Rapid Adoption of Electric Cars to Hamper Growth of Convenience Stores

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A new study published by the Washington Post on April 3, 2018, reveals that increasing adoption of electric cars will hamper sales of beverages at convenience stores.

Morgan Stanley, an analysts explained the surprising connection between emergence of electric cars and declining sales of convenience stores, especially beverages. According to his analysis, when people go to these stores to pay for gasoline, they usually end up buying beverages as impulse purchases.

In this report, he explains that if this future of electric cars comes to pass, Monster energy drinks will experience the highest loss, as 63 percent of all Monster drinks are sold at gas stations and convenience stores. This means that over half of the revenue obtained by beverage manufacturers is obtained through convenience stores.

“Beverages drive sales, and beverages drive profits at convenience stores, so any competition that could reduce those sales and those profits is a concern. However, I think that stores will do what they always do: They’ll find a better way to compete.” said Jeff Lenard, representative at the National Association of Convenience Stores.

To prevent the potential loss of vast revenue for both, convenience stores and beverages, fast chargers are recommended to be installed at gas stations. Individual store owners or petrochemical companies such as Mobil and Chevron can employ this as part of their regular retrofits. Owners of stores would more certainly benefit by installing such recharge stations as customers would require to hang around for way longer than they would if they were pumping gas.

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