In today’s rapidly evolving retail landscape, convenience stores have been a fairly remarkable success story. As the fastest-growing retail channel in the US with 1.5% year-over-year growth between 2023 and 2024, c-stores continue to demonstrate strong resilience and adaptability.
Whether you’re a c-store operator, CPG-focused brand manager, or an advertiser, our recent “Pulse of Convenience” report offers an in-depth look at the trends, challenges, and opportunities shaping the convenience retail industry for 2025 and beyond.
Industry strength amid economic pressures
The c-store sector maintains an impressive retail footprint with over 150,000 locations across the US alone, serving approximately 1,100 shoppers per day at each site. While sales experienced some declines in 2024 compared to 2023, profitability remained strong thanks to a 4.1% rise in average unit prices.
One surprising development is how closely consumer behavior now correlates with fuel prices, with PDI data revealing a strong positive correlation between gas prices and both fuel and in-store trips.
A shift in customer expectations
Also notable is how an increasing number of c-store shoppers are seeking more than just fuel and basic necessities. Foodservice has emerged as a major growth opportunity for c-stores, with prepared meals showing an impressive 16.3% increase in 2024.
This shift toward foodservice is already transforming c-stores into destination points rather than just quick stops, especially as they invest in mobile technologies for ordering, payments, and even deliveries, essentially following more of a restaurant model.
The growing technology imperative
Behind the scenes, digital transformation continues to reshape the c-store customer experience. From AI-powered inventory management to personalized loyalty programs, technology adoption has become a critical differentiator in the market.
The report highlights several growth opportunities, including frictionless checkout systems, enhanced loyalty programs, alternative revenue streams, and improved cybersecurity measures—all crucial considerations for operators looking to stay competitive.
Consumer insights worth noting
Peering into the consumer mindset, data reveals that 67% of all US shoppers visit a c-store once a week or more, with 38% visiting more than twice a week. So, what’s driving these consumers to make such frequent visits?
Beyond the foundational level of convenience, the following perceived benefits are driving the most c-store visits:
- Loyalty programs (37%)
- Ease of payment (36%)
- Food options (27%)
Payment preferences continue to evolve as well, with debit cards leading both in usage and preference, followed by credit cards and cash. Surprisingly, digital wallets like Apple Pay and Google Pay account for only 5% of transactions, indicating significant room for growth in this area.
Looking forward
With 58% of convenience store operators feeling optimistic about their business for 2025, the industry outlook remains positive despite lingering challenges like staffing concerns (cited by 46% of operators as their top business challenge) and economic uncertainties such as inflation and potential tariffs.
For a comprehensive analysis of the convenience retail landscape and actionable insights you can use to propel your business forward, download your own copy of this free report.
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