Reporting the highest growth in sales of beverages over the Memorial Day weekend in three years, retailers in the United States have expressed their optimism that convenience store traffic is likely to grow in almost double digits this summer.
The total sales of beverages in convenience stores rose by almost 5 per cent over the Memorial Day weekend, states a convenience store retailer survey Beverage Buzz, conducted by Well’s Fargo Securities. This 5 per cent rise is compared to the 3.6 per cent hike in growth in 2014 and the 1.7 per cent rise in the year before that.
Bonnie Herzog, an analyst with Wells Fargo, presented a summary of the survey results. She stated that according to their findings, the impressive in store sales that were reported can be attributed to increased customer traffic, significantly lower gas prices compared to last year, and favorable macro conditions. Bonnie Herzog also stated that the company believes that this strong sales of in store beverages is a good sign for both beverage manufacturers as well as convenience store retailers for the second quarter of this year.
So far in the second quarter, beverage sales have risen 6 per cent in convenience stores, the survey has indicated. Coca Cola leads the segment at present, followed by Red Bull and Gatorade. Over 80 per cent of the retailers who were surveyed said that lower gasoline prices and a subsequent economic confidence have been responsible for the growth of this segment.
Bonnie Herzog went on to add that one retailer reported that consumers have been feeling confident and good, which has resulted into more upgrades and purchases. In terms of consumer traffic, retailers projected a 9 per cent hike this summer.