• by Sarah Mahoney , July 7, 2008

Americans are mad as heck at soaring gas prices, and they're taking it out on the easiest target: Convenience stores.

As many as one third of all consumers are now buying most of their gasoline at alternative retailers-better known to consumers as supercenters, supermarkets, and warehouse clubs, according to a new survey from TNS Retail Forward. That's up from 22% just three years ago.

And while these alternative gasoline retailers now capture an estimated 13% of U.S. gas sales, the company predicts that figure will rise to 16% by 2012.

"Fewer shoppers filling their tanks at convenience stores mean fewer shoppers filling their stomachs with higher-margin goods inside the store," the Columbus, Ohio-based retail consulting company says. "Sky rocketing gasoline prices also leave little change in shoppers' pockets for in-store purchases."

Consumers are looking to save money on gas anyway they can, "and the alternative players' cents-off promotions are very attractive," it finds. "As a result, we expect more shoppers to take advantage of the increasing number of fuel-reward programs." And these stores offer the additional incentive of one-stop shopping, which means consumers don't have to burn fuel to buy fuel.

"Campaigns that tie fuel rewards to high-margin purchases such as private brands, non-grocery general merchandise items or in-store services will be critical going forward."

And for struggling convenience stores, fighting back won't be easy. "C-stores must prepare for a future retail landscape that will be filled with an increasing number of small-store concepts that home in on convenience," it reports, so they must add some kind of "destination appeal" beyond being near the gas pump. "Ultimately, convenience stores that reduce their reliance on gasoline by focusing efforts inside the store will be best positioned for the future."