Wet Weather Impacts C-store Business
NEW YORK -- Poor weather conditions presented an extra challenge for convenience store retailers during the third quarter, according to a preview report by Wells Fargo Securities LLC. Key markets for Susser Holdings Corp., The Pantry Inc. and Casey's General Stores Inc. in particular saw 215 percent more rainfall compared to the same time period last year.
Additionally, Casey's markets saw nearly 300 percent more rainfall compared to Q3 2012, while The Pantry saw 50 percent more.
While the rainy weather likely contributed to softer-than-usual, same-store sales, the clouds had a silver lining. "For [Casey's], we believe rain is beneficial to pizza delivery," said Bonnie Herzog, managing director, beverage, tobacco and convenience store research. "Thus [Casey's] should post strong prepared food and grocery same-store sales."
Wells Fargo also expects results showing a solid quarter from Susser due to its fuel margins and strong execution of merchandising efforts. Similarly, The Pantry's merchandising initiatives should help drive long-term improvements in same-store sales of merchandise, despite lower traffic due to the rain, according to the report.