Connecting with Convenience Stores Anna Ready

The Convenience Store Industry Convenience Stores $550 billion ($317 billion gas, $233 billion in store) Restaurants $709 billion Supermarkets $669 billion Drug stores* $264 billion *(not including prescriptions) #21 GDP if a country, just above Switzerland

Brick & Mortar U.S. Retail Trade Channel 2016 2017 Unit Change % Change Convenience Store 154,535 154,958 423 0.27% Single Stores 97,504 97,643 139 0.14% Category Killer 87,983 86,306 (1,677) -1.91% Liquor Store 47,073 46,257 (816) -1.73% Drug 43,636 43,169 (467) -1.07% Supermarket 51,191 51,134 (57) -0.11% Dollar 28,832 30,332 1,500 5.20% Cigarette Outlet 11,085 11,006 (79) -0.71% Mass Merchandiser 6,727 6,470 (257) -3.82% Wholesale Club 1,370 1,387 17 1.24% Kiosk/Other 20,699 19,921 (778) -3.76% Total Retail 453,131 450,940 (2,191) -0.48%

Serving Half of America Customer counts: 160 million customers per day 1,100 customers per store per day

Convenience Stores & SNAP 117,591 c-stores participate in SNAP 63% single store businesses

How Retailers Participate in SNAP: Criterion A A store must stock 3 varieties of food in the 4 staple food categories and have 3 units of each variety on shelves. There must be at least 1 perishable variety in 3 staple food categories (as of January 17, 2018). Criterion B A store must have more than 50% of its total gross retail sales from the sale of staple foods.

Access = Proximity 51% of all Americans live less than 1 mile from a c-store 94% of urban Americans that live less than 3 miles from a c-store 60% of rural Americans that live less than 3 miles from a c-store 81% of rural Americans live within 10 minutes of a c-store

Access = Hours of Service Most c-stores are open 24 hours per day, 7 days per week 14.8% of full-time workers work second or third shifts  they can only shop long after most other food stores are closed

Limitations Our Stores Face Space and storage constraints Delivery constraints Consumer demand

What items do you sell? We asked retailers: Fresh fruit/vegetables 74 Items sold in stores % of stores selling Added/enhanced in past six months 2017 Fresh fruit/vegetables 74 47 Cut fruit/vegetables 43 29 Nuts/trail mix 94 41 Health bars 96 45 Boiled eggs 59 8 Packaged salads 54 35 Yogurt 75 18 String cheese 72 12 Source: NACS Q3 2017 Retailer Sentiment Survey

85% NACS members that say they sell fresh produce Trends in C-Stores NACS and Fresh Produce 49% Consumers that say they can get fresh produce at c-stores (43% in 2014) 85% NACS members that say they sell fresh produce (72% in 2013) 14.4% 2015 C-store produce sales growth (5 X greater than U.S. increase of 2.7%)

What We’re Doing NACS reFresh launched in 2014 Vision: to lead positive change in how small format stores sell food and serve their communities. Mission: To provide resources and to create partnerships with like-minded community- and nutrition-focused groups to generate positive action in support of small format improvement. To cultivate meaningful relationships with key opinion-leaders in the media, government and other areas who can help better the industry and its image. Change doesn’t happen overnight; working towards this mission with our partners to better equip our retailers to help them as they make the shift towards fresh

Resources for Retailers Convenience Matters podcast NACS Magazine features Ideas 2 Go Videos Partnerships

Focusing on Fresh Distribution

PHA Commitment Continue to encourage NACS retailer and supplier members to take advantage of working with PHA. Develop a web-based resource that will help members identify products as being healthy options in defining their better-for-you sets. Continue to engage corner stores that are often the only food source for residents. Disseminate “Drink Up” outreach materials that encourages customers to stay hydrated. Emphasize wellness at the NACS office and events.

Online Calculator (convenience.org/calculator)

Drink Up Convenience stores sell 46% of all single-serve bottled water (Source: Nielsen)

Corner Store Initiative 35,000 stores in U.S. 800-2,000 square feet

Do you want to learn more? www.convenience.org Anna Ready, Director of Government Relations aready@convenience.org Jeff Lenard, Vice President of Strategic Initiatives jlenard@convenience.org Carolyn Schnare, Director, Strategic Initiatives cshnare@convenience.org