One of every 30.9 dollars spent in the US last year was spent at a convenience store, according to newly released NACS State of the Industry data.
Convenience stores in the US achieved a 15th straight year of record in-store sales and a fourth straight year of more than US$10 billion ($12.8 billion) in pretax profits. Overall sales were up 9.3 per cent to US$601.1 billion ($771 billion), led by a 14.9 per cent increase in fuel sales. Convenience-store sales overall are 3.2 per cent of the overall US GDP (based on 2016 data) of US$18.57 trillion ($23.8 trillion).
Higher fuel prices (up 12.8 per cent) were largely behind the sales increase at convenience stores in 2017. Meanwhile, fuel gross margins in 2017 increased to 22 US cents per gallon (5.8 AU cents per litre). Paired with increased sales volume overall, fuel gross profits increased 11.7 per cent per store.
Meanwhile, in-store sales increased 1.7 per cent to a record US$237 billion ($304 billion).
Foodservice continues to be a key focus for growth in the US convenience-store channel, with overall sales in 2017 reaching US$53.3 billion ($68.4 billion), accounting for 22.5 per cent of in-store sales in 2017 and 33.9 per cent of gross profit dollars. The category was also the biggest differentiator in terms of profits: top-quartile performers had prepared-food sales 3.6 times greater than bottom-quartile stores, while coffee sales at top performers were 5.2 times greater than those of the bottom quartile.
Top in-store categories
- Tobacco (cigarettes and other tobacco products): 34.1 per cent of in-store sales.
- Foodservice (prepared and commissary food; hot, cold and dispensed beverages): 22.5 per cent.
- Packaged beverages (carbonated soft drinks, energy drinks, sports drinks, water, juices and teas): 15.8 per cent.
- Centre of the store (salty, candy, packaged sweet snacks and alternative snacks): 9.9 per cent.
- Beer: 8.5 per cent (12.4 per cent for stores selling beer).
- Other: 9.2 per cent.
