nacs summit 2012 data till 2011

The Association for Convenience & Fuel Retailing

Antitrust Compliance

It is NACS' policy to comply strictly with the antitrust laws. As a group ofactual and potential competitors, there are some things which we may not,and shall not, do. For example, we will not discuss pricing policies, theallocation of markets, collective action against a particular entity or anyother topic which might give rise to concern under the antitrust laws. If anypart of our conversation touches upon an area with which we areuncomfortable on these grounds, we will ask whoever is speaking to stop andinsist that that request be honored, not only for his or her benefit, but alsofor the benefit of everyone else in the room.

NACS' antitrust compliance policy has been made available to you and NACS’antitrust counsel is attending the event. We urge you to read the policy andfollow its guidelines not only in the context of your NACS activities, but also inyour day‐to‐day business operations.


NACS State of the Industry Summit

Unless otherwise indicated, all materials on these pages are copyrighted by the National Association of Convenience Stores. All rights reserved.

No part of these pages, either text or image may be used for any purpose other than personal use. Therefore, reproduction, modification, storage in a retrieval system or retransmission, in any form or by any means, electronic, mechanical or otherwise, for reasons other than personal use, is strictly prohibited without

prior written permission.

This preliminary data release may be subject to further revision before it is released again as a final version in the form of the

State of the Industry Report of 2011 Data.

Copyright © 2012 by NACS. All rights reserved.


The Numbers

Glenn PlumbyVice President Operations

Speedway, LLC


• 2011 Results from 246 Firms with 27,526 Stores• Total Industry Benchmarks

– Stores– Sales and Pretax Profits– Interchange

• Same‐Firm Performance– Sales, Margins, DSOE– Productivity/Quartiles

• Category and Subcategory Performance– Merchandise– Foodservice– Quartiles

Agenda for the Numbers


Industry Store Count

Source: Nielsen TDLinx, NACS Research

59,876

67,612

78,395

76,044

84,770

84,574

89,957

90,683

89,567

90,049

91,815

93,209

59,876

56,904

54,029

54,615

53,435

56,081

55,162

55,611

55,308

54,492

54,526

54,917

‐

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Single Stores All Others

119,752124,516

132,424 130,659138,205 140,655

145,119 146,294 144,875 144,541 146,341148,126


Trade ChannelConvenience Store 148,126Category Killer 83,754Liquor Store 44,913Drug 38,526Supermarket/Supercenter 36,569Mass Merchandiser/Dollar 29,448Gas Station/Kiosk 22,880Superette 13,234Cigarette Outlet 9,549Wholesale Club 1,231

Total Retail 428,230

Total US Retail Universe

Source: Nielsen, TDLinx


112.0

109.3

116.2

132.1

151.1

163.6

168.5

173.9

182.4

190.4

195.0

171.0

181.3 220.8 262.6

344.2 40

5.8

408.9 450.2

328.7 385.2

486.9

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Dollars in

Billions

Inside SalesMotor Fuels Sales

Industry Sales

Source: NACS State of the Industry Survey of 2011 Data & CSX, LLC.

$681.9 Billion


Change in Annual Sales by Retail Format

‐10.0%

‐8.0%

‐6.0%

‐4.0%

‐2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2006 2007 2008 2009 2010 2011

Total Retail SalesWarehouse ClubsGrocery StoresDrug StoresRestaurantsConvenience Inside SalesDollar Stores

Source: NACS State of the Industry Survey of 2011 Data & CSX, LLC. & Department of Commerce


$3.5

$2.6

$4.0

$5.0

$5.9

$4.8

$3.5

$5.2

$4.8

$6.6

($1.0)

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.01981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Dollars in

Billions

Pretax Profit

$7.0 Billion



$3.2

$3.8

$5.4

$6.6

$7.6$8.4

$7.4

$9.0

$11.1B

$4.0

$5.0$5.9

$4.8

$3.5

$5.2 $4.8

$6.6$7.0B

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

$10.0

$11.0

$12.0

2003 2004 2005 2006 2007 2008 2009 2010 2011

Billion

s of D

ollars

Card Fees Pretax Profit

Credit Card Fees vs. Pretax Profit



$142.6$144.1 $144.0

$152.1

$157.4

$162.0

$130.0

$135.0

$140.0

$145.0

$150.0

$155.0

$160.0

$165.0

2006 2007 2008 2009 2010 2011

Dollars in

Billions

How much do we generate in taxes?



100

110

120

130

140

150

160

Feb‐91

Sep‐91

Apr‐92

Nov

‐92

Jun‐93

Jan‐94

Aug‐94

Mar‐95

Oct‐95

May‐96

Dec‐96

Jul‐9

7Feb‐98

Sep‐98

Apr‐99

Nov

‐99

Jun‐00

Jan‐01

Aug‐01

Mar‐02

Oct‐02

May‐03

Dec‐03

Jul‐0

4Feb‐05

Sep‐05

Apr‐06

Nov

‐06

Jun‐07

Jan‐08

Aug‐08

Mar‐09

Oct‐09

May‐10

Dec‐10

Jul‐1

1

Dec 2011

Gas Consumption vs. Miles DrivenFeb 1991 – Dec 2011

Source: U.S. Federal Highway Administration and U.S. Energy Information Administration

Finished Motor Gasoline (Thousand Barrels per Day) Annual Vehicle‐Distance Traveled (Billion Miles)


Motor Fuel Price Trends

$‐

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

Jan‐07

Mar‐07

May‐07

Jul‐0

7

Sep‐07

Nov

‐07

Jan‐08

Mar‐08

May‐08

Jul‐0

8

Sep‐08

Nov

‐08

Jan‐09

Mar‐09

May‐09

Jul‐0

9

Sep‐09

Nov

‐09

Jan‐10

Mar‐10

May‐10

Jul‐1

0

Sep‐10

Nov

‐10

Jan‐11

Mar‐11

May‐11

Jul‐1

1

Sep‐11

Nov

‐11

$2.79 $3.24 $2.35 $2.80 $3.52

2007 2008 2009 2010 2011

Source: OPIS


$3.33

$3.38

$3.38

$3.39

$3.46

$3.49

$3.53

$3.62

$3.74

$3.77

$3.82

$3.88

$3.91

$‐

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

1 2 3 4 5 6 7 8 9 10 11 12 13

Motor Fuel Price Trends

$‐

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

Jan‐07

Mar‐07

May‐07

Jul‐0

7

Sep‐07

Nov

‐07

Jan‐08

Mar‐08

May‐08

Jul‐0

8

Sep‐08

Nov

‐08

Jan‐09

Mar‐09

May‐09

Jul‐0

9

Sep‐09

Nov

‐09

Jan‐10

Mar‐10

May‐10

Jul‐1

0

Sep‐10

Nov

‐10

Jan‐11

Mar‐11

May‐11

Jul‐1

1

Sep‐11

Nov

‐11

2007 2008 2009 2010 2011 2012

Source: OPIS

Weeks


Snapshot 2010 2011 % Change

Store Count 146,341 148,126 1.2%

Inside Sales $190.4B $195.0B 2.4%

Fuel Sales $385.2B $486.9B 26.4%

Total Sales $575.6B $681.9B 18.5%

Pretax Profit $6.6B $7.0B 7.3%

Credit Card Fees $9.0B $11.1B 23.0%

Taxes $157.4B $162.0B 2.9%

Fuel Consumption (bbl/day) 9.13M 8.99M (1.6)%

Employees 1.60M 1.88M 17.6%

Fuel Margin (cpg) 15.8¢ 18.4¢ 2.4¢

Net of CC Fees 11.3¢ 12.1¢ 0.8¢

Key Industry Metrics

Source: Nielsen TDLinx , NACS State of the Industry Survey of 2011 Data & CSX, LLC & U.S. Energy Information Administration


Same‐Firm Sales

Per Store/Per Month 2010 2011 % Change

Total All Sales $390,499 $464,558 19.0%

Fuel Sales $336,014 $427,097 27.1%

Fuel Gallons 124,157 123,710 (0.4)%

Average Selling Price $2.71 $3.45 27.6%

In-Store Sales $125,116 $129,208 3.3%

Foodservice Sales $21,155 $23,431 10.8%

Merchandise Sales $104,979 $107,135 2.1%

Mdse Less Cigarettes $62,400 $63,804 2.3%

Cigarettes $52,546 $52,045 (1.0)%



Same‐Firm Gross Profit


Total Gross Profit $59,495 $63,411 6.6%

Fuel $20,475 $22,759 11.2%

In-Store $38,317 $39,880 4.1%

Foodservice $11,030 $11,854 7.5%

Merchandise $27,885 $28,660 2.8%

Mdse Less Cigarettes $21,228 $22,158 4.4%

Cigarettes $7,774 $7,571 (2.6)%



0.00

5.00

10.00

15.00

20.00

25.00

Jan‐09 Apr‐09 Jul‐09 Oct‐09 Jan‐10 Apr‐10 Jul‐10 Oct‐10 Jan‐11 Apr‐11 Jul‐11 Oct‐11

Breakeven CPG( [GP$ Total Motor Fuel] ‐ [Pretax Profit for Retail Operations] )/ [Gallons: Motor Fuel Total] * 100

Pool Margin net Credit Card Fees

Historically when was selling gas profitable?



Wages & Benefits


Wages & Benefits $18,381 $18,478 0.5%

Wages $14,975 $15,086 0.7%

Payroll Taxes $1,315 $1,390 5.7%

Workers Compensation $474 $476 0.5%

Health Insurance $1,167 $1,168 Flat



Core Direct Store Operating Expenses


Wages & Benefits $18,381 $18,478 0.5%

Credit Card Charges $5,418 $6,666 23.0%

Rent/Occupancy $5,162 $5,463 5.8%

Utilities $3,938 $4,022 2.1%

Repairs & Maintenance $2,920 $2,950 1.0%

Supplies $1,055 $1,080 2.4%

Total DSOE $45,851 $47,928 4.5%

Total DSOE less Card Charges $40,433 $41,262 2.0%



Core Direct Store Operating ExpensesAs a % of GP$

Per Store/Per Month 2010 2011 % Pt. Change

Wages & Benefits 30.4% 28.6% (1.8)

Credit Card Charges 9.0% 10.3% 1.3

Rent/Occupancy 7.4% 7.5% 0.1

Utilities 6.6% 6.2% (0.4)

Repairs & Maintenance 4.9% 4.6% (0.3)

Supplies 1.8% 1.7% (0.1)

Total DSOE 77.1% 75.6% (1.5)

Total DSOE less Card Charges 70.8% 68.7% (2.1)



Capital Productivity

2011 TopQuartile

2nd

Quartile3rd

QuartileBottomQuartile

Store Operating Profit $25,611 $12,967 $7,663 $3,686

Breakeven CPG 8.00 9.67 14.16 19.54

Credit Card Fees CPG 5.51 6.17 5.64 5.69

EBITDA $24,685 $12,216 $7,510 $4,108

Pretax Profit $17,452 $8,087 $2,738 $(589)

Net Profit Margin(Pretax/Sales)

2.30% 2.11% 0.49% (0.14)%

Return on Capital Employed 14.96% 10.45% 5.42% 0.52%




2011 TopQuartile

BottomQuartile Difference

Store Operating Profit $25,611 $3,686 6X

Breakeven CPG 8.00 18.98 Half

Credit Card Fees CPG 5.51 5.69 Par

EBITDA $24,685 $4,108 5X

Pretax Profit $17,452 $(589) $18,041


2.30% (0.14)% 2.44 pts

Return on Capital Employed 14.96% 0.52% 14.44 pts




Top Quartile 2010 2011 % Change

Store Operating Profit $23,585 $25,611 8.6%

Breakeven CPG 6.70 8.00 19.4%

Credit Card Fees CPG 4.08 5.51 35.0%

EBITDA $21,512 $24,685 14.7%

Pretax Profit $16,217 $17,452 7.6%


2.08% 2.30% 0.22 pts

Return on Capital Employed 14.66% 14.96% 0.30 pts



Store Operational Productivity

2011 TopQuartile

2nd

Quartile3rd


Motor Fuels Gallons Sold 181,240 96,066 145,234 105,983

Merchandise Sales $148,131 $92,213 $102,213 $69,643

Foodservice Sales $36,067 $17,905 $12,405 $9,399

In-Store GM% 30.4% 33.2% 26.1% 29.5%

Cigarette GM% 13.3% 17.6% 14.7% 16.9%

In-Store Sales/Sq. Foot $62.23 $41.54 $42.89 $32.18

DSOE/Sq. Foot $21.54 $15.28 $17.14 $17.57




2011 TopQuartile


Motor Fuels Gallons Sold 181,240 105,983 76.3%



In-Store GM% 30.4% 29.5% 1.57 pts

Cigarette GM% 13.3% 16.9% 0.28 pts

In-Store Sales/Sq. Foot $62.23 $32.18 93.3%

DSOE/Sq. Foot $21.54 $17.57 22.6%





Motor Fuels Gallons Sold 171,127 190,657 11.4%



In-Store GM% 29.8% 31.1% 1.3 pts

Cigarette GM% 13.7% 13.3% 0.4 pts

In-Store Sales/Sq. Foot $55.53 $62.23 12.1%

DSOE/Sq. Foot $16.06 $21.54 34.1%



People Productivity

2011 TopQuartile

2nd

Quartile3rd


Non-Mgr Turnover (annual) 66.9% 95.0% 82.3% 91.5%

Manager Turnover (annual) 15.8% 24.5% 21.6% 28.1%

Transactions (Avg Monthly) 47,392 28,403 31,940 27,404

In-Store Sales per Labor Hour $98.59 $96.03 $75.71 $68.46

In-Store GP$ per Labor Hour $31.08 $28.21 $21.54 $20.05

Labor Cost per Hour $14.28 $14.35 $12.01 $12.42

Wage Cost per Hour $11.30 $11.62 $9.99 $10.23

Benefits Cost per Hour $2.98 $2.73 $2.02 $2.19



People Productivity

2011 TopQuartile


Non-Mgr Turnover (annual) 66.9% 91.5% (24.3) pts

Manager Turnover (annual) 15.8% 28.1% (12.3) pts

Transactions (Avg Monthly) 47,392 27,404 74.9%

In-Store Sales per Labor Hour $98.59 $68.46 44.0%

In-Store GP$ per Labor Hour $31.08 $20.05 55.0%

Labor Cost per Hour $14.28 $12.42 15.0%

Wage Cost per Hour $11.30 $10.23 10.5%

Benefits Cost per Hour $2.98 $2.19 36.0%




Non-Mgr Turnover (annual) 60.7% 66.9% 6.2 pts

Manager Turnover (annual) 16.5% 15.8% (0.7) pts

Transactions (Avg Monthly) 46,110 47,392 2.8%

In-Store Sales per Labor Hour $105.93 $98.59 (6.9)%

In-Store GP$ per Labor Hour $30.28 $31.08 2.6%

Labor Cost per Hour $14.30 $14.28 (0.1)%

Wage Cost per Hour $11.36 $11.30 (0.5)%

Benefits Cost per Hour $2.94 $2.98 1.4%


People Productivity


Category Performance

John ZikiasSenior Vice President Category Management and Supply Chain

Thorntons Inc.


90

95

100

105

110

115

120

125

130

135

140

Jan‐09

Feb‐09

Mar‐09

Apr‐09

May‐09

Jun‐09

Jul‐0

9Au

g‐09

Sep‐09

Oct‐09

Nov

‐09

Dec‐09

Jan‐10

Feb‐10

Mar‐10

Apr‐10

May‐10

Jun‐10

Jul‐1

0Au

g‐10

Sep‐10

Oct‐10

Nov

‐10

Dec‐10

Jan‐11

Feb‐11

Mar‐11

Apr‐11

May‐11

Jun‐11

Jul‐1

1Au

g‐11

Sep‐11

Oct‐11

Nov

‐11

Dec‐11

Key Category Sales GrowthJan 2009 = 100

OTP

Cigarettes

CandyTotal Merchandise

Beer

Pack BevSalty Snacks



In‐Store Sales ContributionAverage Monthly Sales = $128,187 3.1%

Cigarettes38.09%, ‐1.4pts

Foodservice16.86%, +0.9pts

Pack Bev14.34%, +0.6pts

Beer7.27%, +0.1pts

OTP4.04%, +0.1pts

Salty 3.45%, +0.1pts

Candy2.75%, flat

Sweet 2.04%, +0.1pts

Milk1.81%, +0.1pts

Alternative1.74%, +0.1pts

All Other7.61%, ‐0.7pts



90

95

100

105

110

115

120

125

130

135

140

Jan‐09

Feb‐09

Mar‐09

Apr‐09

May‐09

Jun‐09

Jul‐0

9Au

g‐09

Sep‐09

Oct‐09

Nov

‐09

Dec‐09

Jan‐10

Feb‐10

Mar‐10

Apr‐10

May‐10

Jun‐10

Jul‐1

0Au

g‐10

Sep‐10

Oct‐10

Nov

‐10

Dec‐10

Jan‐11

Feb‐11

Mar‐11

Apr‐11

May‐11

Jun‐11

Jul‐1

1Au

g‐11

Sep‐11

Oct‐11

Nov

‐11

Dec‐11

Key Category Margin GrowthJan 2009 = 100

OTP

CigarettesCandy

Total Merchandise

Beer

Pack Bev

Salty Snacks



In‐Store GP Dollar ContributionAverage Monthly Margin = $39,880 4.1%

Foodservice29.37%, +0.9pts

Pack Bev18.42%, +0.7ptsCigarettes

18.09%, ‐1.2pts

Beer4.48%, ‐0.1pts

Candy4.44%, ‐0.1pts

Salty 4.21%, +0.2pts

OTP4.08%, +0.1pts

Alternative2.45%, flat

Sweet 2.18%, +0.2pts

Milk1.40%, ‐0.3pts

All Other10.88%, ‐0.5pts



Top Ten Merchandise Categories

Per Store/Per Month Sales $ Margin $ GM%

Cigarettes $52,045 $7,571 14.6%

Packaged Beverages $19,682 $7,748 39.4%

Beer $15,471 $2,892 18.7%

Other Tobacco $5,931 $1,843 31.1%

Salty Snacks $5,807 $2,170 37.4%

Candy $4,191 $2,031 48.5%

Packaged Sweet Snacks $3,202 $1,043 32.6%

Fluid Milk Products $2,243 $561 25.0%

Packaged Ice Cream/Novelties $2,129 $989 46.5%

General Merchandise $1,945 $714 36.7%



Next 10 Merchandise Categories


Health and Beauty Care $1,538 $796 51.8%

Alternative Snacks $1,344 $544 40.5%

Publications $1,313 $284 21.6%

Edible Grocery $1,099 $463 42.1%

Ice $920 $688 74.7%

Other Dairy $878 $371 42.3%

Automotive Products $867 $387 44.6%

Packaged Bread $792 $233 29.4%

Perishable Grocery $415 $178 42.8%

Non-Edible Grocery $411 $151 36.8%



Top Ten Merchandise Categories2011 vs. 2010

Per Store/Per MonthSales

ChangeGP$

Change

Packaged Sweet Snacks 9.3% 15.9%

Salty Snacks 7.6% 9.3%

Packaged Beverages 7.6% 8.2%

Packaged Ice Cream/Novelties 8.1% 8.2%

Candy 4.9% 7.8%

Other Tobacco 1.1% 2.8%

Beer 4.3% 2.6%

General Merchandise (3.7)% (1.2)%

Cigarettes (1.0)% (2.6)%

Fluid Milk Products (4.5)% (23.1)%



Next Ten Merchandise Categories2011 vs. 2010

Per Store/Per MonthSales

ChangeGP$

Change

Health and Beauty Care 5.6% 8.3%

Other Dairy 1.4% 6.9%

Alternative Snacks 5.5% 4.8%

Publications 2.0% 4.3%

Ice (0.7)% (2.2)%

Packaged Bread (0.9)% (4.0)%

Automotive Products (4.0)% (5.6)%

Perishable Grocery (13.2)% (7.3)%

Edible Grocery (1.8)% (7.4)%

Non-Edible Grocery (16.8)% (21.8)%



90

95

100

105

110

115

120

125

130

135

140

Jan‐09

Feb‐09

Mar‐09

Apr‐09

May‐09

Jun‐09

Jul‐0

9Au

g‐09

Sep‐09

Oct‐09

Nov

‐09

Dec‐09

Jan‐10

Feb‐10

Mar‐10

Apr‐10

May‐10

Jun‐10

Jul‐1

0Au

g‐10

Sep‐10

Oct‐10

Nov

‐10

Dec‐10

Jan‐11

Feb‐11

Mar‐11

Apr‐11

May‐11

Jun‐11

Jul‐1

1Au

g‐11

Sep‐11

Oct‐11

Nov

‐11

Dec‐11

Packaged Beverage GrowthJan 2009 = 100

GP$

Sales



Packaged Beverages Subcategory Sales

Source: Nielsen Syndicated – Convenience Tracking – Total US

CSDs38.7%, ‐1.3pts

Alternative21.1%, +1.8pts

Sports Drinks9.6%, +0.5pts

Juice/Juice Drinks

9.0%, ‐0.1pts

Bottled Water8.4%, ‐0.4pts

Iced Tea RTD5.9%, ‐0.3pts

Other Pack Bev3.9%, +0.1pts

Enhanced Water3.4%, ‐0.3pts


Packaged Beverages Syndicated Sales2011 vs. 2010

SubcategorySales

(Millions)Sales

ChangeUnits

Change

Carbonated Soft Drinks $8,146.8 2.5% 1.5%

Alternative $4,440.0 15.9% 15.3%

Sports Drinks $2,023.4 11.1% 13.9%

Juice/Juice Drinks $1,898.2 4.7% 4.8%

Bottled Water $1,777.2 1.5% 0.4%

Iced Tea RTD $1,239.5 0.3% 1.6%

Other Packaged Beverages $815.4 10.0% 7.2%

Enhanced Water $709.0 (2.7)% (3.6)%

Total $21,049.5 5.9% 4.6%



Packaged Beverages Gross Profit2011 vs. 2010

SubcategoryMonthly Average

GP$/StoreChange GM %

Carbonated Soft Drinks $2,999 4.7% 36.2%

Alternative $1,634 18.4% 42.4%

Sports Drinks $745 13.6% 39.7%

Juice/Juice Drinks $699 7.0% 41.0%

Bottled Water $654 3.7% 50.2%

Iced Tea RTD $456 2.6% 43.7%

Other Packaged Beverages $300 12.4% 34.8%

Enhanced Water $261 (0.5)% -

Total $7,748 8.2% 39.4%



Cigarettes GrowthJan 2009 = 100

90

95

100

105

110

115

120

125

130

135

140

Jan‐09

Feb‐09

Mar‐09

Apr‐09

May‐09

Jun‐09

Jul‐0

9Au

g‐09

Sep‐09

Oct‐09

Nov

‐09

Dec‐09

Jan‐10

Feb‐10

Mar‐10

Apr‐10

May‐10

Jun‐10

Jul‐1

0Au

g‐10

Sep‐10

Oct‐10

Nov

‐10

Dec‐10

Jan‐11

Feb‐11

Mar‐11

Apr‐11

May‐11

Jun‐11

Jul‐1

1Au

g‐11

Sep‐11

Oct‐11

Nov

‐11

Dec‐11

GP$

Sales



Cigarettes Subcategory Sales

Source: Symphony IRI AllScan Convenience Service – Total US &NACS State of the Industry Survey of 2011 Data & CSX, LLC.

Premium90.5%, +0.6pts

Branded Discount4.6%, ‐0.5pts

Sub‐Gen/Private Label

4.2%, ‐0.1pts

Fourth Tier0.7%, flat

Imports>0.1%, flat


Cigarettes Syndicated Sales2011 vs. 2010

Source: Symphony IRI AllScan Convenience Service – Total US

SubcategorySales

(Millions)Sales

ChangeUnits

Change

Premiums $48,617.4 1.8% 0.2%

Branded Discount $2,471.2 (8.8)% (9.9)%

Sub-Gen/Private Label $2,256.3 (1.3)% 2.2%

Fourth Tier $376.0 1.1% (4.7)%

Imports $21.5 (19.1)% (9.7)%

Total $53,742.4 1.1% (0.3)%


Cigarettes Gross Profit2011 vs. 2010

Subcategory Monthly GP$/Store Change GM%

Premiums $6,852 (1.9)% 15.3%

Branded Discount $348 (12.1)% 15.7%

Sub-Gen/Private Label $318 (4.9)% 14.4%

Fourth Tier $53 (2.6)% 13.8%

Imports N/A N/A 14.6%

Total $7,571 (2.6)% 14.6%



OTP GrowthJan 2009 = 100

90

95

100

105

110

115

120

125

130

135

140

Jan‐09

Feb‐09

Mar‐09

Apr‐09

May‐09

Jun‐09

Jul‐0

9Au

g‐09

Sep‐09

Oct‐09

Nov

‐09

Dec‐09

Jan‐10

Feb‐10

Mar‐10

Apr‐10

May‐10

Jun‐10

Jul‐1

0Au

g‐10

Sep‐10

Oct‐10

Nov

‐10

Dec‐10

Jan‐11

Feb‐11

Mar‐11

Apr‐11

May‐11

Jun‐11

Jul‐1

1Au

g‐11

Sep‐11

Oct‐11

Nov

‐11

Dec‐11

GP$

Sales



OTP Subcategory Sales


Smokeless59.8%, +2.2pts

Cigars34.1%, ‐2.0pts

Papers3.7%, ‐0.1pts

Pipe Cig Tobacco2.3%, ‐0.1pts

Other Tobacco0.1%, flat


OTP Syndicated Sales 2011 vs. 2010


SubcategorySales

(Millions)Sales

ChangeUnits

Change

Smokeless $3,993.6 7.6% 4.7%

Cigars $2,272.3 (2.0)% 2.3%

Papers $244.6 1.2% (0.1)%

Pipe/Cigarette Tobacco $151.8 (2.0)% 0.3%

Other Products & Pipes $4.8 0.1% (6.4)%

Total $6,667.1 3.6% 3.1%


OTP Gross Profit2011 vs. 2010

Subcategory Monthly GP$/Store Change GM%

Smokeless $1,104 6.7% 28.5%

Cigars $628 (2.8)% 34.1%

Papers $68 0.3% 53.1%

Pipe/Cigarette Tobacco $42 (2.9)% 39.7%

Other Products & Pipes $1 flat 35.8%

Total $1,843 2.8% 31.1%



Beer GrowthJan 2009 = 100

90

95

100

105

110

115

120

125

130

135

140

Jan‐09

Feb‐09

Mar‐09

Apr‐09

May‐09

Jun‐09

Jul‐0

9Au

g‐09

Sep‐09

Oct‐09

Nov

‐09

Dec‐09

Jan‐10

Feb‐10

Mar‐10

Apr‐10

May‐10

Jun‐10

Jul‐1

0Au

g‐10

Sep‐10

Oct‐10

Nov

‐10

Dec‐10

Jan‐11

Feb‐11

Mar‐11

Apr‐11

May‐11

Jun‐11

Jul‐1

1Au

g‐11

Sep‐11

Oct‐11

Nov

‐11

Dec‐11

GP$

Sales



Beer Subcategory Sales


Premium53.7%, ‐0.8pts

Budget12.7%, flatPopular

11.1%, flat

Imports9.6%, +0.2pts

Flavored Malt4.4%, +0.1pts

Super Premium3.7%, +0.3pts

Malt Liquor2.6%, ‐0.1pts

Micro2.1%, +0.3pts

Non‐Alcoholic0.1%, flat


Beer Syndicated Sales2011 vs. 2010

SubcategorySales

(Millions)Sales

ChangeUnits

Change

Premium $8,283.8 (1.2)% (2.9)%

Budget $1,955.3 0.1% (0.7)%

Popular $1,716.5 0.6% flat

Imports $1,482.4 2.4% 1.8%

Flavored Malt $674.6 1.4% (0.5)%

Super Premium $571.5 10.6% 12.2%

Malt Liquor $402.9 (4.0)% (6.3)%

Micro $329.5 13.9% 16.1%

Non-Alcoholic Beer $12.7 (11.2)% (14.6)%

Total $15,429.2 0.2% (1.4)%



Beer Gross Profit2011 vs. 2010



Premium $1,552 1.1% 20.1%

Budget $367 2.5% 21.5%

Popular $322 3.0% 19.0%

Imports $278 4.8% 18.0%

Flavored Malt $126 3.8% 23.2%

Super Premium $107 13.2% 25.1%

Malt Liquor $76 (1.8)% 26.4%

Micro $62 16.6% 27.1%

Non-Alcoholic Beer $2 (9.1)% 28.7%

Total $2,892 2.6% 18.7%



90

95

100

105

110

115

120

125

130

135

140

Jan‐09

Feb‐09

Mar‐09

Apr‐09

May‐09

Jun‐09

Jul‐0

9Au

g‐09

Sep‐09

Oct‐09

Nov

‐09

Dec‐09

Jan‐10

Feb‐10

Mar‐10

Apr‐10

May‐10

Jun‐10

Jul‐1

0Au

g‐10

Sep‐10

Oct‐10

Nov

‐10

Dec‐10

Jan‐11

Feb‐11

Mar‐11

Apr‐11

May‐11

Jun‐11

Jul‐1

1Au

g‐11

Sep‐11

Oct‐11

Nov

‐11

Dec‐11

Salty Snacks GrowthJan 2009 = 100

GP$

Sales



Salty Snacks Subcategory Sales

Potato Chips28.0%, +0.4pts

Tortilla Corn Chips

15.8%, ‐0.4pts

Other Salty Snacks

15.5%, +0.1ptsNuts/Seeds

13.3%, +0.4pts

Puffed Cheese8.4%, ‐0.4pts

Crackers5.8%, ‐0.1pts

Mixed5.5%, +0.1pts

Pretzels4.2%, +0.1pts

Ready Popcorn3.5%, ‐0.1pts



Salty Snacks Syndicated Sales2011 vs. 2010

SubcategorySales

(Millions)Sales

ChangeUnits

Change

Potato Chips $1,223.7 8.4% 4.3%

Tortilla Corn Chips $689.6 4.3% (1.5)%

Other Salty Snacks $676.9 7.8% 3.0%

Nuts/Seeds $579.9 10.0% 5.0%

Puffed Cheese $364.6 2.3% (4.8)%

Crackers $252.7 4.7% (4.7)%

Mixed $239.6 9.8% 6.2%

Pretzels $183.5 8.8% 2.3%

Packaged Popcorn $150.5 5.4% (1.0)%

Total $4,361.0 7.1% 1.5%



Salty Snacks Gross Profit2011 vs. 2010



Potato Chips $609 10.7% 39.7%

Tortilla Corn Chips $343 6.4% 35.9%

Other Salty Snacks $337 10.0% -

Nuts/Seeds $289 12.3% 40.0%

Puffed Cheese $181 4.4% -

Crackers $126 6.8% 41.9%

Mixed $119 12.0% -

Pretzels $91 11.0% 35.7%

Packaged Popcorn $75 7.6% 38.0%

Total $2,170 9.3% 37.4%



90

95

100

105

110

115

120

125

130

135

140

Jan‐09

Feb‐09

Mar‐09

Apr‐09

May‐09

Jun‐09

Jul‐0

9Au

g‐09

Sep‐09

Oct‐09

Nov

‐09

Dec‐09

Jan‐10

Feb‐10

Mar‐10

Apr‐10

May‐10

Jun‐10

Jul‐1

0Au

g‐10

Sep‐10

Oct‐10

Nov

‐10

Dec‐10

Jan‐11

Feb‐11

Mar‐11

Apr‐11

May‐11

Jun‐11

Jul‐1

1Au

g‐11

Sep‐11

Oct‐11

Nov

‐11

Dec‐11

Candy GrowthJan 2009 = 100

GP$

Sales



Candy Subcategory Sales

Chocolate Bars35.6%, +1.0pts

Gum23.7%, ‐2.1pts

Bag Repack Peg17.9%, +0.6pts

Non‐Chocolate Bars

8.4%, +0.2pts

Novelties, Seasonal

7.5%, +0.3pts

Rolls, Mints, Drops6.9%, flat



Candy Syndicated Sales2011 vs. 2010

SubcategorySales

(Millions)Sales

ChangeUnits

Change

Chocolate Bars $1,788.7 8.8% 1.5%

Gum $1,191.2 (2.9)% (5.1)%

Bagged, Repacked Peg Candy $902.6 9.8% 0.6%

Non-Chocolate Bars $421.4 8.7% (0.8)%

Novelties, Seasonal $376.1 10.1% 2.2%

Rolls, Mints, Drops $348.8 5.6% (1.0)%

Total $5,028.8 5.8% (0.5)%



Candy Gross Profit2011 vs. 2010



Chocolate Bars $722 10.8% 50.4%

Gum $481 (1.1)% 53.9%

Bagged, Repacked Peg Candy $365 11.8% 49.9%

Non-Chocolate Bars $170 10.7% 43.7%

Novelties Seasonal $152 12.2% 54.9%

Candy Rolls, Mints, Drops $141 7.5% 54.9%

Total $2,031 7.8% 49.6%



90

100

110

120

130

140

150

160

Jan‐09

Feb‐09

Mar‐09

Apr‐09

May‐09

Jun‐09

Jul‐0

9Au

g‐09

Sep‐09

Oct‐09

Nov

‐09

Dec‐09

Jan‐10

Feb‐10

Mar‐10

Apr‐10

May‐10

Jun‐10

Jul‐1

0Au

g‐10

Sep‐10

Oct‐10

Nov

‐10

Dec‐10

Jan‐11

Feb‐11

Mar‐11

Apr‐11

May‐11

Jun‐11

Jul‐1

1Au

g‐11

Sep‐11

Oct‐11

Nov

‐11

Dec‐11

Foodservice Sales GrowthJan 2009 = 100

Frozen Dispensed

Cold Dispensed

Hot DispensedCommissary/Pack Sandwich

Total Foodservice

Prepared Food



90

100

110

120

130

140

150

160

Jan‐09

Feb‐09

Mar‐09

Apr‐09

May‐09

Jun‐09

Jul‐0

9Au

g‐09

Sep‐09

Oct‐09

Nov

‐09

Dec‐09

Jan‐10

Feb‐10

Mar‐10

Apr‐10

May‐10

Jun‐10

Jul‐1

0Au

g‐10

Sep‐10

Oct‐10

Nov

‐10

Dec‐10

Jan‐11

Feb‐11

Mar‐11

Apr‐11

May‐11

Jun‐11

Jul‐1

1Au

g‐11

Sep‐11

Oct‐11

Nov

‐11

Dec‐11

Foodservice GP$ GrowthJan 2009 = 100

Frozen Dispensed

Cold Dispensed

Hot Dispensed

Commissary/Pack Sandwich

Total Foodservice

Prepared Food



Foodservice2011


All Prepared Food $20,257 $11,008 54.3%

Hot Dispensed Beverage $5,824 $3,601 61.8%

Cold Dispensed Beverage $3,975 $2,099 52.8%

Packaged Sandwiches $1,396 $514 36.9%

Frozen Dispensed Beverage $796 $439 55.2%



Foodservice Sales and Margin Change2011 vs. 2010

Per Store/Per Month Sales % Change

GP %Change

Cold Dispensed Beverage 12.3% 14.9%

All Prepared Food 13.0% 13.8%

Packaged Sandwiches (9.5)% (3.0)%

Hot Dispensed Beverage (3.5)% (7.3)%

Frozen Dispensed Beverage (3.3)% (7.4)%



Category SalesBy Quartile (Store Operating Profit)

2011 TopQuartile

2nd

Quartile3rd


Cigarettes $74,535 $33,533 $41,770 $28,608

Packaged Beverages $25,738 $16,230 $15,361 $11,781

Beer $16,665 $13,360 $14,671 $10,518

Other Tobacco Products $6,902 $5,224 $6,610 $3,697

Candy $4,591 $3,775 $3,797 $2,976

Salty Snacks $6,769 $4,182 $2,792 $2,606

Prepared Food $28,293 $8,214 $9,328 $10,055

Hot Dispensed Beverages $9,327 $2,438 $2,665 $2,063

Cold Dispensed Beverages $4,741 $3,883 $2,836 $1,637



Category SalesBy Quartile (Store Operating Profit)

2011 TopQuartile


Cigarettes $74,535 $28,608 2.5X

Packaged Beverages $25,738 $11,781 2X

Beer $16,665 $10,518 1.5X

Other Tobacco Products $6,902 $3,697 2X

Candy $4,591 $2,976 1.5X

Salty Snacks $6,769 $2,606 2.5X

Prepared Food $28,293 $10,055 3X

Hot Dispensed Beverages $9,327 $2,063 4.5X

Cold Dispensed Beverages $4,741 $1,637 3X



Gross ProfitBy Quartile (Store Operating Profit)

2011 TopQuartile

2nd

Quartile3rd


Cigarettes $9,909 $5,910 $6,140 $4,844

Packaged Beverages $10,026 $6,566 $5,704 $4,437

Beer $3,107 $2,572 $2,428 $2,109

Other Tobacco Products $2,024 $1,822 $1,891 $1,105

Candy $2,179 $1,981 $1,789 $1,488

Salty Snacks $2,537 $1,551 $994 $878

Prepared Food $15,630 $4,094 $4,971 $4,999

Hot Dispensed Beverages $6,040 $1,208 $1,121 $876

Cold Dispensed Beverages $2,553 $1,952 $1,256 $660



Gross ProfitBy Quartile (Store Operating Profit)

2011 TopQuartile


Cigarettes $9,909 $4,844 2X

Packaged Beverages $10,026 $4,437 2X

Beer $3,107 $2,109 1.5X

Other Tobacco Products $2,024 $1,105 2X

Candy $2,179 $1,488 1.5X

Salty Snacks $2,537 $878 3X

Prepared Food $15,630 $4,999 3X

Hot Dispensed Beverages $6,040 $876 7X

Cold Dispensed Beverages $2,553 $660 4X



Other Income

Per Store/Per Month 2010 2011

Car Wash $2,275 $3,989 75.4%

Lottery/Lotto: Commissions $1,348 $1,540 14.3%

ATM Revenue $788 $852 8.2%

Motor Fuel Image Allowance $837 $519 (38.0)%

Check Cashing $359 $344 (4.2)%

Other Prepaid Cards $134 $280 108.8%

Shower/Laundry $231 $240 4.2%

Other Automotive Services $143 $194 36.1%

Prepaid Telecommunications $222 $180 (19.1)%



Non‐Fuel GP$

Per Store/Per Month 2010 2011 % ChgPrepared Food $17,924 $20,257 13.0%Packaged Beverages $7,158 $7,748 8.2%Cigarettes $7,774 $7,571 ‐2.6%Hot Dispensed Beverage $6,035 $5,824 ‐3.5%Car Wash $2,275 $3,989 75.4%Cold Dispensed Beverage $3,539 $3,975 12.3%Beer $2,820 $2,892 2.6%Salty Snacks $1,986 $2,170 9.3%Candy $1,885 $2,031 7.8%Other Tobacco $1,794 $1,843 2.8%Lottery $1,348 $1,540 14.3%Packaged Sandwiches $1,542 $1,396 ‐9.5%Packaged Sweet Snacks $900 $1,043 15.9%Packaged Ice Cream/Novelties $914 $989 8.2%ATM $788 $852 8.2%Health and Beauty Care $736 $796 8.3%



Inside Wrap Up• Tobacco is 42% of sales and 22% of GP$• Beer growth has slowed, but still up• Packaged Beverages back on top

– CSD continues to soften– Energy & Sports growing

• Candy growth steady, strong GM% contributor• Salty snacks…growth driven by potato chips• Grocery is becoming less important to the channel• Foodservice grew; driven by prepared food and fountain• Top Quartile: 2x everyone else in most categories, but 7x in hot

dispensed beverage sales and nearly 4x in cold• Trends in fuel, tobacco and other categories mean we need to

think of other income


nacs summit 2012 data till 2011

Documents

nielsensyndicated

hot dispensed

cold dispensed

hour wage

repacked peg

hour benefits

capital employedthe

card chargesthe