The National Association of Convenience Stores (NACS) noted that, overall industry revenues climbed only 1.4%, leveling off a decade of growth that saw industry revenue grow more than three-fold from $174.2 billion in 1997.
The NACS said that, in a decidedly mixed year of industry performance, the biggest concern for convenience retailers remains escalating credit card fees, which surged $1 billion, or 15.2%, to reach $7.6 billion. Industry pretax profits reportedly dropped by around $1.4 billion, falling to $3.4 billion.
Prices of motor fuels increased 8.8% in 2007 but industry motor fuels sales increased only 0.7% to reach $408.9 billion. The convenience store industry sells an estimated 80% of the fuels purchased in the US, according to the NACS.
The NACS also observed that motor fuels sales continue to dominate industry revenues, comprising 70.8% of the industry’s sales. However, because of low gross margins, motor fuels account for only 33.8% of the industry’s gross profit.
