from competitors. This was better than liquor stores, 69% of whom said they struggle to stand out, but not as good as grocers at 52%.
As features like fresh food, QSR partnerships and strong brand identities become more common, c-store retailers are turning to more granular improvements, like adding more extensive drink selections and better-quality food, to stand out.
Other levers that Toast reported companies are using to increase demand include social media marketing and improving loyalty programs.
31%
The percentage of operators who said in the survey that they want to simplify operations this year
While retailers may feel optimistic about the future, they’re also seeking ways to improve operations today. According to the survey, 31% of c-store, grocery and liquor store retailers say they plan to simplify operations in the next 12 months.
“They want to make things run smoothly before adding more to their plate,” Toast noted in its report.
Streamlining operations is an increasingly common goal across all three groups of retailers, with the percentage of c-store operators who list that as a top goal 11 points higher than last year.
Other leading goals for the next 12 months include improving profitability, boosting employee productivity and introducing new technology, the Toast survey found.
