You are driving. You need gas. You stop for gas. There’s a convenience store right there, so you go inside and get a coffee, or a soda and some chips.
This is a common thing, right?
But it may be less common once electric vehicles become more ubiquitous, a new analyst report suggests. No need for gas=no chance to be lured in to a store for snacks or drinks.
The analysis from Morgan Stanley, first reported on by Barron’s, predicted that retail sales at convenience stores might drop 25 percent, and that this could also hurt beverage manufacturers who rely on these impulse sales. Monster Beverage, for example, gets a whopping 60 percent of its sales from convenience stores. Analysts were less concerned about sales of tobacco products, because of their addictive nature, which brings people to convenience stores whether they are filling up on gas or not.
Of course, this is all based on an assumption that electric charging stations won’t simply replace gas pumps in those same locations. And those who watch the convenience store industry aren’t too concerned.
“Beverages drive sales, and beverages drive profits at convenience stores, so any competition that could reduce those sales and those profits is a concern,” Jeff Lenard of the National Association of Convenience Stores told The Washington Post. “However, I think that stores will do what they always do: They’ll find a better way to compete.”
Do you think convenience stores will change as a result of electric vehicles?
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