General merchandise represents everything from batteries and school/office supplies to apparel and telecommunications accessories, making it a category of opportunity for retailers. “This category requires consistent tracking and tweaking based on market and consumer demand, as well as attention to what seasonal offerings to bring in,” said Jayme Gough, NACS analyst.

Because of its diversity, the general merchandise category gives retailers the chance to pick items that will boost repeat visits as well as their bottom lines. “There are so many possibilities for items to stock that retailers can get lost in the noise,” Gough said. “Success in this category comes down to knowing your customers and understanding what appeals to them.”

General merchandise appeals to retailers because it provides higher-than-average margins for retailers—47.18% in 2017, according to NACS State of the Industry data. The category represented 1.44% of in-store sales in 2017, up slightly from 2016. General merchandise ranked eighth in gross margin contribution, bringing in $13,297 in gross profit dollars per store in 2017.

Overall, sales for general merchandise have been up at Dad’s Quik Mart in Sparks, Nevada. “In the more than 30 years I’ve been in the business, this category consistently delivers a good profit margin,” said owner Phil Brown.

For Skinny’s in Saint Helens, Oregon, general merchandise sales have had steady growth. “I like the category because of the 50% or better profit margin,” said owner Lane Attrash. “We manage it every month to keep it on track.”

“Retailers who keep an eye on what consumers are buying and [don’t overstock] what they’re not buying in this category will reap rewards because of the high margins general merchandise delivers,” Gough said.

Giving Light

Smoking accessories, particularly lighters, are a staple at convenience stores. The subcategory brings in the most sales (17.8%) in general merchandise. “Consumers continue to look for high-quality, safe and dependable lighters that offer exciting designs reflecting their personalities and interests,” said Pat Cordle, vice president of field sales convenience for BIC Consumer Products USA. “For convenience stores, the key is to consider lighter size, colors and designs, along with anything specific to the consumer base or geographic location.” For example, stores in rural or outdoor sporting areas might want to carry outdoor lighters, while stores in cities with professional sports teams might find licensed lighters popular.

With its proximity to the Rocky Mountains, Genesee Country Store in Golden, Colorado, carries both regular and torch-size lighters. “Our lighters sell well with both smokers and campers,” said owner Lorri Molinari Alden. Brown only stocks the name-brand lighters because “generic ones aren’t very popular with customers. We merchandise them on the front counter and move a lot of lighters.”

Cordle recommended that retailers work with their suppliers to determine the right mix of lighters for their store, given how well the products sell at convenience stores. “Consumers continue to seek out high-quality, safe and reliable lighters for a wide variety of lighting occasions that showcase many designs and colors,” he said.

Keeping Connected

Telecommunications hardware contributes 14.8% of the general merchandise category’s sales, making it one of the top subcategories. Retailers usually merchandise telecommunications hardware on spin racks near the register to capitalize on both impulse and need-based buys. “Telecommunications hardware is a strong subcategory, as consumers always need chargers and accessories," Gough said.

This is a category where we’re willing to try something new to keep it fresh.

Dad’s Quik Mart carries Android and IOS chargers, plug-ins, cords and earbuds. “This is a very good category for us, so we give it prime real estate near checkout,” Brown said. “We try to stock the most popular items while having a little bit of everything for customers.”

“We have a pretty basic selection of chargers and headphones in telecommunications hardware,” Attrash said. “It’s necessary for us to have these items because customers expect to find replacements at a convenience store.”

Phone cords and chargers sell extremely well at Genesee Country Store. The store—which caters to a large number of travelers—has two displays of telecommunications hardware. “We have a utilitarian display and one that has more upscale items,” said Alden. “Most of our customers want to get an inexpensive cord or charger because they forgot theirs at home, while some want a higher-end one. It’s been good for us to offer both options.”

Merch for All Seasons

Seasonal rotation is critical to maintaining relevant and interesting products for the obvious holidays—Valentine’s Day, St. Patrick’s Day, Fourth of July, Christmas—as well as annual or biennial events such as the Super Bowl and the Olympics. “One way that retailers can boost this category is by paying attention to the holidays or events that consumers in their area get excited about and stocking items related to them,” Gough said.

Some retailers prefer to focus on weather-related seasonal products. For example, gloves and stocking hats in the winter and baseball caps and suntan lotion in the summer do very well at Skinny’s. A few items, such as firewood and sunglasses, sell year-round. Attrash uses the seasonal category to try new items. “Last summer, we added a portable barbeque grill that has sold surprisingly better than bags of charcoal did,” he said.

At Dad’s Quik Mart, Brown uses the seasons to switch out general merchandise products. “We have hats, gloves, window washer fluid and ice scrapers near the front of the store in the winter and change those out with sunglasses and hats in the summer,” he said. “But we sell firewood and work gloves all the time, so those have a more permanent place in our store.”

Appealing Apparel

Wearables have become more popular at convenience stores, whether they are store-branded T-shirts or hoodies advertising local tourist destinations. And at 9.7%, the wearables/apparel subcategory rounded out the top five sales contributors in general merchandise.

“We have hats, T-shirts and mugs with our store logo on it, and sales are pretty good for the hats and T-shirts,” Brown said. He started stocking the items after regular customers requested the Dad’s Quik Mart T-shirts that staff wear as a uniform.

Success comes down to knowing your customers and understanding what type of general merchandise appeals to them.

Genesee Country Store has a small section of wearables, including long-sleeved T-shirts, socks, flip-flops and hats. “We’re a transition from the flatland to the mountains, so we’ll often get tourists who didn’t dress for the weather,” Alden said. “It’s been very helpful for us to have a good selection of wearable items.” She updates the section periodically based on feedback from customers. For instance, the store added face shields because customers requested them.

A General Future

General merchandise will continue to perform well at convenience stores that pay attention to the category and try new and seasonal products to keep it fresh. “At the beginning of the year, we do a refresh in general merchandise to ensure we have the right mix of products ahead of our busy summer,” Alden said. “I’m always looking for unique items to put in this category, both to encourage customer interest and boost sales.”

“This is a category where we’re willing to try something new to keep it fresh,” Brown said. “It doesn’t always work, but customers like having novelty items or new things in general merchandise. For us, the profit margins are so good that we’ll continue to try new things.”