The Power of People
In this month's issue, we reveal the findings of the 2025 Convenience Store News Industry Report, the longest-running annual analysis of U.S. c-store industry performance.
As the cover of our June issue proclaims, the industry is "Under Pressure." Total U.S. convenience store sales declined for a second consecutive year in 2024, however the decrease was less than in 2023, and in-store sales growth hit its lowest point in the past six years.
The findings are not all doom and gloom, though. Labor costs, the industry's No. 1 operating expense, saw some improvement, rising just 4.7% year over year, compared to 6.6% in 2023 and 11.2% in 2022 as the industry struggled to hire and retain employees. Moreover, the 2024 turnover rate for store associates dropped to 146%, down from 158% in 2023 and 163% in 2022 — a signal that the industry's labor pains are finally subsiding.
Of course, we should take a moment to celebrate this — 1 Mississippi, 2 Mississippi — but as the old saying goes, there's no rest for the weary. Coming out of triage mode, convenience retailers should now assess their system for retaining new hires long-term.
An increasingly important factor in retention is advancement potential, especially among the younger generations who tend to be impatient and are often thinking about what's next. At Convenience Store News' recent Convenience Foodservice Exchange (CFX) event, two Kwik Trip Inc. executives spoke about the La Crosse, Wis.-based company's culture and how they were able to progress in their careers because of the retailer's care for its people.
Once hired, Kwik Trip coworkers have numerous opportunities to advance within the company and are treated as family members, not numbers. "When I think of how fast you can grow with the company, if it's something you really want to do, the growth is there," said Selia Kleine, who started working for Kwik Trip in high school and is now a director of foodservice.
Convenience retailers must root out any deficiencies in their retention strategy, so those labor pains stay in the past. Engaged and motivated store associates mean less turnover, more productivity and ultimately a better experience for customers, which is especially important in these challenging economic times when consumers are watching every cent.
