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Message: Convenience Stores in the US.

"With this number of convenience stores in the US isign has plenty of room to grow."

The actual number of gas stations in the United States is a little difficult to pin down. According to the National Association of Convenience Stores (NACS), of the country’s 151,282 convenience stores at the end of 2013, 121,658 sell fuel, a year-over-year increase of 2.7%. National Petroleum News (NPN), a trade publication, put the number of gas stations at 157,393 in 2011.

Only about 3% of the stations are owned by major integrated oil companies like Exxon Mobil Corp. (NYSE: XOM) or Chevron Corp. (NYSE: CVX). About 37% of U.S. gas stations selling branded fuels are owned and operated by licensed independent retailers, and more than half of all gas stations are owned by an individual or a family.

According to a survey of its readers published last October, NPN reported that 75% of retailers pump between 500,000 and 2 million gallons of motor fuels a year. The most common number of pumps at a gas station is eight, and the retailers’ biggest concern is credit/debit card fees.

The average gross margin on a gallon of fuel is $0.12, according to NPN, and net profit per gallon averages $0.07. That means that if a gas station owner pumps 1 million gallons of fuel in a year, his net profit is $70,000. Not bad, but not great either. And that is where the convenience stores enter the picture.

Read more: Why Are There 115,000 (or 150,000) Gas Stations in America? - 24/7 Wall St. http://247wallst.com/economy/2014/05/22/why-are-there-115000-or-150000-gas-stations-in-america/#ixzz32Z96jwhw
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