Convenience Stores Are Beating Other Retailers At Their Own Game

They’re no longer the tiniest of retail outlets carrying limited selections. Quite the opposite. Convenience stores, often referred to as C-stores, are much bigger than in years past and filled with a variety of merchandise, from fresh sandwiches to hot coffee, cold ice cream, and odds and ends like newspapers, maps, souvenirs and lottery tickets. They’re still primarily located near car services and gasoline pumps but according to Placer.ai, they also have become a destination in their own right. 

Because of all the purposes they serve, they’ve fared well in recent challenging economic times. In comparing visits in 2022 versus three years ago in 2019, they had 15.9% more foot traffic, far better than coffee and quick-service restaurant (QSR) segments, which posted 1.7% and 5% year-over-year visits, respectively. Placer.ai also says they fared better than gasoline stations as pump prices rose.

Why such a stellar performance? Placer.ai credits it partly to inflation. “When prices are high, people seek out inexpensive, affordable luxuries that don’t break the bank,” it reported. And with so many pressed for time, they also allow consumers a quick-in, look around, grab what they need and head out. And this is despite their close association with gasoline stations and the decreasing number of visits drivers made to stations. Both followed relatively similar growth patterns in 2019 and 2020 but by March 2021 and the end of the pandemic the two store types’ paths diverged. Higher gas prices put the brakes on visits to those versus rising foot traffic to the C-stores. They didn’t need the pumps to survive and thrive, yet most still remain true to their roots as a place also for car service, including getting a car washed or stopping while on a trip for a clean bathroom visit.

But they’re not all cut from one mold and serve one category of shopper. C-stores also reflect local trends with every region having its favorite go-to mini-mart such as Casey’s General Store in the Midwest, Buc-ee’s in Texas, Speedway in the Midwest and East (owned by 7-Eleven since 2020) and the greatest number of Cumberland Farms in Massachusetts, to name a few of the most prominent. The big Goliath, however, remains 7-Eleven with 9,500 venues in 38 states. 

And besides being located in different places, they appeal to a broad audience of needs. Some become the go-place for fresh milk or a few supplies. Others are more of a place to stop on the road, even for a particular group such as truckers who may favor Love’s Travel Stop with its showers, vehicle care and refreshments for long hauls. And still others are where shoppers head before returning home rather than having to deal with a big grocery store with dizzying choices.

Many also reflect seasonal popularity with more visits to C-stores in the summer for cold treats from ice cream to Slurpee’s and cold drinks in glass-lined cases. Those in the Upper Midwest and Texas post strong summer peaks. 

Looking ahead, industry pundits expect more stores to emerge as many companies experience “expansion fever” and build new stores, grow existing square footage or make acquisitions. In April of this year, Maverik, in 12 Western states, moved to acquire the Iowa-based chain of Kum & Go, which doubled its number of stores and gave it entry to more states. It also gave Maverik a taste of less affluent rural and small-town households versus its own wealthier, upper-middle-class suburbanite audience.