The C-store Channel Keeps Evolving
As we approach the end of 2024, we can look back and see what a tumultuous year it's been for the convenience store industry.
Here's a look at a few trends that reflect the dynamic shifts within the convenience store landscape in 2024 and will persist into 2025, as retailers focus on foodservice, technology and simplification to profitably meet changing consumer demands.
Foodservice & Fresh Offerings: C-stores continue to prioritize foodservice, moving toward healthier options and fresh foods to meet consumer demands. Many are adding quick-service restaurant items, offering customizable coffee options and launching exclusive partnerships with food brands to attract new customers. However, the inherent complexity of a real, restaurant-quality foodservice operation means c-store retailers are incredibly challenged to simplify operations and programs with so many moving parts.
Electric Vehicle (EV) Charging: As I wrote last month, the adoption of EV chargers at c-stores faces challenges due to slower than expected EV purchasing, logistical issues and integration problems, not to mention the possible slowdown in government incentives as the new Trump Administration takes office. However, installation of EV charging stations at gas stations continues to proceed. Major chains such as 7-Eleven Inc. and Wawa Inc. have ramped up their EV infrastructure. I believe EV chargers will be part of a multifuel-based forecourt of the future that also includes E85, LPG and hydrogen.
Acquisitions & Consolidations: The industry has seen significant mergers and acquisitions (M&A). Majors Management's acquisition of MAPCO stores and Casey General Stores Inc.'s purchase of Fikes Wholesale/CEFCO exemplify the consolidation trend. Experts predict M&A activity will accelerate under the new administration. And, as I've said before, Alimentation Couche-Tard Inc. isn't going to easily give up its pursuit of 7-Eleven's parent company.
Technology-Driven Convenience: Technology integration continues to rise, with stores using apps for mobile ordering, loyalty programs and even as virtual foodservice assistants. These tech investments aim to enhance customer experience and increase sales. At Convenience Store News' 2024 Technology Leadership Roundtable, held during the NACS Show, c-store tech executives pointed to pinless debit and the need to convert fuel shoppers to in-store shoppers as key initiatives in the year ahead.
Convenience for Different Generations: When I first joined CSNews, the big challenge was balancing the need to attract female customers without alienating core male customers. Then, it became providing healthier food options for higher-income consumers without losing Bubba. Now, the latest challenge for c-store operators is catering to the millennials, Gen Zers and Alphas, who like adventure and new flavors, without alienating the heavy-user base.
Labor Shortages & Workforce Management: Many stores are struggling with staffing shortages, prompting retailers to increase wages, offer incentives and invest in workforce management software to retain employees. Retailers must simplify their operations to execute, train efficiently and reduce turnover. In the coming year, they'll be looking for technology that allows them to make easy-to-produce, quality foods and reduce employees' busy work to be more present for customers.
These trends and retailers' actions signify a proactive approach in a competitive market and align with future customer expectations in the industry.
