May 23, 2023
Although fewer people are shopping at c-stores, revenue has not been impacted, according to Skupos data.
This article is brought to you by Skupos.
Skupos’ Q1 Independent Convenience Retail Trend Report. While revenue was up in the first quarter, weekly foot traffic was down 2.6%.
“This means that although fewer people are walking into convenience stores, revenue has been boosted by higher prices,” said Jake Bolling, the CEO and founder of Skupos, a technology and data platform that specializes in serving small-chain and independent convenience retailers.
Packaged beverages—a top in-store category for sales—was impacted by inflation and rising prices last year, which resulted in a decline in unit sales, according to Skupos data. While unit sales were down, packaged beverages still posted strong revenue. Energy drinks, carbonated soft drinks and sports drinks were the main drivers of the category. When combined, these three subcategories made up more than $1.1 billion in independent retail dollar sales.
Additionally, Skupos found that promotional and pricing strategies vary by region. For example, the South Central region has the highest average price for a 20-ounce carbonated soft drink at $2.23; however, the region has the lowest promotional take rate (percent of units sold on discount) at 7%. Conversely, the West region has the highest promotional take rate at 39% and the second highest average selling price at $2.14, meaning that pre-discount prices in this region are generally much higher.
Skupos’ data is powered by scan data from over 15,000 retailers, and the company has created the largest network of small chain and independent convenience retailers in the country, serving as a single platform to measure and improve product performance across thousands of stores.
“Our technology helps brands sell smarter because they have a bird’s-eye view of how each of their products are selling in a market they haven’t previously had visibility into,” said Bolling. “When brands harness the power of data, they can make informed decisions and optimize their strategy across the hard-to-access independent market.”