By Jesse Newman and Laura Cooper
Americans are stopping for gas, but they aren’t grabbing their usual snacks or smokes.
The change in behavior is hurting U.S. sales of Doritos, Twinkies, Heath Bars and Newports.
U.S. convenience store sales volume fell by 4.3% as prices rose in the year ended Feb. 23, according to market research firm Circana. Among snacks purchased in those stores, rice cakes dropped most sharply, followed by items such as dips, nuts and jerky. Refrigerated products dropped by about 7% by sales volume, and chocolate candy fell by 6%, according to the Circana data.
At a Circle K store in suburban Chicago, adult customers with children in tow hurry out the door before they get talked into buying a snack, said sales representative David Guerino. Shoppers are picking up fewer items in a range of categories from ice cream to cigarillos, he said. A large bag of chips there now costs $7.
“People can’t afford it anymore,” Guerino said. “If it’s not a necessity, they’re not as willing to splurge.”
U.S. consumer sentiment tumbled in February, reflecting fears that President Trump’s trade war would push prices higher.
“Right now the consumer is looking at a lot of these products and are saying: ‘Wow, I can’t remember when it was this expensive,’” said Lori Buss Stillman, a vice president for research and education at the National Association of Convenience Stores.
A growing focus on healthier eating and less indulgent snacking is also contributing to the decline in convenience-store sales, said Max Gumport, an analyst at BNP Paribas Exane.
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