Do you want to be MacGyver, the ’80s special-ops agent and troubleshooter who can save the world with a paperclip? Or are you going to be MacGruber, the easily distracted “Saturday Night Live” parody who cannot defuse a bomb to save his own life?
That was the question Kevin Smartt, CEO of Kwik Chek Food Stores Inc., Bonham, Texas, posed to attendees at the 2014 NACS State of the Industry (SOI) Summit. One case in point: the c-store industry’s response to McDonald’s McCafé hot-beverage program, which went on to become a key driver of growth for the fast-food chain and a real competitive threat to c-stores.
“Folks, we got caught flat-footed in ’07 when McDonald’s rolled out McCafé,” Smartt said. “We don’t want to MacGruber this again.”
In 2013, hot-beverage sales fell 4% on a per-store, per-month basis, according to preliminary numbers from the NACS State of the Industry Report of 2013 data, with gross profits off 2.6%. While the specific factors leading to this decrease are unknown—such as if weather was a factor—retailers need to double down on foodservice. Total category sales rose only 2.4% in 2013, compared to an 8.7% increase in 2012.
“As an industry, we have to do better than that,” warned Glenn Plumby, vice president of operations for Speedway LLC, Enon, Ohio, during his presentation of industry numbers. He pointed to the fact that quick-service chains McDonald’s and Wendy’s each saw a similar or greater same-store growth rate over the past two years, but they grew off a much greater sales base.
Meanwhile, myriad issues are picking away at the industry’s growth potential, from a sluggish economy to greater regulatory threats and changing consumer demographics.
There are bright spots, such as strong sales growth in the “alternative” and “other” subcategories of snacks and packaged beverages. Figures from The Nielsen Co. show that c-store unit sales of “other packaged beverages”—a subcategory that includes bottled coffee and protein drinks—rose 26.3% in 2013. Dollar sales of alternative beverages, led by energy drinks, are now 72% that of the category’s biggest seller, carbonated soft drinks, according to preliminary NACS SOI figures.
And alternative snacks, which include meat snacks and bars, saw a 30.5% jump in monthly sales per store, according to NACS.
In tobacco, smoking alternatives—e.g., e-cigarettes and other tobacco products—were the greatest areas of growth. Nielsen figures show smokeless tobacco up 6.8% and e-cigarettes up nearly 129%, with units growing 149.5%. Kwik Chek saw a leap of more than 180% in unit sales for the subcategory but, as he explained, it took a little MacGyver-type action.
“We made it a mission to own this subcategory,” he said. “We took the challenge head on, moved fast, added multiple brands and at varying price points.” The retailer even self-distributed some brands to the point that it is now one of the market leaders in its area. This is an approach that would serve all retailers well, no matter the category.
“What would MacGyver do?” Smartt asked. “MacGyver was known for facing challenges head on, using the resources he had available and overcoming obstacles at the end with positive results.”
Data Begins on Page 2 ...
Total Industry Sales
For the first time, c-store industry inside sales surpassed the $200-billion mark.
| Year | Inside sales | Fuel sales |
| 2002 | $109.3 | $181.3 |
| 2003 | $116.2 | $220.8 |
| 2004 | $132.1 | $262.6 |
| 2005 | $151.1 | $344.2 |
| 2006 | $163.6 | $405.8 |
| 2007 | $168.5 | $408.9 |
| 2008 | $173.9 | $450.2 |
| 2009 | $182.4 | $328.7 |
| 2010 | $190.4 | $385.2 |
| 2011 | $195.0 | $486.9 |
| 2012 | $199.3 | $501.0 |
| 2013 | $204.0 | $491.5 |
Source: NACS; preliminary data. Final data to appear in the NACS® State of the Industry Report of 2013 Data.
Industry Store Count
The number of chain and single stores grew at about the same pace in 2013, with the former adding more than 2,000 sites.
| Year | Single stores | Chain stores |
| 2002 | 78,395 | 54,029 |
| 2003 | 76,044 | 54,615 |
| 2004 | 84,770 | 53,435 |
| 2005 | 84,574 | 56,081 |
| 2006 | 89,957 | 55,162 |
| 2007 | 90,683 | 55,611 |
| 2008 | 89,567 | 55,308 |
| 2009 | 90,049 | 54,492 |
| 2010 | 91,815 | 54,526 |
| 2011 | 93,209 | 54,917 |
| 2012 | 93,819 | 55,401 |
| 2013 | 95,056 | 56,226 |
Source: TCLinx
In-Store Sales and Gross-Profit Breakdown
The 2.5% increase of in-store sales in 2013 was a slightly better growth rate than in 2012, according to NACS’ same-firm sample. This group of firms has reported numbers for two consecutive years. Foodservice sales, which rose nearly 9% in 2012, crept up only 2.4% in 2013.
| In-store category | 2013 sales (Per store per month) | PCYA | 2013 gross-margin dollars (Per store per month) | PCYA |
| Foodservice | $24,726 | 2.4% | $13,081 | 2.5% |
| Merchandise (including cigarettes) | $111,866 | 1.3% | $31,606 | 2.8% |
| Merchandise (less cigarettes) | $67,944 | 2.4% | $25,381 | 4.7% |
| Cigarettes | $44,751 | -3.5% | $6,532 | -5.7% |
| Total in-store sales | $136,265 | 2.5% | $44,514 | 4.5% |
Source: NACS; preliminary data. Final data to appear in the NACS® State of the Industry Report of 2013 Data.
Coming Next: Fuel Sales Data ...
Fuel Data
Fuel margins rose 2.3% in 2013, with the average selling price off more than 10 cents per gallon after three straight years of increases.
Average Selling Price and Margin Per Gallon
| Year | Price | Margin |
| 2007 | $2.79 | 15.6 CPG |
| 2008 | $3.25 | 19.9 CPG |
| 2009 | $2.35 | 13.8 CPG |
| 2010 | $2.80 | 17.0 CPG |
| 2011 | $3.52 | 19.3 CPG |
| 2012 | $3.60 | 18.1 CPG |
| 2013 | $3.49 | 18.5 CPG |
Source: NACS; preliminary data. Final data to appear in the NACS® State of the Industry Report of 2013 Data.
Fuel: Sales and Gross-Profit Dollars
On a same-firm basis, fuel gallons rose 0.9% in 2013, while fuel sales fell more than 2% with a lower selling price per gallon.
| Metric | Per Store Per Month | PCYA |
| Sales | $457,754 | -2.1% |
| Gallons | 132,029 | 0.9% |
| Average selling price | $3.47 | -2.9% |
| Gross-profit dollars | $24,616 | 3.2% |
| Fuel pool margin CPG | 18.64 CPG | 2.3% |
| Fuel margin net credit-card fees | 13.17 CPG | 3.4% |
Source: NACS; preliminary data
Regional Fuel Trends: Sales Change
The Western United States grew gallons and margin more than any other region in 2013.
| Measure | Northeast | Southeast | Midwest | South Central | Central | West |
| Fuel gallons | 1.8% | 1.1% | 1.0% | -2.0% | 0.8% | 4.5% |
| Fuel margin net credit-card fees | 0.1% | 1.8% | 13.4% | -8.7% | 7.4% | 20.6% |
Source: NACS; preliminary data
ComingNext: Expenses and Productivity ...
Expenses and Productivity
According to an analysis of data from firms sharing data for five consecutive years, expenses have growth at a faster clip than in-store gross-profit dollars. For the same-firm sample, direct store operating expenses grew 4.4% in 2013. While wages and benefits rose more than 3%, health-insurance expenses grew only 0.7%.
Expenses
| Direct Store Operating Expenses | ||
| Item | 2013 expenses (Per store per month) | PCYA |
| Wages and benefits | $17,147 | 3.4% |
| Credit-card charges | $5,728 | 1.3% |
| Utilities | $2,777 | 3.1% |
| Repairs and maintenance | $2,665 | 4.2% |
| Supplies | $980 | -0.3% |
| Total DSOE | $40,956 | 4.4% |
| Facility expense | $9,175 | 8.3% |
| --Rent/occupancy | $4,821 | 4.0% |
| Total DSOE and facility expense | $50,132 | 5.1% |
| Wages and Benefits Breakdown | ||
| Wages | $13,892 | 3.4% |
| Payroll taxes | $1,354 | 5.9% |
| Health insurance | $1,092 | 0.7% |
| Other benefits | $748 | 3.3% |
| Workers’ compensation | $418 | 2.9% |
| Total | $17,147 | 3.4% |
Source: NACS; preliminary data
Same-Firm Productivity (per store per month)
When broken into quartiles by store operating profit, same-firm retailers showed big differences in their ability to generate sales and profits. For example, top-quartile retailers had 3.6 times the foodservice sales as bottom-quartile operators.
The top also continues to distance itself from the bottom in employee turnover, with a nearly 19-point gap in annual manager turnover.
Another big area of difference: break-even CPG was more than 9 cents lower for top-quartile operators.
| Labor Productivity | |||||
| Metric | Top decile | Top quartile | Second quartile | Third quartile | Bottom quartile |
| In-store sales per labor hour | $104.04 | $86.56 | $89.19 | $80.61 | $75.45 |
| In-store gross-profit dollars per labor dollar | NA | $2.04 | $2.44 | $1.83 | $1.63 |
| Total gross-profit dollars per labor dollar | NA | $3.18 | $3.53 | $2.82 | $2.79 |
| In-store gross-profit dollars per labor hour | $33.36 | $28.57 | $25.88 | $22.27 | $20.66 |
| Labor cost per hour | $15.26 | $13.69 | $14.49 | $12.74 | $12.32 |
| Nonmanagers’ annual turnover | 88.8% | 80.6% | 81.2% | 91.3% | 92.6% |
| Managers’ annual turnover | 19.7% | 18.0% | 20.5% | 17.5% | 36.6% |
| Facility Productivity | |||||
| Gallons sold | 221,815 | 170,268 | 109,426 | 95,920 | 107,281 |
| Merchandise sales | $163,213 | $132,106 | $101,978 | $86,127 | $76,102 |
| Foodservice sales | $45,703 | $34,572 | $17,640 | $10,075 | $9,712 |
| In-store gross-margin % | 32.0% | 32.7% | 31.6% | 28.6% | 27.3% |
| Cigarette gross-margin % | 12.8% | 13.5% | 15.9% | 14.3% | 14.1% |
| Average square feet | 2,136 | 2,477 | 2,891 | 2,482 | 2,494 |
| In-store sales per square foot | $97.42 | $67.09 | $41.23 | $38.74 | $33.99 |
| Direct store operating expenses per square foot | NA | $20.69 | $12.62 | $11.89 | $11.83 |
| Capital Productivity | |||||
| Store operating profit | $34,487 | $26,593 | $12,399 | $8,506 | $4,174 |
| Break-even CPG | 7.78 | 7.66 | 10.34 | 12.44 | 16.76 |
| Credit-card fees | NA | $5,645 | $5,159 | $5,241 | $8,248 |
| EBITDA** | $31,923 | $25,406 | $11,272 | $7,347 | $4,148 |
| EBITDARL*** | $35,545 | $28,326 | $16,825 | $10,353 | $8,879 |
| Net profit percentage | NA | 12.2% | 13.8% | 11.5% | 10.0% |
| Return on capital employed | 16.90% | 16.49% | 8.80% | 9.68% | -0.36% |
** Earnings before interest, taxes, depreciation and amortization
*** Earnings before interest, taxes, depreciation and amortization with rents and leases added back in
Source: NACS; preliminary data
Coming Next: Category Overview ...
Category Overview
Tobacco supplied 37% of c-stores’ in-store sales and 18.7% of its gross-profit dollars in 2013. On a same-firm basis, cigarettes generated the most sales, although they were off 3.5% from the year prior. Foodservice was the top profit generator, with prepared food and commissary contributing to its growth. Excluding foodservice, packaged beverages was the biggest contributor of gross-margin dollars, or $8,772 per store per month.
In-Store Sales Trends
| In-Store Sales Contribution | |
| Cigarettes | 32.4% |
| Foodservice | 18.0% |
| Packaged beverages | 15.5% |
| Beer | 7.9% |
| OTP | 4.6% |
| Salty snacks | 3.7% |
| Candy | 3.1% |
| Packaged sweet snacks | 2.0% |
| Milk | 1.6% |
| Alternative | 1.1% |
| All other | 10.1% |
| In-Store Gross-Profit-Dollar Contribution | |
| Category | Share of in-store gross-profit $ |
| Foodservice | 29.1% |
| Packaged beverages | 19.6% |
| Cigarettes | 14.4% |
| Beer | 5.0% |
| Candy | 4.5% |
| OTP | 4.4% |
| Salty snacks | 4.3% |
| Packaged sweet snacks | 2.2% |
| Alternative | 1.6% |
| Milk | 1.3% |
| All other | 13.6% |
Source: NACS; preliminary data
| Leaders in Merchandise Sales | ||
| Category | Sales dollars (per store per month) | PCYA |
| Cigarettes | $44,751 | -3.5% |
| Packaged beverages | $21,114 | 3.6% |
| Beer | $14,973 | 0.7% |
| OTP | $6,479 | 6.6% |
| Salty snacks | $5,975 | 7.0% |
| Candy | $4,487 | 1.2% |
| Packaged sweet snacks | $3,044 | 10.0% |
| Milk | $2,252 | -4.1% |
| General merchandise | $1,978 | 8.4% |
| Ice cream and novelties | $1,657 | -4.2% |
| Top Gross-Margin Earners | ||
| Category | Gross margin % | Margin $ (per store per month) |
| Packaged beverages | 41.6% | $8,772 |
| Cigarettes | 14.6% | $6,532 |
| Beer*** | 21.1% | $3,166 |
| Salty snacks | 37.9% | $2,267 |
| Candy | 48.0% | $2,156 |
| OTP | 31.6% | $2,048 |
| Packaged sweet snacks | 35.3% | $1,075 |
| General merchandise | 42.9% | $848 |
| Ice cream and novelties | 45.4% | $752 |
| Milk | 28.0% | $630 |
*** Stores selling beer
Source: NACS; preliminary data
Coming Next: Cigarette Category Snapshot ...
Category Snapshot: Cigarettes
32.4%
Cigarettes' share of in-store sales
14.4%
Cigarettes' share of in-store gross-profit dollars
Sales by Quartile (per store per month)
The top decile of c-store retailers by store operating profit generated more than $20,000 per store per month in cigarette sales than the top-quartile operators.
| Top decile | Top quartile | Second quartile | Third quartile | Bottom quartile |
| $79,796 | $59,520 | $38,202 | $36,934 | $31,567 |
Source: NACS; preliminary data
Subcategory Sales Breakdown
According to Nielsen figures, more than 80% of c-store cigarette sales came from premium brands in 2013.
| Subcategory | PCYA | Share of dolar sales |
| Premium | -1.0% | 80.2% |
| Branded discount | 1.4% | 14.5% |
| Subgeneric/private | 4.7% | 4.8% |
| Fourth tier | -2.4% | 0.5% |
Source: The Nielsen Co.
Sales by Subcategory
Cigarette sales fell 3.5% in 2013 to settle at $44,751 per store per month.
| Subcategory | Dollar sales (per store per week) |
| Premium | $35,886 |
| Branded discount | $6,496 |
| Subgeneric/private | $2,167 |
| Fourth tier | $202 |
| Total | $44,751 |
Source: NACS; preliminary data
Gross Profits by Quartile (per store per month)
Top-quartile operators generated nearly twice the profit on cigarettes per store per month as bottom-quartile retailers.
| Top decile | Top quartile | Bottom quartile |
| $10,212 | $8,010 | $4,448 |
Source: NACS; preliminary data
Gross Profits by Subcategory
Cigarette gross-profit dollars fell 5.7% in 2013.
| Subcategory | Average margin dollars (per store per month) | Gross margin % |
| Premium | $5,238 | 14.5% |
| Branded discount | $948 | 13.0% |
| Subgeneric/private label | $316 | 15.2% |
| Fourth tier | $30 | 14.9% |
| Total | $6,532 | 14.6% |
Source: NACS; preliminary data
Coming Next: Foodservice Category Snapshot ...
Category Snapshot: Foodservice
18.0%
Foodservice's share of in-store sales
29.1%
Foodservice's share of in-store gross-profit dollars
Sales by Quartile (per store per month)
The top quartile of retailers by store operating profit rang up more than four times the sales of hot dispensed beverages of bottom-quartile operators.
| Subcategory | Top decile | Top quartile | Second quartile | Third quartile | Bottom quartile |
| Prepared food | $28,421 | $23,857 | $12,874 | $8,547 | $9,947 |
| Hot dispensed beverages | $6,806 | $7,211 | $4,340 | $1,976 | $1,758 |
| Cold dispensed beverages | $5,665 | $4,454 | $3,029 | $1,868 | $1,875 |
| Total (including subcategories not shown) | $45,703 | $34,572 | $17,640 | $10,075 | $9,712 |
Source: NACS; preliminary data
Subcategory Sales Breakdown
All subcategories combined, foodservice supplied more than 17% of in-store sales on a per-store, per-month basis.
| Subcategory | Share of in-store sales |
| Prepared food | 8.8% |
| Hot dispensed beverages | 3.8% |
| Cold dispensed beverages | 2.1% |
| Commissary/sandwiches | 1.3% |
| Frozen dispensed beverages | 1.3% |
Source: NACS; preliminary data
Sales by Subcategory
Prepared items supplied the greatest amount of foodservice sales in 2013, or $19,505 per store per month.
| Subcategory | Average dollar sales (per store per month) |
| Prepared food | $19,505 |
| Hot dispensed beverages | $5,032 |
| Cold dispensed beverages | $3,104 |
| Frozen dispensed beverages | $1,894 |
| Commissary/sandwiches | $1,817 |
Source: NACS; preliminary data
Gross Profits by Quartile (per store per month)
For the three largest subcategories in foodservice, gross profits varied greatly between the top and bottom quartiles.
| Subcategory | Top decile | Top quartile | Second quartile | Third quartile | Bottom quartile |
| Prepared food | $15,963 | $14,260 | $7,701 | $4,448 | $4.705 |
| Hot dispensed beverages | $3,737 | $4,756 | $2,518 | $993 | $652 |
| Cold dispensed beverages | $3,092 | $2,507 | $1,583 | $912 | $651 |
Source: NACS; preliminary data
Gross Profits By Subcategory (per store per month)
Gross-profit dollars for prepared food rang up to $11,529 per store per month in 2013.
| Subcategory | Average margin dollars (per store per month) |
| Prepared food | $11,529 |
| Hot dispensed beverages | $2,975 |
| Cold dispensed beverages | $1,702 |
| Frozen dispensed beverages | $1,290 |
| Commissary/packaged sandwiches | $642 |
Source: NACS; preliminary data
Coming Next:Packaged Beverages Category Snapshot ...
Category Snapshot: Packaged Beverages
15.5%
Packaged beverages' share of in-store sales
19.6%
Packaged beverages' share of in-store gross-profit dollars
Sales by Quartile (per store per month)
Top-quartile retailers by store operating profit enjoyed more than double the packaged-beverage sales of bottom-quartile operators in 2013.
| Top decile | Top quartile | Second quartile | Third quartile | Bottom quartile |
| $79,796 | $59,520 | $38,202 | $36,934 | $31,567 |
Source: NACS; preliminary data
Gross Profits by Quartile (per store per month)
Top-decile operators earned nearly three times the profit of bottom-quartile retailers on packaged beverages.
| Top decile | Top quartile | Bottom quartile |
| $12,438 | $9,949 | $4,208 |
Source: NACS; preliminary data
Gross Profit by Subcategory
Packaged-beverage gross-profit dollars rose 5.4% in 2013.
| Subcategory | Average margin dollars (per store per month) | Gross margin % |
| Carbonated soft drinks | $3,003 | 35.8% |
| Alternative | $2,157 | 37.8% |
| Sports drinks | $827 | 37.9% |
| Bottled water | $804 | 43.0% |
| Juice/juice drinks | $767 | 54.7% |
| RTD iced tea | $469 | 40.5% |
| Enhanced water | $270 | 39.4% |
| Other packaged beverages | $475 | 41.0% |
| Total | $8,772 | 41.6% |
Source: NACS; preliminary data
Subcategory Sales Breakdown
While CSDs contributed more than one-third of c-store packaged-beverage sales in 2013, according to Nielsen, alternative and “other” packaged beverages posted the greatest growth.
| Subcategory | Share of dollar sales | PCYA |
| Carbonated soft drinks | 34.3% | 0.7% |
| Alternative | 24.6% | 6.8% |
| Sports drinks | 9.4% | 2.2% |
| Bottled water | 9.2% | 2.2% |
| Juice/juice drinks | 8.7% | 3.9% |
| Other category contributors | ||
| RTD iced tea | 5.3% | 0.9% |
| Enhanced water | 3.1% | 0.7% |
| Other packaged beverages | 5.4% | 21.1% |
Source: The Nielsen Co.
Sales by Subcategory
Sales of packaged beverages rose 3.6% in 2013, according to same-firm figures.
| Subcategory | Average dollar sales (per store per month) |
| Carbonated soft drinks | $7,231 |
| Alternative | $5,190 |
| Sports drinks | $1,990 |
| Bottled water | $1,935 |
| Juice/juice drinks | $1,846 |
| RTD iced tea | $1,128 |
| Enhanced water | $651 |
| Other packaged beverages | $1,143 |
| Total | $21,114 |
Source: NACS; preliminary data
Coming Next: Beer Category Snapshot ...
Category Snapshot: Beer
7.9%
Beer's share of in-store sales (14.8% for stores selling beer)
5.0%
Beer's share of in-store gross-profit dollars (9.1% for stores selling beer)
Sales by Quartile (per store per month)
Compared to other categories, the differences in beer sales between top and bottom-quartile operators in 2013 were relatively modest.
| Top decile | Top quartile | Second quartile | Third quartile | Bottom quartile |
| $17,157 | $14,325 | $15,370 | $13,091 | $13,164 |
Source: NACS; preliminary data. Because of state and local restrictions on beer sales, retailers were ranked into deciles and quartiles by beer gross-profit dollars rather than store operating profits.
Subcategory Sales Breakdown
Nearly 52% of c-store beer sales came from premium labels, according to Nielsen, but imports, flavored malt beverages, microbrews and superpremium brands enjoyed the greatest growth rate in 2013.
| Subcategory | Share of dollar sales | PCYA |
| Premium | 51.9% | -1.4% |
| Imports | 10.9% | 8.9% |
| Budget | 10.4% | -4.7% |
| Popular | 9.3% | -3.4% |
| Flavored malt | 6.0% | 23.7% |
| Other category contributors | ||
| Microbrews | 4.7% | 31.0% |
| Superpremium | 4.3% | 9.5% |
| Malt liquor | 2.4% | -0.7% |
| Nonalcohol | 0.1% | -2.6% |
Source: The Nielsen Co.
Gross Profits by Quartile (per store per month)
On a per-store, per-month basis, top-decile operators generated more than $3,000 in gross-profit dollars from beer in 2013.
| Top decile | Top quartile | Bottom quartile |
| $3,039 | $2,627 | $2,338 |
Source: NACS; preliminary data. Because of state and local restrictions on beer sales, retailers were ranked into deciles and quartiles by beer gross-profit dollars rather than store operating profits.
Sales by Subcategory
Sales of beer rose 0.7% in 2013, according to NACS’ same-firm sample.
| Subcategory | Average dollar sales (per store per month) |
| Premium | $7,771 |
| Imports | $1,633 |
| Budget | $1,559 |
| Popular | $1,386 |
| Flavored malt | $903 |
| Microbrews | $708 |
| Superpremium | $639 |
| Malt liquor | $366 |
| Nonalcohol | $8 |
| Total | $14,973 |
Source: NACS; preliminary data
Gross Profit by Subcategory
Gross-profit dollars from beer rose 0.4% in 2013 among the retailers in the same-firm sample.
| Subcategory | Average margin dollars (per store per month) | Gross margin % |
| Premium | $1,643 | 16.2% |
| Imports | $345 | 18.5% |
| Budget | $330 | 21.3% |
| Popular | $293 | 16.8% |
| Flavored malt | $191 | 30.0% |
| Micro | $150 | 22.9% |
| Superpremium | $135 | 19.4% |
| Malt liquor | $77 | 29.9% |
| Nonalcohol | $2 | 14.5% |
| Total | $2,466 | 21.1% |
Source: NACS; preliminary data
Coming Next: Other Tobacco Products Category Snapshot ...
Category Snapshot: Other Tobacco Products
4.6%
OTP's share of in-store sales
4.4%
OTP's share of in-store gross-profit dollars
Sales by Quartile (per store per month)
Top-decile retailers rang up about $2,000 more per store per month in OTP sales than bottom-quartile operators.
| Top decile | Top quartile | Second quartile | Third quartile | Bottom quartile |
| $8,497 | $7,392 | $5,980 | $5,670 | $6,481 |
Source: NACS; preliminary data
Subcategory Sales Breakdown
While smokeless dominated c-store OTP in 2013 with 60% of category sales, according to Nielsen, e-cigarettes posted a triple-digit growth rate.
| Subcategory | Share of dollar sales | PCYA |
| Smokeless | 60.0% | 6.8% |
| Cigars | 28.8% | -1.0% |
| E-cigarettes | 7.1% | 128.7% |
| Papers | 2.7% | -1.9% |
| Pipe/cigarette tobacco | 1.3% | 0.4% |
| Other | 0.1% | -9.9% |
Source: The Nielsen Co.
Gross Profits by Quartile (per store per month)
The top-decile retailers by store operating profits earned about 30% more gross-profit dollars from OTP on a per-store, per month basis than those in the bottom quartile.
| Top decile | Top quartile | Bottom quartile |
| $2,503 | $2,175 | $1,911 |
Source: NACS; preliminary data
Sales by Subcategory
OTP sales rose 6.6% for the retailers in the same-firm sample.
| Subcategory | Average dollar sales (per store per month) |
| Smokeless | $3,889 |
| Cigars | $1,868 |
| E-cigarettes | $457 |
| Papers | $175 |
| Pipe/cigarette tobacco | $7 |
| Other products | $83 |
| Total | $6,479 |
Source: NACS; preliminary data
Gross Profits by Subcategory
OTP margin dollars in 2013 rose 7.0% for retailers in the same-firm sample.
| Subcategory | Average margin dollars (per store per month) | Gross margin % |
| Smokeless | $1,230 | 27.9% |
| Cigars | $590 | 34.6% |
| E-cigarettes | $145 | 31.3% |
| Papers | $55 | 51.2% |
| Pipe/cigarette tobacco | $2 | 26.1% |
| Other products and pipes | $26 | 34.5% |
| Total | $2,048 | 31.6% |
Source: NACS; preliminary data
Coming Next: Salty Snacks Category Snapshot ...
Category Snapshot: Salty Snacks
3.7%
Salty snacks' share of in-store sales
4.3%
Salty snacks' share of in-store gross-profit dollars
Sales by Quartile (per store per month)
The top 10% of c-store retailers in the same-firm sample rang up more than three times the salty-snack sales on a per-store, per-month basis than the bottom quartile.
| Top decile | Top quartile | Second quartile | Third quartile | Bottom quartile |
| $9,227 | $6,504 | $4,412 | $4,005 | $2,962 |
Source: NACS; preliminary data
Subcategory Sales Breakdown
Many of the salty-snack segments enjoyed strong gains in c-store sales in 2013, according to Nielsen.
| Subcategory | Share of dollar sales | PCYA |
| Potato chips | 25.0% | 1.4% |
| Other salty snacks | 17.2% | 7.0% |
| Tortilla/corn chips | 16.3% | 9.2% |
| Nuts/seeds | 13.6% | 5.9% |
| Puffed cheese | 8.5% | 6.7% |
| Other category contributors | ||
| Subcategory | Share of in-store sales | PCYA |
| Mixed | 6.1% | 7.6% |
| Crackers | 5.0% | 3.5% |
| Pretzels | 4.3% | 4.6% |
| RTE popcorn | 3.9% | 14.9% |
Source: The Nielsen Co.
Sales by Subcategory
Salty-snack sales among the same-firm operators rose 9.4% in 2013.
| Subcategory | Average dollar sales (per store per month) |
| Potato chips | $1,491 |
| Other salty snacks | $1,029 |
| Tortilla/corn chips | $973 |
| Nuts/seeds | $813 |
| Puffed cheese | $510 |
| Mixed | $365 |
| Crackers | $301 |
| Pretzels | $256 |
| Packaged popcorn | $235 |
| Total | $5,975 |
Source: NACS; preliminary data
Gross Profits by Quartile (per store per month)
Top-decile operators generated more than three times the gross profits of salty snacks on a per-store, per-month basis in 2013 than the bottom 25% of retailers.
| Top decile | Top quartile | Bottom quartile |
| $3,530 | $2,482 | $1,061 |
Source: NACS; preliminary data
Gross Profit by Subcategory
Salty-snack gross-profit dollars rose 8.0% in 2013 for retailers in the same-firm sample.
| Subcategory | Average margin dollars (per store per month) | Gross margin % |
| Potato chips | $566 | 36.3% |
| Other salty snacks | $390 | 36.5% |
| Tortilla corn chips | $369 | 35.0% |
| Nuts/seeds | $309 | 41.8% |
| Puffed cheese | $194 | 37.0% |
| Mixed | $139 | 39.3% |
| Crackers | $114 | 42.7% |
| Pretzels | $97 | 37.8% |
| Packaged popcorn | $89 | 39.7% |
| Total | $2,267 | 36.9% |
Source: NACS; preliminary data
Coming Next: Candy Category Snapshot ...
Category Snapshot: Candy
3.1%
Candy's share of in-store sales
4.5%
Candy's share of in-store gross-profit dollars
Sales by Quartile (per store per month)
The top 25% of retailers in the same-firm sample saw nearly $2,000 more per store per month in candy sales than those in the bottom quartile.
| Top decile | Top quartile | Second quartile | Third quartile | Bottom quartile |
| $5,376 | $4,632 | $4,283 | $3,389 | $2,975 |
Source: NACS; preliminary data
Subcategory Sales Breakdown
The greatest growth in candy as a percentage of sales came from bagged candy, according to Nielsen.
| Subcategory | Share of dollar sales | PCYA |
| Chocolate bars/packs | 36.8% | 3.0% |
| Bagged or repackaged peg candy | 21.1% | 15.1% |
| Gum | 18.7% | -7.4% |
| Novelties/seasonal | 10.0% | 6.1% |
| Nonchocolate bars | 7.3% | -4.2% |
| Candy rolls, mints, drops | 6.1% | 2.5% |
Source: The Nielsen Co.
Sales by Subcategory
Candy sales rose 1.2% in 2013 for retailers in the same-firm sample.
| Subcategory | Average dollar sales (per store per month) |
| Chocolate bars | $1,652 |
| Bagged or repackaged peg candy | $948 |
| Gum | $840 |
| Novelties, seasonal | $449 |
| Nonchocolate bars | $325 |
| Candy rolls, mints, drops | $273 |
| Total | $4,487 |
Source: NACS; preliminary data
Gross Profits by Quartile (per store per month)
Top-quartile retailers earned 1.6 times the candy gross-profit dollars that bottom-quartile operators did, according to preliminary NACS State of the Industry data.
| Top decile | Top quartile | Bottom quartile |
| $2,375 | $2,104 | $1,492 |
Source: NACS; preliminary data
Gross Profit by Subcategory
Candy gross-profit dollars rose 0.8% in 2013 to reach $2,156 per store per month.
| Subcategory | Average margin dollars (per store per month) | Gross margin % |
| Chocolate bars/packs | $793 | 46.1% |
| Bagged or repackaged peg candy | $456 | 43.8% |
| Gum | $404 | 48.4% |
| Novelties/seasonal | $216 | 50.5% |
| Nonchocolate bars | $156 | 47.0% |
| Candy rolls, mints, drops | $131 | 47.9% |
| Total | $2,156 | 46.3% |
Source: NACS; preliminary data
Coming Next: Alternative Snacks Category Snapshot
Category Snapshot: Alternative Snacks
1.1%
Alternative snacks' share of in-store sales
1.6%
Alternative snacks' share of in-store gross-profit dollars
Subcategory Sales Breakdown
Meat snacks represent nearly 60% of the alternative-snacks subcategory.
| Subcategory | Share of dollar sales | PCYA |
| Meat snacks | 58.9% | 3.9% |
| Health/energy/protein bars | 28.6% | 6.4% |
| Other alternative snacks | 6.8% | 6.8% |
| Granola/fruit bars | 5.6% | 3.9% |
Source: The Nielsen Co.
Sales by Subcategory
Sales of alternative snacks rose 30.5% for retailers in the same-firm sample.
| Subcategory | Average dollar sales (per store per month) |
| Meat snacks | $829 |
| Health/energy/protein bars | $403 |
| Granola/fruit bars | $79 |
| Other alternative snacks | $96 |
| Total | $1,407 |
Source: NACS; preliminary data
Gross Profit by Subcategory
Retailers in the same-firm sample grew margin dollars for alternative snacks by 30.6% in 2013.
| Subcategory | Average margin dollars (per store per month) | Gross Margin % |
| Meat snacks | $351 | 41.5% |
| Health/energy/protein bars | $170 | 43.3% |
| Granola/fruit bars | $33 | 43.2% |
| Other alternative snacks | $41 | 40.1% |
| Total | $595 | 42.8% |
Source: NACS; preliminary data
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