Financial research concept

Convenience Store Grocery and Merchandise Margin

measures grocery and general-merchandise revenue less related cost of goods sold as a percentage of category revenue.

By Lee BaileyPublished Sep 26, 2026
Research context

See what supports this page, how current it is, and where comparable or historical context is available.

Research date
Sep 26, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context
17 connected conceptsPart of the reviewed Convenience Store & Fuel Retail Economics; issuer definitions remain distinct where disclosed.
Company examples
1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.

Convenience store grocery and merchandise margin measures grocery and general-merchandise revenue less related cost of goods sold as a percentage of category revenue.

Casey's reported 35.8% for fiscal 2026.

The margin reconstructs from category dollars

Grocery and merchandise revenue was $4.564 billion and revenue less cost of goods sold was $1.635 billion.

Dividing $1.635 billion by $4.564 billion gives approximately 35.8%.

Grocery generated most inside gross-profit dollars despite a lower margin

Grocery and merchandise represented about 72.0% of inside sales and about 61.1% of inside gross profit.

Prepared food carried the higher margin but a smaller sales base.

Use Convenience Store Prepared Food Margin to compare the two inside categories.

Category margin is issuer-defined

Casey's excludes depreciation and amortization from category cost of goods sold.

The 35.8% figure should not be assumed to equal a standardized retailer gross-margin definition.

Primary source: Casey's General Stores 2026 Form 10-K.

Part of the Convenience Store & Fuel Retail Economics

Connects convenience-store inside sales and category contribution with retail fuel throughput, per-gallon economics, mature-store demand, unit productivity, and footprint growth.

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Compare public companies

Compare grocery margin with prepared-food margin and the category's share of inside gross profit.

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