USA: Summer drive predicted to be near ‘normal’ levels
New NACS survey shows a positive outlook on the summer for retailers with efforts focused on contactless payments and last-mile offers.
Convenience retailers anticipate that leisure travel and routine customer trips will return to pre-pandemic levels this summer, according to the results of a new NACS survey of U.S. convenience store owners.
Convenience stores, which sell 80% of the fuel purchased in the country, experienced a 13% decrease in fuel sales and less customer traffic throughout the pandemic. However, most (52%) say that summer travel and commuting patterns will be close to pre-pandemic levels. But not all share the optimism: 28% don’t expect to see traditional travel patterns emerge until 2022.
Retailers anticipate growth in categories like dispensed cold beverages and coffee (43% foresee growth), as well as immediate consumption prepared foods (62% foresee growth). These self-serve categories experienced, and continue to experience in some areas, various state and local restrictions.
NACS will release complete 2020 industry performance metrics and analysis of trends driving this performance during the live virtual NACS State of the Industry Summit on April 14.
The pandemic-related decrease in commuting and vehicle miles driven during the past year led to shifts in morning traffic and sales at convenience stores, with coffee and breakfast food sales off by 10% to 15%. Convenience retailers are reestablishing their locations as morning daypart destinations: 40% are offering discounts for repeat purchases, and 27% are promoting offers that incentivize shoppers to return for discounts.
“Retailers are optimistic that traditional driving routines are returning—from the morning commute to the family summer road trip—and that’s great news not just for our industry but for the overall economy,” said NACS Vice Chairman of Research and Technology Andy Jones, who operates Sprint Food Stores, based in Augusta, Georgia.
When asked which retail innovations they saw in 2020 that they will apply to their stores, most convenience retailers said contactless payments and last-mile offers like home delivery and curbside pickup will grow. Tying together new offers that emerged during the pandemic, 20% will expand services like drive-thrus, delivery and curbside pickup.
“Online ordering attached to a quick local delivery is not a new idea, but it is one that demonstrated significant use this past year. This has shown consumers that it is possible, and it will drive more usage and expectations, making it a standard option for retailers to provide,” said Charlie McIlvaine, CEO of Coen Markets Inc., based in Canonsburg, Pennsylvania.
Other retailers agreed that focusing on basic operations like inventory control and customer service will pay off as the pandemic recedes. “We saw the value of customer service—it’s essential for us to be friendly and act locally to continue earning our community's support,” said Malik Yousif, president of MYS Energy, based in Manassas, Virginia.
The NACS Retailer Member Pulse Survey was conducted in March 2021 by NACS Research. A total of 70 member companies, representing a cumulative 3,524 stores, participated in the survey.
