Holding Steady
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Consumers are still feeling aftershocks of the Great Recession, but CSNews' forecast shows several bright spots for c-stores
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| Slightly lower pump prices will result in a decline in fuel dollar sales for the convenience store industry in 2012. Motor fuel prices will drop by a few cents this year, but remain in the mid-$3 range. The average retail price per gallon for 2012 is expected to hit $3.60 ($3.50 for gasoline and $3.85 for diesel.) In 2011, the average price per gallon was six cents higher at $3.66 ($3.58 for gasoline and $3.85 for diesel). In terms of gallons, this year's forecast calls for c-store gallons to increase to 147.9 billion, compared to 147.2 billion last year. On the sales side, though, c-stores will see an overall decline from $538.0 billion last year to $532.6 billion this year. |
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| The manufacturer list cost per carton rose to $33.14 in 2011 from $32.14 in 2010. Another $1-per-carton increase is forecasted for 2012, which will bring the cost to $34.14. Cigarette taxes remained flat through 2011 at $20.32 per carton, mainly due to the lack of a federal tax increase. This figure, though, is expected to inch up by 20 cents this year to $20.52. C-stores' volume in cigarettes, meanwhile, will remain flat in 2012 at 0.87 billions of cartons. |
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| The Other Tobacco Products (OTP) category registered $44,538 in sales and 16,413 units per store in 2010, amounting to a 13.3-percent sales increase and a 9.8-percent volume gain. 2011 saw per-store sales increase to $47,918 – a gain of 7.6 percent – with per-store volume up 13.0 percent to 16,881 units. The forecast indicates 2012 will be even better, with OTP generating $51,752 in sales per store (up 8.0 percent) and 17,049 units per store (up 14.1 percent). |
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| In 2011, packaged beverages produced per-store sales of $144,156, while per-store volume came in at 84,696 units. This represented a 5.3-percent per-store sales increase and a 2.9-percent unit volume increase over 2010. This year, packaged beverages are expected to grow 2.7 percent in sales, but decline 0.6 percent in volume. Meanwhile, beer/malt beverages finished 2011 down 1.0 percent in sales and 0.1 percent in unit volume per store. Things are not forecasted to be much better in 2012, as a 0.4-percent decline in per-store sales is predicted, with unit volume increasing just 0.8 percent. |
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| While the 2012 forecast calls for sales of candy, gum and mints to grow 3.7 percent per store this year, unit volume will decline by 0.7 percent. This mirrors what was seen in 2011, when the category grew 4.5 percent in per-store sales, but volume declined by 1.4 percent. |
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| The salty snacks category experienced per-store sales and unit volume growth in 2011. Per-store sales increased 2.6 percent to $28,820. For 2012, another slight rise is forecasted, with sales expected to increase 0.8 percent to $29,038 per store. On the volume side, per-store units increased 1.1 percent in 2011, and this year's forecast calls for a 0.9-percent gain. |
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Today's New Product
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Red Buck and Richwood Tipped Cigarillos
Tantus Tobacco, a company dedicated to bringing high-quality, value-priced filtered cigars, cigarettes and pipe tobacco to the market, has added tipped cigarillos to its product line.
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