Convenience Stores & Truck Stops
Companies in this industry operate retail locations that primarily sell fuel, groceries, cigarettes, and alcoholic beverages. Major US companies include 7-Eleven (the North American subsidiary of Seven-Eleven Japan), Casey's, Circle K (a division of Canada-based Couche-Tard), and Wawa.
Economic growth, urbanization, and an increasing affinity for smaller store formats is driving growth in the global convenience store (c-store) sector. Worldwide c-store sales are expected to approach $5 trillion by 2022, according to a report from GlobalData. Japan, China, and emerging markets in Southeast Asia are among the fastest growing for c-stores.
The US c-store and truck stop industry includes about 130,000 establishments with combined annual revenue of about $400 billion. The industry includes establishments that are gas station/c-store combinations, as well as c-stores that don't sell fuel. Gas stations that don't include c-stores are covered in a separate industry profile.
Consumer and commercial driving trends drive demand. The profitability of individual stores depends on competitive pricing, effective merchandising, and the ability to secure high-traffic locations. Large companies have advantages in purchasing and finance. Small companies can compete effectively by acquiring superior locations or offering specialized merchandise or services. The industry is fragmented: the top 50 US companies account for about 40% of industry sales. Single-store operators predominate, accounting for more than 60% of all convenience stores, according to the National Association of Convenience Stores (NACS).
Because c-stores sell gas, food, and other types of merchandise, companies compete with a wide range of retailers, including gas stations, grocery stores, mass merchandisers, drug stores, warehouse clubs, fast-food restaurants, and even dollar stores. Dollar stores are adding staples such as milk and eggs, while fast-food chains offering value menus are siphoning off hungry drivers. US convenience stores serve 165 million customers daily, accounting for over 10% of total retail and food service sales, according to NACS.
Online competition is a growing threat to convenience stores as consumers change the way they shop. Amazon offers quick delivery for basic items, which otherwise might have been purchased at a convenience store. The online giant's cashier-less Amazon Go format is spurring the c-store industry to improve digital tools, such as online ordering.
Products, Operations & Technology
Gas stations with convenience stores account for about 80% of US sales; other sources of revenue include groceries. Fuel (generates nearly 70% of revenue)
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms