C Store 2019 review

J U N E 2 0 1 9 Convenience Store News 33
BY ANGELA HANSON & DON LONGO
Behind the hoopla of another robust year
of industry sales and profit growth is the
sobering fact that in-store sales — an
important barometer on the health of the
convenience store industry — were up a
paltry 1.6 percent in 2018, as both in-store
and motor fuel transactions were down
for the second year in a row. On top of
that, sales growth in foodservice — one
of the key growth categories for c-stores
for the past decade — continued to slow,
rising only 2.4 percent.
The c-store industry completes another strong
year in sales and proﬁt growth, but trouble
lurks behind the scenes
DON’T LET THE
SUNNY
NUMBERS
FOOL YOU
32-50.CoverStory_CSN0619.indd 39 6/3/19 4:23 PM

Source: Convenience Store News Market Research, 2019
COVER STORY
Total convenience store industry sales rose 7.3 percent
last year to $661.4 billion, the highest total revenue since
2014, according to the 44th annual Convenience Store
News Industry Report, the longest-running, continuously
published annual report on the financial performance of
the convenience retail channel.
Higher gasoline prices drove motor fuel sales to a 10.7
percent increase last year, to $432 billion, the industry’s
highest gas sales since 2014. Meanwhile, gallons sold were
flat (down 0.1 percent) as better fuel economy vehicles
require fewer fill-ups.
It’s worth pointing out that a slight decline in the total
number of convenience stores (from 154,958 to 153,237)
deflated many of the total industry sales figures. Sales-
per-store results look a little better due to the 1.1-percent
decrease in the number of c-stores in the United States.
Nearly 80 percent of the industry’s stores sell motor fuels.
On a profitability basis, gross profits increased to $106.7
billion in 2018, up from $101.7 billion in 2017. Motor fuels
comprised $42.6 billion of those profits, while in-store
profits were $64 billion. Pretax profits were a record-high
$9.81 billion, up 5.9 percent from 2017. On a per-store
basis, pretax profits averaged $64,371 a unit, a 6.6 percent
increase from the previous year.
The channel’s success last year was really based on robust
motor fuel prices and margins. The average sales price
per gallon rose 10.8 percent to $2.80 per gallon, and gross
margin cents per gallon increased 7.8 percent to 25.5 cents.
In-store sales (merchandise and foodservice combined)
were up 2.2 percent on a per-store basis. That’s better
than the 1.5 percent per-store increase of 2017, but well
below the 3.2 percent and 3.7 percent per-store sales
gains achieved in 2016 and 2015, respectively.
Foodservice sales (including hot, cold and frozen
dispensed beverages and prepared food) totaled $37.85
billion last year. The 2.4 percent increase fell below the
previous year’s 3 percent gain, and even further beneath
the 6.6 percent and 7.1 percent gains of 2016 and 2015,
respectively.
Merchandise sales totaled $191.5 billion last year. The 1.4
percent gain was less than the previous year’s 2.1 percent
increase, and even less than the 3.8 percent and 4.9
percent gains of 2016 and 2015, respectively.
34 Convenience Store News C S N E W S . c o m
Total Convenience Store Sales (in billions)
2018
2017
2016
•Total
•Motor Fuels
•In-Store
7.3%
10.7%
9.1%
13.6%
2.1%
-6.3%
-11.3%
3.8%
$661.4
$432.0
1.6%
$616.3
$564.9
$343.7
Store Growth Analysis
Source: Nielsen TDLinx; Convenience Store News Market Research, 2019
2018
2015
2014
2017
2016
153,237
154,958
154,535
154,195
152,794
37.7% 62.3%
37.0% 63.0%
36.9% 63.1%
36.9% 63.1%
37.0% 63.0%
Motor Fuel Volume
2018 2017 2016
-0.1%
154.3
-0.3%
154.7
2.2%
% CHANGE % CHANGE % CHANGE
154.1
GALLONS
(billions)
GALLONS
(billions)
GALLONS
(billions)
$221.2
•Total Store Count
•Chains
•Single Stores
$390.4
The channel’s success last year
was really based on robust motor
fuel prices and margins. The average
sales price per gallon rose 10.8
percent to $2.80 per gallon, and
gross margin cents per gallon
increased 7.8 percent to 25.5 cents.
$229.4
$225.9

Industry Sales Mix
In-Store Sales Breakdown
Foodservice now accounts for 16.5 percent of all in-store
sales, up from 16.38 percent a year ago. The prepared
food segment’s share also grew, accounting for 11.49
percent of in-store sales in 2018, up from 11.15 percent the
prior year.
Although still an important category, cigarette dollar sales
represented 28.5 percent of total in-store sales last year,
dropping from 29.82 percent in 2017.
Packaged beverages continues to be the third-highest
grossing in-store category at 12.71 percent of sales, up
from 12.5 percent the previous year.
Other categories that gained as a percentage of in-store
sales year over year include other tobacco products (6.84
percent of in-store sales), general merchandise (3.69
percent), salty snacks (2.85 percent), and wine and liquor
(1.47 percent).
2018 2017 2016
34.7%
IN-STORE
65.3%
MOTOR FUELS
36.7%
IN-STORE
63.3%
MOTOR FUELS
39.2%
IN-STORE
60.8%
MOTOR FUELS
Gross Profit Dollar Mix
2018
60.0%
IN-STORE
40.0%
MOTOR FUELS
2017 2016
60.8%
IN-STORE
39.2%
MOTOR FUELS
62.6%
IN-STORE
39.2%
MOTOR FUELS
Industry Gross Profit
Pretax Profits
TOTAL
INDUSTRY
PRETAX PROFIT
(in billions)
% CHANGE PRETAX PROFIT
PER STORE
% CHANGE
2018 $9.81 5.9% $64,371 6.6%
2017 $9.26 1.8% $60,410 2.6%
2016 $9.10 -1.9% $58,886 -3.9%
In-Store Sales per Store
Total Merchandise & Foodservice Sales
(in billions)
•Total
•Merchandise
•Foodservice
2017
2016
COVER STORY
2018 2017 % CHANGE
$ BILLIONS $ BILLIONS
In-Store $64.08 $61.85 3.6%
Motor Fuels $42.63 $39.88 6.9%
TOTAL $106.71 $101.73 4.9%
2018
2017
2016
2.2%
1.5%
3.2%
2018
Packaged beverages
continues to be the third-
highest grossing in-store
category at 12.71 percent
of sales, up from 12.5 percent
the previous year.
$221.2
3.6%
$1,505,376
$37.9
$37.0
2.4%
3.8%
6.6%
$1,473,386
$35.7
$191.5 1.4%
$185.5 3.8%
1.8%$188.9
2.1%$225.9
$229.4 1.6%
$1,451,682

Total direct-store operating expenses were up 5.8 percent
last year, driven by higher labor costs and rising credit
card fees (up 8.9 percent). Wages rose 6.2 percent,
representing $330,584 per store in costs. That’s up from
IN-STORE SALES BY CATEGORY
PERCENT OF IN-STORE SALES SALES PER STORE TOTAL INDUSTRY SALES (IN MILLIONS)
2018 2017 2018 % change 2018 % change
MERCHANDISE
Cigarettes 28.50% 29.82% $429,031 -2.3% $65,365 -2.9%
Packaged beverages 12.71 12.50 191,347 3.9 29,153 3.2
Beer/malt beverages 9.34 9.41 140,607 1.4 21,422 0.8
Other tobacco products 6.84 5.62 102,991 24.3 15,691 23.5
Edible grocery 4.78 4.85 72,001 0.7 10,970 0.1
General merchandise 3.69 3.62 55,556 4.3 8,464 3.6
Candy 3.13 3.17 47,103 0.7 7,176 0.1
Salty snacks 2.85 2.81 42,839 3.6 6,527 2.9
Non-edible grocery 1.60 1.66 24,030 -1.8 3,661 -2.4
Wine & liquor 1.47 1.40 22,112 6.9 3,369 6.3
Fluid milk products 1.46 1.58 21,990 -5.5 3,350 -6.1
Alternative snacks 1.10 1.10 16,616 2.5 2,532 1.8
Ice cream & frozen novelties 0.88 0.91 13,288 -0.4 2,024 -1.0
Health & beauty care 0.68 0.70 10,251 -1.3 1,562 -1.9
Ice 0.46 0.49 6,996 -2.5 1,066 -3.1
Publications 0.44 0.46 6,577 -3.0 1,002 -3.6
Packaged sweet snacks 0.28 0.30 4,284 -3.7 653 -4.3
All other merchandise 3.28 3.22 49,307 3.9 7,512 3.2
MERCHANDISE SUBTOTAL 83.50% 83.62% $1,256,927 2.0% $191,499 1.4%
FOODSERVICE
Prepared food
(prepared on-site or off-site)
11.49% 11.15% $172,967 5.4% $26,352 4.7%
Hot dispensed beverages 3.19 3.37 47,957 -3.4 7,307 -4.0
Cold dispensed beverages 1.29 1.33 19,482 -0.9 2,968 -1.5
Frozen dispensed beverages 0.53 0.53 8,043 3.3 1,225 2.6
FOODSERVICE SUBTOTAL 16.50% 16.38% $248,449 3.0% $37,852 2.4%
TOTAL IN-STORE 100.00% 100.00% $1,505,376 2.2% $229,352 1.6%
Operations
An increase in direct-store operating
expenses and a decrease in customer trips
are two of the greatest concerns to c-store
retailers across the United States.
COVER STORY

$246,394 per store in 2014. With the current historically
low unemployment rate, retailers can expect labor costs
to continue to rise in 2019. Turnover of store associates
was 132 percent, while manager turnover came in at
26 percent.
More consumers are doing their shopping over the
internet or using delivery services. And greater fuel
efficiency due to tougher fuel emission standards
(CAFE) is resulting in fewer trips to the pump. Stronger
competition from other retailers’ new hybrid convenience
concepts, like Walmart and Kroger, also contributed to
declining trips for c-stores.
In 2018, the number of in-store transactions per week
fell 1.4 percent to an average of 3,244, and motor fuel
transactions declined 1 percent to 2,327 per week.
The average in-store transaction amount did increase,
however, to $8.83, up from $8.60 in 2017, and the average
motor fuel transaction increased 11.2 percent to $29.30, up
from $26.35 the previous year.
Store size remained basically unchanged. The average
sales area of a convenience store rose to 2,400 square
feet last year, up slightly from 2,395.
Motor Fuels
The number of actual gallons of motor fuel sold fell in
2018, but the drop was small; declining just 0.1 percent
to 154.1 billion gallons. This marks the third year of slowly
declining gallons, compared to the 154.3 billion gallons
sold in 2017 and 154.7 billion gallons sold in 2016.
However, while drivers didn’t make a significant change
to how much they gassed up, the amount they paid
jumped last year, rising to $432 billion, compared to
$390.4 billion in 2017.
On a per-gallon basis, the average sales price increased to
$2.80 for a gallon of regular fuel, up from $2.53 per gallon
the previous year.
Direct-Store Operating Expenses
(dollars per store)
Five-Year Trend: Wages
(dollars per store)
$330,584
2018
$311,284
2017 $285,320
2016
$264,185
2015 $246,394
2014
Employee Turnover
COVER STORY
2018 2017 % CHANGE
Wages $330,584 $311,284 6.2%
Payroll taxes 16,847 16,664 1.1
Workers compensation 13,564 12,653 7.2
Health insurance 30,651 29,331 4.5
Other benefits 5,578 5,457 2.2
Labor subtotal $397,223 $375,389 5.8%
Credit card fees 82,927 76,150 8.9
All other direct-store 169,101 162,285 4.2
operating expenses
TOTAL $649,251 $613,82 5.8%
Transactions
2018 % change
In-store transactions per week 3,244 -1.4%
Motor fuel transactions per week 2,327 -1.0%
Average in-store transaction $8.83 2.7%
Average motor fuel transaction $29.30 11.2%
Average gallons per transaction 9.7 9.0%
C-store Square Footage
2018 2017
Sales area 2,400 2,395
Non-sales area 800 810
Total store size 3,200 3,205
Total property size 27,800 27,800
2018
Store Associates 132%
Store Managers 26%

Gross margin cents per gallon also rose from 23.7 cents in
2017 to 25.5 cents last year.
Although the annual average price per gallon is getting
closer to the $3 benchmark, 2018 was the fourth straight
year that the average price fell below that point. Looking
back at the last five years, 2014 saw the highest average
gallon price at $3.44, while 2016 was the lowest at $2.25.
Total motor fuel dollar sales have mimicked the per-gallon
trend over the past five years, falling from a high point of
$501.4 billion in 2014 to $343.7 billion in 2016, and rising
since then. Total gallons sold surpassed 150 billion every
year in this time period except 2014, when the total was
147 billion gallons sold.
The number of U.S. c-stores that sell fuel remains steady
at nearly eight in 10, or 79.6 percent in 2018 compared to
79.1 percent in 2017.
Cigarettes
Cigarette sales in the convenience channel fell in 2018,
with results varying significantly by segment. Average
sales per store fell 2.3 percent to $429,031.
Imports saw notable growth, with average sales per store
rising 11.7 percent and total industry sales rising 11 percent,
but the segment remains the smallest in actual dollar sales.
Subgeneric/private label was the only other segment to
avoid declining sales, but remained fairly flat.
Fourth tier cigarettes saw the biggest drop in 2018,
falling 25.2 percent in average sales per store. Premium
cigarettes also declined, falling 1.7 percent in average sales
per store. However, the segment remains the largest in the
category, with $349,376 in average sales per store.
Margin percentage for cigarettes remained steady in 2018,
seeing a drop of less than 1 percent year over year, while
cigarettes’ share of total in-store sales slipped from 29.8
percent to 28.5 percent over the same time period.
Other Tobacco Products
Other tobacco products (OTP) had a better year, with its
rate of growth jumping sharply from last year. Average
sales per store increased 24.3 percent in 2018 to $102,991.
Electronic cigarettes hit it out of the park, with average
sales per store growing by an astounding 178 percent
to $26,613. Total industry sales of e-cigarettes rose 177.2
percent. While regulatory challenges are on the horizon,
the segment marked itself as the growth leader for OTP.
E-cigarettes also beat out cigars to be the No. 2 OTP
product in both per-store and total industry sales.
Smokeless tobacco saw much more modest growth — a
2.8 percent increase in average sales per store. Still, it
remains the top OTP product type in actual dollar sales
at $48,629 per store.
2018 marked a high point for OTP growth in a five-year
period, rising from a low of 4.3 percent growth in total
2018 2017 2016
Dollar sales (in billions) $432.0 $390.4 $343.7
Gallons sold (in billions) 154.1 154.3 154.7
Gross margin cents per gallon 25.5 23.7 22.9
Average sales price per gallon*$2.80 $2.53 $2.25.
Retail Gasoline Prices
(per gallon)
*Weighted average, all grades and diesel
Stores Selling Motor Fuels
Source: Nielsen TDLinx, 2018
Five-Year Trend: Motor Fuels
2018 2017 2016 2015 2014
Dollar sales
(in billions)
$432.0 $390.4 $343.7 $389.9 $501.4
Gallons sold
(in billions)
154.1 154.3 154.7 151.3 147.0
COVER STORY
$
2.80
2018
$
2.53
2017
$
2.25
2016
$
2.57
2015
$
3.44
2014
79.6%
2018
79.1%
2017
Price includes dollars per gallon
for all grades, all formulations
Motor Fuel Sales & Margins

AVERAGE SALES PER STORE INDUSTRY TOTAL (IN MILLIONS)
2018 % change 2018 % change
Premium $349,376 -1.7% $53,229 -2.3%
Branded
discount
65,130 -5.6 9,923 -6.2
Subgeneric/
private label
13,337 1.5 2,032 0.9
Fourth tier 1,168 -25.2 178 -25.5
Imports 20 11.7 3 11.0
TOTAL $429,031 -2.3% $65,365 -2.9%
sales in 2014 to growth of 23.5 percent last year. Margin
percentage also reached a high point of 29.15 percent, as
did OTP as a share of in-store sales at 6.84 percent.
Foodservice
Foodservice continues to grow as the category becomes
more crucial to success in the convenience sector.
However, foodservice category growth did slow in 2018,
with average sales per store rising 3 percent to $248,449.
Looking back at total industry foodservice sales over
the past five years, the 2.4 percent growth seen in 2018
continued a slowdown from the 7.1 percent growth high
that occurred in 2015.
During this period, margin percentage has remained
steady, settling at virtually the same percentage three
years out of five. Additionally, foodservice as a percentage
of in-store sales has experienced a slow but consistent
climb over the last five years, rising from 15.38 percent in
2014 to 16.5 percent in 2018.
The prepared food segment led the foodservice category
in both growth and actual dollar sales in 2018, with
average sales per store increasing 5.4 percent to $172,967.
Frozen dispensed beverages grew 3.3 percent in average
sales per store to $8,043, but the segment remains the
smallest in the foodservice category.
Category Analysis:
CIGARETTES
Five-Year Trend: Cigarettes
2018 2017 2016 2015 2014
Percent change
in total sales
-2.9% 1.1% 1.4% 3.9% 0.1%
Margin
percentage
14.63% 14.82% 15.20% 13.36% 13.60%
Share of
in-store sales
28.50% 29.82% 30.11% 30.84% 31.10%
COVER STORY
TOTAL SALES
Sales rose 7.3 percent to $661.4 billion,
the highest total revenue in four years.
IN-STORE SALES
In-store sales were up only 1.6 percent as
customer transactions declined. On a per-store
basis, in-store sales were up 2.2 percent, slightly
better than the 1.7 percent increase of 2017, but
well below the 3.2 percent and 3.7 percent gains
achieved in 2016 and 2015, respectively.
MOTOR FUEL BUSINESS
Fuel dollar and profit gains were strong, even in
the face of lower volume.
STORE COUNT
The total number of U.S. convenience stores
declined for the first time in years. There was an
average of 1,721 fewer c-stores in operation last year.
PROFITS
Strong fuel margins contributed to record-high
pretax profits for the industry in 2018.
FOODSERVICE SALES
While still a focus of many c-store chains’
improvement efforts, foodservice increased only
2.4 percent in sales last year, which is less than
2017’s 3 percent gain and even further beneath
the 6.6 percent and 7.1 percent gains of 2016
and 2015, respectively.
AVERAGE SALES
PER STORE
INDUSTRY TOTAL
(IN MILLIONS)
Smokeless $48,629 2.8% $7,409 2.2%
Electronic cigarettes 26,613 178.0 4,055 177.2
Cigars 25,659 7.8 3,909 7.1
Papers 1,522 -4.4 232 -5.0
Pipe/cigarette tobacco 569 -10.2 87 -10.8
TOTAL $102,991 24.3% $15,691 23.5%
Category Analysis:
OTHER TOBACCO PRODUCTS

Category Analysis:
PACKAGED BEVERAGES
Cold dispensed beverage sales fell slightly, declining 0.9
percent in average sales per store, while hot dispensed
beverage sales dropped 3.4 percent in average sales
per store. This indicates that despite coffee programs
being a high-margin staple, c-store operators can do
more to boost hot beverage purchases. Overall, hot
dispensed beverages are still the No. 2 moneymaker in
the foodservice category, at $47,957 in average sales per
store in 2018.
Packaged Beverages
As a category, packaged beverages was solid in 2018, with
average sales per store increasing 3.9 percent to $191,347.
When broken down by segment, though, changes in sales
ranged wildly from significant jumps to sharp drops.
The enhanced water segment saw the biggest increase
at 14.8 percent growth in average sales per store and 14.2
percent growth in total industry sales. Energy/alternative
drinks saw the second highest growth, increasing 12.6
percent in average sales per store and 11.9 percent in
total industry sales. This growth allowed the segment to
overtake carbonated soft drinks (CSDs) in both per-store
and total industry sales for the first time. CSDs declined
for another year, with average sales per store falling 3.4
percent and total industry sales falling 3.9 percent.
Both the bottled water and sports drinks segments also
saw positive growth, while sales of juice/juice drinks and
ready-to-drink iced tea fell in 2018.
Looking at the past five years, the 3.2 percent growth
in 2018 industry sales of packaged beverages was the
second lowest during the period, although it marked a
major rebound from the 0.2 percent growth that occurred
in 2017. Margin percentage for packaged beverages
increased slightly to 41.58 percent last year — a high point
within the last five years — while share of in-store sales
also saw a slight uptick, reaching 12.71 percent in 2018.
Alcoholic Beverages
Convenience stores that sell beer and malt beverages saw
slight growth for the category last year, with average sales
per store rising 1.4 percent to $187,226.
Imports, flavored malt beverages and super premium beer
all saw double-digit growth in both average sales per store
and total industry sales. Non-alcoholic beer also grew,
although it remains the smallest segment in the category.
Category Analysis:
FOODSERVICE
AVERAGE SALES
PER STORE
INDUSTRY TOTAL
(IN MILLIONS)
Prepared food (prepared
on-site or off-site)
$172,967 5.4% $26,352 4.7%
Hot dispensed beverages 47,957 -3.4 7,307 -4.0
Cold dispensed
beverages
19,482 -0.9 2,968 -1.5
Frozen dispensed
beverages
8,043 3.3 1,225 2.6
TOTAL $248,449 3.0% $37,852 2.4%
Five-Year Trend: Foodservice
2018 2017 2016 2015 2014
Percent change
in total sales
2.4% 3.6% 6.6% 7.1% 6.3%
Margin
percentage
43.71% 43.85% 43.70% 43.72% 44.13%
Share of
in-store sales
16.50% 16.38% 16.14% 15.71% 15.38%
COVER STORY
AVERAGE SALES PER
STORE
INDUSTRY TOTAL
(IN MILLIONS)
Energy/alternative drinks $55,862 12.6% $8,500 11.9%
Carbonated soft drinks 52,056 -3.4 8,007 -3.9
Bottled water 21,397 0.8 3,260 0.2
Sports drinks 18,342 2.7 2,791 2.1
Juice/juice drinks 13,306 -7.9 2,012 -8.5
Iced tea (ready-to-drink) 10,289 -5.1 1,568 -5.7
Enhanced water 8,250 14.8 1,257 14.2
All other packaged
beverages
11,845 1.9 1,758 1.2
TOTAL $191,347 3.9% $29,153 3.2%
Five-Year Trend: Packaged Beverages
2018 2017 2016 2015 2014
Percent change
in total sales
3.2% 0.2% 4.2% 7.3% 5.1%
Margin
percentage
41.58% 41.45% 41.40% 32.80% 32.67%
Share of
in-store sales
12.71% 12.50% 12.74% 12.69% 12.41%

Category Analysis:
BEER/MALT BEVERAGES
AVERAGE SALES PER
STORE
INDUSTRY TOTAL
(IN MILLIONS)
Premium $62,769 -1.3% $9,562 -1.9%
Imports 26,183 12.1 3,989 11.5
Budget 11,164 -3.8 1,701 -4.4
Flavored malt beverage 12,000 12.4 1,828 11.7
Popular 10,085 -10.9 1,537 -11.4
Super premium 8,859 18.5 1,350 17.8
Microbrews/craft 7,020 -10.1 1,070 -10.6
Malt liquor 2,455 -9.1 374 -9.6
Non-alcoholic 72 7.5 11 9.9
TOTAL $140,607 1.4% $21,422 0.8%
Five-Year Trend: Beer/Malt Beverages
2018 2017 2016 2015 2014
Percent change
in total sales
0.8% 0.5% 4.3% 3.1% 3.0%
Margin
percentage
19.08 19.01% 19.10% 18.71% 18.57%
Share of
in-store sales
9.34% 9.41% 9.56% 9.51% 9.67%
Premium remains the top beer segment, but it saw
average sales per store decline, as did the budget,
popular, malt liquor and microbrews/craft segments,
bringing the latter’s multi-year streak of impressive
growth to an end.
2018 marked the second year in a five-year period that
total sales growth for beer was less than 1 percent,
down from a high of 4.3 percent growth in 2016. Margin
percentage saw little year-over-year change, as did beer/
malt beverages as a share of in-store sales.
The percentage of c-stores that sell beer (75.1 percent)
increased slightly from 74.7 percent in 2017.
Candy
Candy turned in another year of flat to minimal growth in
2018, with average sales per store rising just 0.7 percent
to $47,103, despite candy’s popularity as an impulse buy.
Non-chocolate bars/packs saw the strongest growth
in average sales per store at 2.9 percent, followed by
chocolate bars/packs, which grew 2.6 percent in average
sales per store. Chocolate bars/packs also saw the
strongest growth in total industry sales.
Bagged/repackaged peg candy increased 1.9 percent
in average sales per store and remains the top candy
moneymaker. Candy rolls/mints/drops saw the largest
decline, falling 6.3 percent in average sales per store.
Notably, novelties/seasonal candy also dropped 4 percent
in average sales per store, a sharp turnaround from 2017
when the segment grew 8.1 percent.
2018 marked the first year in a five-year period that the
candy category overall saw virtually no change in total
STORES SELLING BEER
Percent of stores selling beer 75.1% 74.7%
Percent of in-store sales 9.34% 9.41%
FOR STORES SELLING BEER:
Average sales per store $187,226 $184,820
Percent of in-store sales 12.4% 12.5%
Category Analysis:
CANDY
AVERAGE SALES PER
STORE
INDUSTRY TOTAL
(IN MILLIONS)
Bagged/repackaged
peg candy
$18,294 1.9% $2,787 1.3%
Chocolate bars/packs 11,506 2.6 1,753 2.0
Gum 7,313 0.8 1,114 0.1
Novelties/seasonal 5,783 -4.0 881 -4.6
Candy rolls, mints, drops 2,356 -6.3 359 -7.0
Non-chocolate bars/
packs
1,851 2.9 282 1.5
TOTAL $47,103 0.7% $7,176 0.1%
Five-Year Trend: Candy
2018 2017 2016 2015 2014
Percent change
in total sales
0.1% 1.60% 2.8% 3.5% 3.2%
Margin
percentage
48.62% 48.26% 47.00% 42.49% 41.20%
Share of
in-store sales
3.13% 3.17% 3.19% 3.22% 3.26%
COVER STORY
2018 2017

industry sales, at 0.1 percent growth. Margin percentage and
share of in-store sales also saw little change year over year.
Snacks
The salty snacks category posted nearly the same growth
in 2018 as in 2017, with average sales per store increasing
3.6 percent to $42,839. Nuts/seeds and crackers were
the only segments to decline, with average sales per
store falling 1 percent and 2.6 percent, respectively.
Puffed cheese saw the strongest year-over-year growth,
with average sales per store increasing 7.5 percent,
followed by pretzels (up 6.9 percent), tortilla/corn chips
(up 6.4 percent) and other salty snacks (up 5.7 percent).
Potato chips only grew 2 percent in average sales per store,
but the segment comfortably remains the category leader.
Overall, salty snacks continued a five-year growth trend in
total industry sales, though the 2.9 percent increase of 2018
was a notable drop compared to previous years. 2016 saw
the previous low of 4.4 percent growth. Margin percentage
and share of in-store sales saw slight increases.
The alternative snacks category saw somewhat better
growth in 2018, with average sales per store increasing
2.5 percent to $16,616. Meat snacks remained the top
segment, growing 4.3 percent in average sales per store
and bringing in more than twice the average dollar sales
of other alternative snacks on a per-store basis. Granola/
yogurt bars reversed course from a sharp sales decline
in 2017 to post the strongest growth at 8 percent in
average sales per store.
Looking at the five-year trend for alternative snacks,
share of in-store sales remained the same for a third
straight year in 2018, while margin percentage saw a
slight decline. Total industry sales of alternative snacks
rose 1.8 percent, a slight uptick from 1.4 percent growth in
2017, but still growth remained significantly less than what
occurred in 2016 and 2015. CSN
Category Analysis:
SALTY SNACKS
AVERAGE SALES PER
STORE
INDUSTRY TOTAL
(IN MILLIONS)
Potato chips $10,782 2.0% $1,642 1.4%
Tortilla/corn chips 7,844 6.4 1,194 5.7
Nuts/seeds 5,361 -1.0 817 -1.6
Puffed cheese 4,224 7.5 644 6.9
Mixed 2,215 3.6 338 2.9
Crackers 1,927 -2.6 294 -3.1
Pretzels 1,602 6.9 244 6.1
Popcorn (ready-to-eat) 1,717 2.1 262 1.4
Other salty snacks 7,167 5.7 1,092 5.0
TOTAL $42,839 3.6% $6,527 2.9%
Five-Year Trend: Salty Snacks
2018 2017 2016 2015 2014
Percent change
in total sales
2.9% 4.5% 4.4% 5.8% 6.3%
Margin
percentage
38.30% 37.86% 36.60% 31.47% 31.17%
Share of
in-store sales
2.85% 2.81% 2.74% 2.73% 2.71%
COVER STORY
Five-Year Trend: Alternative Snacks
2018 2017 2016 2015 2014
Percent change
in total sales
1.80% 1.4% 6.0% 8.4% 9.9%
Margin
percentage
43.43% 44.05% 43.70% 35.91% 36.02%
Share of
in-store sales
1.10% 1.10% 1.10% 1.09% 1.05%
Category Analysis:
ALTERNATIVE SNACKS
AVERAGE SALES PER
STORE
INDUSTRY TOTAL
(IN MILLIONS)
Meat snacks $10,198 4.3% $1,554 3.7%
Health/energy bars 4,528 -2.1 690 -2.7
Granola/yogurt bars 1,234 8.0 188 7.4
Other alternative snacks 656 -2.5 100 -2.9
TOTAL $16,616 2.5% $2,532 1.8%
METHODOLOGY
The 44th annual Convenience Store News Industry Report features data from a variety of sources in order to provide a complete
picture of the financial health of the convenience store industry. Store census data was provided by Nielsen/TDLinx, which main-
tains a national count of c-store locations based on NACS’ definition of a convenience store. Dollar sales and unit volume data for
most categories was provided by The Nielsen Co. from its Convenience Track retail measurement service, which is based on UPC
sales and other methods that are counted through the use of point-of-sale scan data, as well as from data captured via electronic
invoice and sales audits. Additionally, non-UPC coded merchandise, including prepared food and hot, cold and frozen dispensed
beverages, is provided by retailer surveys conducted by Convenience Store News. Government sources include the Census Bureau,
Bureau of Labor Statistics, Department of Energy, and Federal Tax Administration.

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