Convenience stores

Even Convenience Stores Are Running Out Of Your Favorite Products – Here’s Why

Orlowski Designs LLC / Shutterstock.com

Convenience stores are great places to pick up a range of items between trips to the grocery store. However, convenience store operators say continued supply chain disruptions have impacted their ability to meet the demands of shoppers in major cities and the day-to-day essential needs of customers in secondary markets and rural areas, a reported CNN.

See: Why inflation and the supply chain could bring more volatility to economic recovery
Find: Plan ahead for these supply chain issues that will affect your portfolio in 2022

“Here’s the scale of the problem right now,” Kevin Smartt, CEO of Texas-based convenience store chain TXB, told CNN. “As a chain, we’re probably averaging 6,500 to 8,000 releases per week from manufacturers,” he said. ‘Outs’ refers to a branded product that is out of stock and cannot be delivered that week.

Smartt added that out-of-stock items averaged 12% to 13%. Normally out of stock products average 1.5%. He noted that while he usually restocks with an alternative brand, even that has been difficult.

Related: Understanding the Differences Between Inflation, Deflation, and Stagflation

“It’s a daily struggle to buy substitute brands from alternative suppliers for the products we sell. It’s a war zone because everyone is doing the same thing,” he explains. “It’s a logistical nightmare and sometimes the substitutes we have to buy are more expensive.”

Most TXB stores are in small towns and often it’s the only store in town, Smartt told CNN. These communities rely on convenience stores for food and other necessities.

Mike Welsh, senior vice president of operations for Arko, one of the largest convenience store operators, also told CNN that Arko-owned stores have fewer options due to shortages.

“We try to fill in the gaps with substitute items, and sometimes we just can’t,” Welsh said.

More from GOBankingRates

About the Author

Josephine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but is now based in Ohio where she attended Ohio State University and lives with her two toddlers and her fiancé. His work has appeared in print and online publications such as Fox Business and Scotsman Guide.