On the surface, the 14.4 percent drop in 2015 sales reported by Convenience Store News (June, 2016) in the overview of its 41st annual Industry Report seemed ominous. It certainly got our attention since the C-Store industry is a major segment of our business.
A deeper dive revealed a different narrative. CSNews’ research illustrated the double-digit C-Store industry sales dip was driven entirely by the steady drop in gasoline prices throughout 2015. While petrol revenue plummeted, the number of gallons sold rose 2.9 percent to a record high 151.3 billion gallons.
In effect, those lower prices brought more customers with increased spending power into the store. According to CSNews:
- C-Store industry In-store sales increased 4.9 percent to $213 billion
- Total C-Store industry gross profits increased by 3.5 percent to $92.8 billion
- Gross profit margin as a percent of sales rose to 15.4 percent
- Pretax profits grew by 3.4 percent to a record high of $9.28 billions
- Foodservice sales rose by 7.1 percent
- The Top 10 categories – led by Cigarettes and Foodservice – accounted for 89.86 percent of C-Store industry in-store sales
According to the Retailer Consumer Sentiment Survey conducted by the National Association of Convenience Stores in June, increased in-store sales have continued as gas prices tumble. The addition of healthy food options such as fresh fruits and vegetables, nuts and seeds, jerky and protein bars is a key driver of sales.
New NexxHub™ platform will streamline your SBT experience
- Automated operation reports that provide key metrics for the day-to-day operations of an SBT business
- Clear and concise financial information that tracks the revenue for each product sold through SBT
- Actionable daily sales data, presented by SKU, by store, and by day to support effective business decisions
- Access to analytics and business intelligence to create actionable information from the data
The NexxHub user interface makes it easy to manage multiple price changes across networks of retailers. And the introduction of consolidated sales reports, sorted across customized time periods for multiple retailers, is also a proven time-saver for our SBT suppliers.
Placing more product and getting access to more stores are all part of the new NexxHub platform. It’s easy to add products to existing stores, as well as locate new product placement opportunities. The NexxHub platform also delivers real-time actionable email notifications for store openings and re-openings, construction closings, and delivery gaps – all features designed to help grow and manage SBT businesses. We back up that technology with our dedicated team of Account Specialists whose only goal is to provide expert assistance and support at every step of the way.
“NexxHub is a giant leap toward improving profitability and transparency of the management of SBT programs. NexxHub simplifies access to the critical information vendors and retailers need to improve their business’ profitability,” said John Lara, Chief Information Officer of The Nexxus Group.
New Client Update:
Stewart’s Shops picks The Nexxus Group® for SBT services
Stewart’s Shops Corp. of Saratoga Springs, NY selected The Nexxus Group® to provide proprietary Scan Based Trading solutions at more than 200 of its company branded convenience stores in upstate New York and southern Vermont. The program began May 2.
Brothers Percy and Charles Dake founded Stewart’s in 1921 in Greenfield, NY. The company is now under the direction of Chairman of the Board Bill Dake and his son President Gary Dake, the third generation to run the business. Stewart’s Shops is one-third employee-owned under an Employee Stock Ownership Plan (ESOP) established in 2001.
Stewart’s produces its own milk and ice cream at its 260,000-square foot Greenfield, NY dairy plant. It employs more than 4,500, generates more than $1.6 billion annual revenue and regularly outperforms larger chains within its market. It plans to invest more than $30 million in the expansion and renovation of existing locations as well as the construction of a number of new to industry (NTI) shops in 2016. Among those stores scheduled for renovation is the company’s first in Balston, N.Y.
In January of this year, the company received the Industry of the Year Award for positive contributions to economic growth from the Fulton Montgomery Regional Chamber of Commerce. A committed community partner, Stewart’s Shops and its related family foundations typically donate five percent of annual profits to charity.
“Our enhanced SBT program will create additional efficiencies for Stewart’s and we are excited about the opportunity to work with them,” says Mark Landgren, CEO of The Nexxus Group. “Stewart’s has a long history of superior service and commitment to the communities it serves and we are looking forward to a successful long-term relationship.”
How to Request New Stores
Log-on to your account through www.nexxhub.com
Select – “Store Request” and “Make a New Request” from left menu
- Select your Company name that should be setup for sales/payment and choose the retailer that you would like to submit for. Click “Next”.
- Select the product(s) you will submit for
- You can choose multiple products by checking the appropriate boxes next to the product name.
- Click “Add Product To Request”. (If you do not see your product listed – please click on “I can’t find my product” and enter the information to add it.)
- The product(s) should populate in the grid below, but will have no pricing listed.
- Highlight one product at a time and enter your retail(s) and cost(s) in the place holders above the grid. Click “Update” for each and the grid will update with the pricing you entered for the product(s).
- Once all of your products have the pricing listed, click “Next”.
- Select your Stores
- You can search by State, City, Zip Code and/or Store #.
- Check off the store(s) you would like to request for and click “Add” in the middle of the screen.
- Once your list on the right is complete, click “Next”.
- Requesting an Effective Date
- Use the Calendar to choose your requested effective date. (Please note this is your desired effective date and does not guarantee this is the date the Retailer can make this effective.)
- If you are taking over for another person, please select “Yes”.
- Click “Next”.
- Review your request
- Review all information for accuracy and click “Next”. (Please note that if you already have am identical request being worked on, it will be shown in the bottom grid and will not be resubmitted.)
- Add any comments if you would like and click “Send to Nexxus” to complete your request