C-Store category sales face pressure from dollar store and supermarket promotions.
Wells Fargo Securities LLC quoting Nielsen data, noted that overall convenience store channel sales growth was flat with mixed performance across categories for the four week period ending April 21, 2018. C-Store channel dollar sales for the four-week period were $8.2 billion, +0.1% year-over-year, (vs +0.4% for 12-weeks; +0.8% for 52-weeks).
Dollar sales growth for each major category in the c-store channel was reported as follows:
Cigarettes -2.4% (vs -1.8% for 12-weeks; +0.1% for 52-weeks);
Smokeless tobacco +4.4% (vs +3.8% 12-weeks);
Beer-FMB (Flavored Malt Beverage)-Cider -1.0% (vs -0.4% for 12-weeks; +0.2% for 52-weeks);
Energy +3.0% (vs +3.3% for 12-weeks; +2.9% for 52-weeks);
Carbonated soft drinks (CSDs) -4.3% (vs -4.1% for 12-weeks; -3.7% for 52-weeks); Salty Snacks +1.2% (vs +1.2% for 12-weeks; +4.6% for 52-weeks).
Overall, c-store results were mixed with strength in Energy offset by continued volume-driven pressure in cigarettes and CSDs.
C-store sales continue to be pressured given stepped up promos/competition from Dollar Stores, Supermarkets, etc.