NATIONAL REPORT — Edible grocery products represent a major point of opportunity for convenience stores, as unit sales are growing faster than dollar sales in the channel, according to new data and analysis provided to Convenience Store News by Nielsen.
Although edible grocery sales at food, drug and mass-merchandise (FDM) retailers in the last 52 weeks ending Oct. 26, 2015 dwarf edible grocery sales in the convenience channel over the same time period — $68.6 billion vs. $1.05 billion, respectively — c-store sales are on the rise. As of late October, 2015 edible grocery dollar sales at c-stores increased by 3.8 percent over 2014.
Packaged coffee and tea saw the largest increase in this category at 5.8-percent growth, up to $84 million in total sales, although some of this growth was driven by inflation. Breakfast cereals also contributed to growth with a 3.3-percent increase.
Water beverage enhancers, meanwhile, saw the largest decline in the category with a 25.2-percent decrease in dollar sales compared to one year ago. However, this segment only accounts for 1.7 percent of the total category.
Overall, Nielsen reports c-store unit sales growth of edible grocery (up 4.6 percent) is outpacing dollar sales growth (up 3.8 percent) this year.