OT: Not manufacturing, or necessarily important, but something I've noticed

In my area, there has been over the last several years a noticeable closure of convenience stores. My theory is that since fuel has gotten so costly, that cost-consious customers are passing the higher priced stores by and they don't survive. I've had it told to me by store owners that fuel isn't really a money maker, but something to get folks to stop in and buy hot dogs, cokes, etc, which is where the profits are made. Comments?

Thanks,

Richard

At most convenience stores I have been it, it seems to be mostly people going to or from work. Maybe there are less people with jobs?

Also, it seems like grocery stores are selling everything that convenience stores sell. The Martins grocery store down the road sells gasoline. And they sell doughnuts, sandwiches, single drinks, magazines and such. Everything that the seven eleven sells, except maybe beer. But the Sheetz store in town still does quite a business.

I have an uncle that absolutely cannot pass by a Sheetz store without stopping. He generally has to buy a drink. Sheetz seems to be doing better than 7/11, from my observations. I can't believe people will spend that much for coffee, hot chocolate and cookies.

Pay at the pump - if you don't have to go in, you can't be tempted to get a sandwich and a soda at the same time.

Richard:

This post is wayyy OT, but it looks like good clean fun. I hope I get forgiveness by letting it run.

Your situation may be regional. Convenience stores in this neck of the woods are doing all right.

7-11 may have problems down the pike ig they don't change from being just 7-11's, however. Sheetz and one or two other gas-convenience stores (I think one of them is Liberty) are opening up stores with over 10,000 sq. ft. area. They will have all of their normal features with the addition of full scale eat-in restaurants with wide ranging menus.

It is a young generation modern thing. They ain't gas stations or truck stops. They ain't road side diners and they ain't restaurants in the normal sense. Maybe some 21 year old will come up with a name for them.

The 7-11 here in town is still doing the 7-11 thing, the Sheetz down on the main drag is going great guns and so it the Roc's a half mile South of here. Neither of these shops have been enlarged (yet).

I think the Sheetz in Berkeley Springs is a hoot (and a bit dangerous at night). It is The Breakfast Club and the Lunchwagon of the construction set. You don't need a spectrometer or a densitometer to run a color match on the necks present. Fortunately the Sheetz is South of the tourist trap section of this Town of Last Resort.

AC&T Petroleum (Sheetz) and Holtzman (Liberty) know the Next Big Thing in American commerce in the Cumberland and Shennendoah valleys. They are jumping on it and doing all right.

Well, I think I should have noted these are independents that have closed here. Right off, I'm thinking of about six within 10 miles of me. Yes, there are some doing really well. I think it's a shakeout, and road construction has changed (and still is) the strategic value of some locations. Still, seems a bit strong. Thanks, Jimk, for not giving this thread the axe.

Richard

Are you lamenting the passing? If so, why? If the comment is on the economics of gas marketing, I believe you are correct (have read it in several reputable magazines) that at the chain "convenience" & "gas plaza" stores, gas is often sold at a slight loss in order to induce people to stop & pig out on salty, fat laden food-like substances, candy, carbonated sugar water, and buy lottery tickets, where the profits are super-sized to make up.

It's like someone posted on another machining topic. You want to make your money on peoples' wants, for which cost is no object if the money is in their pockets or can be borrowed; vs selling to their needs (the gas) where they will fight, whine, snivel, and if possible run a tab & delay payment.

smt

FWIW, I uderstand that 7-11 is owned by a Japanese outfit now. Also I understand that in Japan 7-11 is going great guns as a to-from shipping store, sort of a "will call" UPS store.

I've heard that one reason gasoline is the same price at all the stations in the area is because of the inside store traffic. If one marks down the fuel, he will get most of the traffic until the tanks are empty, then he is out and gets NO store traffic. Likewise, if his prices for fuel are high, he gets almost no store traffic.

The two 7-11 stores close to me were replaced by specialty markets -- one Asian, the other Mexican. There are still several gasoline+ shops in the area, but convenience to traffic is all important. Lottery ticket sales are big revenue sources for some of the stores, also.

Charles

I am curious, I have lived in Southern California
my whole life, since 1961. When I was very
young living in the desert Circle K's were
all over the place and I don't even think 7-11
was around or too small to be noticed. Now
Circle K's are few and far between, and there is
a 7-11 on every corner. Did Circle K take a
strong hold in other states or are they all
about gone?

Traffic patterns alter where these stores thrive. Many of the old convience stores on roadways that are now less traveled are closing. However, on the busy roadways, the converse effect takes place. This is the story around where I live.

Convenience stores are a magnet for hijackers. I never go there because I don't want to be there when the place gets shot up.
Wouldn't you think a place expecting robbers would put in better cameras? I don't know how they identify anybody from the pictures I see on the news.

Another reason some of them are closing is it takes alot more to fill there tanks up, and there just is not enough money in a small chain or mom, pop store to come up with the extra it takes them these days. I know margins are not very much on the gas and there margins percentage wise in alot of cases are less with the gas prices being higher now. Plus like someone above said pay at the pump keeps alot of people from going in and buying there over priced stuff inside.

Thanks for bearing with this non-related topic. Even though I'm not ever planning to be in the convenience store business, I keep up with plain-to-see trends and like to get and idea why they are happening.

Richard