Nine Trends the Convenience Store Industry Should Watch in 2025

Over the past year, many convenience store retailers have faced significant pressure. Inflation has made customers more cautious with their spending, economic strain has weighed on some large companies, and has also forced many small operators out of the industry. The federal government's push for electric vehicles has left convenience stores worried about the future of their gas stations—about 80% of liquid fuel in the U.S. is sold at gas stations.

But the new year may bring a turning point. Inflation has eased, the leadership of the U.S. federal government is clear, and the world is further emerging from the shadow of the COVID-19 pandemic. John Eichberger, executive director of the Transportation Energy Institute, expressed optimism about the fuel industry.

"I think, in terms of messaging and the feeling of 'how the fuel market will develop,' the industry is in a much better position than it was a few months ago," he said.

This doesn't mean retailers can let their guard down—price remains a key focus for customers and convenience stores, and the industry still lags behind other formats in several areas, including technology and foodservice. But if the environment becomes more favorable, retailers can capitalize on it.

"If I were to set a theme for 2025, I would call it 'future-proofing,'" said Art Sebastian, CEO of convenience store consulting firm NextChapter. "How do I ensure I differentiate myself and remain relevant for years to come?"

Other experts interviewed by C-Store Dive also mentioned that retailers stand to benefit from automation and information utilization while optimizing the customer experience. Foodservice remains a focus, and the consolidation trend will continue.

Here are nine trends that could impact the convenience store industry in 2025.

Only unique independent operators will survive industry consolidation

Mergers and acquisitions have stirred the convenience store industry in recent years, especially in 2024. Large chains like 7-Eleven, Alimentation Couche-Tard (parent of Circle K), and Casey's General Stores have frequently acquired smaller retailers struggling with the economic headwinds caused by the pandemic.

Several experts believe the tough operating environment facing small retailers and the accompanying consolidation trend will continue into 2025. While operators of all sizes will be affected, those with fewer than 10 stores will bear the brunt.

"I think at some point, I don't know if it makes sense to operate fewer than 10 stores," said Kevin Farley, chief customer officer at convenience store consulting firm W. Capra.

Unless these small businesses can truly differentiate themselves with a niche product or strong community ties, the difficulty of the current operating environment may outweigh the rewards of staying in business. Sebastian noted that many retailers acquired in 2024 lacked such uniqueness.

"They were competent operators, but too homogeneous, and large operators can implant their own programs and achieve synergies after acquisition," Sebastian said.

Trump administration will bring changes to convenience stores

With the new presidential administration taking office in January, convenience store operators should pay attention to shifts in regulatory and funding priorities. Eichberger believes this could have a significant impact on convenience stores that sell gasoline, especially liquid fuel.

"I think it's reasonable to expect that tailpipe emission rules... those rules that most believe require two-thirds of new car sales to be electric by 2032? Those rules will be modified," Eichberger said. While he doesn't expect EV adoption to stop, it may grow in a more natural way next year. This means stores can build infrastructure based on customer demand rather than preparing for a government-mandated transition.

Canadian retail analyst Bruce Winder said retailers will also watch whether President-elect Trump implements tariffs, which could push up prices on many imported goods. With many customers still spending cautiously due to prolonged high inflation, convenience stores may see opportunities.

"I think retailers will continue to develop private labels," Winder said. "It makes more sense, helps improve margins, and they can control suppliers." Additionally, while unable to predict the future, Don Burke, recently retired from his role as senior vice president at Management Science Associates, said a federal menthol ban is "unlikely" to take effect, as it has been delayed multiple times.

Convenience stores will reassess loyalty strategies

Over the past few years, convenience store retailers have invested heavily in mobile rewards and loyalty platforms. But while customers typically like these programs once they sign up, loyalty engagement across the industry still lags. According to Paytronix's 2024 Loyalty Trends report, the best-performing QSRs added an average of 110 new loyalty members per store per month, while leading convenience store retailers added only 36 new members per store per month on average.

Farley believes the problem stems from the convenience store industry prioritizing discounts and offers over the in-store experience. Retailers need to consider the fundamental reasons customers visit their stores and design loyalty programs around that. "You have to give customers a reason to come in, and that's not achieved through a loyalty program," he said. Farley believes that by emphasizing unique strengths, such as foodservice programs, clean restrooms, and especially unique product assortments, convenience stores can improve loyalty engagement. "The Coke they buy is exactly the same as at every other convenience store," Farley said. "You have to change things beyond the traditional convenience store offering to attract them in."

Couche-Tard will make waves in some way

When Couche-Tard revealed in August that it had submitted a bid to acquire Seven & i, the parent company of 7-Eleven, experts said the likelihood of the deal proceeding was slim. Nearly half a year later, that view hasn't changed. Experts believe the deal won't happen, especially after one of Seven & i's largest shareholders made a higher privatization offer.

"It sounds promising and avoids the whole issue of Japan not wanting a foreign company to own its national champion," Winder said. But Winder still believes that even if the Seven & i bid fails, Couche-Tard will make a major move in 2025. He emphasized that the company's acquisition appetite in recent years suggests it will continue to look for more targets. A move in 2025 could even involve deals outside the convenience store industry. Winder cited Couche-Tard's brief investment in cannabis company Fire & Flower and its failed attempt to acquire French supermarket chain Carrefour as examples. "If they can't get Seven & i, they're likely to look elsewhere," he said.

EV charging focus shifts downward

While the Trump administration may not allocate new funds for EV charging, the NEVI funds many convenience stores have already received remain valid, Eichberger said. As consumer demand for EVs grows, charging infrastructure will continue to grow organically. Eichberger added that last year, the best-selling vehicle category in the U.S. was crossover utility vehicles, with the most popular version being the Tesla Model Y.

Compared to last year, the focus for convenience stores will shift more from building charging infrastructure to making EV drivers feel welcome—and encouraging them not only to charge but also to make other purchases. EV drivers want safety—clean, well-lit chargers with surveillance cameras near the entrance—as well as amenities like clean restrooms, 24-hour foodservice, or playgrounds. However, Eichberger noted that most retailers don't meet these standards. "In the stores we surveyed, maybe 55% to 70% have some of these conditions, but almost none have all of them," Eichberger said, citing a 2024 study by the Transportation Energy Institute. "So there's a huge opportunity."

Hybrid foodservice models will emerge

The competition between made-to-order and grab-and-go foodservice in convenience stores continues to heat up. Retailers like TXB and Twice Daily are fully committing to customizable menus, while Kwik Trip and Maverik stick to traditional, faster pre-made models. Several experts believe convenience store retailers can succeed with both approaches. The key is tailoring food programs to the needs and expectations of customers at each store and doing so profitably. "I think everyone understands that at some level you need a foodservice program," Farley said. "Whether you go with a full Casey's-style pizza program depends on you and your team." Rachel Toner, a convenience store foodservice consultant who spent nearly seven years on Wawa's product development team, said advances in food technology and engineering are helping retailers optimize both models. Toner emphasized that consumer preferences should prompt retailers to offer both, with Gen Z and millennials leaning toward experiential made-to-order menus and older consumers preferring quick grab-and-go options. "I don't think one will completely dominate the other," she said. "I think this hybrid model gives people the best of both worlds."

AI will continue to permeate stores

While convenience store retailers continue to integrate new technologies, the industry has been slower to adopt artificial intelligence. Some hesitation stems from retailers being unable to justify the cost, while others simply don't understand how AI can bring benefits. Nevertheless, both large and small convenience store retailers are experimenting. 7-Eleven said its AI scheduling assistant reduced the hiring process from 10 days per candidate to 3 days, while Loop Neighborhood Market uses AI to provide employees with daily sales and gross profit reports. Sebastian said that as labor and supply chain obstacles persist into 2025, more convenience store retailers will have to leverage AI. "Replace anything that requires a clipboard and pen," Sebastian said. He sees opportunities for convenience store retailers to use voice AI, a technology that mimics human communication. Sebastian helped Casey's launch an automated voice assistant for pizza orders. "There's so much voice AI technology now, whether it's in the cooler taking inventory and speeding up systems, or on the sales floor listening and recording conversations through voice AI."

Tobacco isn't dead, but it's evolving

The long-term decline in nicotine use is nothing new, but the situation may not be as dire as the data suggests, said Burke, the former senior vice president at Management Science Associates. Still, the category is shifting. Burke said deep-discount cigarettes will continue to grow in 2025 due to price-sensitive shoppers and faster price increases on branded cigarettes. But the bigger shift in the nicotine space is the move toward "modern oral" products, especially nicotine pouches, which are so popular that some manufacturers are facing supply constraints. Burke said sales grew over 50% in 2023 and another 50%-60% in 2024. Nicotine pouches don't contain tobacco and can be used in many places where smoking or vaping is prohibited. Burke noted that if current trends continue, modern oral products could become the third-largest nicotine category behind cigarettes and large cigars in the coming years. And convenience stores are the primary sales channel for these products. "This is truly an opportunity for convenience stores, not only because the product is growing, but also because consumers really rely on convenience stores/gas stations to buy this product," Burke said.

Convenience stores will find ways to leverage first-party data

As convenience stores increasingly launch or update loyalty programs, offer online ordering, and expand email, text, and other direct communications, they are not only creating incentives for customers to return but also accumulating another valuable resource—first-party data. Sebastian noted that learning to store and use this data safely and legally could pose challenges for retailers. But he and other experts agree that first-party data is also an opportunity, even beyond using it for targeted advertising or optimizing in-store product assortments. "If these retailers are looking for additional revenue streams and are willing to try something new, we're starting to see more and more opportunities for data sales," said Austin Burns, president and CEO of Paragon Solutions, a convenience store design firm. Burns noted that leveraging first-party data can create a virtuous cycle: the better the food program and the more attractive the store, the more customers it attracts, generating more data that can be sold and fed back into the business. "I think it's still in its infancy," Burns said. "But I'm sure it's coming... it will be interesting to see how it develops in our industry."