With high gas prices and customers spending more than ever on goods, many convenience store (c-store) owners feel the toll. As a result, customers are paying more at the pump and less in the store, which is bad news for revenue. Despite common assumptions, higher gas prices do not translate to higher profits for c-stores because most profits result from sales inside the store. So, higher gas prices can cause a loss of foot traffic, which means a loss of sales.
Fuel prices are currently at a forty-year high, and people everywhere feel the pinch. If customers aren’t purchasing as much in c-stores, the feeling is accurate: studies have shown that once gas prices reach $4 a gallon, customers stop buying other items in-store.
Consumer behavior while at the pump directly affects if people enter the store. Less foot traffic in the store naturally lowers sales. When customers enter, they browse, giving them time to notice things they want or need or to spot discounts and deals. Not coming into the store at all means losing those sales.
Customers are less likely to buy impulse food and drinks when goods are expensive. They are already worried about paying for their fuel, so they are much less likely to have extra money to spend.
Convenience stores can resist the tide and try to get customers inside despite the higher gas prices. It might take some creativity, but there are a few solid ways to increase sales by encouraging customers to park and enter the store.
Some stores have had success offering fuel discounts dependent on store purchases. If customers are interested in getting gas at a lower price, they must buy an item in the store, and getting them in the store is the primary goal. Once customers enter, they are much more likely to browse and find other items they want to buy, further driving store sales.
As mentioned above, the main goal is getting customers into the store. Another way is to offer discounts for cash fuel purchases. Customers will need to enter the store rather than pay at the pump, which means that they are more likely to spend on other items inside, especially if they are getting fuel at a discount.
Playing ads at the pump is an increasingly common way to market to customers. Using this time to promote items in the store, mainly deals and discounts, is an effective form of marketing. Even though customers are still paying more at the pump, you have their attention, and they have an incentive to come inside.
Sometimes, the best kind of marketing is a strategically placed display. C-store operators need to keep food and beverage sales high to increase profits. Setting up a few well-placed displays is a solid way to do this.
Federal’s drink merchandisers and food display cases can help c-stores market their items effectively. Island merchandisers, countertop merchandisers, and alcohol displays help display hot or cold items at strategic points throughout the store, catching customers’ attention and increasing the likelihood of sales.
Available in heated, refrigerated, and non-refrigerated versions, our Vision Series merchandisers have a user-friendly design with digital temperature displays and easy-access controls for employees. With the reversing fan option, the merchandiser fans can help reduce dust and debris on the condenser coil, helping with efficiency while extending the life of the condenser and preventing downtime.
With effective marketing strategies, and the right merchandisers, convenience store operators can help keep retail sales up, customers happy, and profits flowing.