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NABCA Daily News Update (4/30/2018) 2 Control State News April 30, 2018 PA: State of convenience: Sheetz, Wawa show it's about APRIL IS ALCOHOL AWARENESS MONTH more than Shwings and hoagies License State News SAVE THE DATE MAY 21-24, 2018 NE: Midlands Voices: Despite Whiteclay action, state still has issues with excessive drinking (Opinion) !REGISTRATION IS OPEN ! 81st Annual Conference will be held at the International News Arizona Biltmore, Phoenix, AZ. Theme: Bridging Divides; For more Scotland: Supermarkets braced for minimum alcohol pricing information, visit www.nabca.com website. Australia: Study: Booze Brands Are Breaking Advertising JUNE 3-5, 2018 ND Codes 2 Annual Beverage Alcohol Retailers Conference - Denver, Colorado South Africa: SA still among world's top wine makers Registration is open and sponsorship information is available at Industry News www.BevRetailersConference.com. JULY 18-20, 2018 Deschutes Brewery CEO says legal marijuana played role in 8th Biennial Northwest Alcohol & craft beer slowdown Substance Abuse Conference Riverside Hotel, Boise Idaho UK alcohol marketing watchdog announces code review The Pre-Conference Sessions are on Wednesday. The official conference kicks off Daily News Thursday morning. Visit The deadliest drug in America at center of VA nominee NorthwestAlcoholConference.org for more information. withdrawal: Alcohol News Alert: Kraig Naasz Leaving The Distilled Spirits Council NABCA HIGHLIGHTS Tesco Launches Smaller Wine Bottles Inspired by Health- Conscious Millennials New! The Public Health Considerations of Fetal Alcohol Spectrum Disorders (Whitepaper) Native American Nations & State Alcohol Policies: An Analysis Alcohol Technology in the World of Tomorrow - (White Paper) The Control State Agency Info Sheets. Please view website for more information. NABCA Survey Database (members only) Upcoming NABCA Meetings Statistical Data Reports www.NABCA.org NABCA Daily News Update (4/30/2018) 2 CONTROL STATE NEWS PA: State of convenience: Sheetz, Wawa show it's about more than Shwings and hoagies PennLive By Charles Thompson April 30, 2018 It's a tough time for chain retailers, who are closing their doors and shedding employees in frightening numbers. But there's one segment of the industry where some Pennsylvania-based companies are just killing it. We're talking convenience stores, and whatever your political loyalties, your education level, your musical tastes, we're willing to bet that you do business with at least one of them on a semi-regular basis. These stores aren't just "smokes and Cokes" anymore. Now, the savvy shopper can fill up his or her gas tank, buy a six-pack of beer, and a crabcake sandwich. Which you can eat in while you watch the end of the game on a big-screen TV. Several Pennsylvania-based chains, industry trackers say, are right at the forefront of this evolution. "In terms of innovation, chains like Wawa, Sheetz and Rutter's are... industry leaders in food service offerings, guest experience and employee relations," said Linda Lisanti, editor-in-chief of Convenience Store News. The colors of Pennsylvania. The following map shows the distribution of various convenience store chains in Pennsylvania as of 2016. It is based upon lottery retailer location data. It's already well-established that, just like sports teams, many people have their favorites. A documentarian is actually now doing a deep dive into the cultural ramifications of what defines the Sheetz fan from the Wawa fan. (Spoiler alert: Simple geography has a great deal to do with it.) Even Gov. Tom Wolf, proud York Countian that he is, used the powers of his official Facebook account to put in a plug for York-based Rutter's earlier this month, when stories about said film made the rounds. Whatever your preference, convenience stores are big business in Pennsylvania. As of the end of 2017 there were 4,855 stores across Pennsylvania, employing 77,680 people in full- or part-time positions, according to the National Association of Convenience Stores. While these aren't typically what you would call family-sustaining jobs, it is also true that even in a growing economy, people still need first jobs, part-time work, or second income streams. And at a starting wage of $11 to $12 per hour, depending on the labor market, many of these stores are way ahead of Pennsylvania's $7.25 per hour minimum wage. A look at national store counts and sales figures shows you the relative strength of Pennsylvania's players in the convenience game. Wawa, based in Media, Delaware County, ranks 10th in the industry in total sales, according to Convenience Store News' most recent Top 100 list, which ranks chains by store count. That rank rises as high as fifth if one factors out the Big Oil-related chains with their national footprints. Sheetz ranks a healthy 13th in sales -- and seventh after the oil companies are factored out. Even more impressive, Sheetz and Wawa rank #2 and #3 respectively when you look at sales per store. And coming up on the outside lanes is York-based CHR Corp., perhaps best-known to mid-staters as Rutter's, still tiny when compared to Wawa and Sheetz at just 69 stores, but a newcomer to the national Top 100 in 2017. NABCA Daily News Update (4/30/2018) 3 The innovations are continuing apace. Wawa has just announced the development of its largest-store ever, in Center City Philadelphia -- an 11,300- square-foot space in the Public Ledger Building at 6th and Chestnut streets. As reported by PhillyMag earlier this month, it will offer artisanal coffees, specialty baked goods (plus the regular fare, of course) and plenty of seating, as well as some greenery. It's one of several urban prototypes (a Washington D.C. Wawa opened in December) the chain says it using to make noise in pedestrian-friendly, and upwardly-mobile center city markets. Along the highways, meanwhile, Sheetz and Wawa are installing car charging stations in the lots of some of their newer stores. Stores such as Rutter's are now encouraging us to cruise by and try their expanded seafood offerings. What made convenient stores such a thing? History tells us that the first convenience store, a forerunner of the 7-Eleven chain, was created at an old-time ice house in Texas. In 1927, Jefferson Green ran the Southland Ice Company's dock in the Oak Cliff section of Dallas, where people would come to stock up on foot-long freezing blocks they carted home to refrigerate their food. Green's business was already open 16 hours a day, seven days a week - much longer than the grocers of the day. So Green thought, as the story goes, why not sell milk, bread and eggs, too? He did, from 7 a.m. to 11 p.m., and you know the rest. Oregon-based retail economist Bill Conorly said the segment really got a shove when Big Oil married it with gas sales and grafted small stores onto their existing gas pump islands. They realized, Conorly said, there was more profit in the chance of selling cigarettes, a six-pack of beer or candy to every customer coming in for gas, rather than just awaiting the occasional mechanical repair. The oil companies still dominate the top 10 chains in terms of store count. But as other companies got their own gas distribution deals, we were off to the races. Meanwhile, supermarkets -- by choosing bigger and bigger prototypes over the years -- unwittingly created a vacuum in the convenience space. "As they get bigger, the convenience of going into a supermarket for one item is low," Conorly said. By now, we have seen two tracks develop in the convenience store segment, with the chains increasingly embracing the restaurant concept, and essentially becoming fast-food chains with gas pumps. Meanwhile vast numbers of independent operators -- often left with town center locations that the chains have vacated, or in very rural areas -- are in many cases taking the place of the old corner store. Conorly expects both to be around for a long time. "There are still plenty of areas where you have a 10-to-15-mile drive to get to a supermarket, but there is a convenience store, and that's where they get their bread and milk, or, hey: 'We need a bottle of ketchup.'" As for the top-performing chains, they seem to have evolved from and embraced the American car culture -- when you think of it, it's really not that different an experience than the drive-in restaurants of yesteryear: just add gas pumps and retail space, improved technology and better access to fresher and more varieties of foods. Industry snapshot Gas is still king. Fuel sales account for 60.6 percent of the total sales of the 2017 convenience store market, according to the latest report from the National Association of Convenience Stores. It was also the fastest-growing segment, up 14.9 percent from the year before. NABCA Daily News Update (4/30/2018) 4 Inside sales, meanwhile -- literally those things you go into the store to buy -- accounted for the other 39.4 percent. They rose just 1.7 percent in 2017, according to the trade association's report. That was a 15th straight year of sales increases, however. The biggest single category of in-store sales is still cigarettes and tobacco products, at 34.1 percent of the total. Packaged beverages -- bottles and cans of beer, soft drinks, juices and teas -- are the second-largest category at a combined 24.3 percent of sales; with in-store food service third at 22.5 percent. Candy bars, bags of chips and other snacks ran at 9.9 percent, trailed by all other items, from the frozen dinner to the quart of oil to the daily newspaper, at 9.2 percent.
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