Merchandise results at Murphy USA are seeing the incremental benefit in basket-building categories from the customer trade down in the company’s traffic-driving categories, President and CEO Andrew Clyde said on Murphy USA’s third-quarter 2024 earnings call on Oct. 31.
“Within the Murphy-branded stores, total merchandise margin dollars were up 5.9% reflecting strength in both nicotine and non-nicotine categories while there were continued headwinds in the Northeast QuickChek markets,” Clyde said.
Clyde told investors that the company is leveraging the strengths of these core categories, including fuel, nicotine, beer and lottery to drive transactions.
“Performance within the nicotine ecosystem specifically remains exceptionally strong,” he said. “We are continuing to grow out market share in combustible products eclipsing 20% share in Murphy markets.”
When it comes to the fast-growing oral nicotine category, Clyde said Murphy USA is seeing double-digit growth in sales and margin.
During the question-and-answer period, Clyde said further upside to the company’s nicotine margins over the next few years will be the result of change in several areas, including tackling illicit and illegal products in the marketplace.
Clyde said on the call that possible tailwinds for Murphy USA would be if other retailers, manufacturers and distributors and the Food and Drug Administration and the Department of Justice would take a more responsible approach towards these products in the marketplace.
Murphy USA is No. 4 on CSP’s 2024 Top 202 ranking of U.S. convenience-store chains by store count.
Murphy USA has a total of 1,740 stores under the Murphy USA/Express (1,586 stores) and QuickChek (154 stores) brands as of Sept. 30. It opened four new-to-industry Murphy USA/Express stores in third-quarter 2024, completed 16 raze-and-rebuilds and had 47 new stores under construction. QuickChek, which Murphy USA acquired in January 2021, had three stores under construction at the end of the third quarter.
El Dorado, Arkansas-based Murphy USA operates n 27 states, primarily in the Southwest, Southeast, Midwest and Northeast.
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