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September 9, 2025
What Can C-Stores Do To Address a General Sales Decline?
C-stores are facing a significant problem, at least according to the latest data presented in the Convenience Store News Midyear Report Card for 2025. Produced in conjunction with NielsenIQ, the report examined dollar sales and unit volume metrics spanning January through June of this year, and the results looked decidedly less than rosy.
“The outlook for 2025 is less clear. At first glance, things look fairly grim as a slight majority of key categories saw both dollar sales and unit volume go negative during the first half of the year and the remaining ones turned in mixed performances,” the introduction to the report card read.
Still, there were a few silver linings attached, and the report’s author, Angela Hanson, also added a caveat to the above statement before pivoting to address the rampant uncertainty plaguing both the c-store segment and the broader economy in a variety of ways.
“Yet it would be a mistake to say things are getting worse across the board. Some categories stayed negative yet slowed down their rate of sales decline, and some individual segments saw striking improvement. The big question that retailers need to consider is whether the industry is coasting to a soft landing or if there is significant turbulence still ahead,” Hanson added.
C-Stores Midyear Report Card 2025: Nearly All Categories See Sales Decline
There was a sea of red splashed along the top line for nearly each broad product category examined in the c-stores report, with a few exceptions. Digging deeper into the numbers:
Cigarette dollar sales dipped by 2.7% versus year-ago levels, and unit volume declined by 7.7%. Economy or value cigarettes were the sole subcategory to improve as smokers traded down, gaining 10.8% in dollar sales and 8.5% in unit volume. In the other tobacco product category, dollar sales actually improved by 5.8%, however, largely bolstered by large gains in the smokeless tobacco alternatives (+43.4%), rolling papers (+6.1%), and pipe and cigarette tobacco (+5.8%) subcategories.
Packaged beverages saw a mild dollar sales increase of 1.9%, set against unit volume declining 1.2% — energy drinks and enhanced water were the players which saved this category. Meanwhile, beer and malt beverages tumbled by 2% in terms of dollar sales and 2.2% in terms of unit volume, with all subcategories falling on both metrics.
Candy saw both dollar sales (-1.7%) and unit volume (-6.5%) decreases, as did salty snacks, which exhibited a dollar sales decline of 4.3% and a unit volume drop of 5.8%. Edible grocery saw both metrics roll back (-2.4% and -2.9%, respectively, with flavored water enhancers being the only notable growth subcategory), as did non-edible grocery (-2% on dollar sales and -5.3% in terms of unit volume).
Finally, general merchandise exhibited a dollar sales downturn of 1.2%, despite slight improvement in unit volume of 0.3%, and health and beauty observed a dollar sales boost of 2.3%, offset by a 1.9% tumble in unit volume. Grooming aids, personal hygiene items, and vitamins/supplements kept this category relatively stable.
Uncertainty was the word used to describe the outlook for H2, with Hanson quoting NRF chief economist Jack Kleinhenz on the subject.
“Uncertainty is pervasive,” Kleinhenz said, singling out the turbulence created by a shifting tariff situation, immigration policy, and deregulation efforts as primary factors creating a lack of surety.
“The good news is that economic fundamentals ‘appear solid,’ according to Kleinhenz. Additionally, core retail sales and personal income were up as of May, and the labor market beat expectations in June. Meanwhile, market research and advisory firm Circana reported that pricing remains largely stable with limited impact from tariffs as of June, while consumer sentiment improved somewhat but remains cautious,” Hanson concluded.
Discussion Questions
Is the broad-based decline of dollar sales and unit volume sales across the c-store segment cause for alarm? Why or why not?
What can convenience stores do to turn things around? Should some categories be trimmed back (and if so, which ones), and are there any obvious holes in contemporary offerings or service standards?
Which c-store chains or brands stand out from the crowd, in a good or bad way, from the rest of the pack? Why do you believe so?
Poll
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Jamie Tenser
Retail Tech Marketing Strategist | B2B Expert Storytelling™ Guru | President, VSN Media LLC
Lisa Goller
B2B Content Strategist
David Weinand
Chief Customer Officer, Incisiv
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The key to unlocking sales growth is improving the proposition. Too many convenience stores remain basic – and expensive – at a time when consumers are less willing to tolerate either. Elevating foodservice, snacks, and essentials strengthens the value equation and drives sales. Our data here show something interesting. In rural areas, drugstore closures should be diverting general retail trade to convenience outlets, especially fuel-based ones. Instead, dollar stores are capturing the lion’s share, thanks to relatively stronger propositions. There is money up for grabs, but convenience stores need to get more creative to capture it.
The broad-based decline in c-store dollar sales and unit volumes is certainly a concern, but it’s less a signal of imminent collapse than it is a wake-up call. Consumers are tightening wallets, shopping trips are shifting elsewhere, and categories like tobacco, candy, and high-priced snacks are showing sustained weakness. For a sector built on fuel, impulse, and grab-and-go, those patterns are tough to ignore.
The path forward lies in evolving beyond the old model. The most progressive operators are leaning into fresh food, made-to-order meals, loyalty programs, and cleaner, more inviting stores that convert fuel customers into in-store shoppers. There’s also room to trim underperforming SKUs and replace them with healthier, trend-driven alternatives that reflect where today’s consumer is headed. Technology that sharpens inventory control and speed of service is another lever c-stores can’t afford to ignore.
Not surprisingly, the brands that stand out—Wawa, Sheetz, Casey’s, Buc-ee’s—are those that have already reframed the value proposition around food, service, and experience. Others, like 7-Eleven, are closing underperformers and testing new food concepts in an effort to reposition. Chains that double down on tired categories or neglect service will struggle, while those that adapt quickly have the opportunity to turn this moment into long-term competitive advantage.
To drive more sales, convenience stores need to be more convenient – no out of stocks, no long waits at checkout, and ample parking up front for those who aren’t buying gas, just snacks.
Agreed, Frank. It might be time for c-stores to look beyond assortment and consider the experience shoppers are actually having in-store.
Mr. Kleinhenz’s data has been readjusted to show the true state of the economy. Job growth has been way way down and regardless of how many people this administration fires because they don’t like the numbers, the fact is, jobs – especially the core convenience store shopper jobs (manufacturing, construction) have been lost, not gained. This means there are fewer shoppers willing (or able) to pay the premium prices of convenience stores. Also, factor in the severe inflation on things like chocolate and snacks and it’s a double whammy. The higher-end chains like Caseys and Wawa attract a higher end customer and offer an elevated experience – so they will weather this better (check Casey’s earnings today….) but until we have some certainty on jobs and the economy, the sector will suffer.
The question c-store operators need to examine is, how is store traffic trending? Sales may be down simply because fewer people are visiting the stores, as opposed to visiting but choosing not to purchase. If traffic is stable, people are just not buying; if traffic is down, this may explain some of the softness. C-store operators, like every retailer, needs to track store traffic and measure in-store conversion rates – even down to the SKU level. This will enable them to truly understand if they have a traffic problem, conversion problem, or both. QuikTrip’s focus on frontline team performance, their approach to scheduling labor and focus on customer service is a standout from my perspective.
Yes, is the shopper behaviour changing? The first question to answer is, why is traffic down? Is it a trend or an anomaly? Without that answer, every other solution is irrelevant.
A lot of C-store sales are splurges, and with prices rising across the board, there’s going to be a lot less splurging. Expect this to get worse as more tariffs kick in and consumers feel more squeezed.
Looking over the CSN report, I am puzzled not to find data on prepared food sales trends. Cstores knew to expect ongoing unit sales decline in tobacco products, but hot food like pizza and sandwiches have been a bright spot in recent years in terms of trip-drivers and margins.
Without this missing information it seems quite difficult to assess the state of the convenience store sector overall.
One message does seem clear from this report – it’s a challenging time for suppliers of packaged products to this retail sector.
Convenience stores make many of their sales in categories that people buy less of – and eventually, perhaps, won’t buy at all – so sales have declined. I don’t know whether/not that should be described as “alarming” as much as “inevitable”. The normal reaction to such a situation is a winnowing out of weaker players; unfortunaely, in this case, low barriers to entry have encouraged an actual expansion in the numbers. But it hardly seems likely that can go on indefinitely: eventually the more nimble sellers will expand into other fields – prepared and gourmet foods, for example – while the weaker ones will go away.
Great insight – I love the idea of inevitable vs alarming.
Savvy c-stores are adjusting factors within their control like differentiated assortments, enticing promotions and a price premium that customers are willing to pay.
One chain’s recent remodel emphasizes local brands, TikTok’s trending products and far more space allocated to high-margin beverages.
How many of these convenience stores are attached to gas pumps…and is there any correlation to reduced traffic based on reduced gas consumption? Of course charging stations require a longer stop so there’s that.
Shriveled-up hot dogs, sticky floors, a wall of energy drinks, and coffee stations with cups and stirrers everywhere… Most C stores have become stereotypes of themselves. You almost need a decoder ring to figure out where you are.
That’s most.. not all. There are some really innovative and engaging brands out there that have fiercely loyal customers; Wawa, Sheetz, QT, Casey’s, Royal Farms and Kwik Trip come right to mind. The difference that those retailers bring to the C-Store game is a focus on customer experience, coupled with flawless execution on the things that differentiate them from their competition. Clean stores, great dairy, delicious made-to-order sandwiches, great coffee, great bakery items, healthy options.. Brands that offer their customers something more than the stereotypical gas station are far more likely to be a destination for their customers, rather than just after thought after filling the tank. This is critical when you consider that impulse purchases as a whole are under some pressure as consumers reprioritize discretionary spend.
Impulse buys alone aren’t enough for this space; the best-in-class companies have created an experience that’s driving intentional customer visits.
I think Mark Ryski nails it. Traffic vs conversion. Or all of the above. I have to believe they know whether or not they have a traffic problem. A conversion problem will always beg the question of potential assortment problems. Are they over-assorted in soda, potato chips, pretzels, and candy and under-assorted in some new product category? Traffic problems and conversion problems are two very distinctly different problems with very different solutions. The solutions to traffic problems don’t solve conversion problems. And visa versa.
The “C” in c-stores stands for convenience, which is the key differentiation that gave rise to the concept nearly a century ago. However, convenience has been entirely redefined by a wide variety of formats and digital technology. The quick in-and-out trips that people were once willing to pay a premium for are becoming a thing of the past—just ask a digital native.
Successful c-stores like Wawa and Sheetz have transformed into destination spots, offering micro-hospitality experiences that engage customers. They have created opportunities to capture your valuable time. To increase customer dwell times and engagement, c-stores need profound business model innovation. This could include adding fresh food preparation, curating local products, and creating community gathering spaces.
C-stores cannot thrive by selling the same overpriced products with minimal labor; that model will inevitably transition to self-service autonomous stores powered by technology.
Convenience comes at a price, and it’s typically a smaller selection of merchandise and a higher price point. In tougher economic times, customers will cut their spending and look for lower prices. The typical convenience store customer may change their routine of a daily cup of coffee, large drink, etc., to save a few dollars. Or, they may find a less expensive alternative. Additionally, many convenience store sales are tied to customers filling up their tanks with gas. With electric cars, that habit of changes. Every type of business experiences changes over time, and it’s the same for the C-store business. You can’t forget the basics, but you need to recognize shifts in the market.