Supply Chain Disruptions Impede C-store Industry's Ability to Meet the Fill-In Needs of Shoppers
NATIONAL REPORT — Empty shelves, a common sight in grocery stores throughout the pandemic, are now a problem for convenience stores and their consumers who turn to the channel for midweek trips.
C-store retailers are pointing to supply chain challenges as the reason they cannot not adequately meet the fill-in needs of consumers, according to CNN.
TXB CEO Kevin Smartt told the news outlet he has been closely monitoring weekly product availability reports from his distributors. "Here's the magnitude of the problem right now," Smartt said. "As a chain, we're probably averaging 6,500 to 8,000 outs a week from manufacturers."
Across TXB, out-of-stock products are averaging 12 percent to 13 percent currently. "In a normal environment, it would be about 1.5 percent," he said.
Finding an alternative brand to fill the spot is also proving difficult, Smartt added.
The problem is especially felt in markets where TBX is the only store in town. "In those places, the convenience store is a lifeline for the community," Smartt said. "There's a lot of frustration from customers. Anything on top of the supply chain challenges, like bad weather, is making the situation worse."
Spicewood, Texas-based TXB operates 50 stores.
Arko Corp., the parent company of Richmond, Va.-based GPM Investments LLC, is facing the same challenge. Its network includes more than 1,400 c-stores in 28 states.
"In a lot of communities, we're it," said Mike Welsh, the company's senior vice president of operations. "It's a town with a mountain surrounding it, for example. There's a high school and a town hall. It's a small community where the school football team comes to us after a game to celebrate."
The stores across Arko's network are also finding few product options because of supply chain disruptions, and the uncertainty of not knowing what they'll be able to buy on any given day because of shortages is making customers anxious, Welsh told the news outlet.