With the release of Sanford, N.C.-based The Pantry's first quarter earnings, President and CEO Peter Sodini said the tough economy has had an impact on its more than 1,600 c-stores.
“The current retail environment remains very challenging and we are taking action in a variety of areas to further reduce operating expenses and to strengthen our merchandise gross margins," he said.
Comparable store merchandise sales fell 3 percent compared to the comparable quarter, and comparable store gas gallons fell 7.2 percent from the first quarter of 2008.
Meanwhile, total gasoline revenues fell 21.5 percent, due to the sharp decline in average retail gas prices. Total gasoline gross profit for gas jumped on retail gross margins of 25.8 cents per gallon.
Sodini also said he expects comparable store merchandise sales and gasoline gallons will improve over the remainder of fiscal 2009. For the sake of the company and the entire c-store industry, I hope they do.
It's time for a status check -- how are your results doing?
We're down at least 5%, however with the weather warming up, there is a small bump in daily sales. Unfortunately, the bump is directly related to Cigarettes - which as you all know provide a bubkus profit. And with the increase in Cig tax in NJ, my operating cost will be nicely affected. It would be nice if the government gave real incentives to spend, and not increased ways to take money out of of pocket in some hidden form. Summer cannot get here fast enough...
Posted by: Dave | March 12, 2009 at 12:01 PM