How Gas Prices Affect In-Store Sales

Over the past year, one of the most prominent storylines in economics and personal finance has been the rising cost of gasoline. While gas prices were relatively low throughout the pandemic, 2021 and 2022 saw dramatic price increases, with some areas experiencing costs above $5 per gallon. This cost increase has also impacted convenience stores, many of which sell gas. While many think most of a c-store's profits are at the pump, the truth is quite the opposite. Most revenue comes from getting consumers inside the store to purchase foods and beverages.

Why Gas Prices Affect C-store Food Sales

Gas station convenience stores account for a large portion of a gas station's overall profitability. In the past year, there's been a continued downward trend in c-store food sales. There are various reasons why c-store sales are declining due to increased gas prices.

Consumers Need to Reduce Expenses

Consumers are looking for any way possible to reduce their expenses. One thing that many start with is discretionary purchases, such as those made at gas station convenience stores. Consumers will either opt to avoid snacks or bring their own from home.

Blame Placed on Gas Stations

Some consumers may blame gas stations for the high prices. While gas stations do not have much control over the price of gasoline, consumers may not understand and choose to spend their money at other establishments. As a result, consumers are less likely to put as much gas into their tank at a time and won't go inside to make additional purchases. 

Enhance The Consumer Experience, Increase Sales

As it is clear that high gas prices are here to stay, finding ways to increase c-store sales during this time will be significant. While normalization of high prices can help, there are other ways a c-store can increase sales by improving the overall customer experience.

One solution is adding more options to the product line, including more cold grab n' go food options. Providing grab n' go options lets customers make one less stop at the grocery store if they're looking for a breakfast, lunch, or dinner option. Convenience stores can also offer discounts or promotions to help entice customers to enter the store. Frequent buyer programs and discounts for purchasing gasoline with cash are simple ways to bring foot traffic inside a c-store.

Keep Food Sales Strong And Safe With Polarcraft By RDT

It is clear today that c-store owners and managers must take the proper steps and precautions to manage their food sales. This includes ensuring that their food and beverage cooling and other equipment is in good condition and working well. As food sales make up as much as 70% of all gas station profits, this equipment could be considered more important than the outdoor fuel pumps.

When managers are looking for new refrigeration equipment for their c-store, the options provided by Polarcraft are ideal. Offering high-quality condensing units that are built to last, equipment by Polarcraft by RDT delivers reliable, affordable alternatives to c-stores to help build their profits. 

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Interested in learning more about how Polarcraft can help your convenience store's profits? Click below to learn more.