NEW YORK -- For six months, convenience operators in CSX's proprietary same firms' database were reaping profits because of improving marketing practices, divesting weaker stores, driving sales in key and upstart categories.
In the third quarter much of that changed. But no worrythe industry is still exhaling with full gusto.
[On Thursday, Meyer will be presenting on CSPNetwork an exclusive report into the industry's year-round performance through September, according to about 70 firms in CSX's same firms database. To register [image-nocss] for the cyberconference, click here.]
We continue to see this as a year to remember, said industry expert Dick Meyer, who is also a founding partner at industry benchmarking specialists CSX LLC, who captures monthly data from more than 100 retail companies.
But the story is a different one for Q3 versus the first six months, Meyer told CSP Daily News. The impact of Katrina and Rita caused supply shortages and higher than normal fuel margins. Meanwhile, the industry is still doing well on in-store categories.
Notably, he says, other tobacco products, packaged beverages and overall foodservice are delivering very favorable upsides in sales and margin dollars, to complement somewhat sustained performance in anchor categories, notably cigarettes.
The industry continues to battle challenges with high credit-card fees, increasingly sophisticated big-box competitors and with a shopping population that is less loyal than ever before, Meyer said. We're finding more ways that c-store retailers are not only just staying in the game, but are winning at it. There are definitely some interesting insights that we can all learn from.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.