Dive Brief:
- A new 900-square-foot convenience store in Silver Lake, California sells only healthy and sustainable products. Rachel Krupa, founder of The Goods Mart, told Moneyish that she would like to expand the concept.
- The Goods Mart is laid out similar to a 7-Eleven and features 300 curated products such as organic slushies, grain-free tortilla chips, organic Starburst candies, Annie’s Homegrown mac ‘n cheese, Cliff Bars and Kettle Brand chips.
- According to Nielsen, as of December 31, 2017 the total U.S. convenience store count rose 0.3 percent to 154,958 stores. Nielsen attributed the growth to a “focus on innovation, improved customer experience, assortment variation and healthy investments in food services.”
Dive Insight:
The idea of bringing healthier foods into the c-store space isn’t new. Stores like Oregon's Green Zebra Grocery and Green Leaf in Massachusets have adopted the format to bring all sorts of fresh and sustainable goods to consumers hungry for healthy convenience.
On a larger scale, 7-Eleven started taking better-for-you offerings more seriously in 2012, when it hired its first VP of fresh food innovation. Now, the ubiquitous chain sells strawberry cups and kale and quinoa salads alongside its taquitos and hot dogs.
So while The Goods Mart is an interesting concept, it isn't quite revolutionary. Still, owner Rachel Krupa does hope to take the concept mainstream, raising questions about the health-focused evolution of c-stores and the scalability of those devoted entirely to healthy products.
Can an entirely healthy, sustainable, curated concept work? Small-format grocers have already shown that it can. Independents have led the way here, and as demand for health and convenience grows, chains like Aldi are expanding while also offering more fresh items for shoppers. Companies as varied as Dollar General and Whole Foods are rolling out smaller stores that cater to health-conscious consumers in mostly urban areas.
Location is key. The Goods Mart may very well succeed in Silver Lake, California, which has been called “the hippest neighborhood in Los Angeles” by Forbes. That doesn’t mean it will translate in Laredo, Texas, one of the unhealthiest cities in the U.S.
Another critical factor to consider is the very reason the c-store category exists in the first place – convenience. Having some of these fresh and healthy food will attract a good chunk of consumers, especially millennials. But having only fresh and healthy food may not always be convenient for weary travelers who are craving an indulgent pick-me-up, or families with picky kids.
If The Goods Mart is to expand its footprint, it will have to acknowledge that its niche concept will attract a niche (albeit growing) consumer most of the time. It is possible for this concept to eventually scale up. Whole Foods, for one, brought organic food to the masses and kick-started an entire industry. The Goods Mart can look to this brand as case study to further the conversation.