Labor Market Headwind

From NACS: 

While sales and other financial metrics related to performance were positive, there are concerns related to labor and expenses. Total turnover for retail overall has increased, and it also increased in the convenience channel; turnover in 2021 was 150%—the highest it has been since 2012, according to the NACS State of the Industry Compensation Report of 2021 Data. The full-time employee turnover rate was 119%, and the part-time employee turnover rate was 182%.

Direct store operating expenses increased 14.3% in 2021 versus 2020, and the largest contributor to DSOE was wages and benefits ($71.7 billion), which was up 10.7% compared to 2020 ($64.8 billion) and up 17.1% compared to 2019 ($60.9 billion). Card fees, meanwhile, were up 25.6% in 2021 ($13.5 billion) versus 2020 ($10.7 billion).

Exclusive industry data, analysis and benchmarking by region and profitability cuts will be available in the NACS State of the Industry Report© of 2021 Data. Published annually since 1972, the NACS State of the Industry Report is the convenience and fuel retailing industry’s premier benchmarking tool and the most comprehensive collection of data and trends. Complete and exclusive coverage of the 2022 NACS State of the Industry Summit will be in the June 2022 issue of NACS Magazine.

NACS also showcased its digital and interactive annual report, which highlights how the industry is reinventing convenience and charting a path for success.