WAGE GROWTH
Wage growth at gas stations has outpaced industries paying in the bottom 20% in 2016.
| Sector | Avg. wage | Wage growth (ytd) | Job growth (ytd) |
|---|---|---|---|
| Top 80% | $27.25 | 2.4% | 2.1% |
| Bottom 20% | $14.21 | 3.4% | 2.6% |
| Gas stations | $12.88 | 3.9% | 2.3% |
| Foodservice and drinking places | $13.11 | 3.9% | 3.1% |
| Food and beverage stores | $14.37 | 6.4% | 1.1% |
Source: BofA Merrill Lynch Global Research, Bureau of Labor Statistics
HIRING PLANS
In a CSP survey, more than 43% of c-store retailers said they plan to hire more employees this year than last. To attract potential employees, most retailers are boosting their wages.
Do you plan to hire more employees in 2016 than in 2015?
| Yes | 43.1% |
| No | 23.6% |
| Not sure | 4.1% |
| About the same | 29.2% |
If you plan to hire more employees, will they be part time or full time?
| Equally part time and full time | 40% |
| Mostly part time | 30% |
| Mostly full time | 30% |
What functions do you need to fill? And which functions are most difficult to fill?
| Need to fill | Most difficult to fill | |
|---|---|---|
| Front-line store employees | 36.6% | 46% |
| Assistant store managers | 22.5% | 12% |
| Store managers | 21.1% | 22% |
| Operations | 7.0% | 6% |
| Office/admin | 5.6% | 2% |
| Category manager | 4.2% | 4% |
| Other | 3.0% | 4% |
| Executive | 0% | 4% |
How are you improving your attractiveness as an employer?
| Raise our starting wage | 39.4% |
| Upgrade current benefits | 17.0% |
| Add new benefits | 12.8% |
| All of the above | 19.2% |
| Other | 11.6% |
How does your hourly worker turnover compare to 2015?
| About the same | 53.0% |
| Much higher | 19.7% |
| Somewhat higher | 18.2% |
| Somewhat lower | 6.1% |
| Much lower | 3.0% |
Source: CSP August 2016 retailer study
THE CONSUMER: A STATUS CHECK
Consumers 18 to 34 are especially optimistic about their financial fortunes, with 62% expecting their personal finances will improve in the coming year.
Compared to two years ago, how has your personal financial situation changed?
| Age demographic | Improved | Worsened | Stayed the same |
|---|---|---|---|
| 18-24 | 32% | 35% | 33% |
| 25-34 | 48% | 17% | 35% |
| 35-44 | 39% | 22% | 39% |
| 45-54 | 26% | 31% | 43% |
| 55+ | 24% | 25% | 41% |
In the coming year, how do you think your personal financial situation will change?
| Age demographic | Improve | Worsen | Stay the same |
|---|---|---|---|
| 18-24 | 63% | 12% | 25% |
| 25-34 | 61% | 11% | 28% |
| 35-44 | 52% | 12% | 36% |
| 45-54 | 46% | 15% | 39% |
| 55+ | 24% | 23% | 53% |
Source: Technomic Consumer Brand Metrics
In the coming year, how do you think the economy will change?
GAS SAVINGS: WHERE DID THEY GO?
The average middle-income household in the United States saw potential savings of $632 thanks to the 25% drop in gasoline prices in 2015. For the bottom three income quintiles—households earning less than $56,500 per year—this amounted to at least a 1% jump in annual income.
Drop in mean annual gas spending from 2014 to 2015 as fraction of income
| Income | Change |
|---|---|
| <$30,000 | 1.4% |
| $30,000-$43,000 | 1.2% |
| $43,100-$56,500 | 1.0% |
| $56,600-$80,700 | 0.8% |
| >$80,700 | 0.4% |
How did the average consumer spend their $632 in gas savings?
| $214 | Non-gas goods and services |
| $155 | Gasoline |
| $263 | Vehicles, durable goods, savings |
Source: JPMorgan Chase Institute
How did their spending at c-stores change?
| Stayed the same | 59% |
| Increased | 30% |
| Decreased | 11% |
Source: Technomic Consumer Brand Metrics
LOW GAS PRICES: THE STREET VIEW
Nearly two-thirds of c-store retailers polled by CSP saw an effect on their sales thanks to low gas prices, with the biggest boost inside the store.
Have lower gasoline prices affected your sales?
| Yes | 65.3% |
| No | 28.0% |
| Don't know | 6.7% |
What has been the result of lower gasoline prices?
| Store sales are up | 42.5% |
| Fuel sales are up | 35.9% |
| Customers are trading up to more premium brands | 17.0% |
| Fuel sales are down | 2.8% |
| Store sales are down | 1.9% |
Source: CSP August 2016 retailer study; could choose more than one option
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