What price convenience?

Convenience stores were all but unknown in Israel a decade ago. You went to the gas station, filled up the tank, maybe washed your windshield or checked your oil, and drove off. Today you can grab yourself a hot coffee and a snack, purchase a present for the kids or, soon, even buy some sushi at any of the more than 600 convenience stores that have opened in the last ten years.

Most of these stores are located at gas stations, a la the American model. Paz runs a chain called "Yellow," Sonol operates the "So Good" chain, Dor Alon called its chain simply "Alonit," and Delek runs the "Menta" stores. But how do Israelis feel about these outlets, which in fact are not all that cheap?

Not too bad, it would seem. A survey conducted on behalf of TheMarker by the Panels market research firm found that 80% of respondents visit convenience stores between once a day and once a month. More than a quarter of the respondents (29%) spend up to NIS 20 on average per visit, while 38% spend between NIS 20 to NIS 40.

"The target population of convenience stores is people on the road, who don't have the time to browse," says Hagit Kamin, marketing manager of the Yellow chain. "They're a one-stop shop service, a place where you can withdraw money, have a drink, load up your EasyPark device or even buy a book."

Many don't plan on buying anything, says Yoram Cohen, marketing manager for Sonol. They stop at the station to fill up the car and wander into the store to pay for the gas, which can lead to an impulse buy - a candy bar, a magazine, a sandwich winking from the cooler.

Camping gear and theater tickets, please

Different outlets of the same chain may offer very different products. "Obviously the range of goods at a store in Umm al-Fahm will be different from a store in Bnei Brak, and the range at a store in a city will be different from a store in an industrial zone," says Cohen. "We vary the range depending on the needs of customers living in the area."

For example, stores situated along highways in heavily touristed areas might feature camping gear, disposable cutlery and plates, coals for barbecuing and so on, while a store in a city center would showcase ready-to-eat meals, muffins and sandwiches, he elaborates.

The various chains also devote a great deal of effort to product development. The So Good chain, for example, recently launched a joint initiative with Office Depot, and now stands with choice products can be found inside So Good stores. There you were, wanting just a soda and pow! A printer grabs your eye.

"We'll soon be starting a service for customers to pick up pre-ordered theater and movie tickets, sparing them the need to wait on line at the venue," says Cohen. Moreover, that service will be offered gratis, as far as the theater-goer is concerned; So Good will be paid by the supplier. However, So Good believes that while a customer is waiting for his tickets, a nice tuna sandwich or set of bright-colored pens might catch his eye.

Haim Elmoznino, deputy CEO of Delek and CEO of Delek Retail, reveals a pilot program being tried out at one of the Menta outlets. You guessed it - sushi - made on the spot by a professional sushi chef. The venture is in its infancy stages and Elmoznino has yet to decide whether to expand the concept of gas-station sushi onwards and outwards through the rest of the Holy Land.

Kamin, of the Yellow chain, has noticed the popularity of fresh fruit that is peeled, cut up and ready to eat, available in single or family-size packs.

Then there's the Dor Alon chain Alonit, which saw another niche in which to make good: in about two weeks the Alonit stores will be equipped with a station to print pictures from your cellphone or disk-on-key, just like at photo stores. The service will be low-cost to start with, the company promises, and the more pictures you have to develop, the less it will cost.

No question about it, it's convenient to drop by these stores for a single item or two, or a sandwich on the go. But you may not want to do the week's shopping there as these stores tend to be on the costly side.

The convenience is worth money to the consumer, and that's the whole point of these chains: they save time. "We live in a world where time is money and sometimes it pays to put out a few more shekels," argues Cohen. Moreover, the differences between convenience-store and supermarket prices, he says, boil down to a few shekels, not gaping chasms.

To help you decide for yourself, TheMarker has provided a table comparing 14 products at the four gas-station convenience store chains, as well as the Super-Sol Sheli (My Super-Sol) retail chain. The green price indicates the cheapest one among the convenience stores. Now it's up to you to determine whether the convenience is worth the price.