While U.S. convenience stores experienced a $121 million drop in sales in 2015, they made up for it with a $200 million increase in pretax profits, according to data released at the National Association of Convenience Stores (NACS) State of the Industry (SOI) Summit held recently in Chicago, IL.
The annual NACS event, regarded by many as “the industry’s crystal ball,” brings together business experts, economists and top retail performers to hear fresh perspectives related to critical business areas such as finance, store operations, merchandising` and fuel sales. The organization’s SOI is highly regarded as the authority for data and insights into the convenience channel.
Among the many data points shared during the Summit, NACS revealed that total sales in the industry dipped sharply due to sustained low gas prices in the marketplace during the last six months of 2015. On the flip side, in-store sales performed extremely well – hitting a record high of $225.8 billion, an increase of 5.8 percent. The in-store sales growth was also attributed to lower prices at the fuel pumps, plus a recovering economy. The less money consumers spent at the pump, the more money they had to spend inside the stores. In turn, the increased foot traffic benefited retailers, because in-store products have significantly higher profit margins than motor fuel. The bottom line, quite literally, is that even though the industry’s top line sales fell by more than $121 million from 2014, pretax profits were up 1.6%, or $200 million, climbing to $10.6 billion year-over-year.
|INDUSTRY SNAPSHOT||2014||2015||% CHANGE|
|U.S. Store Count||152,794||154,195||0.9%|
|Inside Sales||$213.5 Billion||$225.8 Billion||5.8%|
|Motor Fuel Sales ||$482.6 Billion||$349.0 Billion||<7.7%>|
|Total Sales||$696.1 Billion||$574.8 Billion||<17.4%>|
|Pretax Profit||$10.4 Billion||$10.6 Billion||1.6%|
|(Sources: Nielsen/TDLinx; NACS)|
Other statistics in the SOI report include the top 10 in-store categories by sales. Click here
to find out more.
Director - Retail Marketing