3 C-Store Labor Statistics Retailers Should Know

CHICAGO -- Convenience-store owners often fight down to the penny to get the best deals on their direct expenses, said Billy Milam, president of Atlanta-based retailer RaceTrac, during the NACS State of the Industry Summit in April. But is that focus on detail may come at the expense of big-picture budgeting.

“When it comes to employee turnover, we’re stepping over dollars to pick up dimes,” Milam said.

Read on to find out where retailers are leaving dollars on the ground ...

The industry’s heftiest store operating expenses continue to be wages and benefits, according to NACS’ State of the Industry financial and operational metrics. Wages shot up 7.2% from 2015 to 2016. But the costs of benefits such as healthcare, which increased 10.3% in 2016, also padded the bill for retailers.

Associate turnover in c-stores is up 38% from 2015, and managers are also leaving 17% more frequently than they were last year, according to the association’s report.

That sharp turnover increase comes at a steep cost for both hourly store associates and assistant managers. To hire, train and equip a front-line team member, a retailer could pay $938 to $1,763, depending on number of stores in their system.

“Every single one of these guys in our stores is statistically leaving us on an annual basis, and then some,” Milam said. For assistant managers, the costs of turnover could ring up to as high as $7,400.

Those employees that are engaged at a deeper and higher level are going to stick around more, Milam said.

Research cited in NACS’ Power Up Your People report said high engagement firms have 25% less turnover. But that’s not all.

“They are going to provide better customer service, faster customer service; they are going to actively promote your business," he said. In fact, the report found that stores that rank in the top 20% of employee engagement have 9% higher customer satisfaction scores.

NACS' State of the Industry Summit was held in April in Chicago. Click here for CSP's complete coverage.