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Foodservice leads convenience store sales to record highs

Foodservice leads convenience store sales to record highs

Last week the National Association of Convenience Stores (NACS) reported that U.S. convenience stores had record in-store sales in 2013, with sales reaching $204 billion. The total represents a 2.4% increase over 2012.

According to the NACS report, sales in 2013 were led by continued growth in foodservice, driven by prepared foods and commissary, as consumers look for more food and beverages on the go. Fuel sales also hit new highs as far as gallons purchased, but total fuel sales actually declined, the result of a 2.9% decrease in fuel prices.

The report also indicated the following:

  • Foodservice accounted for 29.1% of gross profit dollars at c-stores. Tobacco accounted for more in-store sales than any other category (foodservice was a distance second).
  • C-store operating costs increased at a faster rate than sales, leading to a decrease in industry pretax profits. Wages and payroll taxes represented the biggest cost increases, the result of a significant increase in employees needed to staff the booming foodservice departments.
  • 83.7% of c-stores sell fuel.
  • C-stores account for 34.3% of all retail outlets in the U.S., according to Nielsen, which is significantly higher than other retail channels including drug stores, supermarkets and dollar stores.

“Gotta have a Wawa.”