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.
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
