Industry Updates and Data

October 24, 2024

Industry Updates from NACS Show: Candy Sales Trends

NJGCA attended the annual trade show put on by the National Association of Convenience Stores (NACS). Every year, they put together a series of education sessions at their annual convention. We know it can be a burden to fly out for a few days to attend a big show like this, so we wanted to share with our members as much of the useful wisdom as we could. 

Candy Sales Trends

• Candy sales amounted to $50.3 billion last year, split almost evenly between chocolate and non-chocolate
• 98% of households buy candy, which is actually more than buy toilet paper
  • 86% of consumers believe it’s fine to occasionally have a piece of candy, 69% believe it belongs in a happy, balanced lifestyle
• The price of chocolate is up 34% since 2020, non-chocolate candy is up 46%, and 70% of consumers have noticed it.
  • In 2023 74% of consumers said that while candy was more expensive, it’s still an affordable treat, but that number dropped to 55% this year.
  • More than a third of consumers say they have purchased less than last year, only 18% have bought more.
    • Of those buying less, cost is cited by half of them, as is health/diet concerns.
  • The total units sold have dropped 1.8% for non-chocolate and about 6.4% for chocolate at c-stores, slightly worse than for the market overall.
  • Gum/mint sales are still down 19% from their pre-covid high. Chocolate sales in c-stores are down nearly 12% from 2019, non-chocolate candy is only down 1% from the 2022 high but up nearly 15% from 2019.
• “Retail theater” can help increase sales, get people buying more—big displays with colors, more options, more “fun”
• 2/3 of customers list the price as being highly important in a candy purchase, 55% cite the brand, and 41% cite their mood as influencing their purchasing decision.
  • Brand is much more important for 45 and older consumers than under 45. Mood is much more important to under 45s than to Boomers, younger generations are twice as likely to care about sustainability than Boomers (though even then 80% don’t really care).
• 55% of shoppers check for sales and promotions
  • 88% list BOGOs as their top choice for a promotion, 60% want a discount off regular price, 38% are looking for a coupon.
• 42% of people can purchase something because someone recommended it, even if it’s just a manager’s special.

Industry Updates from NACS Show: What can C-stores Learn from Drug Stores?

Lessons from drug stores

• Wellness is the term now
  • Beauty/personal care is a $107 billion industry, health/performance is $130 billion per year, both have grown about 7% over the past year.
• 45 and under (millennial and Gen Z) is 39% of store customers but 72% of growth
• The most common conditions a c-store might want to offer something to treat: 40% of households have someone with allergies (non-food), 34% acid reflex/heartburn, 26% joint/back pain, 15% chronic headaches/migraines.
• “Hydration” and electrolytes are a new trend, more than 100% growth over the last year
• Large declines in drug stores is an opportunity for c-stores
  • Walgreens, Rite Aid, and CVS are collectively closing about 4,000 locations nationwide, there’s an opportunity to pick up those customers.
• These products can be a top profit driver even if they are only a small part of the c-store market.
  • Areas where there is growth potential for c-stores specifically—skin care, hair care, baby care, oral care.
• Potentially significant new products for c-stores to carry
  • Narcan (which saves someone suffering an overdose) will now be sold over the counter
    • To be sold in a pack of 2 for $40-$50
    • Could be good branding to offer it and be part of the solution in the community
  • Female birth control available now over the counter, Opill is the daily contraceptive pill for women sold in a one-month supply box
  • The “morning after pill”
    • Plan B is the single largest SKU in the drug store channel, generating $700 million per year.
    • A new competing product is priced about half the cost
  • Eroxon is launching next month, a topical gel for men that can improve bedroom ‘performance’ within 10 minutes.
    • Most importantly, this is officially FDA approved. Some will remember a few years ago many stores were sued for selling illegal pills to provide the same kind of ‘service’, and have had to keep it off shelves or risk fines and lawsuits. This product can fill that void safely, legally, and with marketing backing from a major corporation.
  • Supplements that reduce the impact of hangovers continue to grow, particularly the brand Cheers
  • Smaller package sizes are being adopted by manufacturers to combat inflation, could be very good opportunity for c-stores.
    • NyQuil is coming out with a 1oz “shot” that is testing very well, as well as a 4 oz bottle instead of usual 8oz that retails for $16+
• Consider dedicating a small area to these products and brightening up the space, call it the Wellness section. Often these items are off in a corner where customers don’t notice them.

Voter Guide 2024

Every year we at NJGCA assemble a Voter Guide in advance of the November election. Early in-person voting begins this Saturday at certain locations in each county, you can find the list HERE. 

You can download the entire guide, which includes information about your congressional district, who the candidates are, and where they stand on the issues that most affect our industries by clicking HERE. 

Rack Averages

News Worth Knowing:

Member Benefit Partner (MBP) Spotlight: Spark Contractors

Since 1959, Spark Contractors has been providing services to privately owned businesses, general contractors, marinas, major oil companies, municipalities within New Jersey and nearby states, as well as the State of New Jersey itself and the US Government. Trust us to work with you on your project, knowing you can depend on our broad knowledge and expertise that only comes from over five decades and 4 generations of experience. We offer: 

– Installation and maintenance of underground and aboveground tanks, piping and dispensing equipment for commercial, industrial, military, government, FBO and retail fueling facilities. 

– Tank cleaning, fuel sampling and testing and treatments. 

– Annual Compliance Testing and Monthly Walkthrough Inspections. 

– ATG installation, calibration and certification (Veeder Root, Incon, Omntec, Ronan) 

– Meter calibration (proving, custody transfer, retail) 

– Stage 2 decommissioning and Air Permitting Assistance. 

NJ Licensed Electrical Contractor #34EB00831000

Contact: Brent Ruga Phone: 609-476-2175 Fax: 609-476-2702 brent@sparkcontractors.com www.sparkcontractors.com

Available Real Estate

Medford, New Jersey

We are periodically approached by members to post a classified ad in our communications, and are happy to help if possible.

Though we typically limit such listings to the “Available Real Estate” section below, for this week we are repositioning this classified entry to the main body of our newsletter in hopes of helping our member reach additional interested parties. 

Gas station for sale or lease.  103 Taunton Rd., Medford, NJ 08055

This is a functioning gas station at a signalized and very busy signalized corner of Medford, a higher-income community in south Jersey and near Philadelphia. 

The building has about 1250 sf and is situated in 0.45 acres.  It consists of the land, gas station, and a rented two-bay auto repair shop. Shop income is about $48,000 per year, and property taxes are about $8145 annually. 

The gas station has three underground tanks: 12,000 gallons for regular, 4,000 gallons for premium, and 4,000 gallons for diesel. Tanks are double-hull fiberglass from 2009, fully inspected and functional.  Gas is currently unbranded.  

The property has strong development prospects, so an owner-user can operate it until s/he decides to develop it – or not.   A tenant can rent only the gas function. Lease with option to buy is a possibility.  

Please call Theodore Vakrinos at 703-768-8580 landline, 703-7317302 cell;  or email at tvakrinos@gmail.com

Do you have an advertisement or classified listing you’d like to submit? 

Contact us at info@njgca.org with the details and your request. 

Cape Harbor Shell

**Price Reduction**

795 Route 109, Unit B, Lower Township, NJ, 08204

Contact: Jerry 609-425-8837 capeharborshell@comcast.net 

Click HERE to view listing

Station for Sale

Thriving High Profit Gas/Service Station close to Major Highway in Prime Location. 

This Exclusive Gas Station is the Sole Provider in the entire town, achieving a remarkable fuel profit of up to and sometimes over 1$ a gallon. Consistently selling 45,000 gallons monthly. Most fuel customers come from Highway so fuel prices do not have to be competitive. 

Also included with the Property is a Reputable High End Auto Repair Facility. Repair shop has all required Specialty and Diagnostic Tools for servicing mostly High End Vehicles. Advertising is no longer used do to an enormous Demand and large Customer Base. Repair Business has has potential for increased profitability and expansion, the business is open to experienced buyers for a possible partnership or profit sharing arrangement. Location is 1 out of 100. Fuel sales make 20-40K a month and repairs can do the same with the right operator. 

This one of a kind opportunity can include seller financing for those with High-Level Automotive or Gas Station Experience.

Contact Greg
908-291-7845

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