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Trends
Interesting facts from the 2007 NACS State of the Industry Report:
- The average pre-tax profit for 2006 was $33,360.
- The total number of convenience stores in the US in 2006 is
145,119, up 3.2% from the previous year.
- The average c-store sells 71.8% of sales in motor fuels and 28.2%
in-store merchandise.
- The average motor fuel gross profit margin in 2006 fell to 5.8%, while the
average in-store gross profit margin fell to 28.0%.
The top ten c-store categories are:
- Cigarettes: 34.36%
- Food Service: 12.06%
- Packaged Beverages: 13.84%
- Beer: 12.17%
- Candy: 3.70%
- Salty Snacks: 3.21%
- Other Tobacco: 3.84%
- General Merchandise: 1.95%
- Fluid Milk Products: 1.87%
- Packaged Sweet Snacks: 1.51%
Confection
A typical convenience store can expect anywhere between 7 to 14% of it
gross intake to be derived from the confectionery category. That seems
small compared to the revenue tobacco and alcohol generate. By making the
mistake of not promoting the confection category you are missing great
opportunities. A single chocolate bar is consumed within an hour of
purchase, so the customer is ready to repurchase soon. Other product
lines, such as larger bags of chips, may take two to three days to
consume. What all this means is that a customer craving fast energy, or
just a quick, cheap snack, may return more often to your store if your
confectionery aisle is suited to his or her needs. More visits mean more
incremental sales, and it's here where confectionery can truly boost your
all-around store profits.
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