Convenience stores continue to broaden their appeal to meet changing consumer needs. By transitioning from quick stops for snacks and fuel to destinations for quick-service food and grocery alternatives, the C-Store segment is becoming a more attractive asset class for CRE investors, especially in the net-lease market, according to a report from Coldwell Banker Commercial.
“With smaller households, more urban locations, and evolving food preferences, the sector is undergoing significant transformation,” said Dan Spiegel, SVP and managing director at Coldwell Banker Commercial. “Given their frequent visits, convenience stores must stay closely connected to shifting consumer lifestyles to remain competitive in the retail market.”
The study noted that sales of prepared food have increased 12.2% year-over-year, and more than half (56%) of consumers consider C-stores a viable substitute for fast-food chains. In addition, the demand for convenient, affordable, and healthier food options has added to the sector’s stability. Profit margins remain in the 5% to 7% range, but high product turnover and steady consumer visits compensate for these tight margins, the report said.
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