Convenience store foot traffic rose about 0.3% year over year in October, according to Jefferies. It was the second straight month of sequential improvement. The gain was roughly 86 basis points better than September's growth.
Traffic turned positive even as gas prices stayed elevated. Food category trends remained weak. Most top categories posted year-over-year declines, and total volumes fell 12.5% over the last three months, compared with a 10% decline over the last six months through October 17.
Murphy USA management described its core lower-income customer as selective but resilient during third-quarter earnings. The company said customers are absorbing higher fuel costs by cutting spending in other areas. Same-store gallons remained slightly positive, while the industry saw a decline of about 6%. Customers traded down to regular fuel and switched from higher-priced competitors.
Performance nutrition shakes stood out, with sales up about 21% over the last three months and volumes up about 22%. Chocolate sales weakened further, falling about 5.5% over the last three months, with volumes down 12.5%.
Multi-serve pizzas led volume declines at 25%. Chocolate followed at 12.5%, then meat snacks and ice cream at 10.5% each, and confection at 9.5%.
Non-alcoholic beverages rose 0.7% year over year over the last three months, helped by energy drinks, which gained 6.6%. Soft drinks fell 3.8% in dollar sales and 6.8% in volume. Beer sales declined 4.4% over the last three months.