Consumers turn to Convenience Stores Amid Tepid Growth in Personal Income

U.S. consumers are increasingly looking to convenience store chains such as 7-Eleven and Sheetz amid an overall contraction in consumer spending patterns. According to a new report from Placer.ai, monthly foot traffic at convenience store chains has outpaced or held steady compared to 2023 visits in seven out of the first eight months of 2024. The year-over-year increase in visits at convenience stores in 2024 ranges between -3.3% and 2.5%. However, when compared to January 2021, foot traffic at these retailers has increased by at least 20% in the winter months and up to 60% in the summer months.

The growth in foot traffic has been noticed by convenience store franchisors and is pushing these brands outside of their traditional markets. “As the popularity of convenience stores continues to grow, regional chains like Wawa, Buc-ee’s, and Sheetz are expanding into new territories, broadening their reach,” Placer.ai reported. “This trend toward regional expansion offers significant opportunities for growth, not only by increasing store count but also by reaching new consumer bases and target audiences.”

Placer.ai reported that customer behavior differs between markets, as visits to convenience stores tend to be much shorter in coastal markets than in the Midwest. In the Northern Plains of North and South Dakota, Wyoming, and Montana, consumers spent an average of up to 28 minutes at convenience stores. Consumers visiting convenience stores in coastal states, meanwhile, spend an average of less than 15 minutes per visit.

The analysis found that demand for convenience stores across the country is also heavily influenced by seasonality, as consumers retreated from convenience stores in January, likely driven by weather, according to the firm.

But despite the increase in foot traffic, retail sales in recent months have seen subdued growth according to the latest estimates from the U.S. Census Bureau. As consumers continue to navigate inflation and economic uncertainty, changing buying habits kept monthly retail sales at $710.4 billion in July, reflecting a 1.1% increase from sales in July 2023.

The rising foot traffic at convenience stores may reflect how inflation and a cooling labor market have shifted consumer behavior in recent years. With personal income growth largely stagnating in 2024, U.S. shoppers appear to be increasingly prioritizing affordable, quick-stop options like 7-Eleven and Sheetz. This, in turn, may reflect a broader cutback in discretionary spending amid economic uncertainty.