C-Stores Double Presence on ‘Hot 100’
Aug. 01, 2016WASHINGTON -- While supermarkets dominated the 2016 Hot 100 Retailers, the annual ranking by the National Retail Federation’s STORESmagazine, convenience stores more than held their own in the ranks against that competing channel, with 13 c-store companies represented.
The Hot 100 list is based on sales growth in 2015 over 2014 and ranks both public and privately held retail companies by U.S. domestic sales with a $300 million threshold for inclusion. On average, companies on the list saw growth of 14.7%, up from 13.2% the year before.
Nearly a quarter of companies on the list compiled by Kantar Retail are food retailers, including two in the top five. Supermarkets are the retail industry’s hottest companies almost by default since consumers continue to buy groceries even as more discretionary spending is directed away from merchandise and toward services and entertainment.
“The supermarket segment is a model of the dynamic changes in retail. It represents a fast-changing marketplace where legacy banners are reinventing, smaller-footprint operators are gaining share and online initiatives from Amazon Prime and subscription services like Hello Fresh and Blue Apron are sneaking a few bites of food from the plate,” STORES media editor Susan Reda said.
Click through to see how the convenience-store channel fared on the 2016 Hot 100.
Convenience-store channel
There are a dozen different convenience-store retailers on this year’s Hot 100 Retailers list, double the number that appeared last year. Low gasoline prices have been a double-edged sword, said STORES. Cheap gas has lured consumers back into their cars, positive for c-stores since they sell about 80% of the gasoline purchased at retail in this country. For many oil companies, however, reduced profits on the petroleum end of the business squeezed earnings on the refining and distribution side.
How c-stores merchandise their offerings is more important than gas prices. “Real contributors are the shift to larger stores with multiple foodservice options, greatly improved private label and merchandising that is far more pleasant to shop,” said David Marcotte, senior vice president of retail insights for Kantar Retail. “Additional investments have been made in moving bathroom facilities to the inside of the store and much better lighting for the pumps and parking areas.”
Millennials, Gen X and Gen Z are the core c-store shoppers and “have a strong loyalty to the channel,” he said. “QuikTrip, Sheetz and Wawa are able to sell logo wear and most chains now have successful loyalty programs in place to increase trade.”
The highest-ranking c-store on the Hot 100 list is No. 3 GPM Investments, a 13-year-old company that set an expansion course in 2011 when it closed a $50 million credit facility to fund growth. At the time GPM operated 212 locations under the Fas Mart and Shore Stop banners in nine mid-Atlantic states. In the past three years, GPM has acquired more than 400 stores from three companies, extending its reach south and west.
Two of the larger c-store operators in the United States are No. 12 Alimentation Couche-Tard and its Circle K chain and No. 38 Casey’s General Stores, which in April ended a fiscal year that generated record earnings boosted by inside same-store sales gains of 7.1% with an average profit of 31.9%.
GPM Investments
GPM Investments (No. 3)
Headquarters: Richmond, Va.
Sales Growth (2015 vs. 2014): 119%
Worldwide Retail Sales: $535 million
USA % of World Sales: 100%
2015 Stores: 406
Growth (2015 vs. 2014): 65%
Alimentation Couche-Tard
Alimentation Couche-Tard (No. 12)
Headquarters: Laval, Quebec
Sales Growth (2015 vs. 2014): 34%
Worldwide Retail Sales: $11.678 billion
USA % of World Sales: 66%
2015 Stores: 5,684
Growth (2015 vs. 2014): 32%
Casey's General Stores
Casey’s General Stores (No. 38)
Headquarters: Ankeny, Iowa
Sales Growth (2015 vs. 2014): 13%
Worldwide Retail Sales: $2.906 billion
USA % of World Sales: 100%
2015 Stores: 1,945
Growth (2015 vs. 2014): 4%
CST Brands
CST Brands (No. 39)
Headquarters: San Antonio
Sales Growth (2015 vs. 2014): 13%
Worldwide Retail Sales: $1.880 billion
USA % of World Sales: 86%
2015 Stores: 1,164
Growth (2015 vs. 2014): 5%
Kwik Trip
Kwik Trip (No. 42)
Headquarters: La Crosse, Wis.
Sales Growth (2015 vs. 2014): 12%
Worldwide Retail Sales: $1.253 billion
USA % of World Sales: 100%
2015 Stores: 480
Growth (2015 vs. 2014): 9%
ampm
ampm (No. 50)
Headquarters: La Palma, Calif.
Sales Growth (2015 vs. 2014): 11%
Worldwide Retail Sales: $2.479 billion
USA % of World Sales: 100%
2015 Stores: 977
Growth (2015 vs. 2014): 1%
Stripes
Stripes (No. 54)
Headquarters: Corpus Christi, Texas
Sales Growth (2015 vs. 2014): 10%
Worldwide Retail Sales: $1.359 billion
USA % of World Sales: 100%
2015 Stores: 670
Growth (2015 vs. 2014): 4%
Speedway
Speedway (No. 62)
Headquarters: Enon, Ohio
Sales Growth (2015 vs. 2014): 8%
Worldwide Retail Sales: $4.879 billion
USA % of World Sales: 100%
2015 Stores: 2,766
Growth (2015 vs. 2014): 1%
Wawa
Wawa (No. 71)
Headquarters: Wawa, Pa.
Sales Growth (2015 vs. 2014): 8%
Worldwide Retail Sales: $1.234 billion
USA % of World Sales: 100%
2015 Stores: 710
Growth (2015 vs. 2014): 5%
Houchens Industries
Houchens Industries (No. 79)
Headquarters: Bowling Green, Ky.
Sales Growth (2015 vs. 2014): 7%
Worldwide Retail Sales: $1.450 billion
USA % of World Sales: 100%
2015 Stores: 266
Growth (2015 vs. 2014): 4%
Sheetz
Sheetz (No. 84)
Headquarters: Altoona, Pa.
Sales Growth (2015 vs. 2014): 7%
Worldwide Retail Sales: $772 million
USA % of World Sales: 100%
2015 Stores: 520
Growth (2015 vs. 2014): 5%
CEFCO Convenience Stores
CEFCO Convenience Stores (No. 87)
Headquarters: Temple, Texas
Sales Growth (2015 vs. 2014): 7%
Worldwide Retail Sales: $385 million
USA % of World Sales: 100%
2015 Stores: 226
Growth (2015 vs. 2014): -1%
QuikTrip
QuikTrip (No. 100)
Headquarters: Tulsa, Okla.
Sales Growth (2015 vs. 2014): 6%
Worldwide Retail Sales: $1.350 billion
USA % of World Sales: 100%
2015 Stores: 727
Growth (2015 vs. 2014): 2%
Harps Food Stores
Bonus: Small-format grocer and gasoline retailer Harps Food Stores also made the list, straddling the supermarket and convenience-store channels.
Harps Food Stores (No. 72)
Headquarters: Springdale, Ark.
Sales Growth (2015 vs. 2014): 8%
Worldwide Retail Sales: $1.040 billion
USA % of World Sales: 100%
2015 Stores: 85
Growth (2015 vs. 2014): 4%
Dollar stores
The discount channel also made its mark on the list. Dollar Tree (No. 2) was among six retailers that were recognized as “sustained sizzlers” for having made the Hot 100 list each year since its inception in 2006. Dollar General ranked at No. 69.
“Not to be underestimated is the dollar store segment’s quest for a greater share of shoppers’ food budgets. These companies make a compelling bid for the value-oriented shopper with national brand name product offerings, convenience and an improved in-store experience,” Reda said.
Click here to view the full Hot 100 list.
London-based Kantar Retail is a leading retail and shopper insight, consulting and analytics and technology business and part of Kantar, the data investment management division of WPP.