Convenience Stores
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 87,300 convenience store companies in the US sell a limited selection of merchandise in high-traffic locations. The majority of convenience stores in the US sell gasoline. Most convenience stores are independent operators – 92% of c-stores have a single location.
Reliance on Fuel Sales
Managing fuel sales is a critical yet risky part of c-store operations.
Rising Credit Card Fees
The cost of credit/debit fees continues to grow and can exceed the pre-tax profits for a c-store.
Industry size & Structure
A typical convenience store sells gas, operates out of 1-2 locations, employs 14-15 workers, and generates almost $7.5 million annually. A typical c-store that does not sell gas employs about 5-6 workers and generates about $1 million annually.
- The convenience store industry consists of 87,300 companies with over 130,000 stores, which generate about $457 billion annually and employ 991,000 workers, according to the Census Bureau.
- The average convenience store had 45,312 transactions (at the pump and in-store) per month in 2023, or 1,491 per day.
- Most convenience stores are independent operators - 92% of c-stores have a single location, and 88% employ fewer than 10 workers.
- The average c-store chain has about 50 individual stores.
- Large companies include 7-Eleven, Couche-Tard, Casey's General Stores, and Murphy USA.
Industry Forecast
Convenience Stores Industry Growth
Recent Developments
Mar 18, 2025 - Declining Sales
- Sales at convenience stores are falling as motorists fill up but skip the snacks and smokes sold inside, The Wall Street Journal reports. Volume sales at US convenience stores declined 4.3% as prices rose in the year ended February 23, according to market-research firm Circana. The hardest hit items included rice cakes, followed by items such as dips, nuts and jerky. Refrigerated products dropped about 7% by sales volume, and chocolate candy fell by 6%, according to the Circana data cited by WSJ. Rising prices are largely to blame for the pullback. “People can’t afford it anymore,” a Chicago-area Circle K sales representative David Guerino told WSJ, adding “If it’s not a necessity, they’re not as willing to splurge.” In February, consumer confidence registered its biggest monthly decline since August 2021 amid fears of more inflation to come, according to The Conference Board’s Consumer Confidence Index.
- Major convenience stores operators – Wawa, Casey’s, and 7-Eleven – are targeting coffee drinkers with updated coffee programs and promotions, C-Store Dive reports. While c-stores are well positioned to profit from coffee sales with hot dispensed beverages accounting for more than 9% of foodservice sales and margins over 66%, according to the National Association of Convenience Stores, soaring coffee prices threaten to pinch margins on coffee sales. In January, the retail price of ground coffee hit a record high of $7 per pound, up from $4 in January 2020, according to government data. Growing demand amid supply shortages in top producing countries means fewer beans on the market. But relief may be insight. A recent poll by Reuters predicted that Arabica coffee prices could fall 30% by the end of the year, as high prices curb demand and early signs point to a bumper Brazilian crop next year.
- President Trump has moved to pull the plug on the National Electric Vehicle Infrastructure program (NEVI), his predecessor’s initiative to build a nationwide network of EV charging stations, Politico reports. In February, Trump instructed states not to spend federal funds previously allocated to them under the program. In a letter to state transportation directors, the Federal Highway Administration said that it was scrapping guidance issued in 2023 implementing the NEVI program. However, the letter says states will be able to receive reimbursements for “existing obligations” to design and build stations “in order to not disrupt current financial commitments.” Whether Trump can choose not to spend funds allocated by congress is likely to face legal challenges. Still, the administration’s move to block future charging station construction and Trump’s anti-EV stance in general, creates uncertainty for some convenience stores planning to add charging stations for their forecourts.
- Employment by convenience retailers was relatively flat in December compared to a year ago, although it was down from its summer peak, while average industry wages fell 3.1% over the same period to $16.70 per hour, according to the latest US Bureau of Labor Statistics data. Sales for food and beverage stores, which includes c-stores, rose 3.1% year over year in November and 1.5% from the previous month, Census Bureau data shows. The national average retail price of a gallon of regular gasoline, a major revenue stream for c-stores, was about $3 per gallon in December, down from about $3.60 in the spring, according to the Bureau of Transportation Statistics.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.