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Trends
10/19/06 C-Store trend on selling to Baby Boomers...click
here for AWMA article
Interesting facts from the latest NACS State of the Industry Report:
- The average pre-tax profit for 2003 was $30,700.
- 35.6% of all c-stores lost an average of $18,428 last year
- The average c-store sells 65.5% of sales in motor fuels and 34.5%
in-store merchandise.
- The average in-store gross profit margin rose to 30.8%
The top ten c-store categories are:
- Cigarettes 34.5%
- Foodservice 13.1%
- Packaged Beverages 13.0%
- Beer 10.9%
- General Merchandise 4.5%
- Candy 3.7%
- Salty Snacks 3.1%
- Other Tobacco 2.8%
- Fluid Milk Products 2.6%
- Packaged Sweet Snacks 1.7%
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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