Gas Prices Just One Impact of Russia’s Ukraine Invasion

Gas Prices Just One Impact of Russia’s Ukraine Invasion

U.S. c-store industry will feel the pain on many fronts

IN THE 30 YEARS since the fall of the USSR, there has never been a more serious international crisis than Russia’s invasion of Ukraine on Feb. 24, 2022.

This unwarranted act of war against a sovereign nation has created a humanitarian crisis and moved the world closer to nuclear war than at any time since the Cuban Missile Crisis of 1962.

A week into March, crude oil prices hit a 13-year high of more than $130 per barrel, and the national average price for a gallon of regular gasoline exceeded $4. Some stations were selling gas at more than $6 per gallon.

After two years of pandemic-caused demand destruction, it remains to be seen how long before these astronomical fuel prices result in a sharp downward demand for gasoline, or hit consumers’ pockets enough to cause another recession. Skyrocketing fuel prices are already adding to the highest U.S. inflation rate in 40 years.

Other impacts of the Russian invasion on the U.S. convenience store industry include:

• Many U.S. companies suspended operations and service in Russia. Alimentation CoucheTard/Circle K joined with other western firms like Apple, Microsoft and Nike in halting its Russian operations. Visa and Mastercard cut off their payment systems in Russia, although NACS Chairman Jared Scheeler pointed out that “while admirable, it only accounts for foreign transactions. If they really wanted to make an impact, they’d have completely shut them down.”

• Russian brands and products, like Russian vodka and Lukoil gas stations, are being boycotted. In New Jersey, the Newark City Council suspended the licenses of local Lukoil gas stations and convenience stores, even though most U.S. Lukoil stations are owned by individual American franchisees. Reminds me of the unfortunate backlash against BP stations after the Deepwater Horizon oil spill in 2010.

• The food sector also will be heavily affected. Russia and Ukraine are major food producers for Europe and some Third World nations, and the potential shortages are sure to impact the U.S.

It almost feels ridiculous to be worrying about high gas prices, inflation and recession when one wrong move by our elected leaders could spark World War III. Which reminds me of a quote attributed to Albert Einstein: “I know not what weapons World War III will be fought, but World War IV will be fought with sticks and stones.”

For comments, please contact Don Longo, Editorial Director, at (201) 855-7606 or dlongo@ensembleiq.com.

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Laura Aufleger

OnCue Express

Ray Johnson

Speedee Mart

Chad Beck Core-Mark

Edward Davidson

Ed Davidson & Associates (7-Eleven Inc., retired)

Robert Falciani

ExtraMile Convenience Stores

Jim Hachtel

Eby-Brown Co.

Chris Hartman

Rutter’s

Ruth Ann Lilly

GPM Investments LLC

Vito Maurici

McLane Co. Inc.

Matt Paduano

Lakeport Markets

Jonathan Polansky Plaid Pantries Inc.

Greg Scriver Kwik Trip Inc.

Roy Strasburger

StrasGlobal

COVER STORY

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36 71

FEATURES DEPARTMENTS

COVER STORY

36 Building a Better Experience As the retail industry continues to recover from the pandemic, it is more important than ever for convenience stores to meet the evolving needs of shoppers.

FEATURE

46 A Healthy Opportunity As health and wellness goes mainstream, c-stores should respond with choice.

VIEWPOINT

3 Gas Prices Just One Impact of Russia’s Ukraine Invasion U.S. c-store industry will feel the pain on many fronts.

8 CSNews Online

24 New Products

SMALL OPERATOR

28 It’s Time to Step Up New NACS Chairman Jared Scheeler hopes to inspire the industry’s small operators to take their stores to the next level and get involved in government advocacy.

AN EYE ON D&I

69 Grading the C-store Industry on DEI The channel is doing many things right, but there’s still much work to be done.

24

STORE SPOTLIGHT

71 The Sky’s the Limit Victron Energy debuts a new flagship store at DFW Airport to serve commuters and travelers.

INSIDE THE CONSUMER MIND

90 Honing the Craft of Convenience Shoppers give c-stores solid performance ratings, but there is room for improvement.

14

INDUSTRY ROUNDUP

12 Pilot Co. Bets $1B on the Future of Travel

14 Arko Corp. Puts First Year as a Public Company in the Books

16 Eye on Growth 16 Retailer Tidbits

18 Supplier Tidbits

TECHNOLOGY

62 No-Touch & Go Contactless convenience is becoming the new norm in the convenience channel.

59

CATEGORY MANAGEMENT

FOODSERVICE

52 New Responsibilities in Food Safety This already-important aspect of foodservice is now paramount in the pandemic’s wake.

TOBACCO

56 Synthetic Nicotine in the Spotlight Regulation looms as manufacturers, retailers and consumers embrace lab-derived nicotine.

SNACKS

59 Get to Know the Snackers Consumers who snack often are motivated by a variety of different reasons.

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