The convenience store sector has emerged as a retail powerhouse, achieving $860 billion in sales in 2023. Following a record 534,262 square feet leased in 2021, store leasing activity remains robust, with over 500,000 square feet leased last year. The U.S. now boasts over 152,000 convenience stores, marking a 1.5% year-over-year increase.

A mix of business models characterizes the C-store market. Over 63% of convenience stores are paired with gas stations, while 27% operate independently. The remaining 10% integrate with complementary businesses, such as restaurants or pharmacies, to create vibrant retail hubs. Most traditional C-stores are near busy intersections, major highways, and active commercial districts. Standalone giants like 7-Eleven, Circle K, and Casey’s General Stores have become a thriving niche in urban centers, capitalizing on high foot traffic near public transportation hubs and densely populated neighborhoods.

The C-Store Consumer

Convenience stores have become an integral part of consumers’ daily routines, with the average shopper visiting a C-store more than three times a week. This frequent foot traffic translates to a staggering 165 million daily visits, presenting a unique opportunity for manufacturers to test new products and flavors among a vast and engaged customer base. Convenience store shoppers are prone to impulse buying, with 65% purchasing unplanned items. Top impulse buys include bottled coffee (70%), energy drinks (67%), and pre-packaged meals/snacks (65.6%), revealing significant opportunities for retailers to drive sales.

Food is the New Fuel

More than just fuel stops, C-stores now offer tailored food options and expanded product selections. Foodservice now surpasses cigarettes as the largest in-store category, highlighting the demand for quick, convenient, and quality food options. Fresh food is a top priority for 91% of convenience store shoppers, with a substantial 33% seeking hot, fresh, restaurant-quality meals, according to a recent survey by Vontier. Retailers are redefining convenience cuisine, pushing boundaries with Wawa’s legendary hoagies to Casey’s General Stores’ savory pizza kitchens and Buc-ee’s famous barbecue beaver nuggets–raising the bar to meet consumer expectations.

Charging Ahead With EVs

As electric vehicles gain traction, convenience stores face a pivotal moment. With fuel sales evolving, C-stores must innovate beyond the EV charging infrastructures to reimagine the in-store experience. Key areas for growth include lounge spaces, seamless Wi-Fi, and exceptional customer service, catering to consumers seeking more from retailers. Industry experts expect EV charging to be a major factor in the next wave of C-store design. Oklahoma City-based Love’s Travel Stops’ $1bn investment to update their 200 locations across the U.S. will include open-air designs and dog parks, in addition to EV charging stations. BP, Wawa and Sheetz have also invested in the EV infrastructure, and Circle K and 7-Eleven have each been building their own network of EV chargers.

Change of C-nery

California and Texas are leading in convenience store count in the U.S., yet, the Southeast and Northeast, in particular, are catching up. The Northeast region in particular is experiencing accelerated growth, according to NACS data. About 60% of all C-stores are single-store operators, with the remainder consisting of larger convenience-store chain brands. Wawa, represented mainly in the mid-Atlantic, is actively making westward expansion plans, and Arkansas-based Murphy’s will add 30 to 35 new locations to its portfolio this year. Smaller operators like Yatco, a second-generation, family-owned C-store chain, plan to expand their retail footprint in Massachusetts, Rhode Island, and Connecticut, concentrating on 7K-9K sq ft stores. Despite the overall growth in the sector, one retailer is struggling. 7-Eleven will close 444 underperforming stores (3% of its total) in the US and Canada due to inflation-driven sales declines. To counteract this, the company will focus on proprietary products, digital enhancements, and loyalty programs. This move comes as 7-Eleven faces investor pressure following a rejected acquisition bid and plans to rebrand as 7-Eleven Corp.

Convenience stores have proven resilient, offering essential goods and services that maintain steady foot traffic even during economic downturns. Their smaller format and essential product mix make them less vulnerable to challenges faced by larger retail formats, driving strong consumer demand for quick, accessible shopping experiences.