Jefferies says C-store traffic turns positive in October despite weak food sales

Convenience store foot traffic rose by 0.3% year-over-year in October, the second consecutive month of improvement, according to Jefferies. Despite higher gas prices, foot traffic turned positive. However, food sales remained weak, with most top categories posting year-over-year declines. Total volumes dropped by 12.5% in the last three months, compared to 10% in the last six months.

Murphy USA explained that its core lower-income customers are selective but resilient during tougher times, absorbing higher fuel costs by cutting back in other areas. Same-store gallons were slightly positive, with customers opting for regular fuel and switching from pricier competitors. Performance nutrition shakes saw a 21% sales increase over the last three months, driven by a 22% volume growth.

Chocolate sales continued to decline, falling 5.5% in the last three months and 2% over six months, with volume drops of 12.5%. Multi-serve pizzas led volume declines, followed by chocolate, meat snacks, ice cream, and confections. Non-alcoholic beverages improved by 0.7% year-over-year, bolstered by energy drinks, which rose 6.6%. Beer sales fell by 4.4% in the last three months.