Intevacon continues to grow each month in the number of customers who use our system and enjoy the benefits of a proprietary fleet card and prepaid card. It looks like the industry in general is growing as well. A Nielson study was published recently stating that the U.S. convenience store count increased by 1.4% in 2013, adding 2,062 stores.1,2 Probably even more striking, the convenience store industry has doubled in size over the last three decades. 1,2 This is not totally surprising considering that consumers increasingly view convenience stores as more than just an opportunity to purchase fuel. Convenience stores satisfy the demands of on-the-go consumers with their ever-expanding product lines, from fresh foods to a myriad of beverages. In total, convenience stores comprise 34.3% of all retail outlets according to Neilson. 1,2 Of these convenience stores, 62.8% of them are managed by single-store operators. 1,2
More good news for the convenience store industry—a study from Sageworks indicates that 2013 was a strong year for fuel profits at privately held gas stations, with net profits rising almost 3% on average.3 While this is a great trend, the study also noted that privately held gas station owners experienced very little profit from each gallon of gas because the margins tend to be so thin after factoring in the original wholesale cost, taxes, and swipe fees. 3 As a contrast, convenience store retailers have a lower net profit margin on average than most retailers, with the average privately held company across all industries averaging more than 8% net profit margin. 3 This low net profit margin experienced by marketers is yet another reason why Intevacon is excited to be growing. We are able to offer an innovative and dependable system to our marketers without the high transaction fees that are typically associated with standard credit cards. We succeed when our marketers succeed, and that is why we have created a pricing structure that allows for higher margins and keeps the marketer in control of his/her customers.
The convenience store industry comprises an invaluable place in our society. Intevacon is proud to offer alternative payment solutions to our marketers, both in the form of fleet cards and prepaid cards. We enjoy growing relationships throughout the industry, and we aim to support our customers through all of their successes with a system that is both flexible and innovative to their needs.
“Convenience Store Count Tops 149,000.” NACS. January 2014. Web. January 2014. http://www.nacsonline.com/News/Daily/Pages/ND0123132.aspx#.Uuqzt_uYV6s
“Convenience Store Industry Adds More Than 2,000 Stores.” CSP.net. January 2014. Web. January 2014. http://www.cspnet.com/industry-news-analysis/corporate-news/articles/convenience-store-industry-adds-more-2000-stores
“Fewer Expenses, Bigger Margins in 2013.” CSP.net. January 2014. Web. January 2014. http://www.cspnet.com/fuels-news-prices-analysis/fuels-analysis/articles/fewer-expenses-bigger-margins-2013