Convenience Store News
Convenience stores sell 80% of the fuels purchased today. While motor fuels drive sales dollars for convenience stores, in-store sales drive profit dollars. On average, 71% of a store’s total sales are motor fuels, but motor fuels only account for 36% of profit dollars. That is because retail fuel margins are very thin, averaging less than a nickel per gallon. Retailers know that consumers are incredibly price sensitive and will go somewhere else to save a few cents per gallon of gasoline.
Convenience Store Update:
Key Facts and Figures
- The 123,289 convenience stores that sell fuels in the United States cumulatively sell 80% of the motor fuels purchased in the country.
- Americans travelled 8.038 billion miles per day in 2012.
- There were 156,065 total retail fueling sites in the United States in 2012. This is a steep and steady decline since 1994, when the station count topped 202,800 sites. This count includes convenience stores, grocery stores, truck stops, traditional gas stations and low-volume locations like marinas.
- While about half of the convenience stores selling gasoline are “branded” outlets selling a specific refiner’s brand of fuel,
- they are typically not owned by the refiner. Major oil companies own and operate less than 0.4% of all convenience stores in the
- U.S.: Chevron Corp. (415 stores), Shell Oil Products US (38 stores), ExxonMobil Corp. (13 stores), BP North America (3 stores) and
- ConocoPhillips Inc. (2 stores).
- Alternative fueling stations are growing across the country. There are now about 8,000 stations (about 5% of all fueling outlets) that offer public access to alternative fuels in the lower 48 states.
- The average American uses 1.8 barrels of oil every month, or 0.053 barrels per day.
- U.S. gasoline demand was 8.73 million barrels per day in 2012, or about 40 million fill-ups per day. U.S. gasoline demand has decreased 6.1% since peaking in 2007.
- For small light duty vehicles (the 190.2 million passenger vehicles, vans, small trucks and SUVs with a wheelbase of 121 inches or less), the average fuel usage was 453 gallons consumed per year, which averages out to 1.24 gallons per day or 8.7 gallons per week.
- These vehicles had an average fuel efficiency of 23.5 mpg and travelled 29.1 miles per day.
- Brent spot oil prices averaged $111.65 per barrel in 2012. They are expected to average $105.17 in 2013.
- U.S. retail (regular) gasoline prices averaged a record $3.63 in 2012, and are expected to average $3.44 per gallon in 2013. On-road diesel fuel prices averaged a record $3.97 per gallon in 2012, and are expected to decrease to $3.87 per gallon in 2013.
- Since the final implementation of the Clean Air Act Amendments in 2000, the seasonal transition to summer-blend fuel has helped gasoline prices rise significantly.
- The average annual increase is 54 cents.
- Gasoline taxes averaged 48.8 cents per gallon in January 2013.
- Nearly three quarters (72%) of all transactions at the pump are by plastic — either debit or credit card.
- Factoring in all gasoline sales, credit and debit card fees averaged 5.7 cents per gallon in 2011.
- The gross margin (or markup) on gasoline in 2012 was 18.4 cents/gallon, or 5.1%. Over the past five years, gross margins averaged 16.9 cents per gallon.
- Motor fuels sales contributed to roughly one-third of total convenience store gross margin dollars (35.9%).
The U.S. petroleum distribution industry includes:
• 144 refineries
• 38 Jones Act vessels (U.S. flag ships that move products between U.S. ports)
• 3,300 coastal, Great Lakes and river tank barges
• 200,000 rail tank cars
• 1,400 petroleum product terminals
• 100,000 tanker trucks
• 200,000 miles of oil and refined product pipelines