Notes on Core-Mark
Wholesale distributors….
“one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry in North America
focused on minimizing retailers’ investment in inventory, while seeking to maximize their sales
Manufacturers benefit from our broad retail coverage, inventory management and efficient processing of small orders. Convenience retailers benefit from our distribution capabilities by gaining access to a broad product line, optimizing inventory management and accessing trade credit.
total in-store sales at convenience retail locations … approximately $190.4 billion and were generated through an estimated 146,000 stores across the U.S.
he number of convenience stores in the U.S. grew 1.2% in 2011 to approximately 148,000 stores. We estimate that approximately 50% of the products that these stores sell are supplied by wholesale distributors such as Core-Mark.
The products we distribute include cigarettes, other tobacco products, candy, snacks, fast food, groceries, fresh products, dairy, bread, beverages, general merchandise and health and beauty care products.
Our traditional convenience store customers include many of the major national and super-regional convenience store operators, as well as thousands of multi- and single-store customers. Our alternative outlet customers comprise a variety of store formats, including grocery stores, drug stores, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college bookstores, casinos, movie theaters, hardware stores, airport concessions and other specialty and small format stores that carry convenience products.
We distribute in excess of 45,000 Stock Keeping Units (“SKUs”) of packaged consumable goods
Cigarettes comprised approximately 70.4% of total net sales in 2011 [lot of cigs, 32% gross profits]
approximately 68.3% of our gross profit was generated from food/non-food products. [lot of profit in little bags of Cheetos and nail clippers and “other tobacco”]
the ability to service large national chain accounts
capitalizing on the highly fragmented nature of the distribution channel that services the convenience retail industry
Core-Mark sells about 50% of what a convenience retailer purchases from their vendors [consolidation and simplifying the supply chain]
there is an increasing trend among consumers to purchase fresh food and dairy products from convenience stores.
78% of sales are cigs and other tobacco … other tobacco listed as a ‘non-food product’
we anticipate overall cigarette consumption will continue to decline, we expect to offset the majority of the impact from these declines through market share expansion, growth in our non-cigarette categories and incremental gross profit that results from cigarette manufacturer price increases.”
[interesting stuff, had to go to gym though]
