Convenience Stores are Booming in Most States

The number of convenience stores across the US is on a steady uptick, according to new research, with 39 states and Washington D.C. all posting increases in 2022.  The increase was fueled by an upswing in the number of single-store operators, which increased by 1087 to 90.423 stores, according to trade association NACS.

There are currently 150,174 convenience stores operating in the United States, a 1.5% increase from the 2022 store count. The metric marks a reversal of a four-year decline, according to the 2023 NACS/NielsenIQ Convenience Industry Store Count.

Meanwhile, the number of convenience stores selling motor fuels clocked in at 118,678 stores, or 79% of all convenience stores.  Texas has the most locations with 116,018 stores, or more than one in 10 stores in the US. The remainder of the top 10 includes California (12,000 stores), Florida (9,596), New York (7,917), Georgia (6,719), North Carolina (5,749), Ohio (5,673), Michigan (4,879), Pennsylvania (4,728) and Illinois (4,666). Alaska grew its store count by 9.2% but still has the fewest stores (190) of any state, according to NACS.

Gas station/kiosk stores selling fuel but not enough in-store products to be considered C-stores registered a 13,346 count, declining 11.2% last year and 49.3% over the past six years.

Convenience stores have emerged as a net lease darling as of late, with an average on-market cap rate of 5% as of late November 2022, according to B+E Net Lease, and a 2022 year-to-date sale cap of 5.26%.  A

“C-stores are garnering a positive perception from both private and institutional investors due to their strong tenant credits, strong profit margins, and large variety of concepts,” B+E analysts note in a recent report. “This variety encourages customers to spend more time at the location and, in turn, spend more money.”