C-Store Sales Expected to Finish Year on High Note
NACS survey finds 84% of retailers are optimistic about fourth-quarter sales.
Sep 27, 2019
ALEXANDRIA, Va.—An overwhelming 84% of U.S. convenience store operators say they are optimistic about their business prospects for the fourth quarter, which would continue the pattern of strong sales throughout 2019. Retailer optimism in the third quarter was 83%.
Nearly three in four retailers (74%) say that in-store merchandise sales were up over the first nine months of 2019. Convenience retailers, which sell an estimated 80% of the fuel purchased in the United States, also report that fuels sales increased: 52% report that fuel sales were higher than last year. Only 10% of retailers say that merchandise sales were down, and only 17% reported a decrease in fuel sales.
The results are from the latest quarterly retail sentiment survey from NACS and include responses from 118 companies, representing 2,906 stores.
Fourth-quarter sales will be closely linked to two factors that drive customer traffic to stores: the weather and geopolitical events that could affect oil prices, say retailers.
The morning daypart (approximately 6 a.m. to 11 a.m.) drives the most sales: 62% of retailers surveyed say it’s the most importance daypart for merchandise sales, and 50% say it’s the most important time for fuel sales.
Retailers also say that beverages help drive customer traffic inside the store. Most retailers (57%) say that buying a beverage was the top reason why customers come inside the store, compared with 23% for a food purchase and 18% to purchase something else.
While retailers express strong optimism about their business prospects, they were slightly less bullish about the overall economy and the overall convenience and fuel retailing industry. Overall, 77% say they are optimistic about the economy, a slight 1-point drop from last quarter, and 78% are optimistic about the industry, a 2-point decline.
The quarterly NACS Retailer Sentiment Survey was fielded September 17-23, 2019.
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