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    Healthy Customers, Healthy Profits

    For decades, store owners in the convenience and small grocery store industry have been primarily focused on meeting the needs of the customer on-the-go.  In years past, this customer has sought out the usual bag of chips, candy bars, bottled soda, or even quick-serve hot foods like hot dogs or pizza.  Over time, the convenience store became the place for either “junk food”, cigarettes, alcohol, or emergency household staples (milk, toilet paper, etc.)  Today, the c-store industry is being revolutionized, as consumers everywhere are becoming more and more health conscious and looking for the healthier options for meals and snacks throughout the day.

    Gone are the days when having some healthy options like fresh fruit or granola bars was just a “nice thing to do”.  Today’s consumers are spending their money where they know they can find food and beverages with healthier nutritional profiles.  Many store owners have often considered a move toward healthier inventory to be too expensive. However, food and beverage industry analysts says that today, the investment is more important to profit gain than ever.

    Why now?

    The answer is pretty easy.  The key demographics in today’s c-store industry are the younger generations; Gen-Z (0-23), millennials (24-37), and some of Gen-X (38-48).  This population has embraced a very positive attitude toward snacking throughout the day, value convenience, and are particularly enthusiastic about leading a health conscious lifestyle.  Plus, the baby boomer generation are likely to have health conditions that require them to pay close attention to sodium and sugar content in the foods they eat.

    A study by Technomic reports that more than half of the consumers surveyed said that they were seeking more healthy items than the year before. 53% of these same consumers also said that they would visit c-stores more often if healthier foods were more available.1  With statistics like these, the opportunity for convenience and small grocery stores to continue growing their customer base and profits is really reliant on their addition of more healthy items in all categories.

    Another important factor for merchants to consider is the potential for changing SNAP retailer regulations.  As you may have heard from prior emails and articles on our blog, the Food and Nutrition Service is looking to change their rules so that retailers who wish to accept SNAP or EBT payments will be required to stock even more qualifying items.  This change comes in an attempt to help ensure SNAP beneficiaries are provided healthy options.  Although the new requirements could make it difficult for many merchants to stay in the SNAP program, they could have a great deal of benefit for EBT card holders.  Now’s a great time to start trying to prepare for the potential shift in regulations.

    What Should You Do?

    Take a step back and look at all of the products you’re stocking in your store.  What options are you providing for your consumers in different categories?  With variety of products on the market today, it should be easy to ensure you have a good selection of healthier items available in each category.

    • Pay Attention to Labels: One of the easiest ways to optimize your store’s inventory for the consumers seeking healthy snacks is to ensure the availability of items that call out specific health benefits.2 Make sure you’re stocking products that tout quality ingredients, non-GMO and gluten-free ingredients, and even low-calories and draw attention to these perceived benefits right on the packaging.

    Look to add more healthful varieties of the typical chips, candy, and drink that you currently have to allow your consumers to enjoy the same tasty thrill of snacking without the risk associated with “junk food”.

    • Seek Simple Ingredients: Meat snacks, snack bars, nuts, fruit snacks, and trail mixes have all seen a great deal of growth in the past two years. These kinds of snacks offer the benefit of protein and other important nutritional gains without the complications of too many extra ingredients.  Even larger snacks, like cakes or cookies, with a small number of ingredients are popular amongst the consumers who value the ease of transparency in the foods they’re buying.
    • Single-serve is Important: The average c-store consumer is usually in a hurry and looking for a snack, or small meal, to satisfy their needs. Having the ability to mix and match single-serve items is a huge benefit for these customers.  Consider having healthy snacks like yogurt cups, fresh fruits, bite-sized veggies, salty snacks and dips, and more.  These options allow the consumer plenty of variety, and the convenience of “on-the-go” snacking.
    • Don’t Neglect Drinks: Many of the most popular beverage companies, including Coke and Pepsi, have made a wide variety of healthier drink options available to consumers. A lot of consumers have already made the decision to stop drinking carbonated sodas and other sugary drinks and are always seeking a refreshing and tasty, yet healthy beverage.  Of course, bottled waters are always important to keep in stock as well.

    Within the last decade, the percentage of adults who believe they are making healthier snack options has increased to 30 percent.  As the tendencies of the modern day c-store consumer continue to move more toward health consciousness store owners should take heed and make as much effort as they can to improve their selection of products.  Don’t risk losing the opportunity to gain customers or keep them coming back by neglecting healthier products in all of your store categories.

    References

    1. http://www.foodnavigator-usa.com/Markets/Convenience-stores-emerge-as-health-food-destination
    2. http://www.csnews.com/%25cat%25healthy-foods-healthy-profits