Low gas prices played a role in driving traffic and sales at convenience stores this Labor Day.
Convenience store beverage sales were up 6% during the 2015 Labor Day holiday, according to Wells Fargo Securities LLC, which recently conducted a survey of beverage retailers representing tens of thousands of c-store locations across the country to get a sense of beverage trends during the recent Labor Day holiday.
Survey results indicated that c-store beverage sales growth accelerated, up 6% for Labor Day 2015 vs. 4% for Labor Day 2014. What drove this uptick in weekend results?
- Lower gas prices—a whopping $1 per gallon less than last year—drove increased traffic and inside sales including up-trading to premium brands.
- Lower promos compared to last year.
- Strong performance from energy, particularly Red Bull.
- Improved weather conditions across the majority of the U.S. compared to last year.
“Given the strong Fourth of July (+5%) and Labor Day (+6%) holiday results, we are encouraged that beverage trends have accelerated through the key summer season which should help drive solid Q3 results for beverage manufacturers,” said Bonnie Herzog, managing director, beverage, tobacco and convenience research for Wells Fargo.