SCOTTSDALE, Ariz. -- Convenience stores may be rebounding from an unprecedented first-half of the year, if late second- and third-quarter figures are to be believed, according to one research firm. Trip frequency is up slightly in the second and third quarters for c-stores after declines in the first quarter, according to Kurt Orr, vice president of consulting and innovation with the Chicago-based Information Resources Inc. (IRI), who spoke exclusively to retailers at the CSP Consumer Insights Forum in Scottsdale, Ariz., earlier this week.

"Convenience is kicking back," Orr told about 50 retailers and suppliers at the annual session. "That's great news, but they're still competing with other retailers-drug stores, grocery and super centers. The competition for the convenience dollar is on the rise."

In a study separate from its c-store based scanning data, IRI also collected data from 1,150 c-store consumers recently, finding that not only do 75% of respondents expect to pay more at c-stores but only a third are willing to pay more because the location is close to home.

"Convenience isn't enough to sustain meaningful differentiation," Orr said.

Though more c-store consumers in the study (35%) still claim to visit c-stores with gas for a "fast purchase," supercenters came in second with 21% and small grocery stores came in third at 16%.

Convenience is not the only factor in consumers' shopping decisions, he said, noting that cleanliness, price and quality of service ranked just as high as proximity for respondents.

Orr suggested c-stores focus on innovation to help the industry continue to differentiate itself from nontraditional competitors. He developed a brief list inclusive of the following:

Distinct changes in shopping patterns are occurring from not only the low-income demographic but even those consumers in the $100,000-plus per year households, he said, noting that retailers must begin to better understand consumer behavior and react accordingly.