1、October 2022U.S.CONVENIENCE STORELANDSCAPE Q3 2022Retail Thought Leadership 2022 Information Resources Inc.(IRI).Confidential and Proprietary.2The convenience channel saw accelerated YOY dollar sales growth in Q3(3.8%)compared to Q2(3.2%),but it continues to lag behind MULO(7.8%YOY growth in Q3).Sim

2、ilar to Q2,cigarettes(-3.4%vs.-6.3%)and beer(3.0%vs.0.7%)categories in convenience have outperformed MULO in%$sales vs.2021 for Q3.Customers continue to average more trips than YA,but dollars and units per trip have seen YOY decreases in most recent months.The Consumer Price Index increased 8.2%for

3、the 12 months ending September,while the food CPI increased 11.2%for the same period.Gas prices showed month over month decreases in July,August and September,helping to boost consumer sentiment,even as concerns about inflation continue.Convenience channel price per unit growth accelerated for the f

4、ifth straight quarter with a 6.3%YOY increase in Q3 after a 4.9%increase in Q2.Promotion depth in the convenience channel continues to show an increase vs.YA,while frequency of promotions remains flat compared to 2021.Convenience channel private label growth slowed but continued to outpace growth of

5、 national brands.In this report,we follow up on trends identified in previous convenience channel analysis to examine how inflation continues to impact the convenience store channel and how this compares to the broader multi-outlet landscape.In Q3 2022,U.S.inflationary factors persisted and price-pe

6、r-unit increases continued in the convenience channel.While consumer sentiment hit a new low in June,sentiment has ticked up in Q3.Executive SummaryKey Trends ImplicationsConcerns with inflation continue,and shoppers are shifting product selection to lower-priced options,including private label.Incr

7、ease private label assortment and leverage private label pricing to offer low opening price points within key categories.Appeal to all consumers with unique private label options.Lower-income households in particular are indicating that they are dining out less often,looking for more promos and cutt

8、ing back on nonessentials due to inflation concerns.Inflationary pressures are expected to stay high for the foreseeable future,and many shoppers will switch to value channels,like mass and dollar,as a cost-savings measure.Manage price/mix to keep shoppers in your store.Adjust assortment to build va

9、lue offerings and react quickly to competitive pricing.Manage price gaps to value channels on key items.This may be an opportunity for the convenience channel as consumers trade down to individual/single portions.Continue to invest in e-commerce innovation to meet shoppers where they are with what t

10、hey want.2022 Information Resources Inc.(IRI).Confidential and Proprietary.3Source:IRI POS 13 wks Ending 9/25/22.IRI Client Engagement-12.2%7.3%8.0%12.7%10.5%2.4%-2.3%-2.4%-8.1%-0.6%2.1%4.7%5.6%6.4%-1.3%-1.5%4.2%6.2%6.3%7.4%7.8%8.9%6.5%6.7%4.8%2.0%3.2%3.8%Q1 2021Q2 2021Q3 2021Q4 2021Q1 2022Q2 2022Q3

11、 2022U.S.DrugFoodMULOConvenience Convenience Channel Dollar Sales Growth Lags MULODollar Sales%vs.YAThe convenience channel saw accelerated YOY dollar sales growth in Q3 compared to Q2 but continued to lag behind MULO.YOY growth has declined in recent quarters for the U.S.drug channel as dollar sale

12、s decreased 2.3%in Q3 vs.2021.2022 Information Resources Inc.(IRI).Confidential and Proprietary.4Convenience Channel Outperformed MULO in Cigarette and Beer Categories,but Growth Did Not Keep Pace in Non-Alcohol Packaged BeveragesCategory PerformanceQ3 2022,Dollar Sales%Change vs.YA*Top categories b

13、ased on US Convenience Sales$in Q3 2022Source:IRI POS 13 wks Ending 9/25/22.29%of MULO YOY growth came from edible and nonedible grocery categories,which make up 1%of U.S.convenience channel total sales.-10.0%-5.0%0.0%5.0%10.0%15.0%20.0%HEALTH&BEAUTY CAREALTERNATIVE SNACKSOTHER DAIRY&DELISWEET SNACK

14、SCANDYSALTY SNACKSOTHER TOBACCOBEERPACKAGED BEVERAGES(NA)CIGARETTESTotal U.S.Convenience Total U.S.Multi Outlet of convenience channel sales$64%2022 Information Resources Inc.(IRI).Confidential and Proprietary.5Regionally,the Convenience Channel Lagged MULO in Most Regions,but Outperformed in Washin

15、gton StateTotal Convenience IRI Standard Eight Regions Dollar Sales%Chg.vs.YA Q3 2022 Regions(Conv.)$Sales(Billion)%Chg.vs.YA%Dollar Any Merch%$Any Merch Pt.Chg.Southeast$8.2+5.7%16.40.0Great Lakes$7.3+1.6%16.0+0.6Northeast$7.3+4.5%13.4-1.4Mid-South$7.1+1.8%16.1+0.2South Central$7.0+5.0%16.4-0.3West

16、$5.4+5.6%16.6+0.6Plains$4.0+4.4%15.2-0.6California$3.7+4.0%16.9+0.1$Growth index vs.MULO6120602264715256Top5State$%Chg.vs.YA in C-Store$%Chg.vs YAin MULORhode Island-3.8%+8.0%Michigan-1.4%+7.9%Kentucky-1.0%+6.9%North Carolina-0.8%+9.3%Wyoming+0.1%+10.6%Bottom 5Top 580 120 120Washington+10.4%+6.9%Sou

17、th Carolina+8.6%+10.6%Utah+7.4%+7.5%Massachusetts+6.7%+9.0%Georgia+6.6%+8.4%Top and BottomDollar Growth States,Q3 2022Note:$Growth index vs.MULO=($%Chg.Conv/$%Chg.MULO)*100,N/A signifies the negative valueSource:IRI Retail Advantage 13 wks Ending 9/25/222022 Information Resources Inc.(IRI).Confident

18、ial and Proprietary.6-1.71.31.9-1.10.45.95.62.42.36.73.80.7-4.6-3.1-3.32.27.6-0.1-1.10.3-3.60.4-3.9-3.9-0.5-2.05.0-0.9-0.73.1-0.8-2.0-6.0-1.5-6.81.05.9-1.8-2.5-4.6 04-18-21 05-16-21 06-13-21 07-11-21 08-08-21 09-05-21 10-03-21 10-31-21 11-28-21 12-26-21 01-23-22 02-20-22 03-20-22 04-17-22 05-15-22 0

19、6-12-22 07-10-22 08-07-22 09-04-22 10-02-224 Weeks Ending3.83.04.13.51.76.24.87.06.210.64.86.89.55.65.65.35.66.04.47.7 04-18-21 05-16-21 06-13-21 07-11-21 08-08-21 09-05-21 10-03-21 10-31-21 11-28-21 12-26-21 01-23-22 02-20-22 03-20-22 04-17-22 05-15-22 06-12-22 07-10-22 08-07-22 09-04-22 10-02-224

20、Weeks EndingTrips to Convenience Stores Are Up in 2022 Compared to 2021Dollars and Units per Trip Show YOY Decreases in Latest Periods13 WE 06.27.21Trips:+2.7Dollars:+0.5Units:+3.213 WE 09.26.21Trips:+3.6Dollars:+3.4Units:+3.113 WE 09.25.22Trips:+6.7Dollars:(0.4)Units:+3.113 WE 06.26.22Trips:+9.4Dol

21、lars:(2.5)Units:+3.113 WE 12.26.21Trips:+11.1Dollars:+4.5Units:+3.213 WE 03.27.22Trips:+8.6Dollars:(2.2)Units:+3.2Product Trips per Buyer%Change vs YADollars per Trip%Change vs YAUnit Sales per Trip%Change vs YASource:IRI Consumer Panel data through 10.02.222022 Information Resources Inc.(IRI).Confi

22、dential and Proprietary.7Consumers Continue to Feel Slightly Better about the Economy During Q3 as Gas Prices Retreat From Their Early Summer Highs,Though Food Inflation Remains Stubbornly HighSource:U.S.Index of Consumer Sentiment,University of Michigans Consumer Sentiment Survey;CPI Source:U.S.BLS

23、;U.S.All Grades All Formulations Retail Gasoline Price Source:U.S.EIACost of food in the United States increased by 11.2%over a year ago in September 2022,down slightly from an 11.4%surge in the previous month,which was the steepest since May 1979.11.2%The U.S.Index of Consumer Sentiment is 58.6,up

24、from 58.2 in Aug.and down from 72.8 a year ago.Consumer sentiment in September notched up to its highest level since April 22.58.6 September Consumer Sentiment Index September Food Consumer Price Index5.45.35.46.26.87.07.57.98.58.38.69.18.58.38.23.23.33.23.33.43.43.43.64.34.24.55.04.64.03.80.02.04.0

25、6.0Jul-21Aug-21Sep-21Oct-21Nov-21Dec-21Jan-22Feb-22Mar-22Apr-22May-22Jun-22Jul-22Aug-22Sep-22Inflation Gasoline Price(Dollars/Gallon)2022 Information Resources Inc.(IRI).Confidential and Proprietary.8Total Store Inflation in the U.S.has Dropped Back Since Hitting 9.1%in June,Helped by a Fall in Fuel

26、 Prices at the Pump,Yet Inflation Remains the Highest in 40 YearsIRIs Inflation TrackerShows the Convenience Channel Trending Up but Still Below the Broader MULO Market.Sources:IRI Retail Advantage; Index11411510410510510610610795100105110115Jan-22Apr-22JulDecAugSep100OctFeb-22NovMar-22May-22 Jun-22

27、 Jul-22 Aug-22 Sep-22Total U.S.Multi OutletTotal U.S.FoodTotal U.S.Conv.CY 20217ptsInflation IndexCPG Retail ChannelsThe National Retail Federation President and CEO Matthew Shay stated that“September retail sales confirm that even with rising interest rates,persistent inflation,political uncertaint

28、y and volatile global markets,consumers are spending for household priorities.Convenience store chain Couche-Tard Inc.Chief Financial Officer Claude Tessier said,“While fuel prices have started to come down and staffing shortages are improving,inflation was still an issue.”He also mentioned that“Its

29、 difficult to call that inflations going to ease in the future quarters.I think we can expect that the next quarter is going to be still a heavy quarter in terms of expense.”2022 Information Resources Inc.(IRI).Confidential and Proprietary.9Shoppers Continue to Be Concerned About Inflation and Are M

30、aking Changes to Shopping Behaviors to Combat Financial Pressures Are concerned about higher gas prices,down 6 pts from JuneAre concerned about food cost inflationAre making one or more changes to their grocery shopping behaviorOf those making a change are looking for sales,followed by 43%cutting ba

31、ck on nonessentialsOf those noticing higher prices believe that fewer items are being promotedConsumers Continue to Dine Out Less,Buying Fewer Apparel Items,and save by Buying Fewer Treats to help combat Inflationary pressures11%12%13%13%13%13%16%20%21%26%29%36%37%Buying fewer dairy itemsCutting bac

32、k on healthcare products/servicesBuying fewer eggsBuying less fresh produceBuying fewer alcohol beverages(i.e.beer/wine/liquor)Buying fewer packaged drinksMaking coffee at home rather than getting at a coffee shopBuying fewer prepared foodsBuying less meat/poultryDelaying home improvement projectsBu

33、ying fewer snacks or treatsBuying less new clothingEating out less oftenSource:IRI Shopper Survey August/Sept 20222022 Information Resources Inc.(IRI).Confidential and Proprietary.10Inflation Concerns Exist Across All Generations and Income LevelsWith Low-Income Households the Most Likely to Be Extr

34、emely ConcernedExtremely concernedSomewhat concernedNot at all concernedConcern About Food Cost InflationGenerations8.0%55.0%38.0%39.0%42.0%44.0%37.0%41.0%56.0%56.0%54.0%50.0%55.0%GEN ZOlder MillennialsGEN XYoungerBoomersOlderBoomersRetirees and Seniors8.6%29.9%31.8%43.8%51.9%65.7%64.1%52.5%39.4%Und

35、er$25k$25K to$50K$50K$100K$100K and HigherConcern About Food Cost InflationHousehold IncomeSource:IRI Shopper Survey August 20222022 Information Resources Inc.(IRI).Confidential and Proprietary.11-2.0%0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0%Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021Q2 2021Q3 2021Q4 2021Q1

36、2022Q2 2022Q3 2022U.S.MULOU.S.Convenience Convenience Channel Price-per-Unit Growth Accelerated for the Fifth Straight Quarter With a 6.3%YOY Increase in Q3,Following a 4.9%Increase in Q2Price-per-Unit Change vs.YAMULO continues to see much higher YOY price increases than the convenience channel and

37、 posted a 13.7%YOY increase for Q3.Source:IRI POS 13 wks Ending 9/25/22.IRI Client Engagement2022 Information Resources Inc.(IRI).Confidential and Proprietary.12-2.5-2.7-4.7-5.6-1.0-0.7-0.40.00.1-0.20.30.80.80.70.30.40.81.11.51.15.25.04.75.60.2-0.1-1.0-1.4-1.7-1.2-1.3-1.3-0.4-0.1-0.7-0.10.2-0.20.00.

38、8 04-18-21 05-16-21 06-13-21 07-11-21 08-08-21 09-05-21 10-03-21 10-31-21 11-28-21 12-26-21 01-23-22 02-20-22 03-20-22 04-17-22 05-15-22 06-12-22 07-10-22 08-07-22 09-04-22 10-02-2213 WE 06.27.21Depth:(3.8)Frequency:5.013 WE 09.29.21Depth:(1.2)Frequency:0.713 WE 12.26.21Depth:(0.1)Frequency:(1.4)13

39、WE 03.27.22Depth:+0.7Frequency:(0.9)13 WE 06.26.22 Depth:+0.5Frequency:(0.2)13 WE 09.25.22 Depth:+1.2Frequency:(0.1)4 WEEKS ENDINGPromotion Depth Across the Convenience Channel Shows Increases in Q3 vs.YAWhile Frequency Remains Relatively FlatDepth Change vs YAFrequency Change vs YASource:IRI POS da

40、ta through 10.02.222022 Information Resources Inc.(IRI).Confidential and Proprietary.13Price-per-unit Growth Accelerated in C-stores for Q3 and continues to be partially offset by customers purchasing less-expensive itemsCigarettes,Other Tobacco and Beer Categories,which make up more than half of to

41、tal C-store dollar sales,continue to show customers opting for lower-priced productsPrice per UnitAssortment ChangeContinuity SKUsInflationMixChange+6.3%+0.2%+6.1%+8.0%-1.9%What the customerpurchasesWhat prices the retailer setsWhat the retailer makes availableQ2:+4.9%Q2:-2.2%Q2:+7.0%-10%-5%0%5%10%1

42、5%20%OverallCIGARETTESOTHER TOBACCOPACKAGED BEV(NA)BEERCANDYSALTY SNACKSHEALTH&BEAUTYInflationAssortmentMixSource:IRI POS 13 wks Ending 9/25/22.IRI Client Engagement2022 Information Resources Inc.(IRI).Confidential and Proprietary.14Private Label Sales Dollar Growth YOY at C-Stores Has Outpaced Nati

43、onal Brand GrowthBut Share of Total Sales Remains Much Lower Than MULOBeer,wine,liquor and tobacco categories excluded from totalsSource:IRI POS 13 wks Ending 9/25/22.IRI Client EngagementConvenience channel private label YOY sales$%remains higher than national brand.Private label share of total sal

44、es remains low at c-stores compared to other channels.C-StoreMULODrugFood+11%+9%+12%+8%-3%-1%+10%+6%$%Change vs.YAQ3 2022 PL Share of Total Store TY vs.LY17%14%11%Q1 2022Q2 2022Q3 20228.7 20.8 17.1 18.8 8.5 20.1 17.4 18.3 Share Share YAC-Store YOY$GrowthPrivate LabelNational Brand2022 Information Re

45、sources Inc.(IRI).Confidential and Proprietary.15Q3 2022 Convenience ChannelPL Sales$(MM)PL$Share of TotalPL$Share vs.YAPrivate Label$Sales%vs.YA%Contribution of$Sales vs.YAOther Dairy&Deli$67465.0 20%58%Packaged Beverages(NA)$3413.1 7%12%Commissary&Other Packaged Products$28762.4-2%-2%Sweet Snacks$

46、14012.9 15%9%Salty Snacks$713.1 19%6%The Other Dairy&Deli Category Contributed More Than Half of Private Label YOY Dollar Sales Growth for the Convenience Channel in Q3Potato Chips and Water Are Among Subcategories With Strong Private Label Growth at C-storesWater+17%Snack Cakes and Pastries+27%Pota

47、to Chips+26%Paper/Plastic Products+45%0.1(0.1)1.7(0.0)2.5 Source:IRI POS Data 13 wks Ending 9/25/20222022 Information Resources Inc.(IRI).Confidential and Proprietary.16Private Label Unit and Dollar Share of Total C-Store Sales has Increased Despite a Decrease in Share of Total Items CarriedPrivate

48、Label Share of Total U.S.ConvenienceQ3 2022Source:IRI POS Data 13 wks Ending 9/25/2022Private label products make up 6%of average weekly items carried at c-store retailers but contribute 8.7%of total units sold.8.7 8.7 6.0 8.5 8.6 6.3 0.2 0.1(0.3)PL$SharePL Unit SharePL Share of Items CarriedTY vs.Y

49、AYATY2022 Information Resources Inc.(IRI).Confidential and Proprietary.1715.322.86.314.018.75.013.218.46.022.539.49.1FrequencyBasket Size($)Basket Size(Units)Private Label Convenience%Chg.vs YAPrivate Label Continues to Grow Across All Income LevelsUpper-Income Households Drive the Most Dollars and

50、Units per Trip,as Well as Product Trips vs.YANote:Lower Income defined as=$70k 1P+$30k all others.Source:IRI Consumer Panel data 13 wks Ending 10.02.22,Total store excluding fresh.Upper-income HHs represent 25%of private label sales,a 140 index vs.their total store contributions.Product trips contin

51、ue to grow across all income levels,with middle-income HHs showing declines in dollars and units vs.YA.8.50.6-1.05.83.10.76.3-1.8-4.414.7-0.10.9FrequencyBasket Size($)Basket Size(Units)Average HHLDLower IncomeMiddle IncomeUpper IncomeTotal Store Convenience%Chg.vs YA2022 Information Resources Inc.(I

52、RI).Confidential and Proprietary.18E-Commerce Growth Continues to Be Strong Across CPG RetailThe Convenience Channel Is Also Investing to Grow E-commerce SalesSources:IRI Retail Advantage 13w ks Ending 9/25/22;https:/ Earnings Press Release;https:/ Sales Skyrocketed Amidst the Pandemic%sales chg.vs.

53、YA+75.2%+19.7%+11.8%+17.7%+14.4%+27.6%As per Q1 FY 2023,Caseys mobile app represents 65%of all digital revenue,which is primarily driven by whole pies.The chain has added more grocery and general merchandise items to the app as well.Digital sales jumped 14%.CY 2019CY 2020CY 2021Q1 2022Q4 2021Q2 2022

54、$39.3B$68.3B$119.6B$143.1B$40.7BDollar SalesTotal Store|E-commerceDollar Sales and%Change 7-Eleven has acquired Skipcart,a startup that has developed a major network of drivers for the last-mile delivery of restaurant food,grocery,convenience-store and other goods in the United States.EG America is

55、partnering with on-demand delivery service platform Doordash to bring fast at-home delivery of convenience staples to consumers across the country.Q3 2022$41.2B$42.2BThe pandemic accelerated growth of e-commerce,which hit$42.2 billion in Q3 2022.Dramatic investments by leading retailers will further

56、 expand e-commerce in the coming years.Many convenience stores have also invested in online ordering and delivery services to keep pace with the market.2022 Information Resources Inc.(IRI).Confidential and Proprietary.19The U.S.Supply Chain Index in JulyWas Back Above Neutral for the First Time in N

57、early Three Years on the Back of the Continuing Strong Rebounds in Inventories and Capacity UtilizationWith demand cooling off and supply still growing,companies are looking to discount.The median inventory-to-sales ratio is the highest since 1990.According to NRFs latest Global Port Tracker report,

58、imports at the nations major container ports are expected to fall to their lowest level in nearly two years by the end of 2022,even as retail sales continue to grow.Transition from a shortage to a surplus for retailers came quickly.Retailers including Kohls Corp.and Target Corp.said that they will s

59、tow unsold merchandise with the intent of selling it next year.C-store chain Kwik Trip is partnering with Relex Solutions for supply chain optimization and planograms.Amazon acquired warehouse tech firm Cloostermans to support warehousing and order packing.08/19/2022Target cut its inventory levels b

60、y 20%in June and July in a conscious effort to streamline its business and set the company up for improved long-term growth.In June 2022,the retailer reported that its distribution center network peaked at 90%capacity and the company had reduced inventory levels to 80%as of August 2022.08/18/2022To

61、combat narrowing margins for its flagship pizzas and other prepared foods,Caseys procurement team improved product availability in stores vs.last year,maintaining optimal inventory levels and preventing shortages.The team also employed strategic sourcing initiatives to purchase goods at the best pos

62、sible prices,keeping costs down on grocery products and general merchandise.08/29/2022In order to mitigate supply chain issues,Kroger has opened spoke delivery facilities in Nashville,Tennessee,and Maywood,Illinois,extending the reach of its automated online grocery delivery network to two additiona

63、l metropolitan areas.The Tennessee facility will serve as a cross-dock for orders prepared at Krogers robotic CFC,in Forest Park,Georgia.Source:Caseys Earnings Press Release;https:/ Information Resources Inc.(IRI).Confidential and Proprietary.20Concept TestingCompetitive Landscape AnalysisPrivate la

64、bel dollar growth outpacing national brand Private label YOY$growth slowed in Q3 but continued to gain dollar share of total c-store despite a decrease in share of total items carried.Penetration increases will continue as customers trade down to offset rising prices.Customers are concerned about in

65、flation and seeking lower prices and promotions Shoppers indicate that they are looking for more promos due to inflation concerns.Customers will continue to seek out deals and promotions if inflation and concerns remain.C-store dollar growth has not kept pace with mass or club channels The convenien

66、ce channel saw accelerated YOY sales$growth in Q3 but continues to lag behind MULO.Dollar share leakage from c-store is likely to continue as customers look to save money on overall grocery spend.Screen ideas,product attributes,names,packaging and pricing to determine those with the highest probabil

67、ity of success.Understand PPU change for your stores compared to the total market and how customers are changing their purchase behaviors.Identify your key competitors and understand leakage trends across channels.Inflation DecompositionHow IRI Can HelpIdentify and Maximize Opportunities by Reacting

68、 in Real Time to Key Trends in the Convenience Channel2022 Information Resources Inc.(IRI).Confidential and Proprietary.21Registered Users Get New Thought Leadership From IRIs Research,Data&Analytics E the First to Know2022 Information Resources Inc.(IRI).Confidential and Proprietary.222022 Information Resources Inc.(IRI).Confidential and Proprietary.22CONTACT US FOR MORE INFORMATIONIRI Global Headquarters203 N.LaSalle St.,Suite 1500Chicago,IL 60601IRIIRI+1 312.726.1221Follow IRI on Twitter:IRIworldwide