NACS Magazine December 2024

Advancing Convenience & Fuel Retailing

DECEMBER 2024 COMMUNITY TIES Connections lead to loyal customers STAFFING SUCCESS Strategies to get great talent

Tobacco Trek Mapping the consumer journey to the backbar shows opportunity for basket growth.

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Advancing Convenience & Fuel Retailing

DECEMBER 2024 COMMUNITY TIES Connections lead to loyal customers STAFFING SUCCESS Strategies to get great talent

Tobacco Trek Mapping the consumer journey to the backbar shows opportunity for basket growth.

convenience.org

PREVENT UNDERAGE SALES OF TOBACCO PRODUCTS Ensure that retail remains the most trusted place to responsibly sell tobacco products.

FDA COMPLIANCE CHECKS Per Month (Avg.)

Did you know the average number of FDA compliance checks per month are approaching pre-COVID-19 levels?

16.8%

In 2023, as of 9/30/23, the FDA conducted 9,381 compliance checks per month, which was an uptick from previous years.*

*Source: FDA CTP Violation Rate analysis was completed using publicly available raw data posted online at fda.gov.

Calculations of Total Compliance Checks and Violation Rates were computed by AGDC based on Decision Data published. Inspections data FFY 2019 - 2023

Violation Rate*

2019

2020

2021

2022

2023

10.18-9.19

10.19-9.20

10.20-9.21

10.21-9.22

10.22-9.23

Federal Fiscal Year (FFY)

UNDERAGE ACCESS PREVENTION RESOURCES

Age Validation Technology (AVT) Modernize and simplify the ID check process with AVT, helping to reduce the likelihood of selling tobacco products to underage individuals

Improve ID check rates at a store and individual employee level, with We Card™ Training, available for Free via AGDC

State and Federal Law Summaries and additional resources via the We Card™ resource center

Reinforce your sales associates’ understanding of ID check requirements and policies with Mystery Shop incentives

For More Information Contact Your AGDC Representative

ONTENTS NACS / DECEMBER 2024 FEATURES

42 The Path

to the Backbar The shifting patterns of today’s nicotine shoppers are revealed by mapping their in-store journey.

50 Close Knit:

Strengthening Your Community Ties Four retailers share how they provide more than food and fuel to their local communities.

62 Merry C-Store Christmas

A central Texas retailer sells beer, barbeque … and Christmas decorations year-round.

74 Charging Counsel The Electric Vehicle Council and Charging Analytics Program from TEI help retailers supercharge their EV investments.

PeopleImages/Getty Images. On the cover: Getty Images

80 A Full House of

Education Sessions NACS Show attendees were dealt a winning hand when it came to learning opportunities.

66

Success Strategies for Hiring Retailers share insights for how to attract—and retain— top talent.

STAY CONNECTED WITH NACS @nacsonline facebook.com/nacsonline instragram.com/nacs_online

Subscribe to NACS Daily—an indispensable “quick read” of industry headlines and legislative and regulatory news, along with knowledge and resources from NACS, delivered to your inbox every weekday. Subscribe at www.convenience.org/NACSdaily.

linkedin.com/company/nacs NACS DECEMBER 2024 1

ONTENTS NACS / DECEMBER 2024

DEPARTMENTS 06 From the Editor 10

Faces of the Industry

12

NACS News

26

Convenience Cares

28 Inside Washington

The NACS In Store program connects lawmakers and convenience retailers.

38 Ideas 2 Go

The owner of Pit Stop found success by bringing his own c-store vision to life.

90 Cool New Products 96 Gas Station Gourmet IT’S A FACT

98 Category Close-Up

Cigarette sales per store, per month in 2023

104 By the Numbers

$45,232

Could this be the last year that cigarettes are the top nonfoodservice category?

PLEASE RECYCLE THIS MAGAZINE 2 DECEMBER 2024 convenience.org

The presence of an article in our magazine should not be permitted to constitute an expression of the association’s view.

pics five/Shutterstock

CATEGORY CLOSE-UP PAGE 98

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/ DECEMBER 2024 EDITORIAL

NACS BOARD OF DIRECTORS

Jeff Lenard V.P. Strategic Industry Initiatives (703) 518-4272 jlenard@convenience.org

CHAIR: Brian Hannasch, Alimentation Couche-Tard Inc.

Ben Nussbaum Editor-in-Chief (703) 518-4248 bnussbaum@convenience.org Leah Ash Editor/Writer lash@convenience.org Noelle Riddle Editor/Writer nriddle@conveneince.org Lauren Shanesy Editor/Writer lshanesy@convenience.org CONTRIBUTING WRITERS Sarah Hamaker, Al Hebert, Pat Pape, Emma Tainter, Melissa Vonder Haar DESIGN MX www.themxgroup.com

ADVERTISING Stacey Dodge Advertising Director/ Southeast (703) 518-4211 sdodge@convenience.org Jennifer Nichols Leidich National Advertising Manager/Northeast (703) 518-4276 jleidich@convenience.org Ted Asprooth National Sales Manager/ Midwest, West (703) 518-4277 tasprooth@convenience.org

PUBLISHING Stephanie Sikorski Vice President, Marketing (703) 518-4231 ssikorski@convenience.org Nancy Pappas Marketing Director (703) 518-4290 npappas@convenience.org

COME TOGETHER. DO MORE. Join us at conveniencecares.org

Logan Dion Digital Media and Ad Trafficker (703) 864-3600 ldion@convenience.org

TREASURER: Annie Gauthier, CFO/Co-CEO, St. Romain Oil Co. LLC OFFICERS: Varish Goyal, Loop Neighborhood Markets; Lonnie McQuirter, 36 Lyn Refuel Station; Charles McIlvaine, Coen Markets Inc.; Tony Miller, Retail Delek US; Chris Bambury, Bambury Inc.; Missy Matthews, Childers Oil Co. GENERAL COUNSEL: Doug Kantor, NACS MEMBERS: Lisa Blalock, BP North America Inc.; Tom Brennan, Casey’s; Andrew Clyde, Murphy USA; Terry Gallagher, Gasamat Oil Corp/ Smoker Friendly; Raymond Huff, HJB Convenience Corp. dba Russell’s

Convenience; Mark Jordan, Refuel Operating Co.; Brian McCarthy, Blarney Castle Oil Co.; Natalie Morhous, RaceTrac Inc.; JP Patel, FASTIME; Robert Razowsky, Rmarts LLC; Stanley Reynolds, 7-Eleven Inc.; Kristin Seabrook, Pilot Travel Centers LLC; Travis Sheetz, Sheetz Inc.; Babir Sultan, Fav Trip; Doug Yawberry, Weigel’s Stores Inc., Scott Zietlow, Kwik Trip Inc. PAST CHAIRS: Victor Paterno, president and CEO of Philippine Seven Corp.; Don Rhoads, president and CEO of The Convenience Group LLC. SUPPLIER BOARD REPRESENTATIVES: Vito Maurici, McLane; Brian Morrow, Chobani & La Colombe

NACS SUPPLIER BOARD SUPPLIER BOARD CHAIR: Vito Maurici, McLane Co. Inc. CHAIR-ELECT: Bryan Morrow, Chobani & La Colombe VICE CHAIRS: Kevin LeMoyne, The Coca-Cola Company; Mike Gilroy, Mars Wrigley; Jim Hughes, GALLO MEMBERS: Tony Battaglia, Tropicana Brands; David Charles, Cash Depot; Brent Cotten, The Hershey Company; Jerry Cutler, InComm Payments; Jack Dickinson, Dover Corporation; Matt Domingo, Reynolds; Mark Falcone, Greenridge Naturals; Kevin Farley, Impact 21; Danielle Holloway, Altria Group Distribution Co.; Kevin Kraft, Tropicana Brands; Sarah Vilim,

Keurig Dr Pepper; Jay Nelson, Excel Tire Gauge; Nick Paich, GSTV; Ramona Giderof, Diageo Beer; Ryan Calong, Pabst; Jordan Nicgorski, Juul Labs GENERAL COUNSEL: Doug Kantor, NACS STAFF LIAISON: Bob Hughes, NACS RETAIL BOARD REPRESENTATIVES: Tom Brennan, Casey’s; Scott Hartman, Rutter’s; Kevin Smartt, TXB PAST CHAIRS: David Charles, Cash Depot; Brent Cotton, The Hershey Company; Kevin Farley, Impact 21

NACS Magazine (ISSN 1939-4780) is published monthly by the National Association of Convenience Stores (NACS), Alexandria, Virginia, USA. Subscriptions are included in the dues paid by NACS member companies.

Subscriptions are also available to qualified recipients. The publisher reserves the right to limit the number of free subscriptions and to set related qualifications criteria.

Subscription requests: nacsmagazine@convenience.org POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2023 by the National Association of Convenience Stores.

Periodicals postage paid at Alexandria VA and additional mailing offices.

1600 Duke Street, Alexandria, VA 22314-2792

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UP FRONT FROM THE EDITOR

The Community Advantage

“W

e’re all selling essentially the same things.

It’s the employees and our community connections that make customers choose to spend their dollars with us.”

That’s a quotation from “Close Knit: How to Strengthen Your Community Ties,” which starts on page 50.

If you zoom out, “we’re all selling essentially the same things” isn’t just about c-store versus c-store. It’s about c-store versus drug store versus dollar store versus QSR, with channels blurring and shopping missions losing some of their traditional definition. Great employees and community connections can elevate your operation—but also the entire industry.

“Close Knit” offers a grab bag of great ideas and inspiration—and dovetails nicely with another article in this issue, “Success Strategies for Hiring.” How do you get the right people—those who can help you build that community connection—to don your uniform and step behind the counter, and then to stay for years instead of months?

As that article makes clear, there isn’t necessarily one right answer. It’s about finding the sweet spot between: • Moving with great speed … but also being selective • Having a smooth-functioning process … but also incorporating the human touch • Offering stability … but also offering flexibility I particularly like this thought from Abby Curlin of TXB: “People want to be a part of something and feel special and welcomed. We have an official onboarding day where you’re spending time with your manager to get as connected as possible with the store. People need that connection and bringing that person into our culture is so important. It pays dividends.”

6 DECEMBER 2024 convenience.org

It jibes with my experience in the workplace, that connection and culture are more important than they used to be. And it jibes with the vibe I get when I walk into a great c-store. The employees are happy to be there and happy to be working together. They want the customer to be happy to be there, too.

And—bonus—the concept of connection segues into another article I want to be sure to mention, “A Full House of Education Sessions.” The NACS Show is a carnival of connections, and nowhere is that more clear than the Education Sessions, where leading retailers and other thought leaders share their insights. It’s inspiring to see that sense of connection on display within this industry, where operators want other operators to be successful so that the entire industry is elevated.

One last thought: We’re hard at work on our 2025 content plans. Got ideas or updates about your company?

Do you want to join the conversation in a more active way? Send NACS your news at news@convenience. org or reach out to me or other members of the editorial team. I’m at bnussbaum@convenience.org.

NACS Show Education Sessions highlight the sense of community that runs deep in the convenience store industry.

Ben Nussbaum Editor-in-Chief

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UP FRONT FACES OF THE INDUSTRY

Celebrating the people who make our industry great.

A Home in Convenience A

fter he graduated from high school in 1994, Shawn Milligan started working at a Holiday Stationstores location in his Minnesota hometown.

His first promotion came after three months.

His most recent one marked his 30-year anniversary with the company. He is now a regional director with Circle K (which acquired Holiday Stationstores in 2017).

Shawn also met his wife when they both worked as store managers in Minneapolis. She still works for Circle K in the company’s recruiting department.

“For someone who graduated high school and had no idea what they were going to do in life, this turned into a really great career,” he said.

Shawn spoke with NACS Magazine about:

Shawn Milligan’s high school cashier job led to a 30-year career where “no two days are the same.”

10 DECEMBER 2024 convenience.org

WHY HE LOVES WORKING IN CONVENIENCE Every day is different. You never know what’s going to happen, so every day can be exciting.

And, of course, our business is always changing, so there’s always something new to do and you’re not going to get bored.

And up until this current role as regional director, it’s never been a desk job. You’re out in the field, you are involved in your stores, and for the most part, you set your own schedule once you get to the district manager role, so there is a lot of flexibility. It was very conducive to me for living my life and raising a family. I could work around my kids’ sports games or events. It can be a very rewarding and flexible career.

WHY HE’S STAYED IN THE CONVENIENCE INDUSTRY FOR 30 YEARS It’s really been about the people. I’ve built a lot of relationships, we always work together as a team and we have formed some great friendships. The people I have worked with here have really made it a great place to work, so I’ve stayed for that and the culture here at Circle K. Holiday was a family-owned business and this company still feels family run to this day. We really treat each other well here, support each other and are one team. Plus, it’s fun!

WHY HE’S PROUD OF HIS CAREER I am certainly proud of being with the same company for the past 30 years. You don’t hear people say that very often. I either picked or walked into the right opportunity, let’s say.

Another big accomplishment that I am certainly proud of is making it to the regional director position. Over the years, I’ve also helped a lot of other colleagues advance, whether it be assistant managers to the store manager position or store managers to a district manager position.

I’m really proud of the people that I have mentored along the way to help them move forward along the same path that I have been on.

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UP FRONT NACS NEWS

A Record-Breaking NACS Show , s e e d n e t t a 4 26m,1o2 how!

S S C A N a t a r e st ev the

437,500 square feet

the size of the Expo floor, which is about the size of

140 convenience stores put together.

Countless

2

creative and deliciouslooking dishes were made using potato chips by celebrity chefs Andrew Zimmern and David Chang during a General Session.

The NACS Show is the

34th largest trade show

in the country, according to Momencio.

12,111

The cumulative attendance for the 52 education sessions, led by the 516 people who attended “Digital and Physical Marketing Strategies for Smaller Retailers.”

selfies taken with celebrities who made appearances at the show, including Kevin Hart, Rob Gronkowski, Ric Flair, T-Pain, Jerry Rice and many more.

1,190 exhibitors had booths at this year’s event, 157 of which were in the New Exhibitor Area.

76,808

pounds of leftover food products were donated to local charities— the equivalent of 64,000 meals.

12 DECEMBER 2024 convenience.org

The C-Store Future Big Opportunities for C-Stores

Digital Ordering & Mobile Commerce

Rising Consumer Spending

Delivery = Revenue

Retail sales projected to grow by 2.5-3.5% this year.

Drive higher transaction values through personalized offers and data-driven promotions to boost impulse buys 73%!

Third-party delivery apps boost sales by 10-15% during non-peak hours, tapping into new customer bases and maximizing off-peak revenue.

Mobile Ordering Surge Customer Experience (CX) Power Exciting store experiences increase customer retention by 42%.

With mobile commerce hitting 43% of e-commerce this year, digital ordering is a must to compete and cater to on-the-go customers.

Loyalty and Repeat Visits

New Revenue Streams

Boosted Spending

Expanded Menu Profits

Loyalty members spend 38% more per year; converting just 10% of customers into loyal members could drive up to $993,600 in additional annual revenue.

C-stores with enhanced food offerings enjoy 693% more gross profit than those without—gourmet items like organic salads are pulling in health-conscious shoppers.

Gamified Engagement

Owned Media Success

Adding badges and points increases engagement by 26%, turning visits into fun, repeatable experiences that keep customers coming back.

Native ads show 53% more engagement; offering new ad revenue and keeping customers tuned into store offerings.

Digital Integration Loyalty tech boosts in-store spending through real-time promotions and app-based engagement, ensuring a 62% chance of a third return visit.

Ready to see how these insights can drive your store forward?

Dive into our playbook for the full breakdown—scan the QR code or follow the link and get inspired to transform your c-store today!

UP FRONT NACS NEWS

Grupo Forte, YPF Win NACS Latin American Retailer of the Year Award Grupo Forte and YPF were named the 2024 winners of the Convenience Retailer of the Year Award Latin America at the NACS Show on October 8. Executives from both companies were recognized among their convenience retail peers during the Global Colleagues Reception at the event. The award recognizes overall excellence that is on display at a specific store within the company’s portfolio.

“Latin American convenience retail is among the best in the world, and we were excited to showcase these unique concepts with our global colleagues at the NACS Show,” said Henry Armour, NACS president and CEO. Grupo Forte operates as a fuel retailer within the Grupo Dislub Equador network, which spans over 500 fuel stations across the North, Northeast and Central-West regions of Brazil. Convém, a franchise of Grupo Dislub Equador, was named the Most Beautiful Convenience Store in Brazil in 2024 by the Sincopetro/SP. The company’s Posto Forte Convém c-store, located in the city of Manaus, exemplifies this recognition with its modern design and innovative customer experience.

14 DECEMBER 2024 convenience.org

Featuring a wide range of coffees, snacks, drinks and signature beverages, the renovated service station has become a popular meeting point. The store integrates technological elements designed for customer comfort, such as digital menus, product displays on screens, table-side payment service and Wi-Fi, along with live music, making it a standout in both style and functionality.

Argentina-based YPF continues to evolve its convenience retail concept with its Alcorta store, located in Buenos Aires. The two-story store is designed to be a meeting place for the community, with an urban and commuter customer base. The Alcorta store offers EV charging; a drive-thru; amenities for athletes and cyclists such as changing rooms and lockers; and office-like meeting spaces and two soundproof rooms. The convenience store features a variety of food and beverage offers and conducts about 1,100 daily transactions.

The judges of the NACS Convenience Retailer of the Year Award Latin America are independent global industry experts who vote anonymously.

Information about the NACS Convenience Retail Awards can be found at convenience.org.

UP FRONT NACS NEWS

The NACS Convenience Retail Awards Asia-Pacific Are Open The NACS Convenience Retail Awards Asia-Pacific recognize and promote convenience retailing excellence and provide retailers in Asia, including India, New Zealand and Australia, with the opportunity to showcase their innovation and creativity to the global retailing community. Retailers can enter in four categories: • Convenience Retailer of the Year • Convenience Industry Leader of the Year • Convenience Retail Sustainability Award • Convenience Retail Technology Award Nominees are judged by a grand jury panel of industry experts consisting of former retail executives, consultants, subject matter experts and NACS representatives.

Entries for the awards close January 8, and winners will be announced at NACS Convenience Summit Asia, taking place February 25-27, 2025, in Tokyo, Japan.

To view past winners, check out the NACS Convenience Retail Awards Asia-Pacific Hall of Fame at convenience.org/hall-of-fame-asia.

New Faces at NACS Since the start of 2024, NACS has welcomed 10 new hires:

Colleen Croarkin, Supplier Relations Specialist

Marly Perez Cubillos, Education Production Manager

Quynh Nhu Ha, Email & SMS Marketing Manager

Leenah Hegazy, Grassroots Manager

KC Kingsbury, Director, Retail Engagement – East

Kevin O’Connell, Executive Director, NACS Foundation

Noelle Riddle, Writer & Editor

Navjot Sandhu, Director, Human Resources

Lauren Shanesy, Writer & Editor

Christopher Wise, Research Analyst

16 DECEMBER 2024 convenience.org

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UP FRONT NACS NEWS

Member News RETAILERS

Diana Styles joined EG America as its chief human resources officer.

She will lead the development Diana Styles and execution of EG America’s human resource strategy, which includes talent acquisition, talent development and management, change management, organizational and performance management, benefits and compensation, training, and human resource data management.

EG America also hired Mendy Meriwether as vice president of food, dispensed beverage and QSR. In this Mendy new role for the Meriwether company, she will lead EG America’s food and beverage strategy, which includes the development of innovative food and beverage offerings and promotional concepts, and QSR brands and food service support teams. Most recently, Meriwether was the director of fresh food and beverage at Wawa, where she held a variety of roles over 20 years.

Joanna Benison was recently named vice president of transformation and strategy at EG America. In Joanna Benison this role, she will drive strategic initiatives and transformation efforts that foster growth and enhance operational effectiveness 18 DECEMBER 2024 convenience.org

across the organization. She will also oversee the company’s enterprise project management office and work to develop strategic capabilities to ensure the prioritization of critical projects.

The Pilot Company hired Jocelyn Caldwell as vice president of people and belonging. In a LinkedIn post, Jocelyn Caldwell the company said she will be “instrumental in helping us continue to cultivate a workplace centered on what matters most— our people.”

SUPPLIER

iSee Store Innovations hired Tim Cuneo as director of sales.

In this position, Cuneo will oversee iSee’s Tim Cuneo sales team and manage the company’s expanse of CPG and retail customers.

With his hiring, Cuneo will officially take over the sales team from retiring industry veteran John Thomas. Thomas, a former supplier board member for NACS, has led the iSee sales team as the company’s vice president of industry development. Though retired, he will continue working with iSee as a contractor.

Jacob Rivera

Jacob Rivera joined Rovertown as its new customer onboarding manager. The company said he

will ensure a seamless onboarding experience for Rovertown’s expanding customer base. Before joining Rovertown, Rivera held key positions in marketing and IT at Toot’n Totum—focusing on initiatives including vendor integrations, mobile apps and creative services.

Calendar of Events 2025

JANUARY Conexxus Annual Conference January 26-30 | Loews Ventana Canyon Tucson, Arizona FEBRUARY NACS Leadership Forum February 11-13 | The Ritz-Carlton Amelia Island, Florida NACS Convenience Summit Asia February 25-27 | Conrad Tokyo Tokyo, Japan MARCH NACS Day on the Hill March 10-12 Washington, D.C. NACS Human Resources Forum March 24-26 | Hutton Hotel Nashville, Tennessee APRIL NACS State of the Industry Summit April 08-10 | Hyatt Regency DFW International Airport Dallas, Texas For a full listing of events and information, visit www.convenience.org/events.

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UP FRONT NACS NEWS

New Members

NACS welcomes the following companies that joined the Association in September 2024. NACS membership is company-wide, so we encourage employees of member companies to create a username by visiting convenience.org/ create-login. All members receive access to the NACS Online Membership directory and the latest industry news, information and resources. For more information about NACS membership, visit convenience.org/membership.

DAGCO Oil LLC Leo, IN

Houseman C-Stores LLC Vidor, TX

Dayton Travel Stop Ooltewah, TN

Jade Owls Inc. Katy, TX

AMS Energy Oceanside, NY amspags.com

Desert Oil Inc dba Mission Gorge Market Santee, CA

Kautz Chevron Grover Beach, CA

AVP Supply LLC Croydon, PA

DESI Chattanooga, TN

Big Oil Mountain Home, AR

Diversified Management Group Inc. Eau Claire, WI www.megacoop.com

NACS HUNTER CLUB BRONZE Techniche Carlsbad, CA www.technichegroup.com RETAILERS

Blackmon Oil Company Glenwood, AR

Kenk Inc. Northridge, CA Maxfa SA Mendoza, Argentina www.axion.grupopuebla.com.ar New World Gas Chelmsford, MA

Blue Star Concessions Joint Venture Dallas, TX

Dr. Reilmann & Goodson GmbH Lippstadt, Nordrhein-Westfalen, Germany www.tankstelle-reilmann.de

Breaktime Fuels LLC Houston, TX

Durkins Grocery Inc. Beacon, TX

Bruton Chevron Orlando, FL

Eagle Feather Trading Post #2 Avenal, CA

Panthers Petroleum III LLC Houston, TX www.pantherspetroleum.com

Campbell Cove 1-Stop Lake Havasu City, AZ

E-Distribution Inc. St-Felicien, QC, Canada

Pejoma LLC San Antonio, TX

Central Arkansas Petroleum Malvern, AR

Estacion de Servicio Automotriz Juticalpa Juticalpa, Olancho, Honduras

Petroleum Management Group Inc. Encino, CA

Festival Outfitter Petersburg, VA www.festivaloutfitter.co

Punjab Petroleum Inc. Cypress, TX

Clinard Oil Company Thomasville, NC www.clinardoil.com Come N Go Woodburn, OR Concord Market Madison Heights, MI Corleone Fuel LLC San Diego, CA Corner Store Corp.

Beverly, OH Cowboy Station Killdeer, ND

20 DECEMBER 2024 convenience.org

First Street Mobil St Petersburg, FL Fremont East Liquor Las Vegas, NV Fresh Stop Charlotte, NC Harry’s Chattanooga, TN www.harrysstores.com

Newburgh Fuel Distributor Inc. Newburgh, NY Pahrump Investment LLC Henderson, NV

Rede Mime Jaraguá do Sul, Brazil Rivera Energy LLC Manassas, VA RPF Oil Company Grand Blanc, MI www.rpfoil.com Samcor Fuel & Tobacco Mount Vernon, WA

ameriCan grown • manufactured • owned

ThaT’s The Premier advanTage Premier Manufacturing, Inc. is owned by U.S. Tobacco Cooperative, a cooperative of proud American farmers who grow the finest flue-cured tobacco in the U.S. to make high-quality, value-priced cigarette brands for adult consumers.

www.gopremier.com/contact w.gopremier com/contact

UP FRONT NACS NEWS Schatz Crossroads dba Schatz Crossroads Truck Stop Minot, ND www.schatzcrossroads.com

World Oil Marketing Company South Gate, CA www.worldoilcorp.com

Data Thynk Houston, TX www.datathynk.com

SUPPLIERS

Scott Oil Company Elkhorn, WI

Adept Life Sciences Gilbert, AZ www.adeptlifesciences.com

Donut Time Concord, ON, Canada

Seymour’s Quick Stop Silver Star Car Wash Toronto, ON, Canada www.silverstarcarwash.com Skooch Shops LLC Hampton, NH Spit Brook Market Nashua, NH Sports Stop Waterford, CA SPSM Ropesville, TX Star Stop 02 Houston, TX Super Petroleum Braintree, MA Super Station LLC Fort Walton Beach, FL Tejani & Dahal Investments LLC West Monroe, LA The Country Stop C-Store New London, MN The Dugout Spanish Fork, UT The Roseville Station Roseville, CA Truva Retail Management LLC Foer Mohave, AZ Tulsimit Inc. McKenzie, TN Utah State University Dining Services Logan, UT www.usu.edu/dining Velocity Stores Ingram, TX Wash N Go Carwash Cary, NC washngonc.com Wesco dba Champlain Farms South Burlington, VT www.champlainfarms.com

22 DECEMBER 2024 convenience.org

Advanced Mobile Payment Inc. Markham, ON, Canada www.amobilepayment.com Apriva Phoenix, AZ Berkeley Varitronics Systems Metuchen, NJ www.bvsystems.com

Dough Explosion, LLC dba Dough Explosion Distribution Midvale, UT doughexplosion.com El Chavito, Inc. dba Chavito Mex Candy San Diego, CA www.chavitomexcandy.com Enliven LLC Worcester, MA

BioXgenic LLC Pompano Beach, FL www.bioxgenic.com

Exchange Solutions Inc. Toronto, ON, Canada www.exchangesolutions.com

Blistex Inc. Oak Brook, IL blistex.com

Express Retail Solutions Inc. Central Islip, NY www.xprsco.com

Bonya Yogurt Parfait bonya-yogurt.com

Gokcelik Bursa, Turkey www.gokcelik.com

Boombox Beverage LLC Skokie, IL www.boomboxbeverage.com

Grade A Quality Wilmington, DE

BrandMobile Global Marketing Copenhagen, Denmark www.brandmobile.com

GS1 Ewing, NJ www.gs1us.org

Bubblegum Kids Toronto, ON, Canada

Harvest Group Rogers, AR www.harvestgroup.com

Capitol Coffee Systems Inc. Raleigh, NC www.capcoff.com Citrus Systems Inc. Hopkins, MN www.citrussystems.com Clew Nicotine Pouch Forest Park, GA www.clewpouches.com Creative Merchandising Systems Inc. Grand Rapids, MI www.cmsdisplays.com Creative Werks LLC Elk Grove Village, IL www.creative-werks.com Criotec Santa Catarina, Nuevo León, Mexico

Hissho Sushi Charlotte, NC Image One Industries Bensalem, PA Innovative Food Technologies LLC Fairfield, NJ innovativefood.tech Instacart ItalCrust Wood Fired Pizza Crusts & Flatbreads Newton, MA www.italcrust.com Jolt Energy Mooresville, NC www.jolt.energy JP Morgan Atlanta, GA

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UP FRONT NACS NEWS

JSB Industries Inc. Chelsea, MA www.muffintown.com

Rockline Industries Sheboygan, WI www.rocklineind.com

Lumberjacks Arctic Treats Dawsonville, GA www.lumberjacksarctictreats.com

Rotarex North America Hackettstown, NJ

Triggerpoint Media LLC Austin, TX triggerpointmedia.com

Select Design Burlington, VT

Triple Sticks Foods Belleville, IL

Silky Smooth MicroCreamery LLC Wilmington, DE silkysweet.com

UrthPact Leominster, MA www.urthpact.com

Sioux Chief Manufacturing Kansas City, MO www.siouxchief.com

White Sign Texarkana, TX whitesign.com

Smurfit Westrock Atlanta, GA

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M I Incorporated Anaheim, CA Mariani Packing Co. Inc. Vacaville, CA www.mariani.com MATCO Material Handling Solutions Brookfield, WI www.matcodist.com McLane Classic Foods Burleson, TX Mercury Tech Partners LLC Conover, NC www.mercurytechpartners.com

Solupac North Miami, FL www.solupac.com Sonoco Products Company Hartsville, SC

NC Equipment Solutions West Sacramento, CA www.nceqs.com

Soratech Incorporated Barrigada, GU

Nongshim USA Rancho Cucamonga, CA nongshimusa.com

Sovereign Brands Highland Park, IL www.sovereignbrands.com

Nowadays Irvine, CA trynowadays.com

Super Micro Inc. San Jose, CA www.supermicro.com

Observa Seattle, WA www.observanow.com

Sylogist Calgary, AB, Canada

OPT Management Fairhope, AL Pepper New York, NY www.usepepper.com Performance Plus Marketing Inc. Monrovia, CA bluepointdistro.com

T.H.E.M. / Sanko North America Marlton, NJ www.them.net Tactical Electronics Broken Arrow, OK Taste Salud LLC Santa Monica, CA www.tastesalud.com

Pine West Development Dallas, TX

The Advantage Group Int’l Chicago, IL www.advantagegroup.com

Placebased Media Nisswa, MN placebased.media

The Alison Group Longmont, CO www.alisongroup.com

PlugNet plugnet.io

The Innovation Group Centennial, CO

Product of the Year USA New York, NY

TikTok Shop Bellevue, WA

24 DECEMBER 2024 convenience.org

Toast Boston, MA

WW Cashews New York, NY www.wwcashews.com

NACS DECEMBER 2024 25

CONVENIENCE CARES

Casey’s Donates $1 Million to Local Water Trails C asey’s gave $1 million to Iowa Confluence Water Trails (ICON), a “transformative quality-of-life” initiative that aims to connect 150 miles of water trails across the Des Moines, Iowa, region.

“At Casey’s, we are here to help make our communities great places to live, work, play and explore. Central Iowa is full of unexpected outdoor recreation benefits, and we are proud to be part of ICON Water Trails,” Darren Rebelez, president and CEO of Casey’s, said in a press release.

With the donation, Casey’s will receive naming rights for an overlook to be built on ICON’s Center Street site, which will be known as Casey’s Scenic Overlook.

“We are incredibly grateful to Casey’s and its dedication to our community, its employees and customers, who all benefit from ICON and its amenities,” Stephanie Oppel, ICON Water Trails executive director, said. “The private sector in our region is truly exceptional, and it’s because of partners like Casey’s that we’re able to bring this project to fruition.”

26 DECEMBER 2024 convenience.org

In The Community Every year, the convenience retail industry dedicates billions of dollars to advancing the futures of individuals and families in our communities.

The NACS Foundation unifies and builds on NACS members’ charitable efforts to amplify their work in communities across America and to share these powerful stories.

Learn more at www.conveniencecares.org.

TWICE DAILY RAISES $425,000 FOR CHILDREN’S HOSPITAL 1 Twice Daily, owned and operated by Tri Star Energy, has raised more than $5 million in total for its partner Monroe

Carell Jr. Children’s Hospital at Vanderbilt. The company reached the milestone with the largest donation in the history of the partnership during Twice Daily’s 24th annual Golf Cup, which raised $425,000.

“Tri Star Energy and Twice Daily are deeply committed to supporting Monroe Carell Jr. Children’s Hospital at Vanderbilt and its patients, and we’re humbled to have reached such a significant milestone that directly impacts our local community and our children,” said Steve Perry, chief operating officer of Tri Star Energy. “This is the 24th year we’ve hosted the golf tournament, and each year, I am inspired by how everyone comes together for such a meaningful cause.”

SHELL’S SEASON OF ‘THE GIVING PUMP’ 2 Shell’s The Giving Pump campaign returned in the fall for its fourth year. A portion of purchases made by consumers who used the designated purple pump at select Shell stations supported local children’s and family-focused charities across the nation.

The Giving Pump is specially marked with colorful signage at participating stations and could be found across 47 states as part of Shell’s Force For Good initiative to give back and drive positive change in local communities.

This year, The Giving Pump 1

supported 552 local and national charities across the U.S., including St. Jude Children’s Research Hospital, Boys & Girls Clubs, Prader-Willi Syndrome Association USA and The Brooke Healey Foundation.

TOWN PUMP’S MEALS FOR BACKPACKS DRIVE 3 The Town Pump Charitable Foundation ran its Meals for Backpacks program again this year. The program provides funding for backpack feeding programs in Montana primary, middle and secondary schools.

Generally, a backpack will include enough food to replace the meals a child would receive at school for a weekend (for example, two breakfast options, two lunch options, a can of fruit and a can of vegetables, shelf stable milk or juice), the company said.

Since the inception of the Meals for Backpacks program in 2016, the Town Pump Charitable Foundation has provided $3.6 million in financial assistance for weekend meal programs.

HOP SHOPS DONATES $10,000 TO MAKE-A-WISH 4 Hop Shops and Valor Oil raised $10,791 in September to support Make-A-Wish through its STARS donation campaign at the register.

Hop Shops’ parent company, Valor Oil, also partnered with Make-A-Wish Ohio, Kentucky and Indiana to fulfill the wishes

of Ava, a young girl from Lewisburg, Kentucky.

“Ava’s heartfelt wish was to have a creative space of her own, and we were honored to help make that dream a reality by building her a custom craft shed.

Valor Oil team members assembled and painted the shed. ... We had the joy of seeing her face light up as her shed was filled with furniture, craft supplies, and everything she needed to make it her creative sanctuary,” the company said in a press release.

MIRABITO CONVENIENCE STORES HOLDS CUPS FOR A CAUSE INITIATIVE 5 Mirabito Convenience Stores held its Cups for a Cause initiative, a program that donates unused paper cups to local charities and community organizations.

The retailer donated its unused Mirabito Convenience Store paper cups to help alleviate the cost burden on charities and community groups that rely on such essentials for their events and outreach efforts.

“As we prepare to introduce an exciting, newly rebranded Mirabito Convenience Store togo beverage cup this fall, we’re ensuring our current supply of unused cups doesn’t go to waste.

In line with our commitment to sustainability, we’re taking this opportunity to donate and recycle responsibly by extending a helping hand to local organizations in need,” the retailer said.

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NACS DECEMBER 2024 27

INSIDE WASHINGTON

Rep. Lori Chavez-DeRemer working behind the counter at Jacksons Food Stores.

Building Bridges The NACS In Store program connects lawmakers and convenience retailers.

BY LEENAH HEGAZY

A

hallmark of the NACS In Store program is its ability to build bridges between members of Congress and their local communities.

Since the program’s inception in 2015, NACS has coordinated more than 140 store visits, allowing legislators to witness firsthand the challenges and opportunities that convenience stores navigate daily. These visits provide lawmakers with a clear view of how federal policies impact local businesses, employees and consumers.

28 DECEMBER 2024 convenience.org

In 2024, several Members of Congress took part in these interactive In Store visits. Notably, Congresswoman Lori Chavez-DeRemer (OR-5) visited a Jacksons Food Stores location in Portland, Oregon, where she gained a better understanding of the unique role convenience stores play in her district.

Similarly, Senator Roger Wicker (MS) toured Sprint Mart in Columbus, Mississippi, where he engaged with employees and store owners on a number of key issues facing the industry including the

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INSIDE WASHINGTON importance of the Supplemental Nutrition Assistance Program (SNAP) and the rising cost of credit card swipe fees.

These visits serve as platforms to address pressing policy issues. One prominent topic discussed this year was the rising fees that retailers of all kinds pay to accept debit and credit cards. The fees have weighed down local businesses for many years and continue to create challenges for the industry. Another significant issue raised during the visits was the development of electric vehicle (EV) infrastructure. Convenience stores are well-positioned to play a crucial role in the EV charging landscape. Many store operators shared their views on how policy could better support private sector investment in this growing area. During his visit to a Maverik store in Scottsbluff, Nebraska, Congressman Adrian Smith (NE-3) learned how convenience retailers, especially in rural areas, could lead efforts to expand EV charging stations if provided with equitable opportunities for private investment.

During her visit to a Wawa in Ridley Park, Pennsylvania, Congresswoman Mary Gay Scanlon (PA-5) explored how convenience stores contribute to SNAP, with over 114,000 c-stores participating in the program. There is a push to modernize the program to better meet consumer needs, and one such initiative

Rep. Mary Gay Scanlon behind the counter at Wawa, making a sandwich.

Rep. Erin Houchin meeting constituents while at Casey’s.

Sen. Roger Wicker cleaning a constituent’s windshield at Sprint Mart.

30 DECEMBER 2024 convenience.org

is the Hot Foods Act, which would allow SNAP recipients to use their benefits to purchase hot meals—a key concern for many families.

These store tours not only educate legislators about the business of convenience stores, but they also offer retailers a platform to share their stories and advocate for policies that shape the future of the industry. For instance, Congressman Rudy Yakym (IN-2) expressed his gratitude after visiting a Family Express location in Mishawaka, Indiana, noting how the program provides insight into the real-world impact of policy decisions on local businesses. Similarly, Congresswoman Erin Houchin (IN-9) left her tour of Casey’s in Seymour, Indiana, with a stronger

INSIDE WASHINGTON appreciation for the challenges that convenience retailers in her state face daily.

By facilitating these hands-on experiences, the NACS In Store program continues to be one of the most effective tools in the NACS Government Relations toolbox. These visits build relationships between retailers and legislators that extend beyond the store counter and into the halls of Congress, fostering collaboration on policies that will support the industry’s future growth.

For those interested in learning more about the NACS In Store program or in hosting a local event, please contact Leenah Hegazy, NACS manager of grassroots, at lhegazy@convenience.org.

Rep. Rudy Yakym at Family Express, seeing a convenience store amenity, the pet wash station.

COME TOGETHER. DO MORE. Scan to watch the NACS Foundation in action.

32 DECEMBER 2024 convenience.org

Leenah Hegazy is the NACS grassroots manager. She can be reached at lhegazy@ convenience.org.

NACSPAC LIST NACSPAC was created in 1979 by NACS as the entity through which the association can legally contribute funds to political candidates supportive of our industry’s issues. For more information about NACSPAC and how political action committees (PACs) work, go to www.convenience.org/nacspac. NACSPAC donors who made contributions in October 2024 are: Dan Alsaker Alsaker Corp

Brent Cotten The Hershey Company

Ian Forsyth FKG Oil Company

James Hervey Verifone Inc.

Alexander Baloga Pennsylvania Food Merchants Association

Kayla Culver Raj Petroleum

Tiffany Fraley InConvenience Inc

Greg Cushard Lockton Insurance Brokers LLC

Nick Franco ThinkSys Inc.

Mark Hess 33 Degrees Convenience Connect

Vinit Barot KenJo Inc. Michael Bendt Moyle Petroleum Company Gary Bevers Southwest Fuel Company Jeff Blalock Rick Brindle Strategic Growth Planning Specialists LLC Brett Brobston Altria Group Distribution Company Edward Browning IV Excel Tire Gauge LLC Rahim Budhwani 6040 LLC Tom Bush Food Concepts Inc. Bill Bustin Rovertown Lars Canedy 33 Degrees Convenience Connect Kevin Carroll RaceTrac Inc. Nasir Cheema NSR Petro Services LLC Nishant Chudasama Cadnicks Inc. Noam Cohen KeyBanc Capital Markets R. Timothy Columbus Mackenzie Cortese Executive Leadership Solutions Inc.

Harvey Hicks Jordan Oil Co. Inc.

Jerry Cutler InComm Payments

Wilson Friend Altria Group Distribution Company

Allison Dean WTWH Media Inc

Carly Furman Nayax

Joe Dondanville 33 Degrees Convenience Connect

Tamra Gathright Florida Petroleum Marketers Association

Yousuf Dosani Atlanta Retailers Association

Brion Gillett Kretek International

Peter Holtz Samra & Sons

Kamila Duncan Pearson Fuels

Ella Goetze Goetze’s Candy Company Inc.

Todd Isaacs Big Picture Networks

Duane Duppong The Hub Convenience Stores Inc.

Mitchell Goetze Goetze’s Candy Company Inc.

Anthony Emerson The Convenience Group LLC

Steve Goode Arkansas Oil Marketers Association

Benjamin Englefield Englefield Inc.

Mark Griffin Michigan Petroleum Association

Frederick Englefield Jr. Englefield Inc. Mark Falconi Greenridge Naturals Kevin Farley W. Capra Consulting Group LLC Tom Ferris E S Foods Chris Fitterer The Hub Convenience Stores Inc. Mike Flebotte Business Accelerator Team

Brittany Hall Executive Leadership Solutions Inc. Mark Hanners InComm Payments Steve Harrelson SAASOA Sophia Hartgrove Tres Picosos Leenah Hegazy NACS Verconia Helms SAASOA

Elizabeth Hoffer Weigel’s Stores Inc. Angela Holland Georgia Association of Convenience Stores John Holmes The Kent Companies

John Jackson Jacksons Food Stores Inc. David Jaffer National Alliance of Trade Associations Anshul Jain ThinkSys Inc. Rajiv Jain ThinkSys Inc. Farris Jamal Chestnut Market Sam James Casey’s General Stores Inc. Mark Jordan Refuel Operating Company Brittany Kaplan Electric Era Technologies Simmi Kelly Altria Group Distribution Company

NACS DECEMBER 2024 33

INSIDE WASHINGTON

Jonathan Kemp Moyle Petroleum Company Rob Knight Independent Buyers’ Company LLC Kevin Kraft Tropicana Brands Group Myra Kressner Kressner Strategy Group Kewal Krishan American Petroleum and Convenience Store Association Sue Kumar 7-Eleven Store #16267 Jeff Larson The Convenience Group LLC Steve Larson The Convenience Group LLC Ron Leone Missouri Petroleum & Convenience Store Association

Missy Matthews Childers Oil Co.

Shreepal Parikh Panhandle Wholesale

Chandresh Ravaliya Anthem Oil Inc

Brian McCarthy Blarney Castle Oil Co.

Bharat Patel SAASOA

Robert Razowsky Rmarts LLC

Dustin McGinnis Nittany Oil Company

Bipin Patel SAASOA

Ryan Razowsky Rmarts LLC

Brad McGuinness PDI Technologies

Dhiren Patel Raceway

Jason Read Wawa Inc.

Doug Middlebrooks Advantage Solutions

Dhruv Patel Sai Aarya Inc.

Megan Reckelhoff Johnson Junction Inc.

Ryan Miller Big Picture Networks

Niken Patel National Petroleum

Tony Miller Delek US

Piyush Patel Harry’s

Jennifer Rhoads The Convenience Group LLC

Brian Moran RaceTrac Inc.

Priyank Patel Raceway

Sydney Moyle Moyle Petroleum Company

Ramesh Patel SAASOA

Dan Mulvaney Swedish Match North America F. Scott Myers Altria Group Distribution Company

Sanjiv Patel National Petroleum Saurin Patel Harry’s Kaitlin Payne NACS

Donnie Rhoads, III The Convenience Group LLC Deann Riegel The Hub Convenience Stores Inc. Amber Rogalski California Fuels and Convenience Alliance Mike Rud North Dakota Petroleum Marketers Association

Matt Nelson Excel Tire Gauge LLC

Victorino Perrine Circle K Stores Inc

Ashley Neutze Mr. Cartender Inc.

Channing Phillips Tres Picosos LLC

Daniel Neutze Mr. Cartender Inc.

Angela Pimental RaceTrac Inc.

Kevin O’Connell NACS

Sean Piper CAF INC.

Reza Mahmoodi OneFabric Technologies

Jon O’Keeffe The Convenience Group LLC

Bill Pitocco Independent Buyers’ Company LLC

Regan Manly Urban Value Corner Store

Alex Olympidis Family Express Corporation

Richard Poye Food Trends Think Tank

Rashid Samiev Mega Saver

Nick Marino CORD

Chris Ott 33 Degrees Convenience Connect

Gabe Purvis The Convenience Group LLC

Money Samra Samra & Sons

Kevin Lowery Executive Leadership Solutions Inc. David MacDonald WT Group Crystal Maggelet Maverik Inc. Mehdi Mahmoodi OneFabric Technologies

Liaqat Masood Landover Services Inc. 34 DECEMBER 2024 convenience.org

David Quisberg S&D Quisberg LLC

Brent Runion Independent Buyers’ Company LLC Bianca Russo-Davis MichaelAngelo’s & More Ron Rutherford Apter Industries Inc. Sarbjeet Sahota Raj Petroleum Navjeet Salhan Samra & Sons

Peggy Santry Coulson Oil Company

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Claim Forms are now being mailed to more than 15 million merchants. Even if you do not receive a Claim Form in the mail, you may still be eligible, and you should visit www.PaymentCardSettlement.com to get more information about the Settlement. The deadline to file a claim is February 4, 2025. You can file your claim online at the website.

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Deann Scheeler The Hub Convenience Stores Inc. Kyler Schmitz OWL Services Kristin Seabrook Pilot Travel Centers LLC Jerome Sedelmeyer Ignite Retail Technology Prashant Shah National Petroleum Allison Shapiro Dandry Krispy Krunchy Foods LLC Sunny Singh 7-Eleven Franchise

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Chase Smith Retail Insight Mart Smith Elmer Smith Oil Co.

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Martin Smith Elmer Smith Oil Co. Scott Smith The Parker Companies

Mat Stutzman Stutzman Meats Suleman Sueteb Samra & Sons Brent Taylor Tres Picosos LLC Chris Tenney Raj Petroleum John Thomas iSee Store Innovations Haskel Thompson Haskel Thompson & Associates Executive Recruiters Karin Thrift X3 + 1 Consulting LLC April VanApeldorn NACS Kurt Weigel Weigel’s Stores Inc. Al Wilkinson Circle K Stores Inc Robert Woodward Tactiq Doug Yawberry Weigel’s Stores Inc. Malik Yousif MYS Energy

Frank Squilla InComm Payments

Dathan Zang Harbor Industries

Chris Steplock NCR Corporation

Joseph Zietlow Kwik Trip Inc.

Melanie Stradling The Hub Convenience Stores Inc.

Scott Zietlow Kwik Trip Inc.

Adam Sturdivant The Kent Companies

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IDEAS 2 GO

Josh Grant, owner of Pit Stop Missouri, shaking hands with frequent customer and Pit Stop race car driver Zach Resinger.

Name of company: Pit Stop Missouri LLC Year founded: 2016 # of stores: 2 Website: www.facebook.com/ leadingtonpitstop

Turning Passion Into Profit

The owner of Pit Stop found success by bringing his own c-store vision to life.

BY SARAH HAMAKER Josh Grant isn’t afraid to get his hands dirty. “If there’s an issue in the restroom, I’m in there fixing it. If the trash needs to be taken out and the employee is helping customers, I’ll take it out,” said the owner of Pit Stop in Leadington, Missouri. “This sometimes surprises my employees, since they might think the owner of the company shouldn’t be hauling trash to the Dumpster, but I’m demonstrating the concept of teamwork and the importance of taking care of things when you can.”

38 DECEMBER 2024 convenience.org

Grant’s family ran both a convenience store and petroleum business, so he acquired extensive knowledge growing up in the industry. When it was time for him to branch out on his own, he bought the Leadington Pit Stop location. “I’d been a general manager for several years working for my family, and thought it was time to take my experience from working for someone else to working for myself,” he said.

Today, he wears many hats, which he loves. “Owning my own store allowed me to create a store that serves all of my interests,” Grant said. “I didn’t like the idea of working nine-to-five or doing the same thing over and over again. When you run a convenience store, there’s something new every day.”

The high-volume, 24/7 store delivers exactly what Grant wanted from a business. “I know all the ins and outs of my store because I’ve worked through all the aspects of it, from making pizzas to changing pump filters,” he said. “There are good days and bad days of course, but overall, it’s been very motivating to me.”

SAME YET DIFFERENT Pit Stop has many similarities to other convenience stores, but Grant also put his personal stamp on it. The store carries all merchandise categories, including a full grocery section, and has a kitchen for foodservice. “It’s hard for me to imagine that we don’t have what someone’s looking for,” he said.

The full kitchen has two distinct offerings—Hunt Brother’s Pizza and its own branded Miner’s Kitchen, which serves chicken, burgers and other graband-go fresh-made items. The store also bakes its own pastries. The drive-thru does a brisk business and customers can order everything from pizza to chips for pickup at the window.

The extensive fountain island stocks four slushie flavors, two frozen coffee

flavors and 32 soda options, while the coffee bar has six coffee pots and tea urns. Lottery, alcohol, tobacco, candy and snacks round out the selection.

Grant also tries to carry local brands when he can.

Pit Stop’s location right off the highway, combined with residential traffic from the nearby college, provides a very diverse customer base. He overhauled the store in 2021 and added new fuel islands capable of dispensing Mobil-branded regular, mid, premium, E85 and diesel.

MORE THAN A NAME Beyond the products and fuel, Pit Stop’s biggest claim to fame is its employees.

“We regularly receive an average of 99% on all of our Mobil inspections when it comes to customer service,” Grant said. “I think that’s because the people working for me aren’t just a name on the payroll—I get to know every single one of them.”

When Grant visits the store, he checks in with the employees, who often see him jumping in to help ring up customers or clean the bathroom. “Anything that needs doing while I’m there, I do it if my employees are helping customers,” he said. “That means a lot to my team because they see I’m willing to pitch in.”

He attributes the store’s very low turnover to his genuine interest in his employees, many of whom have been with him for years. General manager Felicia Crabtree has been with the business since 2016, while assistant manager Josh Shreve came onboard in 2017.

Grant calls Crabtree “the glue that holds the store together.” In addition, his wife, Kaitlin Grant, works as director of finance, and their two children often help out during store events.

At the end of the day, “Customers can buy a bottle of soda anywhere, so why should they buy it from us? It’s for the

BRIGHT IDEAS Josh Grant, owner of Pit Stop in Leadington, Missouri, uses digital advertising throughout the store on TVs installed above the fountain and cooler areas— but not on the screen above the register. “I figured ads wouldn’t work there since customers would see them while waiting in line to pay for their items,” he said.

Instead of running news or sports updates on the register TV, which might distract his employees, he decided to put together a slide show of jokes and motivational sayings, such as “When nothing is going right, go left.”

“It’s entertaining and funny, so perhaps when a customer sees one, it might change their perspective or brighten their day,” Grant said. experience of interacting with our employees, who make them feel valued and glad they came into Pit Stop,” Grant said.

“If we can make our customers leave feeling better than when they came in, that’s what we’re aiming for.”

Sarah Hamaker is a freelance writer, NACS Magazine contributor, and award-winning romantic suspense author based in Fairfax, Virginia. Visit her online at sarahhamakerfiction.com.

Ideas 2 Go showcases how retailers today are operating the convenience store of tomorrow.

To see videos of the c-stores we profiled in 2023 and earlier, go to www.convenience.org/Ideas2Go. NACS DECEMBER 2024 39

e Path h T to t he B ackbar

42 DECEMBER 2024 convenience.org

The shifting patterns of today’s nicotine shoppers are revealed by mapping their in-store journey.

BY MELISSA VONDER HAAR

NACS DECEMBER 2024 43

W

hether it’s NIQ, Circana, Management Science Associates (MSA) or CSX and State of the Industry data via NACS, there is no shortage of data options for the nicotine category. Though the exact information tracked and exact numbers may vary slightly from outlet to outlet, they’ve tended to paint the same picture: Overall sales are declining, led by significant declines in cigarettes that are only partially offset by gains in segments like modern oral nicotine.

“The adult nicotine consumer is a very valuable customer for convenience, which continues to be the first choice for customers looking to purchase nicotine,” said Greg Schmidt, vice president of business analytics at Swisher.

“Circana estimates that the c-store channel drives $22.8 billion in annual OTP sales, while cigarettes generate $57.8 billion.”

But, according to Rajeev Sharma, founder and CEO of VideoMining, sales only paint part of the picture.

“Sometimes when you look at total sales, the big picture is hidden,” he said. “Obviously the prices have increased, but that tells only part of the story.”

While many outlets track unit sales or margins, VideoMining uses its proprietary video-based AI sensors to track something entirely different: consumer behavior. How many shoppers are purchasing nicotine, how frequently they come to the store, how much they spend, what else they purchase—and much, much more. “[We] capture every nuance of their behaviors and every ‘micro moment’ in-store,” said Sharma. “The goal is to unlock unprecedented levels of behavioral insights using a combination of our patented AI platform and behavioral science to analyze what’s working and what’s not working from the perspective of the operator.”

Today, VideoMining tracks more than 400 million convenience store trips. These trips provide insights into not just what’s happening today, but how different shoppers have evolved since the company’s first AI sensors were placed in 2008.

This is especially important for a category like tobacco. Tobacco remains the largest contributor to in-store sales per NACS State of the Industry data, but has regulatory limitations on merchandising, placement and signage. As such, tobacco and nicotine shoppers often have little to no exposure to other parts of the store. When tracking tobacco trips, VideoMining focuses on a few things: who those shoppers are, how many trips they’re making, how they interact with the store clerk, and the impacts of different types of signage.

Here’s a breakdown of what 15-plus years of data has shown about who nicotine consumers are, how they’ve changed and what top retailers are doing to maintain or even grow these shoppers’ baskets.

NICOTINE SHOPPERS BY THE NUMBERS Much like more traditional data outlets, VideoMining has tracked ongoing declines in the overall category. And not just in sales.

“The biggest trend we have seen is changes in c-store trips and the number of tobacco buyers,” said Sharma. “There has been a steady decline in overall tobacco trips and baskets, certainly in cigarettes.”

In 2008, tobacco accounted for over 30% of convenience trips. In 2024, that number dropped to 25%. That makes it the fourth-most common trip mission VideoMining tracks (behind refreshment, snacking and caffeine boost). Previously, it was in the third spot.

Additionally, in the first half of 2024, average weekly per-store tobacco buyers were down 8% vs. the first half of 2023, and the overall share of tobacco baskets storewide went from 25% to 24%.

The fundamental nature of the trip has not changed as much as we think.”

44 DECEMBER 2024 convenience.org

The one hint of a silver lining? Basket sizes increased by 4% during this time, to an average of $12.87 per tobacco shopper.

“Total tobacco performance continues to decline, but pricing is offsetting the damage,” Sharma said.

SHOPPER BEHAVIOR: THE LONE WOLF While many retailers would love to offset purchase declines by encouraging shoppers to add non-tobacco products to their basket, this is uniquely hard given the way most tobacco shoppers behave. Sharma describes the nicotine shopper as “like a lone wolf,” interacting less with the rest of the store than the average consumer—but making more frequent visits.

In fact, VideoMining data shows that 70% of tobacco shoppers go directly to the backbar upon entering a store and 51% of them purchase only tobacco or nicotine products.

“That ratio has been largely consistent over 16 years,” Sharma added. “The fundamental nature of the trip has not changed as much as we think.”

These lone wolf shoppers also spend nearly a third less time in the store than the average shopper—two minutes versus three minutes—and only 17% interact with the tobacco fixture in any way (while 80% only interact with the clerk).

“This indicates highly mission-oriented visits to c-stores for these shoppers,” said Sharma. “Tobacco buyers are not that influenceable—it’s not an impulse purchase.”

Some other insights Sharma provided about tobacco shoppers’ patterns include: • “They have three peaks in terms of dayparts: morning, lunch and after work.

Though it varies by segments, with cigars peaking much later in the evening.”

• “They over-index even more to men for a channel that is already approximately 70% male (tobacco is 75% male).”

• “There are some individual categories that are being purchased more often with tobacco: energy drinks, fountain drinks, candy and sports drinks. In general, though, tobacco is still much more likely to be purchased alone than any other product.”

THE EVOLVING NICOTINE SHOPPER One thing that has changed in the time that VideoMining has been mapping this consumer is what they’re buying. While the pattern of most tobacco buyers going straight to the backbar and only shopping that category hasn’t changed, Sharma noted “the top products that they’re buying has changed slightly.”

While most backbar segments saw their share of tobacco/nicotine purchases fall from 2023 to 2024, pouches and modern oral saw its share double from 5% of category sales in 2023 to 10% in 2024.

“That’s pretty significant,” Sharma said.

And getting more significant by the day.

“We expect the segment will continue to grow, eventually reaching the same size as all other smokeless products,” said Cory

The Lone Wolf

VideoMining data demonstrates just how little tobacco shoppers interact with other parts of the store:

70% go directly to the backbar 51% purchase only tobacco/nicotine products 35% report that no signage in the store would catch their attention

17% look at the backbar

(vs. just engaging with the clerk)

2 minutes spent in the store

(one minute less than the average shopper) NACS DECEMBER 2024 45

Tobacco buyers are not that influenceable—it’s not an impulse purchase.”

McDade, senior director trade marketing development at Reynolds American Inc. Sharma added that while a category like modern oral is too new to have enough data to make exact claims, “The hypothesis is that with the move to the different segments, maybe the nature of the shoppers will change.”

Those newer segments may attract more female consumers and possibly a shopper younger than the typical cigarette consumer— but Sharma noted “we just don’t know yet.”

It’s not just a different shopper: the baskets of those newer product shoppers are also likely to be different than a traditional cigarette shopper. Even if they are only purchasing

Key Opportunities

to Influence the Nicotine Shopper Despite being a category-specific shopper, the data suggests a few opportunities to influence and grow baskets.

• Outside the store: Signage highlighting savings or promotions is the best way to entice that shopper into the store.

• The front counter: To encourage cross-category purchases, consider placing products that are most commonly purchased with tobacco: snacks, energy drinks and sports drinks.

• The backbar: With the majority of tobacco shoppers only interacting with the backbar, the best opportunity to grow baskets is with attractive merchandising and signage for new products.

46 DECEMBER 2024 convenience.org

tobacco, they’re more likely to purchase more than one kind of tobacco product.

“I think it’s never a straightforward switch from one to the other, but rather using multiple nicotine products,” Sharma said of the poly-usage phenomenon showing up on VideoMining’s cameras. “Not just for trial, but maybe even ongoing.”

“Poly-usage has gained popularity among today’s adult nicotine consumers, who remain receptive to new and innovative products,” added Schmidt of Swisher. “Due to factors like inflation, regulations and societal pressures, adult consumers are increasingly willing to explore nicotine products beyond traditional cigarettes.”

The VideoMining data has captured how the trip patterns of vapor and smokeless shoppers differ from those of traditional cigarette shoppers.

“The cigarette purchaser is much more in auto pilot mode, so it’s hard to break through,” Sharma said. “But with some of the newer products, there has been more interaction with the store associates and with information in general. They’re more open to trying different things.”

HOW TO EXCEL WITH THIS SHOPPER Sharma said this shift from an auto pilot cigarette shopper to a nicotine shopper more willing to engage with other parts of the store—or at least other parts of the backbar—highlights the importance of testing and mapping what does and doesn’t work.

Of the hundreds of millions of shopper trips VideoMining tracks, Sharma said there are some commonalities in the retailers who have managed to shift that 70% of tobacco shoppers who only engage with the backbar or only buy one product to a percentage that is more favorable.

“If I had to narrow it down to two things, it’s assortment and signage,” Sharma said.

Assortment is key for keeping that tobacco customer. Whether it’s cigarettes or something newer like modern oral, the data suggests there’s “very little substitution” when it comes to the backbar.

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Out of stocks are a sure way to lose a customer. The retailers who are doing well have a good assortment.”

“That consumer will not be forgiving if the product is not there—out of stocks are a sure way to lose a customer,” Sharma said. “The retailers who are doing well have a good assortment.”

“The backbar is always an important aspect of retail shopping in the convenience channel,” agreed McDade. “Retailers must ensure that their backbar reflects the growing shift from combustible products to potentially less risky nicotine products like vapor, modern oral and snus.”

The other thing retailers doing well in this category have in common is good signage both in terms of location and messaging. A recent VideoMining survey of tobacco shoppers found: • 75% of potential tobacco shoppers who purchased just gas reported that they would be influenced a little or a lot by a tobacco pricing (or sale) sign.

• 33% of potential tobacco shoppers said window signs/clings, large banners and front door signs would be most likely to persuade them to go into the store.

• 35% of potential tobacco shoppers said no signage inside the store would get their attention (28% said product promotions would, 27% said cooler door signs would and 26% said promotional tags on products would).

“In terms of best practices, promotional signage particularly works and informational signage in some cases for the new products also works,” Sharma said.

Reynolds has seen this with its retail partners as well. “We find that retailers with fully integrated digital marketing programs like loyalty programs are the most successful at driving noncombustible nicotine products,” McDade said.

48 DECEMBER 2024 convenience.org

Knowing that so many nicotine shoppers head straight to the backbar, Sharma sees this area as prime for promotion.

“Have better ‘front end’ merchandising for improving cross-purchases and impulse for tobacco buyers while they are waiting,” he said. “Especially since so many of them don’t go to other parts of the store.”

That goes for self-service items on or near the counter, but especially for the backbar itself.

“It’s important to evolve the merchandising and signage to encourage trial,” Sharma said. “Trips are going down. If you want to offset that besides just pricing, having the right assortment and signage helps. Maybe that cigarette shopper goes ‘I would like to try a pouch too.’”

“We suggest retailers continue to collaborate with their vendors on a customized promotional strategy while keeping a close eye on the Fair Share SKU Index to ensure the proper mix of nicotine products are carried in stores,” added Schmidt.

As the fourth-highest trip mission tracked

by VideoMining, tobacco remains a key category for convenience. Thus, Sharma encourages retailers to monitor not just the dollars and cents—but the actual behaviors.

“The number of trips are significant,” Sharma said. “You have to make sure you are marching along in terms of that shopper composition. And the only way you can do so is by being a little ahead of the trends. If you don’t watch this shopper, it’ll be too late by the time you’ve recognized the shift.”

Melissa Vonder Haar is the marketing director for iSEE Store Innovations. Follow her on Twitter at @iSeeMelissaV.

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Four retailers share how they provide more than food and fuel to their local communities.

BY SARAH HAMAKER

50 DECEMBER 2024 convenience.org

e s o l C it n K

r u o Y g n i n e h t g n Stre s e i T y t i n u m m o C

BY SARAH HAMAKER

A

cross the country and around the world, convenience stores are the heartbeat of their communities. From independent stores to national chains, convenience retailers prove how deeply they care about their local customers by staying open during natural disasters, hosting fundraising events for charities, sponsoring children’s sports teams and donating time and money to local and national causes.

NACS DECEMBER 2024 51

The average convenience shopper made 2.6 trips per week in 2023, with 48.4% of consumers saying they visit a c-store weekly and 28.4% coming once per day, according to the latest NACS Convenience Voices data. With customers frequenting stores this often, retailers have a unique opportunity to create and support their communities. “We can bring the community together in ways other retailers can’t,” said John Favreau, owner of the Warren General Store in Warren, Connecticut. “For example, individuals who might never have known each other previously have become friends by spending time at our store.”

Favreau often facilitates those meetings.

“I’m constantly weaving people together who I think would enjoy one another’s company and running a convenience store allows me the opportunity to do that.”

ESSENTIAL CONNECTIONS According to research from NACS, the average convenience store with fuel pulls in approximately 1,100 customers per day, providing a lot of opportunities for retailers to build community ties—which benefits both the store and its customers. “We live in the community as well as work here, so of course we want to make it a better place,” said Betty Foreman, general manager of Oak Barrel Café in Little Orleans, Maryland. “Why wouldn’t you lend a helping hand to those in need and give your customers an opportunity to impact their community?”

David Hopper, owner of Dia’s Market in Austin, Texas, said that building relationships with the community can be one of the hardest parts of running a local business.

52 DECEMBER 2024 convenience.org

Focus groups said, ‘I’m loyal to the people that work in the store.’

Tri Star Energy welcomes police officers through the Coffee With a Cop program.

“The bottom line is our stores rely on who is aware of us and what we offer,” said Hopper. “It’s the relationships that translate into loyal customers, because at the end of the day, we’re all selling essentially the same things. It’s the employees and our community connections that make customers choose to spend their dollars with us.”

Tri Star Energy, a Tennessee-based retailer that operates Twice Daily convenience stores, White Bison coffee shops and Sudden Service c-stores, conducted research to learn more about customer loyalty, and found that consumers aren’t necessarily loyal to a particular store because of its brand or products. “Focus groups said, ‘I’m loyal to the people that work in the store.’ That was really impactful,” said Dawn Boulanger, vice president of marketing at Tri Star Energy. “What we do as a retail business is transactional, so it’s important to us to make that interaction in the store more than a transaction. We want to show we care about the communities we operate in, make it our mission to build relationships and help customers have an emotional connection with our store.”

While there are myriad ways convenience stores can deepen their community ties, each as different as the products and services they sell, this is how these four have supported their communities and become pillars of their neighborhoods.

TRI STAR ENERGY One cause Tri Star Energy cares about is supporting local first responders.

“We run 24 hours a day, seven days a week, and we have a lot of third-shift folks that are in our stores who might stop by at night to pick up a cup of coffee. So it makes a lot of sense for us to support them—it’s an extension of what we do and what our offer is,” said Boulanger. The brand gives first responders in uniform or with a badge a free coffee or fountain drink year-round.

“It’s a nice way for us to thank them for their service and for being there to protect us,” she said.

This year, its White Bison coffee shops, which are mostly located inside Twice Daily convenience stores, hosted Coffee With a Cop for the fourth time across 17 locations in Tennessee and Alabama.

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Warren General Store

“The goal of the event is to bring community members together with local police departments to meet, discuss issues and learn more about each other,” said Boulanger. “We already have a lot of police that come to our store as customers and hang out between shifts or while waiting for calls, so we felt like this was a natural fit for us as a coffee shop.”

Boulanger said that employees have enjoyed being able to connect the community with law enforcement, and the relationship has also made both employees and customers feel safe.

“There are policemen in our stores that are regulars, and so it’s meaningful for everyone,” she said. “Coffee With a Cop is a national program, but many of our stores have expanded the idea to host quarterly or more regular events with local law enforcement.

It means a lot to the community to have an opportunity to connect with police departments just to have conversations—there doesn’t need to be anything bad happening.”

The company also partners with Nashville nonprofit Box 55 Association, a volunteer-run team that deploys to emergency events and hands out beverages, coffee or food to first responders. Tri Star provides fuel for the organization’s two trucks and also donates bottled water, drinks and other supplies.

WARREN GENERAL STORE Favreau has always taken community involvement very seriously. He sits on numerous local commissions and boards, and is the president of the Warren Historical Society and chair of the Inland Wetlands & Conservation Commission. “In all of these roles, I foster community by getting to know the residents,” he said.

54 DECEMBER 2024 convenience.org

Serving Across the Pond In the U.K., people rank convenience stores at the top among 16 local services for creating jobs, supporting the local economy and stimulating investment, according to a 2024 Community Barometer report from the Association of Convenience Stores (ACS).

“Community services across the U.K. clearly recognize the importance of their local convenience store in providing secure and flexible employment, supporting the local economy and driving investment in a wider range of services,” said ACS CEO James Lowman.

“Convenience stores provide essential services in terms of their offerings and by putting people in the community together,” he continued. “Our stores are constantly running community events, sponsoring teams, donating to food banks and inviting their customers to join them.”

The report found that 30% of consumers know the people running or working in their local shop quite well or very well. In addition, 63% of consumers travel less than a quarter of a mile to get to their local shop, while 28% of consumers would have to travel two to three miles or more for essential groceries if their local shop wasn’t there.

“The good news is that these results are quite consistent, which is a very positive story of our industry and of how our member stores are viewed by consumers and the key role these stores play in the lives of our customers,” Lowman said. “The value of different services these stores offer shows how essential they are to the local economy.”

Warren General Store is located on top of a mountain away from other commerce, which is why it’s so important for Favreau to be plugged into the community. “We’re a destination because everything else is 20 minutes away, so we have to be out in the community so people know we are here,” Favreau said.

While he’s generous with food and monetary donations, he also tries to think outside the usual charity boxes. When a local community garden gave a surplus of cucumbers and tomatoes to the food pantry, his kitchen

came up with a simple cold gazpacho soup recipe for recipients to try. “We dropped off soup samples along with a printed copy of the recipe for those picking up boxes with the extra cucumbers and tomatoes,” Favreau said.

He also has his ear to the ground for individual needs in the community. His willingness to drop off a meal or help someone get a vehicle fixed means customers frequently update the store on those in need of a hand. “It’s not just me who makes these decisions—my employees also have free reign to decide to give help,” he said. “I like to empower my employees to mirror the actions I’m doing to help others.”

DIA’S MARKET For Hopper, Dia’s Market’s mission statement informs his community outreach. “We have a very inclusive store—we want all people to feel welcome both as customers and employees,” he said. “We have several people on our staff from the minority or LGBT communities, and we’re very open to stocking products from minority- and LGBTowned businesses.”

Dia’s supports the area’s public schools, which Hopper’s children attend. “We use these opportunities to assist the school and to raise awareness of our business,” he said.

For example, he often donates meals for teacher training days or sends over lunch for school staff in lieu of monetary donations.

“We always amp it up a bit by providing gluten-free and vegan options when requested, even though those cost us more,” he said.

Dia’s also provides personal assistance by allowing customers to put their purchases on a tab when they forget their wallets or phones, for example. “We’ve done that many times and most of the time, they return to pay for the items,” Hopper said. “Only a small percentage do not end up paying what they owe, so we continue to provide this service.”

OAK BARREL CAFÉ From its inception, Oak Barrel Café has had deep ties to its local area. “It’s a very closeknit community, and from day one, we’ve partnered with the volunteer fire department as our core charity work,” said owner Dushant Sharma.

56 DECEMBER 2024 convenience.org

Helping Hand for Hurricanes In September, Hurricane Helene made landfall in Florida. The Category 4 storm caused catastrophic flooding and damage across the Southeast, particularly in western North Carolina, eastern Tennessee and southwestern Virginia. Florida was then quickly hit again by Hurricane Milton, which left millions of residents in the state without power and many without fuel and supplies.

Retailers stepped up in the wake of the disaster, immediately meeting local needs in their area and assisting residents that had been impacted by the storm.

Weigel’s donated 8,200 gallons of fuel, both diesel and unleaded, to communities across eastern Tennessee and North Carolina.

Weigel’s also donated more than 200 tote bags to a local school in eastern Tennessee that was assembling toiletry packages but had nothing to put the supplies in. “Plus, the volunteers were looking for tote bags so those that lost everything had something to keep their possessions in in the short term,” said Kevin O’Connell, executive director at the NACS Foundation. After connecting with the volunteers collecting supplies, the NACS Foundation put out a call to retailers in the area, and “Weigel’s came through immediately,” O’Connell said.

Minuteman Food Mart, which operates mostly in North Carolina, donated supplies to the North Carolina State Highway Patrol and Bladen County Sheriff’s Department to deliver to residents affected by Hurricane Helene.

In Florida, Wawa provided free coffee and fountain beverages to all first responders during Hurricane Helene, including the National Guard in Florida, “in appreciation for all they are doing to support and serve our communities during hurricane response and recovery efforts,” the retailer said at the time.

Wawa also partnered with the American Red Cross for a donation campaign allowing customers to add $1, $3 or $5 to their purchase at checkout. The Wawa Foundation matched the first $100,000 in customer contributions to the campaign and donated all funds to Hurricane Milton relief. Wawa also donated $500,000 to the Florida Disaster Fund.

Pilot Flying J also aided in hurricane relief efforts in Tennessee.

In addition to an in-store roundup campaign, the retailer partnered with Tennessee Athletics and the University of Tennessee (UT) to collect donations, sending supplies to the Northeast Tennessee Disaster Relief Center.

Citgo Petroleum donated $100,000 toward disaster relief efforts in North Carolina and Florida, and “worked to provide fuel in western North Carolina to support relief efforts, ensuring essential supplies and aid can reach communities in need during this critical time,” the company said in October.

Keep NACS in the know about your operation’s community contribution by emailing news@convenience.org.

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That includes annual events to benefit the department, such as appreciation dinners and giveaways. Through its fuel supplier, the store has a designated Spirit Pump, which donates 10 cents per gallon to the fire department during specific months of the year. The store also sponsors a school baseball team and hosts fundraisers for local churches.

In addition to these fundraising events, the store hosts a car show on the second Saturday of the month during the summer. “We get between 16 and 20 antique vehicles each Saturday, and our customers enjoy stopping by,” Sharma said.

Oak Barrel Café also cares for individuals in the community. When a volunteer firefighter was injured, the store dedicated 100% of one day’s foodservice sales to assist with his recovery. “We posted about it on our store Facebook page and raised $9,500 to help him and his family,” Sharma said. “It was great to see our community come together to help one of our own.”

At the end of the day, Sharma considers his role as the owner of an essential business to mean he takes care of the community. “Before we opened our store, no one in the community had adopted the fire department,” he said.

“Once we started doing that, the whole community became more involved and started appreciating the work these volunteers do to keep our community safe.”

BUILDING CONNECTIONS As these retailers pointed out, being involved in your community goes beyond giving money to charitable organizations. It means sharing in the lives of your customers. “In our work with convenience stores, we’ve noticed that the most successful ones are those who take community involvement very seriously,” said Sean McCaffrey, president and CEO of GSTV. “The retailer who is a strong participant in the community is one who has a loyal customer base and profitable bottom line.”

Retailers who have developed successful community ties follow these general precepts to build and keep those relationships strong and healthy.

Know your neighbors. Many convenience stores are neighborhood stores, which means 58 DECEMBER 2024 convenience.org

In our work with convenience stores, we’ve noticed that the most successful ones are those who take community involvement very seriously.

Oak Barrel Café

those who shop there likely live nearby. “In the U.K., 57% of customers walk to a convenience store and 38% of colleagues walk to work, which means both the customers and the employee base are from the hyperlocal community,” said James Lowman, CEO of the Association of Convenience Stores in the U.K. “They know each other, which can easily translate into caring about one another.”

Empower staff. Both Hopper and Favreau give their staff the autonomy to do good by helping individual customers out when a need becomes known. “They understand my work ethic, my ethos or expectation, and that means offering customers support when needed,” Hopper said. Favreau added that his workers often receive tips directly from community members about who needs assistance.

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At the end of the day, we’re all selling essentially the same things. It’s the employees and our community connections that make customers choose to spend their dollars with us. events and partner directly with c-stores.

For example, GSTV produces community ads for its c-store clients to help them boost donations for nonprofit causes or to highlight customer appreciation events.

“Whenever possible, we localize elements of our content to help retailers give back to their communities,” McCaffrey said. “There’s a benefit to consumers understanding more about your location than the price of coffee or the availability of food inside. By highlighting the ongoing relationship with their community through sponsorships or events, convenience retailers can bring it to the attention of customers who might want to be part of it, too.”

In addition to donations and fundraising campaigns with local partners, Tri Star Energy also gets community members and teammates involved in its initiatives. It partners with Nashville’s Salvation Army chapter in its Angel Tree Christmas toy drive and accepts donations at all locations. It also partners with a local food bank and collects donations in store from customers and employees; employees volunteer with the food bank to assemble food boxes and help those facing food insecurity.

Find your passion. Retailers said the best way to impact your community is to do what you feel passionate about. “There are tons of options to choose from when it comes to your time and money, so pick what gets you excited,” Hopper said.

For Tri Star, it was important to invest time and resources intentionally for select causes.

“There are so many great organizations out there and people to help, but we prefer to do a lot with a few instead of trying to do a little with a lot,” said Boulanger. Therefore the company has developed a core group of 60 DECEMBER 2024 convenience.org

long-term philanthropic partnerships, she said, and that “helps us have more meaningful relationships with folks.”

Tri Star partners with the Monroe Carell Jr. Children’s Hospital at Vanderbilt, and over the years has raised nearly $5 million for the hospital, said Boulanger. “If you go into any of our stores, you probably can’t not talk to somebody that’s been touched by that hospital, whether it is a customer, a teammate or a family member,” she said. “That means a lot to our community, and it gives our folks an opportunity to be more invested in the organization.”

CONTINUING CONNECTIONS The more convenience stores integrate fully into their communities, the more their communities will see them as a business that cares. “We belong to our community,” Sharma said. “We look forward to coming to work and meeting our customers because we’ve helped to create a space that welcomes everyone.”

For Favreau at Warren General Store, the satisfaction of the friendships that have developed over the years are wrapped up together with customer loyalty. Both are very rewarding, he said. “Because I’m in the middle of nowhere, the nearby town population might not have necessarily supported our store,” he said. “I’ve had to reach out and show them we care about more than our sales. We see being part of the community as what we need to do in order to survive and thrive.”

Sarah Hamaker is a freelance writer, NACS Magazine contributor, and awardwinning romantic suspense author based in Fairfax, Virginia. Visit her online at sarahhamakerfiction.com.

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A central Texas retailer sells beer, barbeque … and Christmas decorations year round. lovacek’s convenience store is located just off Interstate 35 in West, Texas (population 2,575), halfway between Dallas-Fort Worth and Austin. Known for homemade sausages, delicious barbeque and craveable bakery treats, including 37 types of kolaches, the unique travel center also carries a wide array of general merchandise for travelers and locals— most notably, its year-round selection of Christmas decorations located in a separate building on the property’s seven-acre lot.

Christmas is Slovacek’s owner Tim Rabroker’s favorite holiday, and he celebrates all year long. In 2020, Rabroker commissioned the construction of a two-story metal building just south of the original store. The second floor currently serves as storage, and the 8,600-square-foot first floor is a general merchandise shop. Since 2022, about 5,000 square feet of that space has been devoted exclusively to Christmas decor for inside and outside the home.

“We have all kinds of decorations and ornaments,” said Ray Rabroker, general manager of Slovacek’s and Tim’s brother. “If you can think of it, we probably have it. We have several big manger scenes, holiday metal yard art and Santa Claus figurines that are dressed in exquisite clothes for inside the house.”

The figurines are produced by Mark Roberts, a California company famous for meticulous handcrafted dolls and holiday décor.

Mark Roberts products also are carried by department stores such as Neiman Marcus, Dillard’s and Frontgate.

While Slovacek’s doesn’t sell inflatable plastic Santas like those available from big box retailers, shoppers can pick up a sturdy, life-size Santa to welcome guests on the front porch or a glassblown tree ornament from Old World Christmas, a brand coveted by collectors. Slovacek’s also sells artificial Christmas trees. “We’ve had them as high as 10 feet tall, but the average is 5.5 to 7 feet,” Rabroker said.

To showcase available ornaments, Slovacek’s staffers decorate several artificial trees that serve as displays and sell the merchandise directly from the faux branches. “About five or six times a year someone will come in and buy a decorated tree with all the ornaments, and we have to

A rent-a-Santa has made a few pre-Christmas appearances.

About five or six times a year, someone will come in and buy a decorated tree with all the ornaments.”

NACS DECEMBER 2024 63

get out our calculators,” Rabroker said. “By the time we take down a fully decorated tree and pack it up, we’ve got about six man-hours in it. But it’s a pretty good sale.”

According to German folklore, nutcrackers given as gifts bring the recipient good luck and protect the home. In West, shoppers will find a huge assortment of holiday nutcrackers that go beyond the traditional wooden soldier. “Nutcrackers can be anything,” Rabroker said.

Other seasonal offerings include holiday planters, angel figurines, candy cane houses, table decorations and framed prints of Santa Claus with his reindeer or seasonal snow scenes. The Christmas store also carries authentic cuckoo clocks made in Germany. “They’re nice and go up in price,” Rabroker said. “A large, elaborate one runs $500 to $600.”

About 80% of Slovacek’s customers are travelers, Rabroker estimates. “They purchase [Christmas ornaments] all year long,” he said. “But come the first of October, they start buying more. By the first or second week of November, it’s pretty steady.”

He believes that about 60% of holiday purchases made before October are for the buyer’s own use and 40% are destined to be gifts. That changes in early December when he guesses the sales are 30% keepsakes and 70% gifts.

The Slovacek’s team enjoys promoting the store and has fun while doing it. A renta-Santa has made a few pre-Christmas ap-

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They purchase [Christmas ornaments] all year long. But come the first of October, they start buying more.” pearances to attract shoppers and entertain the proverbial kids of all ages. “Santa posed for free photos, and some of our employees dressed up as elves,” Rabroker said. Another Instagram opportunity is the permanent 16-foot train parked near the holiday store, which is large enough for kids to sit in.

While the primary focus continues to be Christmas, the store doesn’t ignore other holidays. Slovacek’s brings in special decorative items for Easter and Halloween, plus a substantial card selection for Valentine’s Day. A full-time Christmas store is an unusual addition to a convenience store, but Slovacek’s had space for an extra building with plenty of parking, a customer base that’s heavily comprised of travelers and an owner with a passion and desire to make the holidays happen 365 days a year. Plus, margins on Christmas merchandise are good—about 40-45%.

“That’s if we hold to our price,” Rabroker said. “But if you haven’t sold it by the week before Christmas, you better drop the price if you don’t want to wrap it all up.”

Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer.

See more of her articles at patpape.wordpress.com.

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R O F S IE G E T A R T S S S E SUCC

66 DECEMBER 2024 convenience.org

FROM WHAT TO PUT IN A JOB AD TO HOW TO BUILD BELONGING FOR NEW HIRES, RETAILERS SHARE INSIGHTS FOR HOW TO ATTRACT—AND RETAIN—TOP TALENT.

BY LAUREN SHANESY

NACS DECEMBER 2024 67

7-ELEVEN HIRES MORE THAN

110,000 EMPLOYEES PER YEAR

across its 13,000 locations in the United States and Canada alone. But even the country’s largest convenience retailer has had its share of hiring challenges. Chief among them: finding quality candidates, getting back to them in a timely fashion and offering a competitive package that will attract prospective workers and encourage them to stay.

On average, it costs $1,294 to hire a fulltime hourly associate and $1,119 to train the individual, according to 2023 data from the NACS State of the Industry Talent Insights Dashboard. “When you combine those costs with turnover rates above 100% (full-time sales associates averaged 125.3%), it really adds up,” said Jayme Gough, director of research and development at NACS. For parttime sales associates, the industry average total turnover rate was 169.6%.

“While there are a significant number of people that we could fill our open positions with, it’s about finding the right ones, and we have significant hurdles we have to get over in order to get people to join us and to stay with us,” said Rachel Allen, senior director of talent acquisition at 7-Eleven, during a NACS Show Education Session in October. It’s a sentiment that every retailer in the country, no matter the channel, understands. So how can your company gain an advantage when it comes to bringing in the right people?

It takes time to

Pro Tip #1 If you want a quick response, send a text.

Texting is the way today’s workforce wants to communicate. “I wasn’t sure texting an individual about a job interview would work if you’d asked me six months ago, but I will tell you it’s 110% the most effective way to get a response,” said Brad Anderson, director of recruiting and development at Weigel’s.

“I might call an applicant and they don’t pick up the phone, but if I send a text I get an immediate reply and can schedule the interview right then.

In this day and age, that’s the way the world is going.”

DON’T DELAY 7-Eleven’s hiring process used to take 10 days.

And in those 10 days, the company lost a lot of applicants who were offered jobs at stores down the street, Allen said.

“Candidates have a low threshold” when it comes to waiting, “and there are consequences if we aren’t fast enough,” said Allen.

“Oftentimes we were too late and not getting to candidates in time.”

According to data Allen presented, 37% of retail candidates said they dropped out of an application process because it took too long to hear back from the company, and 21% said the overall hiring process took too long.

After 7-Eleven implemented AI to handle many of the early steps in the recruiting process (see the “Meet Your New Recruiter:

Pro Tip #2 Hold job fairs and in-person recruiting events to reach talent.

Rachel Allen, senior director of talent acquisition at 7-Eleven, cited data that 45% of retail workers attended an employment-related event in the last five years. These can include job fairs, open houses, career workshops and other networking events. While he said he was skeptical of them at first, Brad Anderson, director of recruiting and development at Weigel’s, said career fairs have worked well for the company. “They’re really picking up for us, and I think folks enjoy seeing the tent and it’s what brings them in,” he said. “We have some new stores that we’ve been able to staff really well, including for management roles, through job fairs.”

68 DECEMBER 2024 convenience.org

be selective.”

AI” sidebar for more on that), it cut the 10-day timeline down to three days and saw a significantly better success rate.

Tennessee retailer Weigel’s, which receives about 60 applications per day, processes applications the day after they’re submitted and contacts applicants within 24 hours—“48 hours max from the time they apply to when we are scheduling an interview with them,” said Brad Anderson, director of recruiting and development at Weigel’s. “We know people are applying everywhere. So if I don’t talk to them today, they’ve already applied to 10 other places.”

Weigel’s also replies to applicants using multiple touchpoints, including texts, phone calls and emails. “If we miss them with one, they still have the other two avenues to reply,” said Anderson.

While speed can be a critical factor in the success of a retailers’ hiring strategy, Allen noted that “recruiting is a tradeoff between speed and quality—it is so hard to find the advantages of both of those. We’re faced with this dichotomy of finding the most highly engaging, human touch process that appeals to our candidates, while also being able to vet the candidates accurately and quickly, all at scale.”

That’s one of the reasons Family Express, a family-owned retailer in Indiana, takes the opposite approach with its process.

Pro Tip #3 Partner with local organizations to build a talent pipeline.

7-Eleven, for example, is a member of the JPMorgan Chase Veteran Jobs Mission, and since 2011 has hired thousands of veterans in full-time, part-time and leadership roles.

“Corporate partnerships give employers access to talent that they are helping to maintain and train,” said Rachel Allen, senior director of talent acquisition at 7-Eleven.

“It’s a great way to have that always on pipeline instead of reactive, justin-time recruiting.”

“In our industry, people tend to hire very fast. We are really selective in our hiring process, and believe in hiring slow and investing in finding that one person that is going to be the right fit, versus the constant turnover that puts a lot of stress on our stores and our customers,” said Lauren Young, training coordinator at Family Express, in a NACS Ideas 2 Go video.

The company only hires one in 50 applicants after putting them through a threeday pass-or-fail immersive orientation that President of Operations Alex Olympidis said he considers an extension of the interview process. “In an interview, you can put your best foot forward for 30 minutes or maybe an hour. But during a three-day, pass-or-fail orientation, you are really getting to know that applicant,” he said. “More importantly than just training them on how to do the job, we’re teaching them who we are as a company and asking them, ‘Are you the right person, at the right place, at the right time?’ We spend a lot of time and resources making sure we make the right hire at the beginning.”

Key to allowing Family Express to hire slowly but strategically is the tactic of hiring in advance of open roles. “We know the rate of attrition at each store, so we take that and we hire in advance of it,” Olympidis explained.

“We don’t want to wait until we need a position filled and then try to fill it as quickly as possible. That’s how you can get a lot of desperate hiring,” Young added. “Instead, we try to stay ahead of the game and are looking for our perfect fits beforehand.” The company’s store locations are clustered in the northwest corner of the Hoosier state, so it can staff hires at open locations nearby depending on which stores have openings. “We do not need to wait until that last minute,” said Young.

Retailers need to approach hiring from a wholistic perspective, added Allen. “It is really hard in the hourly retail sector not to be reactive to those immediate needs—you need people ASAP, you need backfills and you focus on a just-in-time approach. But to be more effective, we have to think of a more wholistic way of hiring and talent sourcing to find the right person and make sure they’re joining our company in the right places.”

During Covid, TXB Stores, a family-owned Texas retailer with over 50 locations across the Lonestar state and Oklahoma, built out a recruiting team that now handles the early NACS DECEMBER 2024 69

Meet Your New Recruiter: AI 7-Eleven’s recruiter is named Rita, and she processes the 110,000 applications that the retailer gets per year. If you think that sounds like a lot for one person to handle, you’re right. Luckily Rita isn’t human.

Rita stands for Recruiting Individuals Through Automation and is the company’s AI platform that streamlines much of its recruiting process. The technology handles 95% of the front-end work, said Rachel Allen, senior director of talent acquisition at 7-Eleven, during a NACS Show education session in October.

“She is communicating with the candidates all the way up until they come in for an interview at our stores, and she schedules those interviews based on availability in set blocks that our store leaders have set,” said Allen.

The speed with which Rita can screen applicants alleviates what Allen said was one of the retailer’s biggest hiring hurdles: “We just couldn’t get to prospective employees in time.

They went down the road and found another job instead.”

By using AI, Allen said 7-Eleven’s average hiring process time went from more than 10 days to less than three. “We’ve saved our store leaders over 40,000 hours a week in time— and of course, those hours also turn into dollars.”

Chipotle Mexican Grill also recently began using AI for its hiring process by partnering with Paradox. The company said it expects the new technology to reduce the amount of time it takes to hire an employee for an in-restaurant position by as much as 75% and also aims to “reduce job advertising costs, increase hiring for hard-to-fill roles and improve candidate experience,” according to Chipotle.

The experience is led by a virtual team member that Chipotle named Ava Cado. “Ava will provide a frictionless hiring experience by chatting with candidates, answering their questions about Chipotle, collecting basic information, scheduling interviews for hiring managers and sending offers to candidates who are selected by managers,” said Chipotle.

“This will enable the general managers in Chipotle’s restaurants to spend less time on administrative tasks, including collecting basic information from candidates and scheduling interviews, and allow them to focus on their dayto-day operations and providing excellent hospitality for guests,” it continued.

stages of the application process and “carries the candidate all the way through the onboarding process,” said Abby Curlin, training developer at TXB Stores.

“Our recruiting team has been huge for us to put the right people in the right roles. Not only do they do that first interview, but they arrange the employee’s first day, help through orientation and do all of their onboarding paperwork, which really lightens the load for managers,” Curlin continued. “Previously, we were in a position where our managers needed roles filled and weren’t being as selective because they just didn’t have time. But it takes time to be selective.”

ATTRACT A-PLUS APPLICANTS Not all businesses can make the investment in AI, sophisticated tech tools or large recruiting teams to process applications, but there are ways to ensure you’re finding quality applicants in a timely fashion.

Allen said the first step is making sure the job listing gives employees all the information they need upfront, which will better ensure that the right people are applying. “The more transparent a job ad is, the more it also gives candidates the opportunity to opt out. And when you’re looking through hundreds of applicants, that can actually be helpful. If it’s ultimately not the right fit, we don’t want to waste anyone’s time.”

Job ads should provide information about pay and benefits, the location and schedule requirements and details of the role. “But so often our job ads don’t address any of that, and it’s hard for candidates to get that information,” said Allen. “If they can’t see what is going to be offered to them, then they’re going to drop out of the process.”

Pro Tip #4 Lower barriers to entry.

When TXB was recruiting during Covid, the company noticed a problem with its job application: It was too long. “It took someone about 20 minutes to fill out, which was discouraging people from finishing it,” said Abby Curlin, training developer at TXB Stores. “And it was collecting information that we didn’t really need in written form.” The company pared it down to a five-minute application that’s more focused on a candidate overview and saves the rest of its information-gathering for the interview process.

70 DECEMBER 2024 convenience.org

Offering the right benefits also makes your company a more competitive player in the market.

According to data Allen presented, the most important factor among retail workers was the hourly wage, with 67% saying this was most important, followed by work location (40%), job stability (38%), benefits (34%) and work-life balance (25%).

“You need to emphasize the benefits that matter. For the third of respondents that said benefits were a deciding factor for them, they noted the top three benefits were paid time off (61%), having a fixed but flexible schedule (57%) and health insurance benefits (50%),” said Allen. In some cases, not offering these can be a driver of offer declines—28% of retail workers cited unappealing scheduling options as a reason they declined a previously accepted offer,” Allen said.

“Flexible schedules were equally as desired as predictable schedules—people want something fixed they can work their life around easily or the flexibility to make their overall work-life balance better,” said Allen. “However, in our industry it can be hard to offer flexibility when we have immediate staffing needs, so in that case retailers can focus on the paid time off they can provide.”

Hourly workers are also highly interested in the opportunity for overtime work, with 57% of retail workers saying the ability to earn overtime or holiday pay is among the best aspects of their job and 84% interested in working at least one hour of overtime per week. “This is a great way to make yourself competitive while still paying hourly wages that are within your company’s parameters,” said Allen. “It’s another financial benefit that you could highlight to attract the talent you want.”

In the past year, Weigel’s has built out its benefits program, which helps it attract employees and retain the workers it hires. The company offers paid vacation to any employee who has worked for the company for more than a year, health insurance for employees working 20 hours or more a week, bonuses and a 2% match for 401K contributions.

Pro Tip #5 Focus on what really matters.

One way Weigel’s opened up its talent pool was by becoming just a little bit more lenient. “We used to be very conservative [about our employees’ appearance] and didn’t allow facial hair or tattoos, for example. But we recently changed some of our policies because we felt like we were losing some good folks by not evolving a little bit,” said Brad Anderson, director of recruiting and development at Weigel’s.

“Instead, we upped our standards on uniforms, what type of interview questions we were asking, our pre-hire assessments and other things we didn’t have in place before. And that has raised the caliber of who we are hiring, improved our labor challenges and helped us close the gap.”

“The benefits program has really helped us get a better quality and caliber of person— someone that is people first, want to run a clean store, wants to interact with customers and isn’t disengaged,” said Anderson. “We do mystery shops, and if an employee fails then they don’t get their quarterly bonus. It’s helped us attract really good hires.”

It has also helped with retention, added Kelly Bowling, Weigel’s director of human resources. “Showing them the benefits we offer not only gets them in the door but is a huge component of them staying with us long term.

Offering insurance to employees, for example, is huge since so many people are looking for affordable healthcare, and we are able to offer that to them.”

For TXB, some benefits that make it a top choice for applicants can’t be quantitatively measured. “We have obviously seen the hourly rate be one of the most significant factors for whether someone applies or not, but people are looking for different things across all of our store locations,” said Curlin. “For us, we have seen success by having the reputa-

Flexible schedules were equally as desired as predictable schedules.”

NACS DECEMBER 2024 71

We built our whole training framework and schedule around our company values.” tion of being a great place to work and people hearing about us through word of mouth or referrals. Our applicant flow is a testament to being current economically in the market with what we offer, but also to having great store leadership that is encouraging and makes employees feel engaged. People want to feel wanted at work.”

BUILD BELONGING Implementing the best hiring tactics can be in vain if you don’t equally focus on retaining your employees. “Offer acceptance is just the beginning,” said Allen.

“There is a short- and long-term solution [to reducing turnover]—the short-term one being create an onboarding experience that sets your new employees up for success and equips them with the tools they need to enjoy their job and be engaged. New hires that have a good onboarding experience will stick around,” said Allen. “Then in the long term, continue to foster that engagement by developing connections and sharing opportunities for potential growth and advancement in the organization.”

But with the high-volume nature of retail hiring, she said onboarding can be difficult and time-consuming to tailor to each person.

Allen said 7-Eleven uses a “high-tech, high touch” onboarding experience—meaning “you have to find a balance between what you can automate and where you can provide a strong human touch,” she said. “Automate

Pro Tip #6 Seek out soft skills.

The two biggest things TXB looks for in a candidate are an eagerness to learn and a good attitude, said Abby Curlin, training developer at TXB Stores.

“We don’t necessarily need people who have done the job before. We can teach you any skill within our SOP and you can learn how to do a job, but you really need the attitude and the eagerness to want to do the job,” she said. “Customer service and treating guests well is first and foremost for us, and how you communicate in an interview could be reflective of how you’ll interact with guests.”

the things that are administrative and then invest time and effort where you’ll be able to create and cultivate connection.”

For example, you can automate things like notifications for paperwork or to sign up for orientation sessions, or for deploying documents with essential procedures.

But welcoming messages or meetings with leaders and team members, one-on-ones with supervisors and meetings about career growth plans are all processes that should be personalized.

TXB did an extensive overhaul of its training program last year, making it not only more efficient but steeped in the company’s values instead of individual tasks to help employees build a stronger sense of belonging, connect to the brand and be more engaged with the store. The new program reduced its turnover from 150% in 2023 to 90% in 2024.

The average length of service days increased from 211 to 257, Curlin noted during an education session at the NACS Show in October.

“We wanted people to understand who we are as a company, so we built our whole training framework and schedule around our company values and how those bedrocks of our company are ingrained in our daily interactions,” Curlin said. “We wanted employees to dive into learning how to embody and match those values and principles on a daily basis.”

“What we found was that people want to be a part of something and feel special and welcomed,” she continued. “We have an official onboarding day where you’re spending time with your manager to get as connected as possible with the store. People need that connection and bringing that person into our culture is so important. It pays dividends.”

According to Allen, “Employees who feel a sense of belonging at work are five times more likely to stay with their company. So we know this is a really important concept—people need to feel connected to the job they have and you want to focus on that immediately.”

Lauren Shanesy is a writer and editor at NACS and has worked in business journalism for a decade. She can be reached at lshanesy@ convenience.org.

72 DECEMBER 2024 convenience.org

May 12 - 16, 2025 Hershey, PA

WO T OWN YOUR FUTURE. NACS Leadership for Success offers rising industry leaders an invaluable experience for growing their skills and becoming stronger performers in their companies and in their careers.

Reserve your seat today! convenience.org/leadershipforsuccess

Charging 74 DECEMBER 2024 convenience.org

BY LAUREN SHANESY

The Electric Vehicle Council and Charging Analytics Program from TEI help retailers supercharge their EV investments.

g Counsel NACS DECEMBER 2024 75

s now the right time to invest in electric vehicle (EV) chargers—or to change how you’re investing? It’s a question that many retailers are asking, but finding clear, helpful, non-biased information is a challenge.

“Electrification is a major movement in transportation energy, but it’s such a nascent industry still in its early stages so we all have a big learning curve,” said Jeff Hove, vice president of the Transportation Energy Institute (TEI). “It’s a big investment for retailers, and while there are a lot of federal dollars available to help offset those costs, nobody wants to put in a piece of equipment only to have it become stranded and non-usable. The purpose of the EV Council is to help retailers answer the questions they have, learn together and improve the whole process.”

The EV Council was formed by TEI and brings together industry leaders from every point of the EV charging journey.

Its members include convenience retailers, grocery chains, real estate groups, auto manufacturers, major oil and energy companies, and electrification companies and consultants, among others. Its goal is to be a resource for companies that are investing in charging—whether they want to install and operate their own chargers or partner with a provider that

Best Practices for EV Charging

76 DECEMBER 2024 convenience.org

While the exact ROI strategies for EV charging investment will vary by site, location and a retailers’ business model, among other factors, there are some general best practices that the EV Council and Charging Analytics Program have found through their peer-reviewed research studies and analysis of more than two million monthly charging sessions.

At a high level, CAP insights have found that: • The top three predictors of EV charging station utilization were the median income of a market’s population, number of roads and population density.

• The presence of parks, open spaces and stores correlated positively with charger utilization.

• Utilization varies widely among chargers within a mile of each other, indicating that hyperlocal characteristics such as traffic flow, traffic lights and other factors are important.

“One of the things that really surprised us in the data was that chargers near or adjacent to public parks was a top correlating factor to the success of the charging station and utilization rate,” said Karl Doenges, executive director of the Charging Analytics Program.

Additionally, safety is the top attribute that consumers want from their EV charging sites, according to “EV Market Insights,” a report released earlier this year by the EV Council.

According to the report, the most important site features desired by EV drivers included: • Multiple charging spots • Open 24 hours per day, seven days per week • Chargers located in a highly visible location • Bright lighting around charging units • Visible security cameras Charging stations that offered these services, plus a playground for children, could potentially activate 94.2%

will manage it on their site—and help them answer questions about when and how to execute installation to get the most return on investment.

“Retailers want to know: What are EV consumers looking for? What amenities do they want? How much will EV charging cost to install and operate? What is the right type of charger to buy? How many do I put in? How reliable are they?

How long will it take? What will the return on investment be?” said Hove. “The EV Council does research, has expert discussions and tracks data that helps retailers answer all of those questions for their businesses. There is no other group like this out there where they can get that kind of insight.”

DATA-DRIVEN DECISIONS One of the EV Council’s critical tools that helps retailers determine how to effectively make an investment in EV charging equipment is the Charging Analytics Program (CAP).

CAP is a data tool that helps retailers paint a picture of what they can expect at the store level if they install infrastructure.

It’s tailored to individual retailers and hinges on providing them with customized, unique metrics based on their market, county and benchmarking group. The data can be looked at

of EV drivers to visit their site for their charging needs.

Another big question for retailers is what type of charger to install and what wattage will garner the most usage. According to data from TEI, chargers that are 300 kW and higher have the highest utilization rate. Expressed as a percentage of the amount of time a charger is being used to charge a vehicle relative to the amount of time it is operational in a given day: • 300 kW and higher chargers recorded the highest average utilization at 23%.

• 100-299 kW chargers were used about 18% of the time.

• 50-99 kW chargers were used about 11% of the time.

However, most charging sessions occur with 50-99 kW chargers (43% of all charging sessions).

Faster chargers recorded the longest charging sessions, which the TEI group found surprising.

The EV Council does research, has expert discussions and tracks data that helps retailers answer all of those questions for their businesses.”

Drivers using 300 kW and higher chargers spent more than 34 minutes connected to the charger, whereas those using lower powered chargers spent a couple less minutes charging their vehicles.

“There are a number of possible reasons for this, but one that immediately comes to mind is the vehicle cannot accept, or is not set up to accept, the maximum charge available from these high-powered chargers,” said John Eichberger, executive director of the Transportation Energy Institute. “Another potential reason is that most of these chargers are located along highway corridors, which have a different use case than those located within communities. Drivers are traveling longer distances and looking to recharge their vehicle from a lower state of charge. In addition, many of the vehicles traveling long distances may be equipped with larger batteries, which take longer to charge.”

NACS DECEMBER 2024 77

CAP is a data tool that helps retailers paint a picture of what they can expect at the store level if they install infrastructure. in different ways depending on what a retailer wants to learn about their site, including what competition is in the area and how they stack up, how sites with similar locations and features to theirs fare, as well as the utilization rates, number of sessions, dwell times and session failures of nearby chargers.

It was born from a widespread industry problem that retailers noticed—they needed to tackle EV charging installation, but the only analysis tools available to them were often expensive and opaque.

“Because typical analysis of charging viability was often conducted by an organization with a motive to sell their equipment, retailers didn’t know if they were being told the truth of how, when and where to install chargers. They had no insight into the methodology or algorithms, so it was basically a black box of data,” said Karl Doenges, executive director of the Charging Analytics Program. “They wanted a non-biased, nonpartisan group to offer resources in a more affordable way and provide insights from real data that helps retailers make decisions.”

CAP takes monthly snapshots of more than two million (and growing) charging sessions and presents the data as a 12-month trend line to show retailers how EV charging in their area has progressed over the past year, and therefore what they may expect going forward. “We don’t just guess about what we think is going to happen, we show retailers what has historically happened and what is currently happening by the month,” said Doenges.

He noted that with so many site-specific factors that can influence an EV charger’s success rate (like if a driver has to make a left-hand turn across traffic to get to the site or not, 78 DECEMBER 2024 convenience.org

CAP gives users data on average charging sessions by the hour, and users can view utilization by specific days of the week or by weekdays versus weekends.

for example) it’s important to first compare your site against CAP’s county-level benchmarking metrics. “By zooming out to the county level, we wash out all those anomalies and get statistically relevant data. Someone can put their county in, and we can quickly give them all the counties in the United States similar to theirs based on EV registration, population density and other metrics to compare to before you start sub-segmenting by site-specific metrics.”

With a general picture of average performance, you can estimate what installing EV chargers might look like for you.

“Or if you already have EVs at your site, are you performing within the top benchmarking decile? Near the bottom? Are you batting average? The benchmarking is another way we help retailers project and plan for the future or increase their success by finding areas for improvement,” said Doenges.

From there, the program tracks site-specific utilization rates, number of charging stations, throughput and the number of charging failures, and takes into account location data, retailer size and demographic information.

“Retailers have very different use cases with very different dynamics behind their charging. So CAP allows you to take that charging data, zoom into a certain area and then start slicing and dicing,” said Doenges. “A retailer might say, I only want to look at how charging stations near highway entrance ramps and exit ramps perform, because that’s what my sites are like. Or I only want to look at convenience stores because that’s what I compete against in my market. Or I only want to see how chargers above a certain kilowatt level perform,” said Doenges.

The EV Council also offers other tools for retailers including a match-making list, which is a compilation of organizations

Using data from two million monthly charging sessions per month, CAP tracks average charging time per session by each hour of the day.

In CAP’s dashboard, users can search by area and filter the data by criteria such as charger type, location features, proximity to amenities and type of businesses among others.

The experts on the EV Council can really peel back the layers to find answers and underlying reasons for things.” supporting a wide array of ways to address the installation of electric vehicle service equipment at convenience stores. There is also a tool that helps identify local utilities and provide electric vehicle infrastructure support programs per ZIP Code.

Importantly the data is transparent. Retailers can not only see where it comes from, but they can also use it themselves.

“There’s no other tool like this where you can do your own analysis and make your own data-driven decisions instead of just receiving information from a vendor. It’s transparent, it’s open, and you can procure the data yourself,” said Doenges.

INDUSTRY INSIGHTS While hard numbers and data are what drive investment decisions, there’s another invaluable benefit to participating in the EV Council—the shared insights, networking with industry experts and engaging in problem-solving discussions that occur during its meetings.

“During our meetings, we follow Chatham House Rules so that everyone—the manufacturers, the charge point operators, the installers, the convenience stores and site hosts, everyone that’s part of that EV supply chain—can have an open dialogue, work together through problems and find

solutions and really help each other out. It’s invaluable to our industry,” said Hove.

The council also helps interpret data findings from CAP or uncover reasons behind data that might seem counterintuitive or random.

“When we see things in the data that are surprising or we aren’t sure what the numbers are being driven by, the experts on the EV Council can really peel back the layers to find answers and underlying reasons for things,” said Doenges.

Hove encourages any retailer “even remotely thinking about EVs” to get involved with the council. “It is so valuable for someone in your company to spend time with experts and get to know the industry, even if it’s just to come back and say, ‘Here is what we would need to do to jump into this,’” he said. “It’s a great environment, but is also so necessary for the future of the industry.”

Lauren Shanesy is a writer and editor at NACS and has worked in business journalism for a decade. She can be reached at lshanesy@convenience.org.

NACS DECEMBER 2024 79

A FULL HOUSE OF

Education

NACS Show attendees were dealt a winning hand 80 DECEMBER 2024 convenience.org

Sessions

when it came to learning opportunities.

BY LEAH ASH, KEITH REID, NOELLE RIDDLE AND LAUREN SHANESY

NACS DECEMBER 2024 81

The 2024 NACS Show

had 50 Education Sessions, put together by retailers, for retailers. More than 100 industry leaders took the stage to share their insights with their peers.

Topics ranged from essential advice for category managers to creating a more restaurant-like menu to specific use cases for AI. Here’s a sample of the conversations that took place at the Education Sessions. Want the full scoop? Recordings are available for purchase at convenience.org/store.

TO TURN AROUND 2024’S FLAT SALES, FOCUS ON FOODSERVICE The retailers that Chris Rapanick, managing director of research at NACS, has spoken with so far this year have described business as “soft,” he said during “Breaking Down the Latest State of the Industry Data.” So most retailers won’t be surprised by the industry-wide numbers from the first half of the year, which are flat across many categories.

As of June, here’s how NACS’ State of the Industry data is shaking out for the first half of 2024 compared to the first six months of 2023: • Average fuel price is down 7.8%, but fuel gallon sales are up 2.5%—the largest increase in years after being flat, according to Rapanick.

• Inside sales are down 1%.

• Total transactions are down 3.4%.

• Foodservice sales are up 3.9%, but Rapanick noted this is slowed growth compared to the category’s normal double-digit growth.

• Total store gross profit is down 1.8%.

• In-store gross profit is up 3.5%, though this is in line with current inflation numbers.

Merchandise shrink growth has accelerated 170% since July 2021 and retailers are also struggling to keep up with increasing direct store operating expenses (DSOE), which are up 5.3% total. The costs for some key categories that fall under wages and benefits have increased in the double digits.

But on the plus side, inflation has cooled significantly from last year, and the average basket size is also up to $8.98, an increase of 6.8%.

82 DECEMBER 2024 convenience.org

Industry leaders offered advice for women (and men) in “Women in Convenience: Navigating Leadership Paths and Driving Success.”

But how profitable is that $8.98 basket?

Well, when you break it down and subtract the costs of goods and other operating expenses, the inside operating profit per transaction totals an 11 cent loss. “This is how much you’d be making if you didn’t sell fuel,” said Rapanick, noting that fuel sales are 67.1% of the average retailer’s business and 37.9% of gross profit so far this year.

“On the plus side, this is only a few pennies,” said Rapanick. “If you can grab a couple cents on the cost of goods or on inside gross profit dollars, you can make a huge difference here.”

One of the major areas where retailers can make up some of this lost ground is by focusing on foodservice programs, which currently contribute 9% to overall sales and 19.5% to gross profit dollars.

“The only thing that is going to buoy the sales model is foodservice,” said Rapanick.

“The five foodservice categories would all be one of the top 10 merchandise categories if they were merchandise, and they would be the top three out of five in terms of margin.”

Chris Rapanick, NACS

Compared to the first half of 2023: • Prepared food is up 5.4% • Commissary is down 5.9% • Hot dispensed beverages are down 5.7% • Cold dispensed beverages are up 1.5% • Frozen dispensed beverages are up 11.2% “The reason commissary numbers are down is likely because a lot of people are moving away from the commissary business toward a much more made-to-order, custom-prepared food model,” Rapanick explained.

NACS uses a benchmarking tool that segments retailers into deciles based on performance, with the top 10% of retailers in the top decile and so on. Top decile firms outperform the next (ninth) decile by a factor of 1.5X, and outperform the bottom decile by a factor of 9.6X. However, all ten deciles are still profitable.

Only the top four out of 10 deciles were profitable when accounting only for inside store operating profit, with the bottom performing decile in the red $30,247 per store, per month.

The top decile brought in an average of $136,381 in foodservices sales, which was 5.5X higher than the bottom’s average of $24,868, and the top decile made 6.9X more in gross profit dollars.

And going back to the basket analysis showing that the average retailer lost 11 cents per basket … the firms in the top decile were making a profit of 32 cents per basket.

The 2025 NACS State of the Industry Summit takes place April 8-10 in Dallas, Texas. Visit www.convenience.org/events/ SOI to learn more.

ADVICE FROM FEMALE INDUSTRY LEADERS Four leading women in the c-store industry, Renee Bacon, senior vice president of sales and operations and chief merchandising officer at Murphy USA; Annie Gauthier, CFO/ co-CEO of St. Romain Oil Company LLC; Jamie Miller, executive director of marketing and DEI champion at RaceTrac; and Danielle Holloway, senior director of industry engagement at Altria, shared advice for women (and men) in convenience during “Women in Convenience: Navigating Leadership Paths and Driving Success.”

NACS DECEMBER 2024 83

Intentionality is key—in both work and personal life. Gauthier said that in leadership, she focuses on being “very intentional with my time, with my language. I ask a lot of questions. I want to not just learn from other people, but I want to help other people learn for themselves and from themselves and others.” In her day-to-day work, scheduling her time intentionally has been a high priority.

This includes time with her team, time to develop herself professionally and time to set work aside and focus on family and friends.

Give yourself grace. Bacon shared that giving herself grace in her personal life, such as when she misses some things with family (never important events), keeps her from stressing too much and lets her get stuff done as needed. “When I started to give myself grace, and also started to let others around me know I needed help and to feel comfortable in being vulnerable, is when life got better.”

Assume positive intent, even in a conflict. Miller shared that she’s learned that approaching things with curiosity and assuming other people have positive intent, even in conflict situations, “helps you build stronger trust in relationships, and then you can get more things done cross functionally.

Know what you stand for and what you want your legacy to be. “Early on in my 84 DECEMBER 2024 convenience.org

career, I was challenged on what I want my legacy to be,” said Bacon. “And I came up with a motto of ‘Show up, work hard, be kind.’ …

If I say I’m going to do it, we’re going to do it working hard. I’m going to work hard. I probably can outwork most people. And I would never ask people to do things I wouldn’t.

And then finally, the part of being kind, truly caring about people [means that] you can challenge them directly.”

Similarly, know yourself. “Engage in one of those [personality or strengths] assessments, learn about yourself, learn language you can use, learn how to celebrate how you are and lean into those strengths with humility, which comes easily to most women, I think, and also with confidence,” Gauthier advised. “And then, once you know yourself, make intentional choices.”

Be your authentic self. “I spent years in my career being coached to be a different way,” said Miller. “I found I was most successful when I was actually who I am.”

BUILDING OR REMODELING A STORE? READ THIS. When it comes to designing a store that is convenient, easily accessible, modern and full of amenities, where do you start? Friendly Express, based out of Georgia, focuses heavily

April 8-10, 2025 Hyatt Regency DFW International Airport Dallas, TX

SAVE THE DATE. Registration Opens Soon! convenience.org/SOIsummit

Gabe Manning, Friendly Express

Richard Cashion, Curby’s

on making locations consumer focused.

When remodeling or working on a new build, Friendly Express prioritizes store parking and ease of access to parking, said Gabe Manning, director of operations. Friendly Express is currently working on a location that will have six different entrances into the parking lot.

“The location of foodservice also matters,” said Manning during “Learning From Your Peers: Common Pitfalls in Remodels and New Builds.”

Some Family Express stores have full-size delis, and “the kitchen is right behind the register so workers can easily access both sides.”

In states like Georgia and Florida where hurricanes are a common occurrence, Friendly Express says that having a generator on hand is big. “Our flagship mini truck stop has a generator, and after a hurricane hits, we can still service the community. We did over $100,000 in cash-only sales each day after a hurricane. We had no Internet or cell service, but we got people in and out of the store,” Manning said. “We were able to service the first responders.”

It’s also important to consider what amenities your customers want in a store, including dog parks on highly traveled highways, an updated coffee bar or seating both inside and outside of the store, said Manning. Technology is a large part of this, too. Friendly Express added self-checkouts to its busiest locations and made the kiosks very visible in stores. The retailer also is in the process of integrating mobile ordering.

Curby’s Express Market, based out of Lubbock, Texas, is currently in the process of building three new stores.

“There’s only so much disposable income in your area,” said Richard Cashion, COO of Curby’s.

That means your site isn’t just competing against other c-stores, it’s competing against all retail. As an example of winning that competition, Curby’s has over 50 flavors of tea and bubblers available in its stores and has found financial success with this extensive offer. In fact, Curby’s considers itself a “QSR in a convenience store,” helping it to compete with other local QSRs. “It’s important to create large, multipurpose stores,” said Cashion. “Drive-thru’s add convenience: 56% of our business is through that. Work with your designers and be sure you’re building out enough space. If you can think it, you can build it.”

GETTING YOUR FUEL MIX RIGHT Transportation Energy Institute Executive Director John Eichberger kicked off “How to

86 DECEMBER 2024 convenience.org

DON'T MISS THE CHANCE TO MAKE AN IMPACT:

Represent Your State

2024 Participation:

121

34

50

193

11K+

retailers and state associations

suppliers

first time attendees

Congressional meetings

store locations represented

Represent your state March 11-12, 2025 in our nation's capital.

John Eichberger led a panel that dove into the right fuel mix now and in the future.

88 DECEMBER 2024 convenience.org

Determine Your Fuel Mix” by noting that politicians see electric vehicles as being an easy solution for carbon reduction, but this misses out on the realities of the vehicle fleet moving into the future. That means it’s critical to find and promote other solutions.

Helena Jette, director of market development and biofuels for the Indiana Soybean Alliance, Indiana Corn Marketing Council and Indiana Corn Growers Association, shared a perspective on the foodversus-fuels debate. The corn that is used for ethanol is “not the sweet corn you eat, it’s the field corn, which is mostly for livestock,” she said. “We grow corn and soybeans on less land every year, and production is through the roof. And the biofuel blends provide some amazing stats. You can reduce greenhouse gas emissions up to 50% by blending ethanol. And with biodiesel it’s about 80%.”

Jeff Dzierzanowski, manager of new business development for the equipment distributor Source North America, noted that only about 7% of convenience stores currently offer an ethanol blend above 10% (E10). That represents a huge opportunity to expand lower-carbon fuels.

“The easiest and most logical pathway is going to be E15,” said Dzierzanowski.

“Vehicles built since 2001 are already compatible with that product. And when you build a site today, there are just a few tweaks that you would have to take and make.

When we get into older legacy sites, it gets a little bit more challenging. But each year we get further and further away from those challenges.”

A retailer perspective was provided by Nate Hale, director of construction and facilities for Wally’s. “Our goal is to assist people in travel, no matter what that means—whether that is EVs or cleaner liquid fuels or hydrogen,” he said.

Hale noted that biofuel blends can make economic sense in addition to giving retailers the ability to tout the environmental aspects.

“Whether it’s in the pipeline or you buy it directly off the racks or you get it delivered to your store, you can obtain these fuels at much cheaper prices now than you could before,” Hale said. “You are able to pass that savings along to the consumer or split it to increase your profits.”

He noted that retailers may fear the uncertainty of making a switch. However, there is plenty of data and research, along with experienced equipment suppliers that can support the decision.

March 24-26, 2025 Nashville, TN

Future-Proof Your

orkforce

The NACS HR Forum is a must-attend event for the people in our industry who recognize people are the number-one asset of successful businesses.

Form lasting connections with your peers from around the country over three contentfilled days. This can’t-miss forum offers you fresh solutions to your most pressing issues —recruitment, retention, legislative issues and more through engaging and informative presentations. You will leave energized, inspired and ready for tomorrow.

Attendees earn professional development credits from HRCI and SHRM.

Unleashing the power of people. / convenience.org/hrforum

Cool New Products Guide This advertorial-style guide of services and packaging appears monthly and is an information-packed tour of ideas and approaches that can change how consumers view your store or choose your brand. It spotlights the newest thinking in convenience and fuel retailing and gives you an advance look at ways of staying in front of industry trends.

Products are categorized the same way we organize the Cool New Products Preview Room at the NACS Show each year in October— New Design, New to the Industry, New Flavors, Health & Wellness, Green (EcoFriendly), New Services and New Technology.

Products are considered “new” this year if they’ve been introduced since October 2023.

The products featured here also can be seen in the Cool New Products Discovery Center at www.convenience.org/coolnewproducts.

NEW TO THE INDUSTRY

Big Ideas Marketing Sweet & Zesty Candy, Chamoy & Chili Lime

SWEET & SPICY CANDY

Candy with Chamoy and Chili Lime is a sweet and spicy treat. Mexican Spicy Candy or ‘dulces enchilados’, as it’s commonly known in Mexico, is the perfect mixture of candy with a spice kick. These candies are also called Pica Pica, enchilados candy, or chamoy-covered candy.

Check out our website, www.bigideasmarketing.com for more information.

90 DECEMBER 2024 convenience.org

NEW TO THE INDUSTRY

C. Cretors and Company High Roller Hot Dog Grill

Cretors introduces an easy-to-clean roller grill for perfect presentation!

The revolutionary High Roller Hot Dog Grill’s patented tip-up roller rack offers unobstructed access to the entire stainless-steel cooking surface, making cleanup quick and easy. The roller grill rack features removable roller sleeves that are dishwasher and sink safe for thorough cleaning, providing a cleaner and more appetizing product presentation. Accommodating a wide variety of products, including hot dogs, corn dogs, taquitos, grilled wraps, sausages, and more, it provides fresh and diverse options for customers. Save time and boost sales!

Contact Shelly Olesen at 847.616.6901 or visit www.cretors.com.

NEW TO THE INDUSTRY

Rich Products Parbaked French Breadsticks

PARBAKED TO PERFECTION: FRENCH BREADSTICKS IN MINUTES!

Elevate your c-store menu offerings with our Parbaked French Breadsticks! The perfect snack or meal accompaniment, these deliciously soft, scratch-quality breadsticks deliver freezer-to-oven ease and all-day versatility. Bake as is or top any which way – from sweet to savory – the possibilities are endless! Scan the QR code above to learn more or visit richsusa. com/parbaked-breads-and-rolls/ to explore our full parbaked breads and rolls portfolio.

NACS DECEMBER 2024 91

NEW TO THE INDUSTRY

KeHE Natural & Organic, Specialty, and Fresh Food Distributor Better-for-You products for Convenience

Bring Your Store Brand to Consumers’ Pantries

KeHE is the leading national distributor of on-the-go Natural and Organic, Specialty, and Fresh products. Our extensive assortment of cravable snacks is now packed and ready to label with your store brand on top, to help grow your brand and profits.

Available in transparent clamshells, peggable and stand-up gusseted bags, and convenient car cups - KeHE has the perfect size and price point for your stores. And all KeHE products offer an extended shelf life and are packaged in an SQF-certified facility for consistent quality, presentation, and labor savings.

Email: KeHEBulk@KehE.com to learn more about our white-label solution.

NEW FLAVORS

Monster Energy Company Java Monster

Coffee With Attitude

Java Monster is coffee done the Monster way: no foam, extra hot, half-caf, no-whip, soy latte. Enough of the coffeehouse bs already. It’s time to get out of the line and step up to what’s next. Wide open, with a take no prisoners attitude and the experience and know-how to back it up.

92 DECEMBER 2024 convenience.org

NEW FLAVORS

PIM Brands, Inc. Welch’s® Juicefuls® Fusions™

NEW Welch’s® Juicefuls® Fusions™ - 2 in 1 JUICY FUN!™

Introducing the latest innovation from America’s Favorite Fruit Snacks® brand! NEW Welch’s® Juicefuls® Fusions™ are the delicious juicy-filled snacks that pack a flavorful burst in every bite! Welch’s® Juicefuls® Fusions™ deliver a taste adventure where two delicious fruits come together in every bite - one flavor on the outside and one flavor in the juicy center to create 2 in 1 JUICY FUN!™ Made with Natural Flavors and Colors from Natural Sources, this new variety includes Blueberry Raspberry, Peach Green Apple, and Watermelon Lemon in every pack!

Contact us: growmysales@pimbrands.com

NEW TO THE INDUSTRY

Premier Manufacturing NIC-S

NIC-S represents a pioneering breakthrough in nicotine delivery.

Utilizing pharmaceutical-grade synthetic nicotine, NIC-S offers an incomparable, 100% tobacco-free experience. NIC-S revolutionizes nicotine enjoyment by only using pharmaceuticalgrade, non-tobacco synthetic nicotine, meticulously crafted to isolate S-type molecules. NIC-S delivers a consistent and unparallel premium quality in flavor and nicotine experience with every pouch. Every flavor is thoughtfully blended to satisfy the most demanding connoisseurs. Prior to packaging, each NIC-S Nicotine Pouch is delicately moistened with water, ensuring the ideal level of moisture for maximum enjoyment. Savor the flavor and enjoy your nicotine moment. NIC-S is smoke-free, sugar-free, discreet, comfortable and does not impact your surroundings. Available in six flavors: mint, wintergreen, cinnamon, berry, orange and flavor free in 3mg, 6mg and 9mg strengths.

NACS DECEMBER 2024 93

Executive Education

Equipping today’s leaders for tomorrow’s challenges.

From disruption comes opportunity. At this very moment, the convenience industry is rich with possibility. The key to success?

Leaders who can forge a new path. Informed, confident and nuanced leaders are the best asset an organization can have. NACS Executive Education has partnered with world-class, Ivy League institutions — boasting some of the best educators in the world — to provide exclusive education to shape the forward-thinking, determined leaders who will illuminate and seize the opportunities of tomorrow.

convenience.org/NACSExecEd

July 13-18, 2025 The Wharton School University of Pennsylvania Philadelphia, PA

Endowed by: (Exclusive)

July 20-25, 2025 Kellogg School of Management Northwestern University Evanston, IL

Endowed by:

August 3-7, 2025 The Dyson School Cornell University Ithaca, NY

Endowed by: (Exclusive)

November 2-7, 2025 MIT Sloan School of Management Cambridge, MA

November 9-14, 2025 Yale School of Management New Haven, CT

Supported by:

Endowed by:

The NACS Master of Convenience designation acknowledges the leaders from around the globe who have invested in their personal leadership development and attended 3 or more NACS Executive Education Programs. Learn more at convenience.org/NACSMaster.

NEW FLAVORS

Stone Gate Foods Tater Kegs

THE TATER THAT’S GREATER

Tater Kegs are shredded potato mixed with delicious flavors. All the best parts of a baked potato in the perfect handheld package. From the freezer, to the fryer, to the customer.

Serve them in a variety of different ways and in many different applications. Great for to-go. Tater Kegs have a hold time of up to 4 hours under heat lamps.

With all the uncertainties in the world today we should be able to be certain that our food always has great flavor, and Tater Kegs provide that comfort in every bite!

Tater Keg flavors include Bacon Cheddar Chive, Cheese Bomb, Bacon Jalapeno, Buffalo Chicken, Crab Feast, Chorizo Burrito, Breakfast Skillet & The Reuben.

Request samples today at www.taterkegs.com!

NACS

NEW FLAVORS

Flowers Foods

NACS

Wonder Sweet Treats

2024 NACS Show Education Session Recordings

Wonder Sweet Treats: Top 10 List

Exclusive Ed Sessions On-Demand

For self-rewarding snackers who treasure connection, WONDER is the sweet baked goods brand provides simple pleasures through delicious flavor, warm memories, and fresh moments.

Don’t miss out on exclusive access to over 40 industry-leading education sessions from the 2024 NACS Show! With on-demand recordings, you can immerse yourself in cutting-edge insights and innovative strategies from expert speakers at your convenience. Stay ahead of the curve by reviewing sessions you attended or catch up on those you missed. Elevate your knowledge and skills with dynamic content that will empower you to drive success in the convenience industry. Invest in your professional growth today and purchase education session recordings at nacsshow.com/recordings.

NACS DECEMBER 2024 95

GAS STATION GOURMET

Meat, Boudin and Louisiana Cooking

Lagneaux’s Country Store has curated its menu to customers’ tastes for over two decades.

BY AL HEBERT

W

hen Lagneaux’s Country Store was under construction more than two decades ago, there wasn’t much to see on its stretch of Fieldspan Road in Duson, Louisiana. The store was almost in the middle of nowhere.

But neighborhoods began to spring up as people left the city for a quieter setting, and owner Stephanie Lagneaux has seen the business grow over the years. She said customers are still taken aback by what they find inside.

“They think it’s just a gas station.

People are surprised we have meat and are surprised to see fresh produce. It’s a little more than a regular convenience store,” Lagneaux said.

THE BUTCHER SHOP There is a lot that sets Lagneaux’s Country Store apart from other c-stores, but the meat selection takes center stage. There are walls of meat products that rival what one might find in a supermarket.

“We have deboned chickens stuffed with seafood dressing, seafood cornbread, broccoli, cheese and rice, rice dressing, cornbread dressing and crawfish étouffée,” she said. “They’re available and popular all year round, but we sell more of them during the holidays.”

The store also takes cornbread 96 DECEMBER 2024 convenience.org

dressing orders during the holidays, and Lagneaux’s is a staple item that has made local news. “People love our cornbread dressing. It was featured in the local newspaper. It’s simple, but it’s really good,” said Lagneaux.

Another popular item is the store’s meatballs, which are made from its hamburger recipe. “The meatballs are seasoned and ready to take home and cook,” she said.

The sheer volume of meat products is made possible by this small store’s large meat team, which is a department of four people. “Donald Trahan handles the meat. I’m fortunate to have him. He makes our cracklins, boudin and boudin balls,” she said.

BURSTING WITH BOUDIN Boudin (pronounced boo-dan) is a mixture of richly seasoned pork cooked with onions, peppers and Cajun seasoning, mixed with rice and stuffed in sausage casing. It can be found in most c-stores in Louisiana and much of the South—similar to cheese curds being prolific in Wisconsin or West Virginia’s pepperoni rolls. And when people find a boudin they like, they become loyal, passionate customers.

Lagneaux’s offers boudin in multiple ways—there are also boudin balls, which are the store’s boudin mixture rolled into a ball, battered and deep fried instead of in the sausage casing.

Lagneaux’s offers a wide range of meat, made possible through its meat department team of four people.

People are surprised we have meat and are surprised to see fresh produce. It’s a little more than a regular convenience store.”

“Boudin and boudin balls are big sellers for us,” said Lagneaux. “I couldn’t say one sells more than the other.”

There are even boudin egg rolls.

“These are really popular—they’re boudin mixed with pepper jack cheese and rolled into an egg roll. The wrapping is sealed with a little bit of water and then they’re deep fried,” she said.

These require attention to detail to create, Lagneaux explained. “They have to be prepped ahead of time, but not too far ahead.”

A lot of customers come in to get boudin or boudin balls for breakfast before heading to work, Lagneaux said.

FOOD, FUEL AND THE FUTURE Through the years, the store has built a reputation for its daily plate lunches, but Lagneaux recently decided to discontinue the plate lunches for the foreseeable future.

“We have stopped doing them during the week. It’s so hot and there’s so much labor involved with plate lunches. I want to see if we can get by not doing them during the week,” she said.

Sunday is the only day that plate lunches are now available. There are a lot of choices. “We have barbecued chicken with white and dark meat, pork steak, sausage and ribs along

with five sides: coleslaw, potato salad, rice dressing, beans and cornbread,” Lagneaux said.

But there are still plenty of great food items for customers to choose from, many of which have been added over the years.

If you’re in south Louisiana, Lagneaux’s chili dogs are definitely a must try. “The chili dogs came about when we made our own chili, which was a recipe that a woman who worked for me came up with. It’s been popular for years,” she said.

Lagneaux’s also makes its own hamburgers, chicken patties (a popular item), as well as meatloaf and chicken kabobs.

When it comes to adding something new to the menu, it’s as simple as a customer request. “If someone asks for something, we will try it,” she explained.

Lagneaux said that she keeps good prices for fuel for her customers.

“I do try to stay on top of that, making a certain amount of markup all the time and not raising the price high just because everyone else is going up,” she said.

As the years have passed, the city has crept out to this once quiet area. You can still sit on a bench in front of the store, eat boudin and watch the world go by—it just goes by a little faster now. But with the increased traffic has come an uptick in how many more customers come to the store, so business has increased.

Customers now line up for the barbecue and boudin, but the staff isn’t fazed by the busier days. Stephanie Lagneaux and her team still deliver the same great food and service they have for the past two decades.

Al Hebert is the Gas Station Gourmet, showcasing America’s hidden culinary treasures. Find him at www.

GasStationGourmet.com.

NACS DECEMBER 2024 97

CATEGORY CLOSE-UP CIGARETTES

T

Cigarettes and Pack Bev: Neck and Neck Could this be the last year that cigarettes are the top non-foodservice category?

BY MELISSA VONDER HAAR 98 DECEMBER 2024 convenience.org

he cigarette category is not one that retailers often associate with big changes. Cigarettes have long been a leading driver of in-store sales … while simultaneously experiencing predictable usage declines over multiple decades (excluding years in which a historic pandemic occurs).

2023 was no exception. Cigarette sales per-store-per-month declined 4.2% in 2023 according to the NACS State of the Industry (SOI) Report® of 2023 Data, dropping from $47,233 in 2022 to $45,232. Cigarettes remained the top driver of in-store sales (excluding foodservice) but dropped from 22.11% of in-store sales in 2022 to 20.29% in 2023.

“As expected, cigarettes show a slow and steady decline,” said Emma Tainter, research analyst for NACS. “Smoking rates continue to decline, and excise rates continue to increase.”

What was different in 2023 was just how close the next-biggest driver of in-store sales got to cigarettes. In 2023, packaged beverage sales grew over 8% to account for almost 18% of in-store sales.

When presenting the category breakdowns at the 2024 State of the Industry Summit, Annie Gauthier, CFO and co-CEO of Y-Not Stop and St. Romain Oil, said it was only a matter of time before pack bev overtakes cigarettes for the top spot.

“There are more options than ever before,” Gauthier said, pointing to innovations in vapor and smokeless as putting additional pressure on the cigarette category.

Here’s a look at how this top category is performing, what’s driving the change and what’s in store for 2025.

$6,420

The average gross profit dollar contribution of cigarettes per store, per month.

Source: NACS State of the Industry Report® of 2023 Data

CIGARETTES BY THE SEGMENTS In 2023, cigarettes accounted for 20.29% of in-store sales and 7.96% of in-store margins. NACS SOI data breaks the category into five subcategories: premium, sub-generic/private label, branded discount, fourth tier and imported.

The premium, sub-generic/ private label and branded discount subcategories all saw declines in both sales and margins: premium cigarette sales declined by 3.96% with margins basically flat (up 0.48 points), subgeneric/private label sales declined 5.8% with margins down 1.69 points and branded discount sales declined 9.5% with margins down 0.82 points.

Imported and fourth tier cigarettes both experienced growth: imported sales were up 4.56% with margins up 0.34 points, while fourth tier sales grew 35.98% with gross profit margins nearly doubling (up 91.55% from 2022).

But context is important. Imported cigarettes and fourth tier cigarettes made up just 2.2% of cigarette category sales in 2023.

“The premium subcategory still accounted for 75.6% of cigarette sales and steers the overall category data,” Tainter said. “The small increases in two of the smaller subcategories were not enough to reverse the decline in premium cigarettes, which drove the overall category to decrease in both sales and profit.”

RELIEF AT THE PUMP, NOT THE BACKBAR Though lower-priced options like fourth tier cigarettes remain a small part of the pie, retailers, manufacturers and analysts of the category all pegged downtrading to lower-cost options as a continuing phenomenon. This is happening even as inflationary pressures are lessening, most notably with fuel prices going down. As of late October, AAA had the national average fuel price at $3.16 per gallon, down over 10% from October 2023.

Bonnie Herzog, managing director of consumer staples stocks at Goldman Sachs, saw this play out in the Q3 “Nicotine Nuggets” survey of tobacco retailers.

“Despite easing prices at the pump, most respondents (88%) aren’t seeing a material improvement in purchase behavior with downtrading continuing,” Herzog said in a research note.

With premium cigarettes accounting for over 75% of category sales and fourth tier having just 1.5% in 2023, it’s clear consumers aren’t just downtrading to lower-priced cigarettes. Forty percent of respondents in the Goldman Sachs survey reported smokers trading down to fourth tier options, but 24% listed e-cigarettes and 17% listed nicotine pouches.

“We continue to see buying patterns and behaviors across our categories consistent with that of a price-sensitive consumer,” said Cory McDade, senior director of trade marketing development for Reynolds American Inc. “Within these trends, we see adult nicotine consumers switching from their normal brands and instead opting for products at a lower price point. Of note is the migration of customers to new category products including vapor, snus and modern oral products.”

Herzog pointed to continued manufacturer price increases as another reason for downtrading: 66% of “Nicotine

Industry Sales

% of In-Store Sales

22.11% 20.29% 2022

2023

Avg. Sales/Store

$47,233 $45,232 2022

2023

Gross Margin %:

14.09% 14.19% 2022

2023

Source: NACS State of the Industry Report® of 2023 Data

NACS DECEMBER 2024 99

CATEGORY CLOSE-UP CIGARETTES

NACS CSX Benchmarking Database, Per Store, Per Month Sales

n 2021

n 2022

n 2023

n 2024

$2,500 $2,000 $1,500 $1,000JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Source: NACS CSX Convenience Benchmarking Database

The importance of the convenience channel within our industry and to the adult nicotine consumer cannot be overstated.”

The Power of CSX Data CSX, the engine behind category metrics and NACS State of the Industry data, provides current and customizable tools for financial and operational reporting and analysis in the convenience industry. Retailers can measure their company by any of the myriad metrics generated via our live database.

Contact Chris Rapanick at (703) 518–4253 or crapanick@convenience. org for a complimentary executive walkthrough.

100 DECEMBER 2024 convenience.org

Nuggets” survey respondents said that manufacturers have less pricing power with consumers (up from 54% in the Q2 2024 fielding of the survey).

“Retailers reiterated that manufacturers have less pricing power today, despite seeing ongoing price increases,” Herzog said. “Much of this stems from increased competition from alternative forms, which seems to be the main driver diluting pricing power of cigarette manufacturers. This appears to have also continued to fuel the shift to fourth tier options in the market, applying pressure to the premium cigarette category.”

Though fourth tier remains a small piece, retailers surveyed by Herzog expressed confidence that this shift will continue. Respondents said they plan to increase space for deep discount cigarette brands by 1% next year while decreasing space for premium cigarettes by 1.6%.

“One respondent [said] that once consumers shift to fourth tier, shifting back up to premium brands is unlikely—even when gas prices ease,” Herzog said.

REGIONAL SHIFTS Besides downtrading, cigarette sales declined more dramatically in certain regions in 2023, and the category was overtaken by packaged beverages in both the Southeast and South Central regions.

The Southeast region averaged in-store cigarette sales of $43,407 per store, per month in 2022, dropping to $41,365 in 2023 (a 4.94% decrease).

Packaged beverage sales averaged $46,708 per store, per month in the Southeast region last year.

Cigarettes fared even worse in the South Central region, averaging $28,346 monthly sales in 2022 and declining by 12.8% to $24,718 in 2023. It marked the second year in a row that packaged beverage was the top sales driver for the South Central region (bringing in an average of $34,449 monthly sales per store).

On paper, it may seem surprising that the Southeast and South Central regions were the first to see cigarettes drop below packaged beverage. The states and cities in these areas aren’t known for the kind of tough tax and regulatory actions that further drive up prices or ban the sale of certain products altogether. But these regulations don’t happen in a vacuum: they are passed on a city-by-city or state-by-state basis, allowing many smokers to simply go to another nearby area to purchase their product of choice.

Cigarettes Subcategory Data Same-Firm Sample, Per Store, Per Month Percent of Sales

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2022

2023

2022

2023

2022

2023

2022

2023

Premium

75.5%

75.6%

$35,948

$34,526

$4,247

$4,248

11.82%

12.30%

Sub-Generic/ Private Label

15.4%

15.2%

$7,289

$6,866

$1,755

$1,536

24.07%

22.38%

Branded Discount

7.4%

7.0%

$3,504

$3,171

$581

$500

16.58%

15.76%

Fourth Tier

1.0%

1.5%

$492

$669

$71

$136

14.45%

20.34% 22.20%

Cigarettes

Imported

0.7%

0.7%

$307

$321

$67

$71

21.86%

Total

100.0%

100.0%

$47,233

$45,232

$6,654

$6,420

14.09%

14.19%

Source: NACS State of the Industry Report of 2023 Data ®

“As seen with Maryland’s recent tax increase, they’ve experienced substantial volume drop versus their baseline, and the surrounding states are significantly outperforming,” said McDade.

Indeed, the Northeast and Midwest regions are home to some of the strictest tobacco states (including Massachusetts and Minnesota)—yet those regions have reported lower declines than the national average.

Last year, SOI data showed Northeast cigarette sales declined by 1.98% and Midwest sales declined 2.92%.

“Cigarettes remained the topperforming category in the Northeast and Midwest regions, but sales still decreased slightly year over year,” said Tainter.

Cigarette Subcategory Share

Though the fourth tier and imported subcategories both enjoyed growth in 2023, it’s important to put into context. Here’s how the five cigarette subcategories contributed to category sales in 2023: Sub-Generic/ Private Label:

15.2%

(down 0.2 pts)

Premium:

75.6% (up 0.1 pts)

CIGARETTES REMAIN KEY Though sales will almost certainly continue to shift and decline, cigarettes remain a very important category for the convenience channel—in part because of how important the convenience channel is to the cigarette category.

“Year after year, the convenience channel remains the number one loca-

Branded Discount:

7.0%

(down 0.4 pts)

Fourth Tier:

1.5%

(up 0.5 pts)

Imported:

0.7% (flat)

The premium subcategory still accounted for 75.6% of cigarette sales and steers the overall category data.”

NACS DECEMBER 2024 101

CATEGORY CLOSE-UP CIGARETTES

Once consumers shift to fourth tier, shifting back up to premium brands is unlikely —even when gas prices ease.”

tion where adult consumers purchase our products,” said McDade. “The importance of the convenience channel within our industry and to the adult nicotine consumer cannot be overstated.”

Management Science Associates (MSA) data shows 84.1% of nicotine sold in the United States is sold in the convenience channel. Every other channel, including drug, dollar and tobacco shops, fights over the remaining 15.9%.

Despite the many changes and challenges, cigarettes still hold the number

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one spot as the top selling in-store category as of today.

“It is true that sales are declining,” said Tainter. “But [cigarettes] remain the number one seller in in-store merchandise.”

At least for now.

Melissa Vonder Haar is the marketing director for iSEE Store Innovations. Follow her on Twitter at @ iSeeMelissaV.

Thank you to these advertisers who have demonstrated their support of the convenience and fuel retailing industry by investing in NACS Magazine.

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All Day Kitchens...................................................................................7 www.allday.com

KeHE Distributors Holdings LLC dba KeHE Distributors.......92 www.kehe.com

Placon................................................................................................. 19 www.placon.com

Altria Group Distribution Company...........Inside Front Cover AGDCTradeRelations@Altria.com www.altria.com www.tobaccoissues.com

Kretek International......................................................................... 49 www.kretek.com

Polar King International Inc................................................................3 (866) 576-7645 www.polarking.com www.polarleasing.com

Big Ideas Marketing.......................................................................... 90 (888) 908-8697 www.bigideasmarketing.com Black Buffalo Inc.................................................................... 31 www.Blackbuffalo.com C. Cretors & Company......................................................................... 91 (847) 616-6900 (800) 228-1885 www.cretors.com

Liggett Vector Brands LLC............................Inside Back Cover (919) 990-3500 www.liggettvectorbrands.com Monster Energy Company.....................................................92 www.monsterenergy.com MOOSOO Corporation......................................................................... 61 www.moosoo.com NACS Convenience Voices..................................................................47 www.convenience.org/Solutions/Business-Intelligence-DataAnalytics/Convenience-Voices

Cenex (CHS Inc.)....................................Front Cover – Note, 17 www.cenex.com/chsinc/about-chs

NACS Day on the Hill 2025..................................................................87 www.convenience.org/events/Day-On-the-Hill

Cheyenne International, Inc.............................................................. 15 (704) 937-7200 www.cheyenneintl.com

NACS Executive Education................................................................ 94 www.convenience.org/Education/NACS-Executive-Education

Chyl Brand LLC..............................................................................40-41 (404) 642-4967 www.getchyl.com

Cool New Products Guide........................................................... 90-95 www.convenience.org/Media/NACS-Magazine/Cool-New-Products

Epiq Global........................................................................................ 36 (800) 625-6440 www.paymentcardsettlement.com/en Eternal Beverage LLC.......................................................................8-9 (925) 378-7388 www.eternalwater.com Flowers Foods Snack Group LLC....................................................... 95 www.wonderbread.com www.flowersfoods.com Hormel Foods Corporation................................................................37 (800) 523-4635 www.hormelfoods.com

NACS Future Fund...............................................................................32 www.conveniencecares.org/our-programs/future-fund NACS HR Forum 2025......................................................................... 89 www.convenience.org/events/HR-Forum NACS Leadership for Success.............................................................73 www.convenience.org/Education/LeadershipforSuccess NACS Membership............................................................................. 65 MaxYourNACS@convenience.org www.convenience.org/Membership NACS Show 2024: Education Session Recordings............................ 95 nacsshow.com/recordings NACS State of the Industry Summit 2025.........................................85 www.convenience.org/events/SOI OptiSigns............................................................................................ 13 www.optisigns.com Patron Points..........................................................................55 (877) 623-6073 hwww.patronpoints.com PIM Brands..............................................................................93 www.pimbrands.com

102 DECEMBER 2024 convenience.org

Premier Manufacturing........................................................... 5, 21, 93 (636) 537-6800 www.gopremier.com Rich’s / f’real.......................................................................... 91 (800) 356-7094 www.richsusa.com www.freal.com Ronpak............................................................................................... 59 318-219-4300 ww.ronpak.com Sesh Products US, Inc........................................................................23 www.seshproducts.com Stone Gate Foods.............................................................................. 95 (952) 445-1350 www.stonegate-foods.com Swedish Match North America LLC (Game Leaf)............53, 57 (800) 367-3677 www.smna.com Swedish Match North America LLC (White Owl)....................11 (800) 367-3677 www.smna.com Swedish Match North America LLC (ZYN).............................35 (800) 367-3677 www.smna.com Thayer Distribution............................................................. Back Cover www.thayerdistribution.com TravelCenters of America......................................................25 www.ta-petro.com TY INC................................................................................................. 29 www.ty.com Xcaliber International.......................................................... 103 (888) 4-XCALIBER www.xcaliberinternational.com

BY THE NUMBERS

The Convenience Industry’s 2023 Highlight Reel As the year comes to a close and NACS Research looks forward to gathering and analyzing 2024 data, let’s review some important data highlights from 2023.

The convenience industry saw $859.8 billion sales in 2023. While industry sales as a whole declined by 5.1%—the first year-over-year decline since 2020—inside sales increased by 8.2%, for a total of $327.6 billion in sales inside the store. The industry’s remaining $532.2 billion in sales came from fuel, which saw a 11.8% sales decline from the previous year.

These sales were spread across the 152,396 stores in the United States. The majority of these

The convenience industry saw

$859.8 billion sales in 2023

104 DECEMBER 2024 convenience.org

were owned by single store operators (91,799).

Operators with more than 500 stores accounted for 32,864 locations.

In 2023, the convenience industry relied on 2.74 million employees, both in corporate offices and as frontline employees, to serve its customers. The industry also boasted some of the highest wages among retailers and paid full-time hourly employees $14.73 an hour, a 40 cent increase from 2022.

As a whole, the industry paid $208.3 billion in taxes in 2023.

Ready for next year’s data? Keep an eye on NACS Research at convenience.org/research and register early for the 2025 NACS State of the Industry Summit, taking place this year in Dallas, Texas, April 8-10.

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