The annual report issued by NACS, the association for convenience and petroleum retailing, says that “convenience store industry sales surged 15.0 percent to reach $569.4 billion in 2006, continuing a four-year run of extraordinary growth, with industry sales almost double the 2002 total of $290.6 billion.”
However, “despite sales topping the half-trillion-dollar mark for the first time in history, industry profits in 2006 decreased 23.5 percent, falling to $4.8 billion. This decrease was largely attributable to a drop in motor fuels margins and the continuing escalation of credit card fees, which now surpass industry profits.”
Other statistics from the report:
• The $74.1 billion increase in industry sales was the largest yearly increase ever recorded, fueled by a 17.9 percent surge in motor fuels sales, which rose to $405.8 billion.
• In-store sales also showed strong growth, rising 8.3 percent in 2006, surpassing the overall sales growth of virtually all other competing retail channels and surpassing the overall retail sales growth of 5.0 percent in 2006 reported by the U.S. Department of Commerce. Industry merchandise sales rose 8.7 percent, while foodservice sales rose 5.0 percent.
However, “despite sales topping the half-trillion-dollar mark for the first time in history, industry profits in 2006 decreased 23.5 percent, falling to $4.8 billion. This decrease was largely attributable to a drop in motor fuels margins and the continuing escalation of credit card fees, which now surpass industry profits.”
Other statistics from the report:
• The $74.1 billion increase in industry sales was the largest yearly increase ever recorded, fueled by a 17.9 percent surge in motor fuels sales, which rose to $405.8 billion.
• In-store sales also showed strong growth, rising 8.3 percent in 2006, surpassing the overall sales growth of virtually all other competing retail channels and surpassing the overall retail sales growth of 5.0 percent in 2006 reported by the U.S. Department of Commerce. Industry merchandise sales rose 8.7 percent, while foodservice sales rose 5.0 percent.
- KC's View:
