6 minute read
Fuel Retailers’ Message to President: Look in the Mirror
from CSN-0822
by ensembleiq
FIRST, IT WAS PUTIN. Then, Big Oil. Now, he’s blaming fuel retailers for high gas prices.
“He,” of course, is President Biden whose recent message to gas station owners was “bring down the prices you are charging at the pump to reflect the cost you’re paying for the product.”
Does he even believe his own words? Doesn’t he have one aide who can enlighten him on how gas prices work?
For more than a decade, Convenience Store News has been reporting on how convenience and petroleum retailers have been shifting their focus to higher margin in-store products, especially fresh food offerings, to offset the continuing decline in profits they earn from motor fuels and cigarettes. As pump prices climb, that profit margin on fuel gets even smaller. High gas prices actually hurt convenience store retailers because consumers will make fewer trips to fill their tanks and spend less inside the store.
Retailers I’ve spoken with don’t understand why Biden is attacking gas stations, two-thirds of which are owned or run by an entrepreneur or family who operates a single store. Many of them are ethnic minorities trying to achieve the American Dream. Big Oil, Biden’s other boogeyman, owns less than 5 percent of all the gas stations in the country.
Jeff Bezos, no right-wing conservative, called Biden’s attack on gas stations as “either straight ahead misdirection or a deep misunderstanding of basic market dynamics.”
Putting politics aside, convenience/petroleum retailers should look for ways to help struggling consumers. U.S. households are now spending the equivalent of $5,000 a year on gasoline, up from $2,800 a year ago, according to Yardeni Research.
Altoona, Pa.-based Sheetz Inc. recently dropped its prices at the pump on Unleaded 88 and E85 for a limited time through July 4 to help drivers save money. Retailers can use their loyalty programs to reward frequent customers with cents off a gallon of fuel — several are already doing so. And I’m sure we’ll see other promotions that tie in-store purchases into discounts on gas.
As I write this, fuel prices appear to be moderating slightly. The Fed’s move to increase interest rates also appears to be slowing inflation, which is good as long as it doesn’t trigger another housing crash or recession. The convenience store industry has weathered worse times than this.
There are many reasons behind the sharp rise in fuel prices. Biden should look at his own anti-petroleum policies for contributing to today’s gas price hike. Don’t make convenience stores your scapegoat, Mr. President.
For comments, please contact Don Longo, Editorial Director Emeritus, at dlongo@ensembleiq.com.
COVER STORY PAGE 30 88
FEATURES
COVER STORY
30 Paying It Forward This year’s record class of Top Women in Convenience honorees illustrates how the industry is evolving to better recognize and cultivate female talent.
MIDYEAR REPORT CARD
88 A Mixed Bag The current challenges facing the c-store industry — from inflation to supply chain issues to high gas prices — are impacting key product categories in varied ways.
NACS SHOW PREVIEW
92 It’s ‘Full Speed Ahead’ for Convenience Store Retailers The 2022 NACS Show is ready to help the industry innovate and find new ideas.
92
DEPARTMENTS
EDITOR’S NOTE
3 Moving in the Right Direction Women keep rising up the ranks in the convenience channel in increasing numbers.
VIEWPOINT
4 Fuel Retailers’ Message to President: Look in the Mirror Gas station owners are not to blame for high gas prices, but they can help struggling consumers. 10 CSNews Online
22 New Products
INSIDE THE CONSUMER MIND
110 A Tasty Option Convenience store foodservice is grabbing the attention of more consumers.
22
12
INDUSTRY ROUNDUP
12 MAPCO Revamps Its C-store Concept 14 Eye on Growth 14 Fast Facts
16 Retailer Tidbits
18 Supplier Tidbits
84
CATEGORY MANAGEMENT
FOODSERVICE
80 The Challenge of Doing More With Less C-stores can’t give up on expanding and enhancing their prepared food and beverage programs even during periods of extreme opposition.
TECHNOLOGY
84 Capturing the Mobile Customer Consumers are bombarded with digital messages today, so c-stores must find ways to stand out.
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Convenience Store News (ISSN 0194-8733; USPS 515-950) is published 12 times per year, monthly, by EnsembleIQ, 8550 W. Bryn Mawr Ave., Ste. 200, Chicago, IL 60631. Subscription rates: Subscription rate in the United States: $125 one year; $230 two year; $14 single issue copy; Canada and Mexico: $150 one year; $270 two year; $16 single issue copy; Foreign: $170 one year; $325 two year; $16 single issue copy; Digital One year, digital $87; two year, $161. Periodical postage paid at Chicago, IL 60631, and additional mailing addresses. Copyright 2022 by EnsembleIQ. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or information storage and retrieval system, without permission in writing from the publisher. Reprints, permissions and licensing, please contact Wright’s Media at ensembleiq@wrightsmedia.com or (877) 652-5295. POSTMASTER: send address changes to Convenience Store News, 8550 W. Bryn Mawr Ave. Ste. 200, Chicago, IL 60631.
