Five Strategies for Small Operators to Battle the Big Guys
According to the recently published 2025 Convenience Store News Forecast Study, the industry's small operators entered the year feeling a bit more optimistic about their future. But while their confidence is on the rise, their outlook still lags that of larger chains. That's understandable as rising operational costs, supply chain issues and uncertainty about the economy continue to create a challenging environment for retailers with 20 stores or fewer.
The good news? Compared to small operators in other retail industries — like independent drugstores, hardware stores and department stores — smaller c-store retailers have proven to be far more resilient. Despite ongoing consolidation in the industry, a significant 60% of U.S. convenience stores are still independently owned, proving that small operators can survive and thrive.
Here are five key strategies to help small operators stay competitive and grow in 2025:
- Maximize Operational Efficiency: Rising costs are a fact of life, but small operators can fight back by running leaner and smarter. Now is the time to audit expenses, cut waste and optimize inventory. Investing in back-office automation for pricing, ordering and workforce scheduling can help small retailers manage their businesses more efficiently without adding extra labor costs.
- Invest in High-Margin Categories: Small operators have the ability to pivot quickly and diversify their product offerings. Expanding into foodservice, specialty beverages and private label items can boost profitability. Some small operators have found success with CBD products, craft beer and grab-and-go meal solutions — all of which offer high margins.
- Embrace Technology & Digital Tools: Small operators don't have the resources of large chains to invest in major tech initiatives, but they don't have to. Affordable point-of-sale upgrades, self-checkout options and loyalty programs can help level the playing field. Offering mobile ordering and contactless payment also can enhance the customer experience while improving speed and efficiency.
- Leverage Local Ties & Personalization: Most big chains can't match the personalized service and deep local ties of independent operators. Building a strong community presence, stocking locally preferred products and supporting neighborhood events can drive loyalty. A store that truly understands its local customer base will always have an advantage.
- Stay Adaptable & Watch Industry Trends: The business landscape is changing fast, so staying informed is crucial. Whether it's potential new regulations on tobacco, changing labor laws or shifts in consumer spending, small operators need to stay ahead of industry trends and be ready to pivot when necessary. Joining industry groups and networking with fellow retailers can provide valuable insights.
The convenience store industry has always been a resilient and entrepreneurial space, and independent operators have proven they can survive in the face of challenges. While large chains may have more resources, small operators have assets that are just as valuable: flexibility, customer loyalty and the ability to adapt quickly.
