The Convenience Store Revolution: A Retail Channel You Can’t Ignore

In past publications, the team at BSM Partners has highlighted the overlooked but very promising channel of convenience stores, also known as c-stores, for opportunities to expand and grow a brand’s retail presence. As a longtime veteran of the CPG industry, I’ll admit that I took this channel for granted, too. Having said that and considering the vast outlets that comprise this channel, I have been paying far more attention in recent months, and for good reason.  

Why? Let me explain: 

• Recent research from Acosta Group shows that higher-quality foodservice at c-stores is resulting in increased customer trips. Of approximately 1,300 consumers polled who had shopped at a c-store within the previous six months, 52% said they visit these stores once or more each week. Furthermore, 30% reported making more trips to c-stores compared to last year. 

• According to Acosta Group’s 2023 Convenience Store Shopper Insights, their chief reason for going to a convenience store is to buy food and beverages.  

• More importantly, perhaps, 51% of customers rated hot food items from c-stores as just as good as those from fast-food or quick-service restaurants—and often at a better price, Acosta Group noted. 
• Of shoppers surveyed by Acosta Group, 45% stated they purchase hot foods from c-stores at least once a week. Their top choices are sandwiches, breakfast items, and pizza. 

“For a vast majority of c-store shoppers—92%—food and drink purchases are the primary purpose of the trip,” says Kathy Risch, senior vice president of thought leadership and shopper insights at Acosta Group. 

What is Driving This Channel?  

In short, c-stores had to attract customers after gas pumps added card readers, meaning customers no longer had to go inside to pay. While tobacco products used to comprise the largest share of in-store sales, smoking has significantly declined in the US over the past several decades. Thus, “The better the food… the bigger the draw,” as noted by Juliet Bennett Rylah for The Hustle. 

While grocery stores nationwide have upped the foodservice ante in recent years to better compete with restaurants, convenience stores have also continued to cut into market share for both channels. As stated by Kathy Risch of Acosta Group, “There’s no doubt that high-quality foodservice is one of the key drivers behind increased trips this year.” 

The Modern C-Store 

So, why do c-store shoppers prefer convenience stores over other retail formats for their convenience and fast-trip experience, according to Acosta Group’s research? Snacks, candy, baked goods, and cold beverages are the most frequently purchased items. Customers are also buying non-food items like tobacco products, scratch-off lottery tickets, and various general merchandise.  

The study indicated that items purchased exclusively at c-stores tend to include meat snacks and store-made hot foods. With the latter increasingly attracting consumers to convenience stores, there has been a growing interest in adding gourmet foods such as cheeses, coffee, tea, and craft beers. 

“The c-store channel is absolutely on a growth path,” claims Hobie Walker, senior vice president at Acosta Group. “Today, 30% of these shoppers are buying their snacks, candy, and beverages nearly exclusively in c-store, reflecting the importance of in-stock positions with the right products at the right price.”  

More Than a Trend 

In conclusion, this is a channel that is growing and has successfully adapted to consumer needs, and quite successfully at that. C-stores are poised for significant growth, given our increased needs for convenience without sacrificing quality. Furthermore, as they expand their assortment and positioning to accommodate the consumer, the success of this channel is bound to continue.  

If this is not part of your sales plan today, it should be. (And as I understand it, if you think you love a US 7-Eleven, wait until you see one in Japan.) 

How Can BSM Partners Help?  

Our Branding, Strategy and Marketing (BSM2) practice, led by pet industry veteran Michael Johnson, focuses on understanding the evolving marketplace and changing consumer behaviors. We work with brands to develop market strategies that are aligned with consumer needs.  

 Additionally, our Business Transformation and Leader Development Practice recognizes that cultivating high-performing leaders who can inspire and motivate teams is more important than ever in today’s environment. Led by Dr. Frank Niles, PhD, business psychologist at BSM Partners, this team can help develop and retain the leaders needed to elevate your business. 

From business transformation to leadership development, our comprehensive expertise helps brands, retailers, and services of all sizes achieve competitive comebacks and engage consumers. 

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About the Author

Eric Rittenhouse works at BSM Partners as Business Development Manager. His areas of expertise include business development, sales and trade marketing while helping brand companies uncover and execute on opportunities to strategically dominate their niche in the consumer product space. He has completed the Blue Ocean Practical Introduction certificate by the Blue Ocean Academy and is Action Selling Master Certified by Action Selling and The Sales Board.