Why Are Prices Higher at Convenience Stores?
Prices in convenience stores are often higher than those at supermarkets. Convenience has a value that many people are willing to pay extra for. Two-thirds of consumers will pay more for convenience in grocery, clothing, electronics, and pet supplies categories. Convenience stores operate 24 hours, have limited range of products and therefore, higher cost per sale compared with regular supermarkets.
- Labor Costs and Convenience Premium: Convenience stores deal in low volume. This makes labor a greater percentage of sales in a convenience store. The store can charge higher prices because they offer greater "convenience."
Why Convenience Stores Charge More
Convenience stores usually charge significantly higher prices than conventional grocery stores or supermarkets because they order smaller quantities of inventory at higher per-unit prices from wholesalers. Operating costs for smaller stores are higher in built-up areas with higher rents and rates. Convenience has a value that many people are willing to pay extra for.
Are Convenience Products More or Less Expensive?
Shoppers who regularly buy groceries from Tesco and Sainsbury’s convenience stores instead of their bigger supermarkets are likely to pay hundreds of pounds more over the course of a year. A study by Which? suggests people could be spending an extra £15.73 a week on everyday items – or more than £817.91 a year.
Pitching EV Charging to Convenience Stores
Convenience stores will play a central role in the transition to a more sustainable transportation network. By installing EV charging equipment, stores can be prepared for the future when most vehicles will be electric. It’s time for convenience stores to embrace EVs by incorporating charging stations into their business models. A whole clientele of EV drivers is waiting for this opportunity.