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– In-store sales increased 2.2% to a record $242.2 billion – Foodservice sales accounted for 22.6% of in-store sales – Wages increased 4.4%; the average wage for a store associate increased to $10.74 per hour |
Alexandria, VA – April
2019 / Newsmaker Alert / U.S.
convenience stores experienced a 16th straight year of record in-store
sales in 2018, according to newly released National
Association of Convenience Stores (NACS) State of the Industry data,
the convenience and fuel retailing industry’s premier benchmarks and key
performance category insights.
U.S. convenience stores sales overall surged 8.9% to $654.3 billion, led by a 13.2% increase in fuel sales, which account for 69.6% of total sales. In-store sales increased 2.2% to a record $242.2 billion. Overall, convenience stores sales are 3.1% of the U.S. gross domestic product of $20.5 trillion. Higher gas prices, up 13.7% from $2.37 per gallon in 2017 to $2.69 per gallon in 2018, contributed to the increase in overall industry sales. Fuel margins, which have increased over the last five years, were also higher in 2018, up 7.5% to 23.35 cents per gallon, while gallons sold decreased by 0.4%. “Fuel
sales were strong in 2018 but consumers were making fewer stops to refuel,
which suggests that greater fuel efficiency in vehicles is translating
to less trips per week to the convenience store,” said Andy Jones, NACS
vice chairman of research and president/CEO of Sprint Food Stores Inc.
in Augusta, Georgia. “Utilizing NACS research can help retailers track
trips per transaction and develop new marketing strategies to bring customers
from the pump inside the store.”
The growth in foodservice also has led to an increase in store size. Overall, the average convenience store is 3,230 square feet. But as newer stores feature touchscreen food-ordering kiosks, add space for in-store seating and waiting areas and incorporate an open-kitchen design, the size of new stores has increased to 4,991 in rural locations, and 4,603 square feet in urban locations. Cost
of Growth
“The cost of growth, whether it’s higher acquisition multiples, new store construction or retrofitting older sites, has never been higher in our industry,” said Jones. For example, the average cost to build a new store has increased over the last five years from $5.6 million to $7 million. “These are business trends that convenience retailers should be prepared to address as they continue evolving and growing their businesses.” Employment
and Wages
Despite a tight labor market, store associate turnover decreased from 121% in 2017 to 118% in 2018; however, retailers are also paying employees more: Wages were up 4.4% and the average wage for a store associate increased to $10.74 per hour. Category
Performance
Here are overall merchandise sales groups as a percentage of overall merchandise sales:
The industry’s 2018 metrics are based on the NACS State of the Industry survey powered by its wholly owned subsidiary CSX LLC, the industry’s largest online database of financial and operating data. Complete data and analysis will be released in June in the NACS State of the Industry Report® of 2018 Data. Metrics related to turnover were from the recently released NACS State of the Industry Compensation Report® of 2018 Data. Download the infographic, “Strong Sales for Convenience Stores.” (PDF file) About
NACS
NACS
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