PRZOOM - /newswire/ -
Delhi, New Delhi, India, 2007/05/03 - Convenience store industry is growing at an impressive pace and recorded unprecedented sales of US$ 569 Billion in 2006 according to the National Association of Convenience Stores (NACS).
In 2006, convenience store (C-Store) industry witnessed a remarkable surge of 15% over the previous year (2005). Representing a consecutive four-year growth, industry sales nearly doubled in comparison to US$ 290.6 Billion in 2002 and reached US$ 569.4 Billion in 2006, as per the data released on April 11, 2007 by the NACS (National Association of Convenience Stores).
Even though sales topped US$ 0.5 Trillion mark for the 1st time ever, industry profits in 2006 slashed 23.5%, dropping to US$ 4.8 Billion. The decline was particularly attributable to a drop in the margins from motor fuels, and an unremitting rise in credit card fees that now exceed industry profits. Credit card fees rose 22% and reached US$ 6.6 Billion in 2006, as per NACS.
Pushed by 17.9% surge in the sales of motor fuels, which increased to US$ 405.8 Billion in 2006, the increase of US$ 74.1 Billion remains the largest annual increase recorded ever. The growth in motor fuels sales surpassed the 13% increase in the prices of motor fuels reported by the US Dept. of Commerce. This means that the C-Store industry continually spurred the market share of motor fuels - estimated to be 82% at present.
In-store sales too showed solid growth in 2006 and exceeded the sales growth of almost all rival retail channels, as reported by the US Dept. of Commerce. Sales of industry merchandize rose 8.7% whereas food service sales increased 5%.
According to RNCOS report “Convenience Stores Market - Worldwide (2005-2008)”, “Of the total C-Stores, 112,007 or 79.6% sell motor fuels, however, in 2006 the number of stores that sell motor fuel came down slightly from 80.2% in 2005. This slight decline is probably an indication of industry’s evolution as the industry looks for new locations that do not necessarily support fueling. So, the industry doesn’t have to depend on motor fuels to increase its revenues and the growing food services segment can be included as a vital source of revenue for the industry.”
Key facts and issues that RNCOS report Convenience Stores Market - Worldwide (2005-2008)” analyses include: C-Store products’ sales at global level, major potential markets for C-store industry, opportunities and challenges before global convenience store industry, etc.
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RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.