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NYACS Fall Conference Hank Armour, NACS President/CEO. Meeting Agenda. Industry Performance Trends Advocacy Issues Facing the Industry The Breadth & Depth of Our Industry Open Dialogue What’s on your minds? NACS Overview, Governance & Focus. Industry Performance Update.

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nyacs fall conference hank armour nacs president ceo
NYACS Fall Conference

Hank Armour, NACS President/CEO

meeting agenda
Meeting Agenda
  • Industry Performance Trends
  • Advocacy Issues Facing the Industry
  • The Breadth & Depth of Our Industry
  • Open Dialogue
    • What’s on your minds?
  • NACS Overview, Governance & Focus
total industry overview
Total Industry Overview

Source: Nielsen & 2007 NACS State of the Industry Survey powered by CSX

slide5

Industry Sales

Recession

Recession

Recession

Source: NACS State of the Industry survey for 2007 powered by CSX

slide6

Industry Pretax Profits

Source: NACS State of the Industry survey for 2007 powered by CSX

Recession

Recession

Recession

top direct store operating expenses as percentage of gross profit dollars
Top Direct Store Operating Expenses As Percentage of Gross Profit Dollars

Source: NACS State of the Industry database powered by CSX

slide8

Credit Card Costs to the Industry

Source: NACS State of the Industry survey for 2007 powered by CSX

slide10

Industry Credit Fees vs. Pretax Profit

Source: NACS State of the Industry survey for 2007 powered by CSX

core category performance in 2007
Core Category Performance in 2007

Source: 2007 NACS State of the Industry survey powered by CSX

sales productivity by quartile
Sales Productivity – by Quartile

Source: NACS State of the Industry survey for 2007 powered by CSX

people productivity by quartile
People Productivity – by Quartile

Source: NACS State of the Industry survey for 2007 powered by CSX

slide14

Sales

Jan/June 2008

Based on 77 firms – 3,655 stores

Source: CSX

slide15

Direct Store Operating Expenses

Jan/June 2008

Source: CSX

slide16

Margins

Jan/June 2008

Source: CSX

slide17

EIA Fuel Supply (Consumption)

Pivot point for consumption

$4/gallon and the brakes went on!

Source: US Department of Energy, Energy Information Agency

slide18

Change in Annual Sales

Convenience

Source: Department of Commerce

industry trends summary
Industry Trends Summary
  • Harvesting the cigarette category
  • Refreshment destination is the new destination
  • Food service important but “localized”
  • One “size” ceasing to fit “all”
    • Targeting offers to varying demographic groups
  • Convenience convergence
    • Channel obliteration & Global best practices
    • Will Tesco reset the table in consumers’ minds?
  • Interchange fees are the #1 economic issue
  • Increasing focus on supply chain inefficiencies
  • Emerging liquidity crisis
  • Very well positioned long term for the ubiquitous demand for convenience
nacs 2008 advocacy issues
NACS 2008 Advocacy Issues
  • Credit card interchange fees
  • FDA tobacco
  • Hot Gas
  • LUST funding
  • Ethanol mandates/infrastructure incentives
  • Credit card expiration
  • Card check
  • Death Tax repeal
  • Health care insurance
credit card interchange fees
Credit Card Interchange Fees
  • Progress in Years 1 & 2
    • Antitrust litigation continues
    • NACS congressional testimony
      • Transparency (make the operating rules public)
      • Why are U.S. rates among the highest in the world?
    • VISA & MC announced plans to fully publish their secret operating rules
    • MC puts a cap on transaction amount subject to interchange fees
    • VISA announces a change in RC96 chargebacks
    • MC & Visa do IPOs
    • VISA announced a “reduction” in fees for fuel transactions (June 27th)
  • Legislation introduced in early March - HR 5546 & S 3086
  • 3 to 5 year effort
  • We need your help!
    • www.nacsonline.com/askcongresscreditcardfees
    • National pump topper plan over the August congressional recess
    • Support the effort by making a contribution to the NACS Interchange Action Fund
nacs 2008 advocacy issues continued
NACS 2008 Advocacy Issues(continued)
  • Credit card interchange fees
  • FDA tobacco
  • Hot Gas
  • LUST funding
  • Ethanol mandates/infrastructure incentives
  • Credit card expiration
  • Death Tax repeal
  • Health care insurance
the u s c store industry
The U.S. C-Store Industry
  • 146,294 stores

= 50,000 more than:

Warehouse clubs + Supercenters + Dollar stores

+ Mass merchandise stores + Supermarkets

+ Drug stores

  • $577 billion sales (4.25% of GDP)
  • 159.5 million transactions per day
    • Every 40 hours the industry serves the equivalent of the entire mobile population of America (6 yrs to 85 yrs old)
  • 98% of Americans shop at c-stores once/month
  • 82% of the motor fuel sold in the U.S.
the u s c store industry24
The U.S. C-Store Industry
  • 1.7 million employees
  • Some of the Best Places to Work in the USA (2008 Fortune Magazine)
    • #1 Best Big Company (Valero)
    • #28 (QuikTrip)
  • Stores in every congressional district
  • Physically closer to the homes of America than any other channel of trade…and closer to our communities
  • We are the mosaic of America!
    • Every race, creed, gender, income, age
open dialogue
Open Dialogue

What’s on your minds?

nacs overview
NACS Overview
  • Founded in 1961
  • 2,400 retail member companies
    • Operating 70,000 stores in the USA
    • Operating 300,000 stores globally
    • Members in 44 countries
    • 49 of the 50 largest companies in the industry
    • 71% operate 10 or fewer stores
  • 2,000 supplier member companies
  • Governed by a retail board of directors
  • 54 staff members
retail board of directors
Retail Board of Directors
  • 27 U.S. directors, 3 international directors
  • Bylaw requirements
    • 1/3rd from companies with fewer than 25 stores, 1/3rd from companies with more than 150 stores
    • Minimum of 3 from each of the 6 domestic regions
    • No more than 4 from any one state
    • 2 year terms, maximum 3 terms
slide28

Board of Directors

Executive Committee

Richard Oneslager; Balmar Petroleum

Scott Hartman; CHR/Rutter’s Farm Stores

Jay Ricker; Ricker Oil

Sam Turner; Com-Pac Food Stores

Bill Douglass; Douglass Distributing

Sonja Hubbard; E-Z Mart Stores

Jeff Miller; Miller Oil

Alvin New; Susser Holdings;

Greg Parker; Parker Companies

Tom Robinson; Robinson Oil

Government Relations

Tom Robinson; Robinson Oil

Sonja Hubbard; E-Z Mart Stores

Jinger Duryea; CN Brown

Jim Garrett; Volta Oil

Gil Moore; New West Stations

Jay Ricker; Ricker Oil

Matt Thornton; Thornton’s

Alvin New; Susser Holdings

Sam Turner; Com-Pac Food Stores

Research & Technology

Greg Parker; Parker Companies

Mike Call; Maverik

Bill Douglass; Douglass Distributing

Chip Lavigne; Lavigne Oil

Pat Lewis; Oasis Stop ‘N Go

Gil Moyle, Jr.; Moyle Petroleum

David Sutton; Tiger Fuel

Member Services

Jeff Miller; Miller Oil

Dave Carpenter; JD Carpenter

Johnny Milazzo; Lard Oil

Stewart Spinks; The Spinx Co.

Nichole Torsey; Mountain Counties

Lynn Wallis; Wallis Companies

Jerry Westgate; WESCo

Jack Kofdarali; J&R

Masa Asakura; 7-Eleven

International

Eduardo Padilla; OXXO

Wayne Klahs; Chevron

Warren Wilmot; 7-Eleven Australia

directors from the northeast
Directors from the Northeast
  • Jinger Duryea (C.N. Brown Company/The Big Apple Food Stores)
    • Maine, 90 stores
    • Legislative & NACSPAC Committees
  • Jim Garrett (Volta Oil Company, Inc.)
    • Massachusetts, 10 stores
    • Legislative Committee
  • Scott Hartman (CHR Corp./dba Rutter’s Farm Stores)
    • Pennsylvania, 50 stores
    • Technology Council Chair; Convention and Events, Audit, Nominating & Executive Committees; Past Chairman of the Board
  • Jeff Miller (Miller Oil Co., Inc./Miller Mart)
    • Virginia, 37 stores
    • Vice Chair, Member Services Committee; Convention and Events, NACSPAC & Executive Committees
  • David Sutton (Tiger Fuel Co./dba The Market)
    • Virginia, 13 stores
    • Technology Council
slide30

Mission

Our mission is to provide the

  • Knowledge
  • Connections
  • Advocacy

necessary to represent

  • the convenience & petroleum retailing industry

and to assist our member in

  • maximizing their effectiveness and profitability
nacs three pronged focus
NACS’ Three Pronged Focus
  • Knowledge
    • State of the Industry (SOI & GSOI) Data/CSX
    • Business process improvements/Technology standards (PCATS)
    • Industry research
    • Educational products & seminars
  • Connections
    • The NACS Show
    • NACStech Show
    • HR Forum
    • NACS/ECRM Food Service Business Conference
    • NACS Global Forum & Study Tours
  • Advocacy
    • Government Relations
    • Media Relations
nacs contact information
NACS Contact Information

Hank Armour

President & Chief Executive Officer

+1.703.518.4282

[email protected]

www.nacsonline.com

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