NEW YORK -- With the highest growth in beverage sales over Memorial Day weekend since 2012, convenience-store retailers are optimistic c-store traffic will grow by nearly double digits this summer.
Total beverage sales in c-stores grew nearly 5% over Memorial Day weekend, according to a Wells Fargo Securities’ Beverage Buzz survey of c-store retailers. That compares with 3.6% growth last year and 1.7% in 2013.
“We believe the strong in-store sales reported was driven by favorable macro conditions, notably lower gas prices vs. last year and increased customer traffic,” Wells Fargo analyst Bonnie Herzog wrote in a summary of the survey results. “We believe that the strong in-store sales results bode well for both c-store retailers and beverage manufacturers for [the second quarter].”
Beverages sales are up 6% in c-stores so far during Q2, according to the survey, led by Coca-Cola, Red Bull and Gatorade. More than 80% of retailers surveyed said they believe lower gasoline prices and resulting economic confidence are driving the growth.
“[That] likely contributed to the positive impact foot traffic is having, as well,” Herzog said. “Further, one retailer reported ‘consumers are feeling good and confident, which translates to more purchases and upgrades.’ ”
As a result, retailers project a 9% increase in costumer traffic this summer. “This summer will be very good for customer traffic, miles driven and in-store sales as a result,” Herzog concluded.
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