Some are coining 2023 a year of revival and reset.
Customer routines and habits are still altered after three years of the lingering COVID-19 pandemic, but experts agree that customers are ready — for real this time — to get back to life as usual.
Euromonitor International pointed out that “Revived Routines” is a major consumer trend for 2023 that will see customers “out and about” regardless of lingering pandemic uncertainties as they continue to make up for time lost during the early days of the pandemic.
But just as customers are gearing up to reclaim routines, inflation is surging, prices are skyrocketing and fears of a recession are mounting, all of which are already impacting shopper behavior.
This year’s Category Management Handbook reveals prices are rising across categories, with some items hit by increases of 10% or more vs. last year. While dollar sales have held steady or grown for many categories, unit sales are slipping across the board, likely because elevated pricing is causing customers to pull back on purchases.
Retailers are still grappling with ongoing labor shortages and out-of-stocks, which many have pointed out are more sporadic than they were during 2021 but continue none-the-less. More operators are expanding their own private-label brands and relying on them to fill holes caused by out-of-stocks in merchandising sets.
Innovation Ahead
Despite surging inflation, innovation has not slowed in the c-store sector. From new product launches to technological upgrades and foodservice development, the c-store industry is putting its best foot forward in 2023 to reclaim customers as they embrace their old routines.
All eyes are on electric vehicles (EVs) as retailers evaluate what their rise might mean for their business. Retailers bullish on what EVs can do for their business are adding EV chargers to their forecourts, while upping their foodservice game to appeal to those waiting for a vehicle to charge. Those worried about what EVs could mean for the industry are likewise investing in foodservice to build another revenue center as gasoline sales decline. A quality food program starts with a top-notch coffee program. So it’s no surprise that c-stores are also investing in their coffee offerings this year, with many adding bean-to-cup coffee dispensers.
Technology also continues to evolve with more retailers adding self-checkouts, mobile apps and delivery, as well as making upgrades to their point-of-sale (POS) systems. For 60% of retailers, software upgrade or replacement is a top POS priority, according to Retail Consulting Partners’ “2022 POS & Customer Engagement Report.” Meanwhile, loyalty programs are becoming more personalized as retailers look to form deeper connections with customers to better market to them.
As retailers wrap up Q1 of this year of reset and revival and prepare for Q2, they’re sure to have their work cut out for them as they balance providing the innovation customers are hungry for with inflationary pressures, out-of-stocks, rising prices and labor shortages.
The 2023 March issue of CStore Decisions highlights the emerging trends and recent data in 38 key c-store categories, as well as retailer insights about what they are seeing at store level to help you best navigate the year ahead.
