In 2023, the General Merchandise category faced mixed results across its various segments, ultimately leading to a decline in overall sales. Average sales per store saw a 2.5% drop, falling to $59,531. This was a stark contrast to the 1.6% growth recorded the previous year.
Among the different segments, only a few showed positive trends. Hardware, tools, housewares, seasonal items, and school and office supplies were the standouts, with per-store sales increasing. Notably, the hardware, tools, and housewares segment posted the most significant growth, achieving a robust 13.6% increase in sales. However, this growth was not enough to offset declines in other areas.
Telecommunications hardware was particularly hard-hit, experiencing the largest decline, with sales dropping by 9.8%. The downturn in this segment contributed significantly to the overall decrease in general merchandise sales.
Total industry sales of General Merchandise decreased by 1%, marking the first decline after three consecutive years of growth. Additionally, total unit volume fell by 5%, following a 3.3% drop in 2022. The share of in-store sales attributed to general merchandise also dipped slightly, decreasing by less than one point to 3.12%.
To conclude, the General Merchandise category faced a challenging year in 2023, with only a few segments showing positive growth. While hardware, tools, and housewares performed well, declines in other segments, particularly telecommunications hardware, led to an overall drop in sales. This downturn marks a significant shift after years of steady growth and suggests that the industry may need to adapt to changing consumer preferences and market conditions to regain momentum in the coming years.
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Source: Hanson, Angela and Linda Lisanti. “A Trying Year: Inflation, Higher Operating Costs and Lower Fuel Prices Took Their Toll in 2023.” Convenience Store News, Industry Report 2024