Convenience stores see momentum in nicotine category

Convenience stores like Casey’s General Stores and Arko are experiencing significant growth in the nicotine category, particularly from alternative products such as pouches and vapor. These alternatives offer higher margin rates than traditional combustible cigarettes, contributing to overall margin improvement despite a continued decline in cigarette sales. The slowing rate of decline in combustible sales, coupled with the rise of these new products, suggests a potential return to positive growth for the entire nicotine category in the c-store sector.