Years ago, c-stores — also known as convenience stores — could bank on location, speed and convenience as a magnet for attracting customers. That’s no longer the case, with recent data showing shoppers making fewer c-store trips and buying fewer items per trip, mostly due to cost concerns. About 90% of Americans currently report feeling stressed by grocery costs — causing them to pause before paying extra for that box of cereal they could get for much less at the local supermarket.
With revenues generated from gas and core staples, including snack and indulgence items, slipping in recent years — and as competition from dollar stores and big-box retailers picks up — c-stores are being forced to evolve. They’re moving away from a business model based solely on convenience and speed, towards one positioning them as premium food-focused destinations. Accordingly, c-stores need to adapt their marketing and product strategies to this new reality, emphasizing and prioritizing these higher-margin items (namely healthy, fresher-looking items and foodservice) and the overall customer experience.
This means:
Renewed Focus on Driving “Pump to Store” Conversions Customers overwhelmingly prefer to buy their gas at local c-stores, but gas has traditionally been a low-margin offering. Moreover, the recent rise in gas prices (resulting from current supply disruptions) means fuel-buying customers don’t have as much money to spend inside the store and may generally be in a poor mood – both of which can negatively impact in-store foot traffic and sales.
For these reasons, pump-to-store conversion is more important than ever as a metric. Getting a customer on-site for fuel is the first step, but getting them through your doors to make an additional higher-margin purchase is an even bigger win. Generally, c-stores are already doing a good job at enticing customers inside, but driving even a single-digit increase in in-store purchases can yield a significant revenue impact. Fortunately, a majority of gas patrons note they are likely to read promotional signage at the pumps — making it a critical tool for recommending special offers to entice them inside, like ‘buy one get one free’ (BOGO).
Strategic Merchandising to Promote Spontaneous Purchases of Healthy Items With today’s customers prioritizing wellness, c-stores have an excellent opportunity to upsell “better for you” options, such as fresh fruit, hard-boiled eggs, cheese sticks, ready-made salads and more — which also happen to be high-margin. Once you’ve gotten the customer inside, one highly effective merchandising technique is to position these fresher-looking products alongside or within easy view of promoted products that may have been the initial customer draw. Studies show that effective, visual in-store merchandising, with healthier, fresher-looking options placed in high-traffic, eye-level and high-visibility impulse areas can increase on-the-fly purchases.
Be Extremely Judicious When Allocating Shelf Space Unlike larger retail settings, space is an extremely precious commodity in c-stores, and every item consuming display space needs to earn its keep. If an item doesn’t sell quickly, it’s taking up precious space that could be used for more profitable products. Too many products can detract from the quick, low-effort decisions customers seek at c- stores; while too few or the wrong products can lead to waste and missed revenue. For these reasons, c-stores need to curate their product offerings very deliberately, with an extremely watchful eye to understand how each product contributes to sales, margin, or strategic value at any moment in time, as well as over the course of time.
Market the Experience Over the past several years, the line between c-stores and quick service restaurants (QSRs) has been blurring, with c-stores — propelled largely by made-to-order offerings and perception of superior value — outpacing quick-service restaurants (QSRs) in foodservice growth. In fact, nearly three-quarters of consumers now view c-stores as legitimate alternatives to QSRs.
C-stores should leverage this heavily, marketing their food service as an experience, perhaps offering high-top tables and features like open kitchens, which can provide a ‘live theater’ experience that increases customers’ appetite and satisfaction. C-stores should also emphasize customers’ ability to multitask during their visit, such as shopping and enjoying an intimate meal, and offer signature menu items to further compete with QSRs.
Promote a Sense of Community A key component of the c-store experience also involves creating a sense of community. In addition to offering a convenient gathering or meeting spot, independent c-stores can do this by featuring local brands, and while chains may not have the same flexibility in altering their product offering formula, they can do things like sponsoring a local baseball team to demonstrate their commitment. Geotargeted in-app promotions and paid social can also be highly effective, encouraging those nearby to visit, facilitating meet-ups and reinforcing the notion of a “community store” that goes beyond convenience alone to promote a greater shared good.
Today’s c-store customer buying patterns are rapidly changing. While it’s true that location, speed and convenience continue to be a huge impetus for visits, shoppers are increasingly motivated by healthy items and foodservice. At last, the gas station and c-store food stigma is dissipating, but this is requiring c-stores to evolve their marketing and product approaches. By focusing on higher-margin items and the overall experience, c-stores can ensure robust revenue growth while also solidifying their status as a reliable, trustworthy, and dedicated community presence.
Victor Kimble is a transformative marketer and strategist who has led award-winning campaigns for top global brands across B2C and B2B. As Preston Spire’s first CMO, he brings strategic rigor and creative excellence that drive measurable business growth. His leadership — rooted in courage, connection, and creativity — has earned accolades including Cannes Lions, Effies, and Jay Chiat Awards.
