Convenience Store Retailers Express Optimism Amid Positive Trends

Despite global economic challenges, 94% of convenience store operators rate their business health as good or excellent, according to a survey by retail technology company Toast. This optimism persists even as macroeconomic disruptions, including ongoing conflicts in Iran and Ukraine, escalating trade wars, and cautious consumer spending, create a complex operating environment. The survey, which included 340 convenience store, grocery, and liquor store operators, highlights the resilience of the retail sector in the face of these challenges.

Expansion plans on the rise

The survey reveals that 62% of convenience retailers plan to open a new location in the next year, up 4% from last year. This growth is part of a broader trend, with 69% of grocery retailers and 70% of liquor store operators also planning expansions. Notably, retailers of all sizes are contributing to this expansion, with new stores opening across the U.S. at a steady pace. For instance, the grand opening of Buc-ee’s first Virginia location in Rockingham County on June 30, 2025, drew significant attention, showing the continued interest in the convenience store sector despite industry exits by smaller companies.

While smaller companies have exited the industry, retailers of all sizes are opening new stores across the U.S. This optimism comes despite ongoing conflicts in Iran and Ukraine, escalating trade wars, and cautious consumer spending. The expansion plans reflect a broader confidence in the sector’s ability to adapt and thrive, even in uncertain times.

Standing out in a crowded market

59% of convenience retailers find it difficult to differentiate themselves from competitors. This challenge is more acute for liquor stores, where 69% struggle to stand out, but less so for grocers, with only 52% reporting difficulty. As retailers expand their capabilities and enter new markets, the ability to differentiate becomes increasingly critical. Traditional features like fresh food, QSR partnerships, and strong brand identities are becoming more common, forcing retailers to seek innovative ways to distinguish themselves.

To address this, c-store retailers are focusing on granular improvements, such as expanding drink selections and enhancing food quality. They are also leveraging social media marketing and improving loyalty programs to increase demand. For example, adding more extensive drink options and higher-quality food items allows retailers to cater to evolving consumer preferences. Social media campaigns and enhanced loyalty programs help build stronger customer relationships and drive repeat business. These strategies are essential as retailers handle a competitive market where standing out is more challenging than ever.

As the industry evolves, retailers are looking beyond traditional features like fresh food and QSR partnerships. The ability to innovate and adapt will likely determine their success in a competitive market. Retailers that can identify and capitalize on emerging trends, such as health-conscious options or technology-driven convenience, will be better positioned to thrive.

Simplifying operations for future growth

31% of c-store, grocery, and liquor store retailers plan to simplify operations in the next year. This focus on streamlining is 11% higher among c-store operators compared to last year, indicating a growing priority. Simplifying operations is seen as a critical step to ensure efficiency and scalability as retailers expand. By optimizing current processes, retailers can reduce costs, improve service quality, and prepare for future growth initiatives.

Retailers aim to optimize their current operations before taking on new initiatives. Toast notes, “They want to make things run smoothly before adding more to their plate.” This approach reflects a strategic focus on building a strong foundation for growth. Other key goals include improving profitability, boosting employee productivity, and introducing new technology. For instance, adopting new technology can automate routine tasks, enhance customer experiences, and provide valuable data insights. These efforts collectively position retailers to handle challenges and capitalize on opportunities in a dynamic market.