While the chain "still experienced positive comparable merchandise and fuel volume results for the full year over the prior periods," it also began to feel the pain of [image-nocss] laid-off workers who were no longer stopping into Stripes stores each day.
"We did report a decrease in comparable merchandise sales for the fourth quarter 2009," the annual report states. "This was the first negative quarter for comparable merchandise sales since the third quarter of 2005. We believe that blue-collar males are core customers at our convenience stores, especially in our restaurant offering. Their unemployment rates increased materially during 2009 in our region. Construction, oil and gas, and trucking are industries that help drive our sales."
Meanwhile, the tightening in the nation's credit markets has affected Susser Holdings' lenders and the real-estate markets it relied on in the recent years to finance acquisitions and new-store development, according to the document. In 2009, Susser completed 10 sale/leaseback transactions for proceeds of $24.8 million gained through "alternative sources of financing."
Going forward, the company will be conservative with such deals. "We believe we have adequate liquidity and financial flexibility to continue to operate and grow our business, but we are exercising caution in our capital spending program until we see an improvement in the economy and in the capital markets."
Corpus Christi, Texas-based Susser Holdings is a third-generation, family-led business that operates more than 520 convenience stores in Texas, New Mexico and Oklahoma under the Stripes and Town & Country banners. Restaurant service is available in more than 300 of its stores, primarily under the proprietary Laredo Taco Co. and Country Cookin' brands. The company also supplies branded motor fuel to approximately 380 independent dealers through its wholesale fuel division. Its fiscal year ended January 3.
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