Single Store Owner

JUN 2016

Issue link: http://magazine.csnews.com/i/695736

Contents of this Issue

Navigation

Page 31 of 69

32 / Convenience Store News for the Single Store Owner / JUNE 2016 Tobacco C onvenience stores may be moving away from the tra- ditional image of gas, roller grill foods and smokes. But any way you slice it, tobacco is still a key ingredient in the mix. Cigarettes last year once again claimed the top spot among in-store categories for single stores, accounting for 31.54 percent of in-store sales. Other tobacco products (OTP) took the No. 6 spot, making up 4.73 percent of in-store sales. In terms of gross margin dollar contribution for single stores, cigarettes' percentage was 11.91 percent and OTP 4.63 percent. Tobacco in general and cigarettes in Still No. 1 In-Store Tobacco products remain a major sales contributor for single stores AVERAGE SALES PER STORE INDUSTRY TOTAL (in millions) PERCENT OF 2015 % ChANGE 2015 % ChANGE DOLLAR SALES UNIT VOLUmE Smokeless $42,228 5.2% $6,393 6.4% 61.0% 39.4% Cigars 19,043 2.9 2,883 4.1 27.6 53.2 E-cigarettes 5,079 4.2 769 5.3 7.4 2.7 Papers 1,856 -2.2 281 -1.1 2.7 4.1 Pipe/cigarette tobacco 608 -6.2 92 -5.2 0.9 0.6 Pipes 211 111.0 32 113.3 0.3 0.0 Other 73 -42.5 11 -42.1 0.1 0.0 TOTAL $69,098 4.3% $10,461 5.4% 100.0% 100.0% Source: Convenience Store News Market Research, 2016 AVERAGE SALES PER STORE INDUSTRY TOTAL (in millions) PERCENT OF 2015 % ChANGE 2015 % ChANGE DOLLAR SALES UNIT VOLUmE Premium $349,168 2.9% $52,862 4.0% 80.5% 77.6% Branded discount 62,248 2.0 9,424 3.1 14.3 16.4 Subgeneric/private label 20,384 1.6 3,086 2.7 4.7 5.5 Fourth tier 2,008 9.7 304 10.9 0.5 0.5 Imports 14 7.7 2 6.7 0.0 0.0 TOTAL $433,822 2.7% $65,678 3.9% 100.0% 100.0% Source: Convenience Store News Market Research, 2016 Industry Analysis: Other Tobacco Products (4.91 percent of in-store sales; 4.43 percent of in-store gross margin dollar contribution) Smokeless still holds a commanding lead over the OTP category in share of dollar sales. Cigars top unit volume. Industry Analysis: Cigarettes (30.84 percent of in-store sales; 15.27 percent of in-store gross margin dollar contribution) Average sales per store for cigarettes ticked up 2.7 percent in 2015, with all segments on the positive side. particular have been experiencing a bit of a resurgence lately. For single stores, cigarettes generated $396,435 in average sales per store in 2015. This equated to a 0.7-percent improvement over the pre- vious year, when per-store sales declined by 1.3 percent. OTP fared even better in the growth department, ringing up $59,460 in average sales per single store, a 3.5-percent increase compared to 2014's 2.8-percent gain. "Cigarette's performance in 2015 was driven by increased consumer pur- chasing power and consumer demand returning to the category," explained David Bishop, managing partner of Barrington, Ill.-based sales and market- ing firm Balvor LLC.

Articles in this issue

Archives of this issue

view archives of Single Store Owner - JUN 2016