Convenience Retailers Are Optimistic About Summer Sales

ALEXANDRIA, Va.—A NACS survey of U.S. convenience store operators found that most retailers experienced strong sales during the first half of 2019 and expect that warm weather and low gas prices will contribute to robust sales during the next three months.

Three in four (75%) convenience retailers said their first-half merchandise sales were higher than the year-earlier period, while only 5% said their sales were lower. Convenience retailers, which sell an estimated 80% of the fuel purchased in the United States, also reported stable fuel sales, with 70% reporting same or higher fuel sales than the year-ago period.

Convenience retailers are overwhelmingly positive about sales: 83% said they are optimistic about their business for the third quarter, a 12-point jump from the second quarter but similar to optimism levels in summer 2018 (86%) and 2017 (83%). Convenience store sales peak in the summer months with warmer temperatures, longer daylight hours and more people taking family vacations and spending time outdoors. Consumers also tend to spend more when gasoline prices are low, and this year the national average price per gallon of gasoline is nearly 20 cents less than a year ago. 

Continued consumer demand for healthier food and snacks choices is another reason for optimism. Convenience retailers said they are adding or expanding the following categories during the first six months of 2019:

• 42% offered more packaged salads
• 40% offered more health bars
• 32% offered more fresh fruit
• 30% offered more nuts/trail mix
• 25% offered more cut fruit/vegetables

Pri Mar Petroleum’s Primart stores in southwestern Michigan are using a new open-air merchandiser to showcase a new line of healthy options. And Landhope Farms, with four stores in Pennsylvania and Maryland, focuses on fresh and local items, whether vegetables from local farms or baked goods from local bakeries.

Healthy beverages also are top of mind with convenience retailers, who cited the following varieties as having the greatest potential to boost in-store sales during the summer:

• 59% cited bottled water (still)
• 59% cited lower-calorie sports drinks
• 50% cited sparkling water
• 37% cited lower-calorie teas and coffee

Retailers also are exploring new opportunities to serve customers at the pump: 27% said they have installed or are considering installing electric vehicle chargers.

The quarterly NACS Retailer Sentiment Survey tracks retailer sentiment related to their businesses, the industry and the economy. A total of 83 NACS member companies, representing a cumulative 6,152 stores, participated in the June 2019 survey.

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