May 25, 2026
Jshanebutt/Depositphotos.com
C-Stores Face Consumer Disinterest Due to High Prices, But Can Private Label Turn Things Around?
It looks like convenience stores could be facing a bit of customer pushback, particularly given the challenging state of the U.S. economy. According to NieslenIQ data presented by C-Store Dive’s Jessica Loder, high prices (and lower demand for nicotine and alcohol products, alongside the tertiary spend from customers normally buying these products) have curtailed demand, with dollar sales down around 0.5% YoY in March and unit sales down 2.6%.
“The convenience channel is more expensive to buy these sorts of products in, and that’s likely driving down some of that unit consumption,” said Chris Costagli, VP of food thought leadership at NielsenIQ.
Data pulled from the Nielsen report included:
- The average price of chocolate and confection items at c-stores were a significant 67% higher than all retailers over the course of the 52 weeks ending on March 21.
- Products such as chips, crackers, and popcorn were about 50% more expensive at c-stores, and cookies were, on average, 34% more expensive than at all other retailers.
- Of all categories encompassed by the study, only candy, gum, and mints saw dollar sales growth.
- The above stats lead to one conclusion — half of the survey respondents indicated that they were trimming their spend at c-stores due to inflated shelf pricing.
“We know that with transportation getting more expensive, shoppers are cutting back on the products that they don’t deem to be essential,” Costagli said. “Forty four percent are cutting back on snacks. They’re cutting back on those premium, those indulgent options.”
Could Private Label C-Store Products Drive Interest and Spend From Stressed Shoppers?
In a separate report, C-Store Dive’s Danielle McLean made the case for an emerging assortment of private label opportunities around the convenience store space. Casey’s General Stores, Love’s Travel Stops & Country Stores, Circle K, and Wawa were all highlighted as examples of this growing trend, and most shoppers are familiar with the Buc-ee’s craze that appears to have no end in sight.
“Own brands are no longer a defensive strategy. It’s become a growth engine and a brand-building tool for today’s convenience retailers,” Peggy Davies — president of the Private Label Manufacturers Association — said, per McLean.
There’s a bit of a Wild West going on in the c-store segment on private label, with some chains holding no own brands while others heavily promote their private label products. Popular categories prime for (or already engaged in) expansion are: energy drinks, with customers being ready and raring to experiment; ready-to-eat and (somewhat) healthy snacks, such as protein-laden jerky, chips, and pretzels; and even chocolate, which has seen such a price surge as of late that less-expensive own brand competition could be a value buy.
A little bit of research is also called for — particularly as to how many younger, value-oriented customers a c-store location or chain attracts, as these customers are more likely to take a gamble on an attractive private label offering — as well as the capability to actually break in on the private label market from an operational scale and supplier capabilities perspective.
“If your private label is better — it’s better quality and the packaging is compelling — you’ve got a definite viable alternative to that national brand. It’s a great weapon to have in their arsenal.” said Isaac Krakovsky, consulting retail sector leader at EY Americas.
BrainTrust
Richard J. George, Ph.D.
Professor of Food Marketing, Haub School of Business, Saint Joseph's University
Gene Detroyer
Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.
Shep Hyken
Chief Amazement Officer, Shepard Presentations, LLC
Recent Discussions
Discussion Questions
Do you believe a strong investment in private label snacks and beverage by c-stores could help allay consumer hesitation around current pricing? Why or why not?
Aside from the c-stores which currently engage in significant private label investment, which other brands come immediately to mind as potential players in the space?
What other opportunities or levers might c-stores take advantage of to add value to a visit?
Poll
Not all c-stores are facing disinterest – anyone who has seen the crowds at Buc-ee’s can attest to the fact that some c-stores are hugely popular. The ones struggling are the down-at-heel kinds that overcharge for basic items. It is unlikely that private label will save them unless they retool other aspects of the proposition. Meanwhile, the popular chains are leaning into private label as their brands are trusted and appealing. The lesson is that while private label is growing rapidly, it is not a silver bullet – performance depends on the wider retail context in which it is offered.
Own label is the potential savior of CStores. Consider this, every CStore carries national consumer convenience brands, think cold beverages, snacks, confectionery, etc. None of these brands offer CStores a differential advantage. Own label potentially does so. Not the old positioning of own label as the knock off price option, but one that gives customers permission to by pass a neighboring CStore &.visit one that better meets their CStore needs.
Although Buc-ees is often mentioned as a good example of positive brand differences, I am a strong proponent of what WAWA has done to transform the gas & go image of CStores to quality food service solutions.
Private/Own Label drives differentiation, even creating a wide margin of separation from competition, much like specialty grocer Erewhon does by creating compelling quality and value with healthier and better food items. There is no Erewhon equivalent yet for C-Stores, but WaWa and Buc-ees are among the more focused on a wider private label wider. You can either offer the same c-store product brands as everyone else, and operate with the same market-driven price sensitivity, or you can create separation, value, and innovate for your customers.
lower demand for nicotine and alcohol products, alongside the tertiary spend from customers normally buying these products) have curtailed demand
And that, friends (and foes), is the story in a candy bar wrapper; as for the rest of this breathless report – Products such as chips, crackers, and popcorn were about 50% more expensive at c-stores – paying for convenience…imagine!!
Private label can sharpen margins and add differentiation, but it does not fix a broken value proposition on its own. C-stores trying to solve a strategic problem with a merchandising tool alone will fall short.
Operators like Wawa, Buc-ee’s, Sheetz, and Casey’s demonstrate that their own brands work best when anchored to a compelling reason to visit. But private label can also be a catalyst for operators willing to rethink the format alongside it rather than as a standalone fix. The structural pressure on c-stores is real and accelerating. Private label is a powerful lever, but only in service of a bolder transformation.
In March, we talked about how convenience store “super-users”, shoppers who stop in multiple times a week, are driving sales. In April, we discussed how foodservice items were hot sellers, with packaged beverages and alternative snacks coming in a close second. At this point, the survey data is starting to feel a little all over the place.
Everyone knows products sold at convenience stores cost more. It’s right there in the name: convenience. Private label may win over some shoppers, but you’ll never catch me reaching for generic Sno’Balls or a faux can of Coke.
The “C” in C-stores is for convenience. The growth in C-stores has always been about convenience. Price was never an issue. While price may be the problem, it is not the solution. When you just filled your gas tank with a breathtaking charge, it is hard not to consider skipping overpriced chips.
A question comes to mind. Is a private label strategy about creating a pricing strategy that is lower than name brand products, or is it a way to differentiate one convenience store from the other?
Customers have always been willing to pay a little bit more for convenience, however, there is a breaking point. Having more control over a product through private labeling as a good strategy to help with options against higher priced items.
I’m confused. Chips and candy bars are priced 67% higher at convenience stores than other stores…which presumably was an eyes-open decision by the conveniece store to charge those prices…and the solution is private label…?!? Sounds to me like the C-stores are learning a classic lesson in price elasticity, and that they have pushed the envelope past the point of maximizing both sales and margin…to the point of maximizing neither. C-stores are not going to pull customers 3 blocks out of their way with private label chips and candy bars. Convenience is still the primary Brand Promise. But they can relook at their pricing strategies on branded products AND also offer private label. It’s a classic portfolio management problem. It’s solvable with some astute product development and testing. But private label doesn’t solve a pricing problem on branded products. Convenience stores need to maximize both traffic AND conversion.
Customers can pretty quickly figure out they can drive another block or three, on their current route, to find the national brand they are loyal to at a more competitive price. C-stores know this, right? C-stores know the competitive prices a block or two away, or a mile or two away, right? The data is sitting right out in the open, and they want to solve a pricing problem with private label?
Yes, they should do private label. But that’s not the solution to their branded pricing problem.
While c-stores can benefit from private label, there is still a broader pricing equation that has to be in balance as it relates to the value received for the convenience. If the prices are way out of whack to begin with, the value isn’t there as it relates to the convenience and private label won’t resolve that issue.
C-stores have always won on speed and location, but that advantage is shrinking as grocery and QSR close the convenience gap. The operators who figure out how to deploy agentic AI not just for back-office efficiency but for real-time, customer-facing value decisions will be the ones who actually rebuild shopper trust. Private label is a good starting point, but without intelligent execution behind it, it’s just a cheaper sticker on the same old problem. The stores that treat AI as an active commercial decision-maker rather than a reporting tool will be the ones still standing when this price sensitivity cycle finally turns
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Not all c-stores are facing disinterest – anyone who has seen the crowds at Buc-ee’s can attest to the fact that some c-stores are hugely popular. The ones struggling are the down-at-heel kinds that overcharge for basic items. It is unlikely that private label will save them unless they retool other aspects of the proposition. Meanwhile, the popular chains are leaning into private label as their brands are trusted and appealing. The lesson is that while private label is growing rapidly, it is not a silver bullet – performance depends on the wider retail context in which it is offered.
Own label is the potential savior of CStores. Consider this, every CStore carries national consumer convenience brands, think cold beverages, snacks, confectionery, etc. None of these brands offer CStores a differential advantage. Own label potentially does so. Not the old positioning of own label as the knock off price option, but one that gives customers permission to by pass a neighboring CStore &.visit one that better meets their CStore needs.
Although Buc-ees is often mentioned as a good example of positive brand differences, I am a strong proponent of what WAWA has done to transform the gas & go image of CStores to quality food service solutions.
Private/Own Label drives differentiation, even creating a wide margin of separation from competition, much like specialty grocer Erewhon does by creating compelling quality and value with healthier and better food items. There is no Erewhon equivalent yet for C-Stores, but WaWa and Buc-ees are among the more focused on a wider private label wider. You can either offer the same c-store product brands as everyone else, and operate with the same market-driven price sensitivity, or you can create separation, value, and innovate for your customers.
And that, friends (and foes), is the story in a candy bar wrapper; as for the rest of this breathless report – Products such as chips, crackers, and popcorn were about 50% more expensive at c-stores – paying for convenience…imagine!!
Private label can sharpen margins and add differentiation, but it does not fix a broken value proposition on its own. C-stores trying to solve a strategic problem with a merchandising tool alone will fall short.
Operators like Wawa, Buc-ee’s, Sheetz, and Casey’s demonstrate that their own brands work best when anchored to a compelling reason to visit. But private label can also be a catalyst for operators willing to rethink the format alongside it rather than as a standalone fix. The structural pressure on c-stores is real and accelerating. Private label is a powerful lever, but only in service of a bolder transformation.
In March, we talked about how convenience store “super-users”, shoppers who stop in multiple times a week, are driving sales. In April, we discussed how foodservice items were hot sellers, with packaged beverages and alternative snacks coming in a close second. At this point, the survey data is starting to feel a little all over the place.
Everyone knows products sold at convenience stores cost more. It’s right there in the name: convenience. Private label may win over some shoppers, but you’ll never catch me reaching for generic Sno’Balls or a faux can of Coke.
The “C” in C-stores is for convenience. The growth in C-stores has always been about convenience. Price was never an issue. While price may be the problem, it is not the solution. When you just filled your gas tank with a breathtaking charge, it is hard not to consider skipping overpriced chips.
A question comes to mind. Is a private label strategy about creating a pricing strategy that is lower than name brand products, or is it a way to differentiate one convenience store from the other?
Customers have always been willing to pay a little bit more for convenience, however, there is a breaking point. Having more control over a product through private labeling as a good strategy to help with options against higher priced items.
I’m confused. Chips and candy bars are priced 67% higher at convenience stores than other stores…which presumably was an eyes-open decision by the conveniece store to charge those prices…and the solution is private label…?!? Sounds to me like the C-stores are learning a classic lesson in price elasticity, and that they have pushed the envelope past the point of maximizing both sales and margin…to the point of maximizing neither. C-stores are not going to pull customers 3 blocks out of their way with private label chips and candy bars. Convenience is still the primary Brand Promise. But they can relook at their pricing strategies on branded products AND also offer private label. It’s a classic portfolio management problem. It’s solvable with some astute product development and testing. But private label doesn’t solve a pricing problem on branded products. Convenience stores need to maximize both traffic AND conversion.
Customers can pretty quickly figure out they can drive another block or three, on their current route, to find the national brand they are loyal to at a more competitive price. C-stores know this, right? C-stores know the competitive prices a block or two away, or a mile or two away, right? The data is sitting right out in the open, and they want to solve a pricing problem with private label?
Yes, they should do private label. But that’s not the solution to their branded pricing problem.
While c-stores can benefit from private label, there is still a broader pricing equation that has to be in balance as it relates to the value received for the convenience. If the prices are way out of whack to begin with, the value isn’t there as it relates to the convenience and private label won’t resolve that issue.
C-stores have always won on speed and location, but that advantage is shrinking as grocery and QSR close the convenience gap. The operators who figure out how to deploy agentic AI not just for back-office efficiency but for real-time, customer-facing value decisions will be the ones who actually rebuild shopper trust. Private label is a good starting point, but without intelligent execution behind it, it’s just a cheaper sticker on the same old problem. The stores that treat AI as an active commercial decision-maker rather than a reporting tool will be the ones still standing when this price sensitivity cycle finally turns