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No one would be surprised that convenience stores are more expensive than grocery stores or supermarkets. But, how much more does one have to pay at a convenience store? Is there a case for shopping at convenience stores at all?

How much more?

Naturally, one could go through individual grocery items to compare prices, but due to constantly changing prices in retail stores, the results would be out-of-date almost as soon as they had been recorded. Research exists which gives us a very good idea of the differences.

According to an article from the Southern Economic Journal, in the US, we are paying on average 20% more at convenience stores than at other stores. Over in Europe, a National Consumer Agency of Ireland study found that a difference of 10.8% between a basket of goods in convenience stores versus multiples. More recently in the US, NBC5 did a simple comparison shop of items such as toothpaste, deodorant, detergent and shampoo and found a 30% difference.

Differences on individual items will vary, but one can safely assume from research and studies that on average you are paying approximately 20% more on average for the time-saving convenience store.

The Cost of Convenience

So, clearly anyone shopping at a convenience store is paying a premium for the privilege. NBC5 also commented that the time taken to purchase items at a convenience store was not really much less than at other stores such as Wal-Mart and Target. So, why pay more? The convenience seems to lie in the ease of access to such stores compared to the large hypermarkets that are usually found in locations in more out of town areas.

The Association for Convenience and Petroleum Retailing tells us that the top sellers in convenience stores are the more individual items not purchased during the weekly grocery shop: 1) Cigarettes 2) Packaged Beverages (non-alcoholic) 3) Beer 4) Food service) 5. Other Tobacco

Steven M. Crafton's research on convenience stores and time value suggested it makes sense for above average wage earner's to use convenience stores, because of the greater monetary value attributed to their time. Someone with more disposable income would be more willing and able to pay extra for convenience than a low wage-earner. However, Chung and Myers in "Do the Poor Pay More for Food?" illustrate that unfortunately the opposite is true in practice:

"Those who shop in non-chain stores pay a significant premium, and the poor have less access to chain stores. This study reveals that the biggest factor contributing to higher grocery costs in poor neighborhoods is that large chain stores, where prices tend to be lower, are not located in these neighborhoods."

Modern day grocery stores are designed for car transport, both in how you get there and the average volume of purchases. With fewer cars per person in the major cities, the tendency is for smaller, more local stores, which is precisely what can be seen in poor neighborhoods.

In conclusion, one should be conscious of the fact that we are paying, on average, 20% more at convenience stores than in other stores. It is, however, individual personal circumstances that will dictate whether this is a cost worth paying.

Learn more about this author, David Taylor.
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