C-store count falls again (STZ)
The number of convenience stores in the U.S. decreased 1.5% to 148.026 in 2021 according to the trade group National Association of Convenience Stores and NielsenIQ. 2021 was the fourth consecutive year of decline in the store count. Single-store operators decreased 3.1% and now represent 60.4% of all C-stores. The number of grocery stores decreased 2.9% to 45,687. The number of drug stores decreased 1.5% to 41,000. The only channel to see growth in the store count was dollar stores with 3.8% growth to 35,501. Gas stations/kiosks that do not have a large enough store to be considered a convenience store saw a 5.2% decline to 14,826. Over the last six years gas stations/kiosks have seen a 33% decline in the store count as it has become increasingly important to have revenue outside of fuel. Convenience stores which saw a 2% increase in beer sales, accounted for more than half of the beer category’s $44B in off-premise sales in 2021 according to IRI.
Online grocery same store sales decline (ACI)
Both online order volumes and average online order value fell for most conventional grocers in 2021. According to Brick Meets Click online same store grocery sales decreased 6.8% YOY for conventional grocery stores for the 12 weeks ended September 28. Orders fell 3.1% while average order value fell 3.9%. While online grocery spending increased 2% points to 13% of all grocery spend in the U.S., the growth in online grocery spending was driven by mass retailers. Conventional grocers have invested in the digital offering and staffing to provide pickup and delivery orders, but the mass retailers have a wider product assortment and more generous order minimums or fees. Albertsons’ digital sales grew 9% in the quarter ended in November, but the company has been rolling out the digital offering to new stores throughout the pandemic.
Canadian beer sales accelerate (TAP)
Total beer volumes in Canada increased 2.3% in November YOY, accelerating from the 0.7% increase in October. Domestic beer volumes grew 2.8% while imported beer volumes decreased 0.9% as seen in the chart below. 85% of the beer consumed in Canada is made in Canada.
