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We see them along congested highways, in new subdivisions, and most importantly, on the roads that link America ’s sea to shining sea. The National Association of Convenience Stores (NACS) states that the 138,205 convenience stores in the United States reported record revenues of $394.7 billion in 2004. No longer the neighborhood quick mart – convenience stores are taking on a new image in an effort to tackle new competition, all the while giving consumers a hot cup of java.

Sales of gasoline and cigarettes account for 75%t of convenience store sales, according to NACS director of communications, Jeff Lenard. With the emergence of mega stores remaining open 24/7 and offering just about anything a one needs, convenience stores may see sales in these two categories level off or decline.

In an effort to differentiate themselves from the mega stores and create new sources of revenue, convenience stores are turning to pre-cut fresh fruit and fruit cups. A recent poll by Convenience Store/Petroleum Daily News showed that about 50 percent of convenience store retail respondents said they keep fruit in stock in their stores. Of the retailers who stock fresh fruit, 64 percent said that bananas were their best seller. As consumers are becoming more health conscious, pre-cut fresh fruit and vegetables may be a logical avenue to boost sales, while keeping in tune with the evolving market.

Let’s not forget our good ole cup o’ Joe. The NACS 2005 State of the Industry reports that in 2004, convenience stores had more than $5.2 billion in coffee sales, of this $1.2 was made up of cappuccino/specialty coffees. The appeal of convenience stores remains in our “I-need-it-yesterday” society; however, it will be interesting to see how the industry meets the challenges that lie ahead.

National Association of Convenience Stores: The Convenience Store Industry

http://www.nacsonline.com/NACS/Resource/PRToolkit/FactSheets/prtk_fact_ecoimpact.htm

Fresh Cut: Convenience Stores Looking to Fresh-cut

http://www.freshcut.com/pages/arts.php?ns=90

Industry Snapshot: Convenience Stores

Take a look at our full industry report on Convenience Stores (PDF Format). If you are interested in other industry snapshots, visit our SBDC Business Advisors' Toolkit.

Links of Interest

http://www.npnweb.com/uploads/researchdata/2004/ProfitCenterSurvey/Prof_center_2004.pdf - NPN's 2004 Profit Center Survey (38 pages) examines top c-store moneymakers.

http://cspnet.com/ME2/Default.asp - CSP online magazine.

http://www.supermarketservices.com/store%20design.htm - Convenience Store floor plans.

http://www.npnweb.com/industrylinks/state.asp - npnweb.com - " The Source For Petroleum & Convenience Marketers" - this particular page has links to state associations.

Did You Know?

Did you know that the first U.S. convenience store was opened by the Southland Ice Company, called 7-Eleven, in Dallas , TX in 1927?

http://en.wikipedia.org/wiki/Convenience_store

Did you know that IRS has a resource section for small business owners? Answers to questions such as “When do I start my tax year?” and “What is taxable and nontaxable income?” and “What forms do I need to close my business?” are provided. Suggestions for recordkeeping and accounting are also included.

http://www.irs.gov/businesses/small/article/0,,id=110417,00.html

Did you know that 53 percent of small businesses are home-based or that small business firms create 60 to 80 percent of new jobs, and two years is the average survival rate for most small businesses? These are a few of the statistics collected by the Small Business Administration in their FAQ section.

http://www.sba.gov/advo/stats/sbfaq.pdf

Are You Paying Attention to
Demographic Trends?

The U.S. Bureau of the Census defines median income as follows:

The median divides the income distribution into two equal parts – one-half of all cases falling below the median income and one-half above the median. For households and families, the median income is based on the distribution of the total number of households and families including those with no income. The median income for individuals is based on income earning individuals 15 years old and over.

Meanwhile, per capita income is the mean income computed for every man, woman, and child in a particular group. It is derived by dividing the total income of a particular group by the total population in that group. The states of Connecticut, New Jersey, Massachusetts and Maryland seem to be the wealthiest states in combined median and per capita income (see table below).

 

29	Connecticut	$35,352
11	New Jersey	$33,550
48	District of Columbia	$32,926
14	Massachusetts	$31,194
20	Maryland	$31,162

Contact Us

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http://sbdcnet.org/
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