COVID-19's Impact on Convenience Stores - What to Expect 4/10
Over the past four weeks, data suggests that increasing numbers of consumers have opted to include convenience stores when considering where to purchase goods, 11.6% more than this same time frame last year.* This indicates that although revenue is down, stores have the opportunity to expand their customer base, and sustain that new base once stay-at-home orders are lifted.
New and existing customers need to be rest assured that stores are taking the proper precautions to keep them (and their employees) safe. Convenience stores continue to implement best practices across their stores, helping to instill further confidence in their ability to operate as an “essential business” during these times.
With COVID-19’s drastic effect on the market, Skupos continues to monitor data trends in the convenience store industry. See below for a few key highlights from this week:
Average Weekly Revenue per Store
For the week ending April 5th, weekly revenue for in-store purchases and fuel dropped 3% and 6.5%, respectively. Compared to percentage changes from the month of March, which decreased an average of 6.5% for in-store and 14.5% for fuel per week, we’re seeing revenues begin to stabilize in April with smaller percentage change rates each week.
Average Weekly Revenue - ABInBev and Molson Coors
After seeing a decline in beer sales throughout February, weekly beer revenue has slowly worked its way back up to pre-coronavirus figures. Although overall store revenue has dipped, beer revenue has held steady, creating a more stable category for stores during this time.
% Change in Gallons of Diesel
As of April 5th, national diesel fuel consumption has decreased by an average of 26.8% since January. Restaurant closures and changes in customer spending have impacted the transportation and shipping industry, with trickle down effects seen in diesel consumption. When shelter-in-place orders are lifted, we expect to see demand bounce back.
Great Lakes: -19.57%
South Central: -25.2%
Eventually, the quarantine will end, however health and sanitary habits picked up throughout this crisis may not. Items like paper towels, disinfectant, and hand sanitizer will most likely continue to stay in high demand. Retailers need to continue to “stock smart” as we move through the different phases of this pandemic.
We will continue to provide updates as the weeks progress.
*IRi, “COVID-19 Impact Consumers & Convenience.” March 30, 2019