Express locations and intends to operate existing fueling stations at 37 of these locations.
Unfettered by the same environmental and social
scrutiny that convenience stores face, the dollar channel
is more than 27,000 sites strong and growing at an
alarming rate of 6% per year—or six times that of the
convenience channel. To put things into perspective,
the dollar channel added more physical sites in 2015 at
1,426 than the convenience channel at 1,401, despite
being less than one-fifth the size. In fact, no other chan-
nel, excluding quick-service restaurants and fast casu-
als, can boast this level of growth. (For more on the
threat from QSRs, check out this issue’s cover story.)
Growth is also evident in the store’s sales. Dollar
General, which is the second largest dollar chain, has
enjoyed 26 consecutive years of same-store sales growth
and has gained almost three times as much growth as
the S&P 500 since it was taken public again in 2009.
So what impact has the proliferation of dollar sites
and the entrance into core convenience store catego-
ries including fuel had on the convenience shopper?
So far, very little.
WHAT DO CUSTOMERS SAY?
Through CTP intercepts, NACS asked more than
17,000 convenience store shoppers who had purchased
tobacco products, packaged beverages, beer, salty
snacks or candy in the past week to identify the channel
in which the purchase was made. In other words, what
do convenience shoppers consider a viable channel
or site for purchasing these core categories that
collectively make up just less than 70% of convenience
A meager 1% of convenience shoppers who had
purchased tobacco during the week indicated that the
purchase was made in dollar stores. In fact, only 16%
of convenience shoppers who purchased tobacco
during the week did so outside of the convenience
channel. More specifically, 52% (or one out of two)
tobacco purchasers were loyal to a specific site, and
67% were chain- or brand-loyal (regardless of location). Dominance of the convenience channel as a
tobacco destination is not surprising given that convenience stores sell $53 billion or 90% of the tobacco
in the U.S. market.
But tobacco is not the only category in which the
To learn more about CT of industry analytics and
convenience channel holds “the top spot.” Convenience
is also No. 1 for beer sales. Still, 46% of convenience
shoppers we interviewed who purchased beer during
the week did so outside of the convenience channel.
So, we wanted to know: How much overlap or
daypart, product categori search of this scale and scope
has never been conducte
BUILD BRAND EQUITY
Unfettered by the same
environmental and social scrutiny
that convenience stores face,
the dollar channel is more than
27,000 sites strong and growing at
an alarming rate of 6% per year.