This year’s NACS SOI Summit Virtual Experience attracted more than 1,700 retailers and suppliers eager to understand last year’s category performance and how to pivot in 2020 for category success.

When looking at categories found in convenience stores, it’s easiest to sort them based on sales contributions. In 2019, the top 10 sales categories drove 80% of sales dollars. However, putting a retail lens on and looking at gross profit dollars, it’s clear to see that packaged beverages contributed the highest amount of gross profit in 2019. In fact, it has contributed the highest amount of gross profit dollars over the past seven years consecutively.

OTP (other tobacco products) has also been a bright spot for a few years, delivering double-digit sales and gross profit dollar growth. OTP eclipsed beer as the No. 3 gross profit dollar contributor in 2019.

Eight of the top 10 sales categories grew sales dollars last year. What’s more, all six of the top six categories grew sales despite a unit decline. Four of the top six categories increased margins—but remember, price inflation is not a sustainable method for growth.

What procedures have you implemented at your stores?

Source: CSX, www.csxllc.com