July 28, 2008

Higher gas prices increase rural store traffic

BY ROY MITCHELL

CENTRE — Tolerating four dollar a gallon gas ranks in popularity somewhere just below rectal exams and root canals. Yet 2008's prolific, pump price ascension has yielded one unexpected result. Some rural stores in Cherokee County are discovering a noticeable increase in gas purchases, despite a petrol price that hovers anywhere from ten to twenty-five cents more per gallon than the corporate pumps in the city. The farther the rural store is distanced from town, the truer the trend appears to be.

C. A. Crider's country store is located near Forney, about 15 miles east of Centre. Mr. Crider emphasizes that since the meteoric rise of gasoline prices, his store sells a little more gas, he said.

“A lot of customers will stop here instead of going to town.”

Scooter's Country Store in the Kirk's Grove community sits nearly 20 miles from Centre's popular pumps. Scooters employees also observe more locals fueling up.

“Our price is still below four dollars a gallon. We're, like, doubling our gas sales,” said one employee named Jennifer.

Along the picturesque path from Gaylesville to Blanche sits another rural store over a dozen miles from Centre -- the One-Stop Food Mart. Four-dollar gas hasn't hurt fuel sales there, either.

“They still come for their gas,” said employee Rhonda Martin.

It stands to reason that some rural residents purchase local gas at a higher price and save money by not driving to town. If a country store sells gas at 20 cents per gallon higher than the gas stations in town, buying 15 gallons of that fuel would cost $3 more than if it were purchased in town. If a car's fuel efficiency is 20 mpg, driving it 10 miles to Centre and another 10 miles back burns one gallon of $4-per-gallon gas. So purchasing locally actually saves $1.

Someone who lives 20 miles from Centre and owns a truck that gets 13 mpg uses over $12 in gas on round trip to Centre. Purchasing 15 gallons at their nearby store, even at 20 cents higher per gallon, would save them $9.

So, country stores far from Centre have increased pump sales this year. But what about stores within a few miles of town? Predictably, data from these stores is less conclusive. John's at the Crossroads is a little more than five miles from Centre. The store's owner, Danny Chesnut, said he's seen only a small increase in fuel purchases.

Yet, the report from Glenda's at Cowan Creek, about a mile closer to Centre, is that gasoline sales are down, with several customers purchasing only one or two gallons -- just enough to get them to town so they can buy cheaper gas.

Sandra Johnson of Rooster's, another country store within five miles of Centre, had just gotten through checking her books before talking to The Post.

“We haven't been affected by higher gas prices,” she said.

Rooster's is one of only two county stores with a pump directly at the water.

“Our sales on the water are higher this year,” Johnson said. “People will still play on the water despite high gas prices.”

Country stores at the county's periphery have increased gas sales despite this summer's record-breaking prices. But are consumers utilizing rural stores for their grocery needs as well? Local stores seem to agree that any increase in grocery sales is minimal. None of the store employees interviewed had recorded a noticeable increase in non-gasoline sales this summer.

Martha Haney of Penlands Highway 9 Grocery, about seven miles south of town, only sees a rise is sales of the staples.

“As far as bread and milk, there is some increase,” she said.

Bobby Tillman of Centre's Wal-Mart Supercenter reports that grocery purchases have indeed remained steady since the rise of gas prices.

“People are more conscientious about their spending,” he said. But, he added, “We can't see much difference from before.”

Tina Roberts of the Piggly Wiggly in Cedar Bluff said the recent holiday weekend saw a great increase of sales.

“It was the best Fourth we've had in years.”

Apparently the trend isn't just a local phenomenon. Associated Press business writer Anne D'Innocenzio explained last week that the sale of groceries nation-wide hasn't been hurt by this summer's high gas prices as much as one might think.

“As the nation's retailers reported June sales figures, discounters and wholesale club operators including Wal-Mart Stores Inc., BJ's Wholesale Club Inc. and Costco Wholesale Corp. reported better-than-expected figures as consumers limited purchases mainly to groceries and other necessities,” she reported.