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Diving Briefs:
- According to a survey by Goldman Sachs, C-Store retailers expect to increase 3.7% this year to 3.7%.
- Energy beverages were the stars of Show for the second quarter, and retailers reported one -quarter of the fourth consecutive growth and expected that the category would increase 12% over a year. In 2024, energy drink sales increased 6%.
- Traffic remained a slight drop over one year in the second quarter. However, retailers expect traffic to increase 1.1% over the year, which is a significant profit of the last quarter, when traffic will be flat for one year.
Dive Insights:
Goldman Sachs’s report said that it was a “many improved weather trend” that increased traffic during the July 4th vacation. The lower gas price also promoted the summer trip for the C-Store to capitalize.
But the report said, “Challenging and volatile macroscopic environment remains a realm of concern.” US Consumer Confidence Index 2% rose In July, the recession was lower than last year’s level and the economic downturn was not yet out of the table.
According to the report, the big winner of the energy drink during the quarter included Red Bull and Ghost, which increased sales to two digits every year in the second quarter, and Alani Nu, which increased 45%. MONSTER has gained 8% by strongly firing the Ultra Vice Guava flavor.
Prime continued to fall with a 15%decrease, and retailers expect the influential Jake Paul’s beverage line to continue.
Retailers also expect manufacturers’ promotional activities to slow down compared to last quarter, and 3/4 expects manufacturers to raise prices later this year.
Goldman Sachs surveyed about 37,000 C stores or representatives representing about one -quarter of the US industry for this report.
