Picture a c-store with displays near the front entrance that change with the seasons. In the winter, stocking hats, ice scrapers and hand warmers hug the front window. In the summer, sunglasses, sun hats and sunscreen beckon shoppers to stock up and stay cool in the heat. Items that change with the seasons have seen growth within the general merchandise category, according to Jayme Gough, NACS research analyst. “However, overall general merchandise sales are way down as needs for COVID-specific safety products like sanitizer, gloves and masks continue to decrease.”

General merchandise accounted for 1.30% of in-store sales in 2022, contributing 1.67% to the inside gross margin, according to the 2022 NACS State of the Industry (SOI) data. The category averaged $2,961 sales per store, per month, a drop of 13.1% year over year. While general merchandise is an overall small in-store category, the category averaged margins of 44.09% last year.

“General merchandise as a whole is down because of the decrease in pandemic-related products, which had helped push up sales in 2020 and 2021,” said Gough. “However, retailers who use the category to introduce new products to consumers and capture those seasonal impulse sales should continue to see good results with higher rings.”

With 14 subcategories, it’s truly a section with a little bit for everyone. “The general merchandise category is an easy way for us to boost basket size and offer our customers more things to buy,” said Jody Van Regenmorter, one of the owners of Oak Street Station in Inwood, Iowa.

Selling Seasons

The seasonal subcategory, including items like firewood and road salt, grabbed 10.7% of the category’s sales in 2022, according to the NACS SOI data. More broadly, items that change with the seasons lifted the category overall. “Seasonal-themed gifts and impulse items have been consistent hot ticket items for us,” said Ross Dantonio, chief creative officer for Smith Co. Distributing, which works with convenience stores and other retailers. “Seasonal merchandise capitalizes on holiday and summer travel, too.”

At Oak Street Station, seasons-based general merchandise does well for the store. For example, in the summer, Van Regenmorter stocks firewood, propane tanks, bait and fishing lures and coolers, while in the colder months, Van Regenmorter brings in winter hats and gloves plus hand and foot warmers.

“We also try to have something related to kids, so for the winter, we’ve sold the stocking hats with animal ears and claws, while in the summer, we offer furry animal backpacks,” she said, adding that kid-oriented items sell extremely well. She also contracts with a local florist to offer fresh flowers around major holidays like Valentine’s Day and Mother’s Day, which have been popular with customers.

At Filling Co. Gas & Grub’s three locations in Virginia, seasonal items are hot. “We often sell through our seasonal items fast,” said manager Jordan Rubino.

Other general merchandise subcategories also have seasonal options. For example, the BIC pocket lighter has many seasonal designs, like for Halloween and the winter holidays. “C-store consumers love these seasonal offerings,” said Shweta Chawla, channel development manager for BIC Consumer Products.

Several years ago, Ty Inc.’s Beanie Babies began offering seasonal plushies. For example, pink, heart-stamped bears for Valentine’s Day, a bear in a pumpkin costume for Halloween or bears with Santa hats for Christmas. “We sprinkle our holiday offerings in with our everyday product on our permanent store display,” said Peter Olbrys, vice president of convenience/gas division for Ty Inc. “Having seasonal options makes the overall display pop and catches the eye of customers.”

Charging Sales

Telecommunications hardware continues to be a strong seller for the category, grabbing 17.0% of general merchandise sales last year. “To maximize impulse sales, we strategically place these items near high-traffic areas, such as the checkout counter or alongside snacks and beverages, to increase visibility and encourage customers to make spontaneous yet necessary purchases,” Dantonio said.

In the front of the store, a separate rack filled with car and wall chargers, headphones and cords helps move the items at Filling Co. “People are always looking for things related to their devices,” Rubino said.

Oak Street Station’s telecom-related merchandise is by the register. “We put those front and center to grab customer attention,” Van Regenmorter said.

Smoking Sales

At Oak Street Station, lighters, rolling papers and other tobacco- or cannabis-related accessories have been selling well when they are positioned right by the cash registers. The smoking accessories subcategory pulls in consistent sales for retailers accounting for 17.7% of the general merchandise category sales in 2022, according to NACS SOI data.

Sales of smoking accessories have been good at Filling Co. “A lot of people want lighters to go with their cigarette or tobacco purchases,” said Rubino.

Part of the draw of smoking accessories is how suppliers keep it interesting. “This year, BIC is marking the 50th anniversary of the BIC pocket lighter, so keeping the category fresh and exciting is something we have excelled at for many years,” said Chawla. “We start with consumer research to identify what our audience wants and needs, and we are constantly introducing fresh new designs as well as innovating to meet consumer needs.”

Appealing Apparel

More convenience stores are branching out into branded apparel as customers snap up hats, t-shirts and sweatshirts with the store’s logo and name. Wearables/apparel, which includes non-branded items, accounted for 9.0% of general merchandise sales last year.

Oak Street Station decided to add store-branded apparel like hats, sweatshirts and t-shirts since it already had stock on hand for employees. “Truthfully, it’s not one of our good sellers,” said Van Regenmorter. “But since we already have the items, we figured we’d offer them to customers, too.”

While Filling Co. has sold some branded shirts and sweatshirts to customers who ask after seeing an employee wearing one, Rubino said the store hasn’t added apparel permanently. “It’s something we’re looking into, but haven’t decided on the logistics necessary to have our branded shirts for sale,” she said.

Play Time

Greeting/gift/novelties/toys/rec equipment accounted for 7.3% of general merchandise sales in 2022. One of Oak Street Station’s bestsellers in general merchandise is its vinyl stickers for vehicle windows. “A few years ago, one of our suppliers offered them to us for a six-week trial, and we took a chance,” Van Regenmorter said. “To our surprise, they’ve sold extremely well.”

One of the surprisingly popular items at Filling Co. is Beanie Babies. “We have a rack and stock it with regular and seasonal Beanie Babies, which do really well for us,” Rubino said.

“Convenience stores offer huge potential for our plushies,” said Olbrys. “Consumers know our Ty brand and they flock to the displays at their favorite c-stores.”

A General Conclusion

The general merchandise category provides retailers with the opportunity to bring in products to meet an immediate need but also to surprise the customers. “The general merchandise category might have been overlooked in the past, but it’s becoming a very viable category for convenience stores as shoppers find interesting and fresh items to buy,” Olbrys said.

“As c-stores continue to adapt to changing consumer behaviors and preferences, general merchandise will play a crucial role in expanding their offerings beyond traditional convenience items,” Dantonio said. “Overall, the future of general merchandise in convenience stores will be marked by innovation, convenience-driven strategies and a focus on meeting evolving consumer expectations.”