Single Store Owner

JUN 2016

Issue link:

Contents of this Issue


Page 25 of 69

26 / Convenience Store News for the Single Store Owner / JUNE 2016 Cover Story and health care costs, and to instill excellent customer service and store cleanliness on a daily basis." Despite the strong financial results of the past two years, some operators are wary about the future. Fuel margins are on the decline with higher prices at the pump, putting more pressure on retailers to generate stronger in-store merchandise sales, and specifically to increase made-to-order foodservice sales. "The economy, although slowly improving, still has its challenges as it relates to the rate of recovery," noted Bratta of Core-Mark. The biggest challenge for 2016 will be to man- age internal and external expectations, according to Montgomery of b2b Solutions. "Fuel margins have dropped this year in many areas of the country. Re- tailers seeking to offset this will seek to grow gallons, which will likely result in lower margins. Externally, the industry has attracted a great deal of attention from private equity and other investors based on 2015 results. Sustaining this interest will require off- setting the loss in fuel margins with growth of inside sales and margins." METHODOLOGY The 41st annual Convenience Store News Industry Report features data from a variety of sources in order to provide a complete picture of the conve- nience store industry. The Convenience Store News for the Single Store Owner Industry Report isolates data collected from single-store respondents and analyzes it against total industry stores. Preston/Rogers Associates Inc., based in Med- field, Mass., coordinated the various data used in this report. CSNews commissioned a survey among a random sample of c-store retailers on a confidential basis to gather data for 2015 fiscal year sales and operations. A total of 200 companies representing approximately 20,000 c-stores are included in the results. Store census data was provided by Nielsen TDLinx, which maintains a national count of both chain and single-store retail locations. Dollar sales and unit volume data for a variety of categories was provided by Nielsen Co. from its Convenience Track retail measurement service, which is based on UPC sales and other retail conditions that are measured through the use of point-of-sale scan data, as well as from data captured via electronic invoice and sales audits. Government sources include the Census Bureau, Bureau of Labor Statistics, the Department of Energy and the Federal Tax Administration. Sales Mix With lower fuel prices, single stores' sales mix shifted a bit toward in-store sales. Gross Proft Dollar Mix Nearly two-thirds of a single-store owner's profts came from in-store last year. Top 10 In-Store Category Ratios (for single stores) the top 10 product categories accounted for nearly 90 percent of in-store revenues Source: Convenience Store News Market Research, 2016 Source: Convenience Store News Market Research, 2016 Source: Convenience Store News Market Research, 2016 Motor Fuels In-Store Motor Fuels In-Store Top 10 categories All other Single Stores Single Stores Sales Total Industry Total Industry Gross Margin Dollars 37.9% 62.1% 64.7% 35.3% 63.1% 36.9% 38.1% 61.9% 89.8% 10.2% 13.4% 86.6%

Articles in this issue

Archives of this issue

view archives of Single Store Owner - JUN 2016