Thinking Outside the Convenience Store Box

Retailers are exploring new ways to bring in business.

April 23, 2014

WORCESTER, Mass. – When City Mart Convenience store opened in November 2012, customers weren’t exactly flocking in to buy groceries and cigarettes, said owner Babu Lukose. But in the weeks that followed, more foot traffic followed and sales ticked up, allowing Lukose to branch out into a deli with seating, the Telegram & Gazette reports.

Lukose’s patience and gradually expansion of services and products proved to be a smart move in a time when U.S. convenience stores have faced challenges, including a slight drop in profits--$7.1 billion last year, down from $7.2 billion in 2012, according to NACS. However, during that same time, sales jumped 2.4% to reach a record $204 billion in 2013, mostly due to prepared foods and beverages.

In the Northeast, store sales advanced less than 1% last year, which retailers blamed on a colder-than-expected winter. “The harsh winter and cold weather in March has hurt our business with increased costs — energy and snow removal — and our sales have suffered,” said David Murdock, executive vice president of Honey Farms Inc.

Both Lukose and Murdock said keeping on top of what customers want is key to success in this business. Indeed, that is what has kept Amit Patel, owner of a Stop N Save, going. He offers his customers a wide range of foods, including Spanish and Indian foods, five cake mix varieties and four kinds of cooking oil.

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