Convenience Stores Become Destination Locations

What convenience stores are has historically been inscribed in the term. Convenience: “something (such as an appliance, device, or service) conducive to comfort or ease,” according to Merriam-Webster.

Need a snack? Beverage? Maybe gasoline or access to a public bathroom. Convenience stores are often just down the street, around a corner, ready to satisfy. But a recent report from Placer.ai, a vendor of foot traffic data and analysis, suggests that the establishments, also called C-stores, “have thrived in recent years, making inroads into the discretionary dining space and growing both their audiences and their sales,” the firm wrote.

In the 12-month period from April 2023 through March 2024, “experienced consistent year-over-year (YoY) visit growth, generally outperforming Overall Retail.” That didn’t hold true during the end-of-year holiday shopping season but picked up again this January.

Helping to drive the category success has been such chains as Casey’s, Maverik, Buc-ee’s, and Rutter’s, which are “investing in both in their product offerings and in their physical venues to transform the humble C-Store from a stop along the way into a bona fide destination.”

Average visits to existing locations were up: 2.3% for Casey’s; 3.2% for Maverik; Buc-ee’s 3.4%; and Rutter’s coming in on top with 3.9%.

Meals is one method to keep people coming in. Casey’s has grab-and-go breakfast items, including breakfast pizza. Maverik has burritos and items that would seem to go far beyond the first thing you’d have in the morning, such as “made-to-order street tacos and burritos, cookies baked in-house with whole ingredients, loaded nachos, and steaming bowls of chili mac” created by a legit chef, according to Thrillist.

But getting fueled up first thing does seem to be important, with “16.3% of visits to Maverik and 17.5% of visits to Casey’s took place during the 7:00 AM- 10:00 AM daypart” during the first quarter. Across the general category, the share is 14.9%. Also, the two chains seem to focus on psychographics, finding locations where residents are significantly more likely to be interested in their offerings.

Buc-ee’s, coming out of Texas, also focuses on food. It’s bathrooms get raves and their locations have become tourist destinations. “In Q1 2024, 39.6% of visits to Buc-ee’s took place on the weekends, compared to just 28.3% for the wider C-Store industry,” they wrote. Also, “Buc-ee’s captured markets feature higher-than-average shares of family-centric households– including those belonging to Experian: Mosaic’s Suburban Style, Flourishing Families, and Promising Families segments.”

Rutter’s is going for larger footprints, running 10,000 to 12,000 square feet rather than the industry’s more typical 3,100 square feet. There’s space to provide products and services that keep people and likely increase average order size.

In a sense, it all sounds like a flashback to how Stuckey’s originally started in Georgia as convenience stores with pecan products, as well as more general offerings, placed along major highways before the Interstate system would bypass many of the locations.

“Convenience stores are flourishing, transforming into some of the most exciting dining and tourist destinations in the country,” Placer.ai says. “Today, C-Store customers can expect to find brisket sandwiches or craft beers, rather than the stale cups of coffee of old. And the data shows that customers are receptive to these innovations, helping drive the segment’s success.”