The June Skuup - Summer Stock Up!
We are kicking off the summer with our data analyst, Sid Toriggino, as we cover this month’s convenience retail trends!
1. Relentless Gas Prices
As June temperatures are on the rise, so are gas prices, which means costly days ahead for summer road trip plans. Regular fuel prices are up over 11% from a month ago and up 40% from $3.23 to $4.52 since the beginning of the year.
2. Going Mach 10 into Summer after Memorial Day
The Memorial Day holiday gave huge boosts to merchandise sales as customers stocked up for their weekend BBQs. Saturday saw 5% higher merchandise sales than the previous weekend, while Sunday set a huge milestone with a 12.5% increase in sales.
If there’s anything to stock up on for a weekend cookout it’s this: ICE! This year, stores had 22% higher revenue on Sunday and 28% higher revenue on Monday. What’s even crazier than that, the Sunday of Memorial Day weekend, stores saw an average of 125% more sales revenue from ice than they had the previous Sunday. Stocking up on ice for any Summer holiday is a must as consumers look to keep their beverages cool all day.
3. Sports Drink Mania
As Summer sports leagues come into full swing, sports drink sales are on the rise. All brands saw an early season peak the week of May 9th, selling an average of 34% more than the previous week.
For Powerade, promotions really are everything. With average promotion take rates of over 30%, they are by far the most discounted sports drink brand in convenience stores.
Bodyarmor is aiming to hit that promotional sweet spot, coming in at #3 for promotion take rates with an average of around 18% during the first 5 months of the year. With an effective summer promotional strategy, Bodyarmor might be able to steal a sizable amount of Gatorade’s revenue.
4. Summer Traffic Jam Wins!
The Skupos Summer Traffic Jam is quickly gaining traction amongst retailers and brands since its kickoff in May. In the first month, participating retailers saw 26% percent of customers return to purchase eligible items from brands like Rockstar®, V8®, Chex Mix™, and more! Not only that, but consumers are moving away from single unit baskets and increasingly buying 2 items per transaction.