Prepaid & Financial Services: Convenience Retailer Averages
Year-end 2013
To provide a snapshot of the financial services and prepaid category in c-stores, InComm, an Atlanta-based distributor of stored-value and prepaid products to the c-store channel, has shared average daily revenue figures (ADR) for what it considers best-in-class and middle-tier retailers, as well as those who have room for improvement. Included in the charts below are ADRs for wireless—the total prepaid mobile top-up business—and long-distance and financial services, which includes open-loop and general purpose reloadable cards (GPR).
C-Store Sample: Prepaid & Financial Services ADRs
| Best in Class | ||||||
| Retailer | Wireless ADR | Long-distance ADR | Financial-service ADR | Closed-loop | Content (gaming/music) | Total ADR sales |
| Retailer A | $67.89 | $1.93 | $214.79 | -- | $12.61 | $297.22 |
| Retailer B | $72.44 | $0.85 | $97.16 | $21.43 | $25.70 | $217.56 |
| Retailer C | $67.06 | $0.80 | $107.45 | $4.52 | $7.06 | $186.89 |
| Retailer D | $52.16 | $0.79 | $88.44 | $10.05 | $4.88 | $156.32 |
| Retailer E | $58.03 | $2.03 | $82.47 | $1.52 | $0.12 | $144.17 |
| Middle of the Road | ||||||
| Retailer F | $63.88 | $0.29 | $60.64 | $1.11 | $3.74 | $129.68 |
| Retailer G | $54.69 | $1.49 | $40.91 | $13.18 | $8.99 | $119.25 |
| Retailer H | $40.94 | $0.75 | $25.37 | $2.47 | $6.00 | $75.54 |
| Retailer I | $38.73 | $3.00 | $22.01 | $0.11 | $0.74 | $64.59 |
| Retailer J | $52.54 | $0.32 | $4.33 | $1.27 | -- | $58.46 |
| Retailer K | $32.01 | $0.32 | $21.60 | $0.40 | -- | $54.33 |
| Retailer L | $16.63 | $1.22 | $33.80 | $1.55 | -- | $53.21 |
| Room for Improvement | ||||||
| Retailer M | $3.90 | $0.20 | $32.85 | $15.29 | $0.70 | $52.94 |
| Retailer N | $36.32 | $0.43 | $13.55 | $0.52 | $0.21 | $51.03 |
| Retailer O | $30.36 | $0.17 | $2.87 | $0.91 | $0.12 | $34.53 |
| Retailer P | $27.61 | $0.27 | $3.36 | $0.65 | -- | $31.89 |
| Retailer Q | $21.08 | $0.19 | $7.58 | $1.77 | -- | $30.62 |
| Retailer R | $15.33 | $0.51 | -- | -- | $3.38 | $19.22 |
| Retailer S | $14.03 | $1.97 | $0.20 | $0.40 | -- | $16.60 |
| Retailer T | $1.99 | $0.53 | $0.25 | $0.05 | -- | $2.82 |
Source: InComm
Customer in Focus
According to research firm Packaged Facts, approximately 40% of adults 18 years or older are unbanked. The research firm, drawing from Experian Simmons survey data, points out that this represents a 13.2% increase from 2005. Interestingly, the percentage of 18- to 24-year-olds who self-identify as unbanked grew almost 25% from 2005 to 2013, to reach 67%.
“This jump has likely been influenced by recession-driven unemployment and wage trends that have disproportionately affected younger entrants to the job market, with diminished job prospects and wage issues dampening need for bank accounts,” Packaged Facts says. It also suggests a generational shift away from traditional banking to “non-bank” funding accounts (e.g., PayPal) and general-purpose reloadable cards.
Distributor Data: Prepaid UPCs
Calendar year 2013
The top-shipped prepaid UPC from McLane in 2013 was the $100 Visa gift card.
UPC
1. Visa $100 gift card
2. PayPower Prepaid VISA brochure
3. American Express $100 gift card
4. Visa $50 gift card
5. Boost $50 phone card
6. Visa $25 gift card
7. Visa $100 GPR card + $3.95 purchase fee
8. Verizon $15 phone card
9. American Express $50 gift card
10. Amazon $25 gift card
Source: McLane Co.
Cross-Category Opportunity
Forty-five percent of lottery market baskets included items from other categories, according to recent research by Management Science Associates that examined point-of-sale data at three midsize c-store chains. Purchases with lottery were more likely to include scratch tickets, newspapers and other publications. The average lottery market basket was $14.34, with lottery contributing $9.56 and scratch tickets $3.73.
The ATM Consumer and Convenience Stores
According to research by Mercator Advisory Group, an advisory firm to the payments and banking industry, consumers are using a wider variety of ATMs than in previous years, and using these ATMs more frequently. When asked which ATMs they use, consumers reported the most significant rise in usage of their own bank’s ATM at in-store locations, increasing from 22% of ATM users in 2012 to 27% in 2013.
Research conducted by The NPD Group and The Nielsen Co. shows ATM users are loyal c-store shoppers. They are more likely than non-ATM users to always visit the same store, and more than twice as likely as non-ATM users to be heavy or super-heavy shoppers. More than 53% visit the c-store eight to more than 13 times per month. Two-thirds cited the ATM as a reason they chose the c-store where they shopped. And while they’re in the store, they’re buying products: ATM users spend twice as much as the channel average at c-stores and buy twice as many items per visit, according to research from NPD.
C-Store Lottery Sales by State
July 1, 2012-June 30, 2013
What follows is a breakout of c-store and gas station lottery sales by state for the most recent fiscal year ending June 30, 2013, according to La Fleurs. The first dollar figure for each retailer network includes both draw games—Pick 3, Pick 4, Mega Millions, Powerball—and scratch-off instant games.
| Retailer network by trade ($ millions) | FY12 total retailer sales | % of sales | FY12 total retailers | % of network | FY12 draw retailer sales | % of sales | % of network |
| Arizona c-stores | $423.54 | 65.8% | 2,056 | 69.7% | $140.69 | 60.2% | 69.7% |
| gas c-stores | $9.69 | 1.5% | 131 | 4.4% | $4.05 | 1.7% | 4.4% |
| Arkansas c-stores | $59.81 | 12.6% | 392 | 20.8% | $9.62 | 11.8% | -- |
| gas c-stores | $321.92 | 67.9% | 1,014 | 53.8% | $55.11 | 67.4% | -- |
| California c-stores | $779.54 | 17.8% | 2,725 | 13.0% | $294.61 | 18.2% | 13.0% |
| gas c-stores | $1,125.31 | 25.7% | 6,167 | 29.3% | $415.32 | 25.7% | 29.3% |
| Colorado c-stores | $361.60 | 66.3% | 1,678 | 55.4% | $106.40 | 58.8% | 55.4% |
| Connecticut c-stores | $434.90 | 40.2% | 1,063 | 35.0% | $166.52 | 38.9% | 35.0% |
| gas c-stores | $342.48 | 31.7% | 821 | 27.0% | $125.53 | 29.3% | 27.0% |
| DC c-stores | $31.73 | 12.7% | 78 | 15.2% | $23.24 | 12.3% | 15.2% |
| gas c-stores | $30.84 | 12.4% | 61 | 11.9% | $24.70 | 13.0% | 11.9% |
| Delaware c-stores | $17.89 | 13.3% | 61 | 11.0% | $12.05 | 13.6% | 11.0% |
| gas c-stores | $49.67 | 36.9% | 198 | 35.6% | $30.08 | 33.9% | 35.6% |
| Florida c-stores | $768.91 | 17.3% | 2,788 | 21.0% | $304.44 | 16.2% | 21.0% |
| gas c-stores | $2,126.11 | 47.8% | 6,467 | 48.6% | $790.83 | 42.0% | 48.6% |
| Georgia c-stores | $1,365.17 | 35.8% | 2,689 | 31.6% | -- | -- | -- |
| gas c-stores | $1,941.98 | 50.9% | 3,663 | 43.0% | -- | -- | -- |
| Idaho c-stores | $3.08 | 1.9% | 43 | 3.6% | $0.53 | 0.9% | 3.6% |
| gas c-stores | $113.95 | 71.1% | 609 | 50.7% | $42.36 | 70.1% | 50.7% |
| Illinois c-stores | $433.11 | 16.2% | 1,129 | 12.3% | $182.34 | 17.3% | -- |
| gas c-stores | $1,272.63 | 47.5% | 3,888 | 42.5% | $479.40 | 45.4% | -- |
| Indiana c-stores | $37.49 | 4.4% | 141 | 3.6% | $13.05 | 4.4% | 3.6% |
| gas c-stores | $625.72 | 73.1% | 2,811 | 71.7% | $210.07 | 70.5% | 71.7% |
| Kansas c-stores | $4.05 | 1.6% | 41 | 2.3% | $1.41 | 1.2% | 2.3% |
| gas c-stores | $185.45 | 73.2% | 1,038 | 57.4% | $71.86 | 63.1% | 57.4% |
| Kentucky c-stores | $32.83 | 4.0% | 105 | 3.7% | $14.87 | 4.7% | 3.7% |
| gas c-stores | $605.87 | 74.0% | 1,866 | 65.8% | $222.82 | 70.6% | 65.8% |
| Louisiana c-stores | $28.42 | 6.4% | 247 | 8.5% | $18.13 | 6.7% | 8.5% |
| gas c-stores | $353.34 | 79.0% | 2,150 | 73.7% | $210.30 | 77.4% | 73.7% |
| Maryland c-stores | $424.84 | 23.7% | 808 | 19.0% | $293.99 | 22.8% | 19.0% |
| gas c-stores | $440.87 | 24.6% | 997 | 23.4% | $298.53 | 23.2% | 23.4% |
| Massachusetts c-stores | $2,474.60 | 52.0% | 2,736 | 33.9% | -- | -- | -- |
| gas c-stores | $647.18 | 13.6% | 1,168 | 14.5% | -- | -- | -- |
| Michigan c-stores | $262.47 | 10.9% | 1,063 | 9.8% | $165.64 | 10.3% | 9.8% |
| gas c-stores | $754.94 | 31.3% | 3,572 | 32.8% | $392.79 | 24.3% | 32.8% |
| Minnesota c-stores | $45.98 | 8.9% | 293 | 9.4% | $13.94 | 8.5% | 9.4% |
| gas c-stores | $368.27 | 70.9% | 1,810 | 57.9% | $114.22 | 69.2% | 57.9% |
| Missouri c-stores | $46.95 | 4.3% | 301 | 6.1% | $18.38 | 5.2% | 6.1% |
| gas c-stores | $739.39 | 67.2% | 2,573 | 52.1% | $200.03 | 56.3% | 52.1% |
| Montana c-stores | $33.63 | 63.9% | 397 | 47.5% | $21.49 | 59.6% | 47.5% |
| Nebraska c-stores | $0.75 | 0.5% | 14 | 1.2% | $0.35 | 0.5% | 1.2% |
| gas c-stores | $110.97 | 73.7% | 784 | 66.0% | $47.76 | 69.6% | 66.0% |
| New Hampshire c-stores | $64.83 | 25.6% | 382 | 29.8% | $20.13 | 26.4% | -- |
| gas c-stores | $128.03 | 50.6% | 547 | 42.6% | $35.13 | 46.0% | -- |
| New Jersey c-stores | $1,087.23 | 39.4% | 1,893 | 28.2% | $500.79 | 37.3% | -- |
| gas c-stores | $279.97 | 10.1% | 772 | 11.5% | $130.28 | 9.7% | -- |
| New Mexico c-stores | $3.44 | 2.6% | 42 | 3.8% | $1.52 | 2.3% | -- |
| gas c-stores | $103.23 | 77.2% | 786 | 70.2% | $49.72 | 76.4% | -- |
| New York c-stores | $2,050.16 | 30.0% | 4,509 | 27.4% | $780.34 | 23.3% | -- |
| gas c-stores | $123.06 | 1.8% | 326 | 2.0% | $57.06 | 1.7% | -- |
| North Carolina c-stores | $151.45 | 9.5% | 745 | 11.0% | $63.36 | 10.0% | -- |
| gas c-stores | $1,244.69 | 78.0% | 4,364 | 64.3% | $483.26 | 75.9% | -- |
| North Dakota c-stores | $0.17 | 0.7% | 3 | 0.8% | $0.17 | 0.7% | 0.8% |
| gas c-stores | $19.39 | 76.2% | 325 | 81.3% | $19.39 | 76.2% | 81.3% |
| Ohio c-stores | $529.52 | 19.5% | 1,412 | 13.9% | $222.92 | 18.3% | 13.9% |
| gas c-stores | $963.86 | 35.5% | 3,364 | 33.1% | $350.04 | 28.7% | 33.1% |
| Oklahoma c-stores | $6.60 | 3.3% | 114 | 5.8% | $2.73 | 2.6% | 5.8% |
| gas c-stores | $179.75 | 89.9% | 1,638 | 83.1% | $93.51 | 90.0% | 83.1% |
| Oregon c-stores | $102.43 | 9.7% | 793 | 18.9% | $52.01 | 25.0% | 22.1% |
| gas c-stores | $34.66 | 3.3% | 415 | 9.9% | $16.66 | 8.0% | 11.6% |
| Pennsylvania c-stores | $362.67 | 10.4% | 838 | 9.2% | $151.79 | 11.3% | 9.2% |
| gas c-stores | $1,402.43 | 40.3% | 3,065 | 33.7% | $476.24 | 35.4% | 33.7% |
| Rhode Island c-stores | $66.81 | 26.8% | 207 | 17.4% | $40.88 | 24.7% | 17.4% |
| gas c-stores | $63.62 | 25.5% | 233 | 19.6% | $34.27 | 20.7% | 19.6% |
| South Carolina c-stores | $87.96 | 7.7% | 364 | 9.6% | $29.81 | 7.9% | 9.6% |
| gas c-stores | $935.15 | 82.3% | 2,670 | 70.7% | $299.35 | 79.0% | 70.7% |
| South Dakota c-stores | $40.11 | 75.2% | 461 | 75.0% | $20.62 | 72.8% | 76.1% |
| Texas c-stores | $444.74 | 10.6% | 2,144 | 12.6% | $115.39 | 10.4% | 12.6% |
| gas c-stores | $3,110.95 | 74.2% | 11,103 | 65.4% | $794.83 | 72.0% | 65.4% |
| Vermont c-stores | $9.95 | 9.9% | 84 | 11.8% | $2.94 | 11.1% | 11.8% |
| gas c-stores | $72.62 | 71.9% | 448 | 62.9% | $16.99 | 64.4% | 62.9% |
| Virginia c-stores | $328.57 | 20.3% | 1,015 | 17.5% | $171.23 | 22.1% | -- |
| gas c-stores | $986.28 | 61.0% | 3,254 | 56.1% | $476.72 | 61.6% | -- |
| Washington c-stores | $91.07 | 17.0% | 813 | 19.9% | $36.68 | 16.9% | 19.9% |
| gas c-stores | $216.28 | 40.4% | 1,820 | 44.6% | $76.75 | 35.4% | 44.6% |
| West Virginia c-stores | $12.62 | 6.3% | 111 | 7.1% | $5.96 | 7.1% | 7.1% |
| gas c-stores | $145.63 | 72.4% | 910 | 58.2% | $53.91 | 64.5% | 58.2% |
| Wisconsin gas c-stores | $420.59 | 76.8% | 2,565 | 69.7% | $164.60 | 73.1% | 69.7% |
Source: La Fleur/TLF Publications Inc.
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