Valero Exec Summary Essay

914 Words Dec 6th, 2015 4 Pages
Jennifer Kim
Valero corner store 123 Main St. Houston, TX 77002
Executive summary
Jennifer Kim
Valero corner store 123 Main St. Houston, TX 77002
Executive summary

Purpose
This report examines the effects of the recession and competition on visiting traffic to convenience stores (c-stores) and offers recommendations on opportunities to increase stops.
Key Findings
From 2007-2009, traffic has reduced from 491K to 373K visits in an average 30-day period. Additionally, the convenience channel has blurred as other outlets, such as supermarkets, warehouses, and drugstores sell gas and grab n’go options. Therefore, the research draws attention to the changing c-store landscape. * The demographic of c-store consumers are 65%
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* C-stores, at 20%, compete with a variety of outlets for packaged beverage sales, but QSRs, at 50%, own the biggest share- and a bigger share of the 10am-2pm time slot. Top reasons consumers visit a c-store when purchasing packaged beverages were convenience, quick shopping, and availability of gas. At the same time, snack and food purchases are low on the list of reasons. * Hot beverage sales are strong from 10am-6pm and growing with competition. The growth of specialty coffee at QSRs are pushing c-store specialty coffee sales up by 3%. However, traditional coffee accounts for the majority of sales at 65%, while specialty coffee only accounts for 26% of sales. Main reasons consumers choose c-stores over other outlets when purchasing hot beverages are convenience, quick shopping, and value. Nonetheless, QSRs out-compete c-stores when it comes to consumer’s perception of food quality and offerings.
Prepared foods have become another arena in which c-stores can increase traffic. Due to the recession, consumers have replaced full service restaurants with meals at QSRs and c-stores with quality offerings. * The average consumer ate prepared foods from a c-store 90 times last year, which accounts for 7% of all purchases. Although, they win on convenience and routine, consumers say they lag in food quality compared to QSRs. Furthermore, the recession has made prepared food purchases with deals more

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