Taxing the C-Store Channel
Are increased state cigarette taxes and the higher minimum wage hurting your business?
NEW YORK -- The convenience industry's profitable ride of the 21st century faces a crosswind of taxes, mandates and fees for the second half of this year. How is the gang of minimum wage increases, record-high oil prices, credit-card fees and multi-state cigarette tax increases affecting the channel? Operators, so far, are riding high, according to CSX.
The first eight months, said CSX co-founder Dick Meyer, delivered an early Christmas; however, before retailers celebrate, September figures will blemish some of the good cheer. The CSX data will still [image-nocss] report good news year-to-date, said Meyer. But the impact of one month's results will definitely demonstrate why you better monitor results monthly or you could get caught off caught off guard fiscally.
CSX, a division of the National Association of Convenience Stores (NACS), today will present its exclusive How's Business report on the CSPNetwork CyberConference Center. Click here to register for How's Business Q3: Can We Sustain the Momentum? The program is sponsored by McLane Co. Inc. and U.S. Smokeless Tobacco Co.
Although c-stores across the country continue to show steady gains, the performance diverges demographically.
The regional variances indicate that some areas of the country triggered much better pre-tax profit per store than others, said Ben Meyer, Columbia, Mo.-based CSX's national sales manager. Looking forward, CSX will continue to analyze the impact of financial pressures affecting our channel, including: the federal minimum wage increases passed this year; credit-card fees on $3-per-gallon sustained street prices; and extraordinary excise tax increases by several states on cigarettes.