NACS Magazine June 2026

JUNE 2026 COAST TO COAST A closer look at regional trends STANDING OUT What sets the best stores apart

Behind THE

NUMBERS

Insights from the 2026 NACS State of the Industry Summit reveal opportunities for growth.

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Advancing Convenience & Fuel Retailing

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JUNE 2026 COAST TO COAST A closer look at regional trends STANDING OUT What sets the best stores apart

Behind THE

NUMBERS

Insights from the 2026 NACS State of the Industry Summit reveal opportunities for growth.

Join store owners across the country who are fighting for fair tobacco policies.

Get Involved at TobaccoIssues.com

ONTENTS NACS / JUNE 2026 FEATURES

26 5 Big Takeaways From the 2026 NACS State of the Industry Summit

The north star for retailers? Be unique and unrepeatable—and consistent.

36 To Fight Customer Apathy, Be Super

Interactions in your store can win superfans or risk losing a customer.

42 Where the Industry Goes From Here

Five key metrics outline the health of the industry—and your business.

52 In-Store Sales Drive Growth What are the steps that can lead to higher inside transactions and bigger baskets?

60 Using AI to Unlock Potential The goal is to get the most from employees—not replace them.

76 Winning the

Convenience Trip

Findings from dunnhumby reveal the attributes that earn consumer preference.

78 The 24-Cent Difference

Consumers are looking for better quality and lower prices— private label and loyalty programs can help.

100 Differentiating Your Offer

The NACS Consumer Survey explores what features make a store stand out from the crowd.

86 Rethinking the

106 How to Revitalize an

This article is brought to you by Structural Concepts.

This article is brought to you by SNK Petroleum Wholesalers.

Cold Case

Strategic merchandising helps customers shop faster, drives impulse purchases and builds bigger baskets.

90 Strategic Issues

Facing C-Stores

Aging Fuel Retail Site

Innovation, technology and a solid plan can breathe new life into an old site.

110 Today’s Workplace

Compliance Concerns

Lessons from Convenience Summit Asia: Four key issues serve as catalysts for growth and change.

From AI to workplace monitoring tools, the NACS Human Resources Forum covered what convenience retailers need to know now and what the future holds.

64

Regional Reports In a challenging year for in-store sales, regional highlights show growth opportunities.

STAY CONNECTED WITH NACS @nacsonline facebook.com/nacsonline instragram.com/nacs_online linkedin.com/company/nacs

Subscribe to NACS Daily—an indispensable quick read of industry headlines and legislative and regulatory news, along with knowledge and resources from NACS, delivered to your inbox every weekday. Subscribe at www.convenience.org/NACSdaily.

ONTENTS NACS / JUNE 2026

DEPARTMENTS 06 From the Editor 08 Faces of the Industry 10 NACS News 18

$9,618

The average total sales per store, per month of candy in 2025.

CATEGORY CLOSE-UP PAGE 132

Convenience Cares

20 Inside Washington The Regulate Smarter Coalition is helping clean up the illegal vape market by pushing regulators for more clarity and better enforcement.

122 Fuels and Energy 130 Gas Station Gourmet 132 Category Close-Up In the candy category, innovation helps balance out inflation-related challenges.

140 By the Numbers

PLEASE RECYCLE THIS MAGAZINE 2 JUNE 2026 convenience.org

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/ JUNE 2026 EDITORIAL

NACS BOARD OF DIRECTORS

Jeff Lenard VP of NACS Media & Strategic Communications (703) 518-4272 jlenard@convenience.org

CHAIR: Annie Gauthier, CFO/Co-CEO, St. Romain Oil Co. LLC (dba Y-Not Stop)

Ben Nussbaum Publisher & Editor-in-Chief (703) 518-4248 bnussbaum@convenience.org

OFFICERS: Chris Bambury, Bambury Inc.; Tom Brennan, Casey’s; Varish Goyal, Loop Neighborhood Markets; Charles McIlvaine, Coen Markets Inc.; Natalie Morhaus, RaceTrac Inc.; Travis Sheetz, Sheetz Inc.

Michelle Cassidy Managing Editor mcassidy@convenience.org Lauren Shanesy Editor/Writer lshanesy@convenience.org Noelle Riddle Editor/Writer nriddle@convenience.org Chrissy Blasinsky Digital & Content Strategist cblasinsky@convenience.org CONTRIBUTING WRITERS Al Hebert, Steve Holtz, Terri Allan

DESIGN

Ji Ho Creative Director jho@convenience.org David Marvin Graphic Designer dmarvin@convenience.org

ADVERTISING Stacey Dodge Advertising Director/Southeast (703) 518-4211 sdodge@convenience.org Jennifer Nichols Leidich National Advertising Manager/ Northeast (703) 518-4276 jleidich@convenience.org Ted Asprooth National Sales Manager/ Midwest, West (703) 518-4277 tasprooth@convenience.org

PUBLISHING

COME TOGETHER. DO MORE. Join us at conveniencecares.org

Logan Dion Digital Media and Ad Trafficker (703) 864-3600 ldion@convenience.org Advertising production: production@convenience.org

TREASURER: Lonnie McQuirter, Director of Operations, 36 Lyn Refuel Station

GENERAL COUNSEL: Doug Kantor, NACS MEMBERS: Lisa Blalock, BP North America Inc.; Brian Donaldson, Maxol Limited; Tony El-Nemr, Nouria Energy Corp.; Terry Gallagher, Gasamat Oil Corp./Smoker Friendly; Erin Graziosi, Robinson Oil Corp.; Raymond Huff, HJB Convenience Corp. (dba Russell’s); Mark Jordan, Refuel Operating Co.; Thomas Love, Love’s Travel Stops & Country Stores; Crystal Maggelet, Maverik Inc.; Rich Makin, Wawa Inc.; Brian McCarthy, Blarney Castle Oil Co.; Andrew Mitchell, Toot’n Totum Food Stores LLC; Jigar Patel, Fastime; Stanley Reynolds, 7-Eleven Inc.; Kristin Seabrook, Global Partners LP; Doug Yawberry, Weigel’s Stores Inc.; Scott Zietlow, Kwik Trip Inc. PAST CHAIRS: Brian Hannasch, Alimentation Couche-Tard Inc.; Victor Paterno, Philippine Seven Corp.

SUPPLIER BOARD REPRESENTATIVES: Bryan Morrow, Chobani & La Colombe; Kevin LeMoyne, The Coca-Cola Co.

NACS SUPPLIER BOARD SUPPLIER BOARD CHAIR: Bryan Morrow, Chobani & La Colombe CHAIR-ELECT: Kevin LeMoyne, The Coca-Cola Co. VICE CHAIRS: Mike Gilroy, Mars Wrigley; Jim Hughes, Supplying Demand Inc. dba Liquid Death; Danielle Holloway, Altria Group Distribution Co. MEMBERS: Tony Battaglia, PMI U.S.; Ryan Calong; Jerry Cutler, InComm Payments; Jack Dickinson, Dover Fueling Solutions; Matt Domingo, Reynolds; Mark Falconi, Greenridge Naturals; Ramona Giderof, Diageo Beer; Adam Gryzbek, BIC Corp.; Kevin Kraft, Tropicana Brands; Jay Nelson, Excel Tire Gauge LLC; Jordan Nicgorski, JUUL Labs; Nick Paich, TriggerPoint Media; Bria Troy, PepsiCo Inc.; Melissa Vonder Haar, iSEE Store Innovations LLC; Jason Zagaria, Primo Brands; Derek Zahajko, CAF Inc.; GENERAL COUNSEL: Doug Kantor, NACS STAFF LIAISON: Bob Hughes, NACS RETAIL BOARD REPRESENTATIVES: Tom Brennan, Casey’s; Scott Hartman, Rutter’s; Kevin Smartt, TXB PAST CHAIRS: Vito Maurici, McLane Co. Inc.; David Charles, Cash Depot; Kevin Farley, Farley Retail Advisors

Subscriptions and customer service: nacsmagazine@convenience.org NACS Magazine (ISSN 1939-4780) is published monthly by the National Association of Convenience Stores (NACS), Alexandria, Virginia, USA. Subscriptions are included in the dues paid by NACS member companies.

Subscriptions are also available to qualified recipients. The publisher reserves the right to limit the number of free subscriptions and to set related qualifications criteria.

POSTMASTER: Send address changes to: NACS Magazine 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2026 by the National Association of Convenience Stores.

Periodicals postage paid at Alexandria VA and additional mailing offices.

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FROM THE EDITOR

Want data,

insights and connec tions? Head to the NA CS State of the Industry Summ it. Next year’s event is in Fort Worth, Texas, April 21-23.

Data That Works W

ith all the data shared from the stage during the NACS State of the Industry Summit, it was easy to lose sight of a very big number: $230 billion.

That’s how much the industry collected in taxes in 2025. For the data lovers out there, it broke down like this: 17% of that total was connected to operations, 38% to merchandise (including foodservice) and 49% fuels.

Fun fact: The industry paid $4.6 billion to the credit card companies for the privilege of collecting those taxes.

We have eight articles in this issue diving into the State of the Industry (plus one more coming in the July issue). They’re packed with useful insights to operate any business in this space or build your own career. Some of the highlights: • Low on time and want the big picture? Read Jeff Lenard’s five big takeaways, which starts on page 26.

• Brittany Hodak (in a session that people were buzzing about afterwards) explored how to build superfans. Dive into her presentation on page 35.

6 JUNE 2026 convenience.org

• Internally, we refer to the two most datapacked sessions as “Numbers 1,” which explores the state of the industry overall, and “Numbers 2,” which has a more in-store focus. The articles covering those sessions are on pages 42 and 52.

• Page 64 is where our regional breakouts start.

These sessions are among my favorites every year, with deep dives into each of the six NACS regions.

I thought this year’s State of the Industry Summit was outstanding. Great sessions, great conversations—and great people.

Speaking of great people, the NACS research team is hard at work gathering hundreds of pages worth of insights and data to create this year’s NACS State of the Industry Report®. If you missed out on the event and want to purchase the report, you can find it at convenience.org/SOIreport.

Ben Nussbaum Editor-in-Chief, NACS Media

Light Up Your Sales with Quality and Safety.

TO ORDER, VISIT NEWREQUEST.BIC.COM *Based on unit sales data on file. © 2026 BIC USA Inc., Shelton, CT 06484

FACES OF THE INDUSTRY

On-the-Clock Courage me to come home—but so did he.” Jon has stayed in touch with the victim’s father, who keeps him updated on his son’s recovery.

Jon Green, a Love’s Gemini fuel driver, pictured with one of his five children.

O

n a routine haul from Auburndale, Florida, to Fort Meyers, Florida, Love’s Gemini Motor Transport driver Jon Green was stopped at a traffic light when he saw a car crash.

“I noticed the vehicle catching fire and saw a silhouette inside. I grabbed my fire extinguisher, which we keep in our vehicles as part of safety protocols, and tried to put it out. But the fire came back with a vengeance,” he said. Jon reached into the burning vehicle and pulled the badly injured driver out.

“As an army veteran who served in Iraq, I’m very familiar with the ‘flight, fight or freeze’ responses. There was no hesitation in my mind to jump in and help,” he said.

“At the time, I didn’t think about the fact that I could have been harmed trying to save him,” he continued. “It hit me later on, thinking about the fact that I have a family waiting for

8 JUNE 2026 convenience.org

WHY HE LOVES WORKING AS A FUEL DRIVER Gemini provides the fuel for Love’s locations and helps keep America moving. Knowing that each delivery I make is a part of that is very fulfilling.

A great part of working for Gemini is that overall, my schedule is consistent.

I wake up every morning, help get my five children ready for school, and get my truck ready for my drive—which can range from 200 to 400 miles per day across most of Florida, southern Georgia and southern South Carolina.

THE UNIQUE ASPECTS OF HAULING FUEL IN FLORIDA Most terminals are right along the coast of Florida, where hurricanes frequently hit. Hauling fuel during tropical storms or hurricanes can be stressful, but I enjoy when opportunities present themselves to help in ways outside of my typical responsibilities. Everyone is so kind during those times of need, and

people are extremely grateful for the work fuel haulers do.

WHAT HE FINDS MOST FULFILLING ABOUT HIS JOB Each day, I get to be on the road, travel, meet new people and complete meaningful deliveries. I really enjoy being able to take care of people. I enjoy meeting people in the towns where I stop and forming bonds with other drivers in the profession. The fuel industry is smaller than others, so when I am able to meet others in the profession, it’s fun to share stories and have a sense of camaraderie.

You don’t realize how quickly a fire can overtake a vehicle. I was solely focused on saving him.

During a routine job, Jon Green saw a crash and jumped into action to save a passenger who was trapped inside a burning vehicle.

ROLLER GRILL VARIETY THAT FITS EVERYONE’S STYLE. We know how your customers roll. With our endless flavor lineup, every customer can find their favorite. So load up your roller grill with the #1 sausage brand in America* and keep your customers coming back again and again. Which last time we checked, is pretty good for sales. Get the sausage for every customer’s style at JohnsonvilleFoodservice.com.

Family owned since 1945 • Proudly made in the USA ©2025 Johnsonville, LLC • *Circana 1/7/25

NACS NEWS

The NACS Show returns to Las Vegas this year, October 6-9.

Register now at NACSshow.com

Register for the NACS Show Start planning for the c-store industry’s biggest event of the year.

Registration for the NACS Show is officially open. The NACS Show is headed to Las Vegas this year from October 6-9, with the Expo opening on October 7.

To secure early bird pricing, registration must be completed by June 12. Full conference registration includes access to all General Sessions, Education Sessions, the Expo and the official NACS Show Kick-Off Party.

This year’s NACS Show will focus on “ROI: Return on Insight,” reflecting the fast-paced c-store environment in which operators are balancing labor, fueling, category management, foodservice, technology, regulatory shifts and channel blurring—all at the same time. Retailers need insights that sharpen decisions and deliver measurable results. The ideas, new products and services and connections found at the NACS Show can help.

10 JUNE 2026 convenience.org

Here is what you will find at the 2026 NACS Show: • Expo: More than 435,000-squarefeet with over 1,200 exhibitors across five categories: Facility Development & Store Operations; Food Equipment & Foodservice Programs; Fuel Equipment & Services; In-Store Merchandise; and Technology.

• Cool New Products Room: The latest products and innovations shaping the industry. The Cool New Products Preview Room is a must for anyone launching a new product into the convenience channel. Attendees can scan hundreds of new products and create their own shopping list for the Expo.

• New Exhibitor Area: The latest products and solutions from companies that have never exhibited at a NACS Show before. In 2025, more than 150 companies were featured in the space.

• Education Sessions: 50plus learning opportunities delivered by retailers for retailers. Expand your knowledge and expertise in the areas that matter most to you and your company.

Visit NACSshow.com to register now.

NACS State of the Industry Report® Is Available to Purchase Find strength in numbers with the industry’s most comprehensive collection of data and analysis.

Success in the convenience industry requires knowledge and insights— knowing where you stand compared to industry benchmarks, and how to harness data to increase traffic, optimize expenses and grow your business.

The NACS State of the Industry (SOI) Report® is the industry’s leading tool for benchmarking your business, with the most comprehensive collection of data and trends in critical categories, including financials, store operations, merchandise, foodservice, fuels and more. The NACS State of the Industry Report of 2025 Data is available for purchase beginning June 15.

The SOI Report will help you: • Understand the industry big picture with data and analysis on economic, market and shopper dynamics.

• Maximize effectiveness and profitability with access to aggregate financial, operational

and category data from more than 30,000 convenience stores across the United States.

• Benchmark against top performers in the industry and determine key drivers to their success.

It provides a comprehensive look at trends in the convenience industry, offering a chance to streamline your business or discover the next big opportunity. In the report, you’ll find: • An industry overview with critical findings and analysis of the convenience landscape.

• A deep dive into category and subcategory performance data across all in-store categories of merchandise and foodservice.

• Valuable consumer insights about the convenience shopper from the NACS Convenience Voices program.

• Comprehensive regional performance data.

• Data visualizations giving you the insights you need at a glance with compelling charts, graphs and tables that illustrate key trends and patterns.

• The NACS/NIQ Convenience Store Census. Developed by NIQ TDLinx, the premier source of retail/ on-premise channel information, and endorsed by NACS, the Convenience Store Census offers universally accepted counts and classifications of businesses in the convenience and fuel retailing channel.

Upon purchase of a digital license, you will receive access to the report through a DRM-secured PDF through your convenience.org login profile. Discounts are available for purchasing multiple licenses.

Purchase your copy of the State of the Industry Report at convenience.org/ SOIReport or contact Chris Rapanick, managing director of NACS Research, at crapanick@convenience.org.

NACS JUNE 2026 11

NACS NEWS

This year's Masters of Convenience recipients joined NACS Executive Education alumni on stage at the 2026 NACS State of the Industry Summit.

NACS Inducts 10 Master of Convenience Recipients This year, NACS honored 10 new Master of Convenience recipients who have invested in their personal leadership development and attended three or more NACS Executive Education programs.

“These outstanding leaders in our industry have made their development and the growth of their teams a priority. They join 38 others who have achieved this honor and earned their Master of Convenience,” said Brandi Mauro, program manager, execu-

tive education at NACS. In April, the group was recognized on stage at the 2026 NACS State of the Industry Summit in Chicago.

The 2026 recipients of the Master of Convenience designation are: • Tom Allen, Smoker Friendly • Sidney Boone, Love’s Travel Stops • Jennifer Conner, Puyallup Tribal Enterprises/Tahoma Market/ Marine View Ventures • Jon Gallagher, Smoker Friendly • Keelan Gallagher, Smoker Friendly

• Jefrey Hode, AMPM Centro America • Donnie Rhoads, The Convenience Group • Rick Sams, 7-Eleven Inc. • Chris Scavone, Love’s Travel Stops • Cameron Schwehr, Smoker Friendly To learn more about the NACS Executive Education programs, visit convenience.org/leadership or contact Brandi Mauro at bmauro@ convenience.org.

Calendar of Events JULY NACS Financial Leadership Program at Wharton July 12-17 | The Wharton School University of Pennsylvania Philadelphia, Pennsylvania

AUGUST NACS Executive Leadership Program at Cornell August 2-6 | Dyson School, Cornell University Ithaca, NY

NOVEMBER NACS Innovation Leadership Program at MIT November 1-5 | MIT Sloan School of Management Cambridge, Massachusetts

NACS Marketing Leadership Program at Kellogg July 19-24 | Kellogg School of Management, Northwestern University Evanston, Illinois

OCTOBER NACS Show October 6-9 | Las Vegas Convention Center Las Vegas, Nevada

NACS Women’s Leadership Program at Yale November 9-13 | Yale School of Management, Yale University New Haven, Connecticut For a full listing of events and information, visit www.convenience.org/events.

12 JUNE 2026 convenience.org

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NACS NEWS

Keep NACS in the know— send your updates to news@convenience.org

Member News SUPPLIERS GSTV announced a series of key leadership hires, promotions and board member updates as it sets its sights on continued growth.

The company has hired former Real Chemistry executive Craig Abolt as chief financial officer, along with Cox Media Group alum Eric Kozik as chief strategy officer. Additionally, the company has strengthened its board with the appointments of John Kahan, chief AI officer of Stagwell, and Robert Rivenburgh, former chief executive officer of Publicis Commerce and Mars United Commerce. GSTV has also promoted Kristina Lutz to chief marketing officer and Aaron Olson to chief technology officer.

According to GSTV, these additions and promotions strengthen the company’s executive and board teams as it builds on a year of significant momentum. In 2025, GSTV was acquired by MidOcean Partners following five years of rapid growth that saw the company triple its business. The partnership reflects a shared belief that the future of media lies at the intersection of video, digital out-of-home (DOOH) and retail media.

Unox has hired Barry “Bud” Ward as vice president of key accounts for North America.

Ward brings more than 30 years of foodservice industry experience, with a background in national account management and business development at

14 JUNE 2026 convenience.org

ITW Food Equipment Group, Franke, and U.S. Foodservice.

“Bud’s experience managing complex, national-scale accounts is exactly what Unox needs as we grow our presence with major operators,” said Derrick Richardson, president and CEO of Unox North America.

“His industry relationships and strategic mindset will help us deliver greater value to key customers across the country.”

InStore.ai appointed Kevin Farley as chief customer officer. Farley brings decades of experience in the convenience retail industry, including leadership roles within NACS and a track record of building high-impact partnerships across retailers and brands.

In this role, Farley will lead customer organization, with a focus on translating frontline insights into measurable performance outcomes and strengthening longterm customer partnerships.

Flexeserve Inc. hired Ericka Randell as a new operations manager.

Randell brings extensive Ericka Randell experience, leadership and enthusiasm to the role. Since joining, Randell has elevated the operations manager position to the next level and is already exceeding expectations, setting a new benchmark for operational excellence within Flexeserve.

Flexeserve hired Scott Turbeville as Sales Manager, National Accounts – bringing in over Scott Turbeville 10 years of sales and brand expansion experience. As Sales Manager, Turbeville is now an essential part of this experience for customers. His keen insight allows him to understand the particular pain points of a foodservice operation and find the right Flexeserve products to solve them for good.

Rovertown announced that Chris Lindinger has joined the company as customer success manager for enterprise. Based in Philadelphia, Lindinger brings nearly 15 years of experience in customer success and client services, including leadership roles at PAR Retail and Stuzo, where he supported enterprise retailers through periods of rapid growth and transformation.

In his new role, Lindinger will support Rovertown’s growing portfolio of enterprise customers, ensuring successful onboarding, long-term adoption and measurable results. His addition comes at a pivotal time for the company, as Rovertown continues to expand its platform and customer base, with recent launches including the new fas REWARDS app from GPM Investments.

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NACS NEWS

New Members

NACS welcomes the following companies that joined the Association in March 2026. NACS membership is companywide, so we encourage employees of member companies to create a username by visiting convenience.org/create-login. All members receive access to the NACS Online Membership directory and the latest industry news, information and resources.

For more information about NACS membership, visit convenience.org/membership.

NACS HUNTER CLUB BRONZE Greatful Brands Miami, FL drinkmonaco.com Spindrift Beverage Co Inc. Newton, MA spindriftfresh.com

RETAILERS Cypress Stop Houma, LA La Tienda General Store San Diego, CA Lipscomb Oil Company Greenville, MS lipscomboil.com Quality Dairy Company Food Stores Lansing, MI qualitydairy.com

Backerhaus Veit Ltd. Mississauga, Ontario, Canada backerhausveit.com Best Name Badges Sunrise, FL bestnamebadges.com Blokees Pasadena, CA blokees.com Boh Bah Inc. Mount Vernon, MO bobavida.com Celero Commerce Brentwood, TN celerocommerce.com Cetane Associates Houston, TX cetane.com Charcuterie Artisans Mapleville, RI charcuterieartisans.com Cigar Imports USA LLC Carrollton, TX cigarimportsusa.com

Rubis Caribbean St. James, Barbados rubiscaribbean.com

Dropp Inc. Montclair, NJ dropp.cc

SUPPLIERS AlixPartners LLP New York, NY alixpartners.com

Dunnhumby Cincinnati, OH dunnhumby.com

16 JUNE 2026 convenience.org

DV Brands Valencia, CA dvbrands.com Egan Sign Reading, PA GPO Plus Inc. Las Vegas, NV gpoplus.com Grand Prairie Foods Inc. Sioux Falls, SD grandprairiefoods.com Guard Dog Security Sanford, FL guarddog-security.com GummyWorks West Palm Beach, FL i3 International Inc. Toronto, Ontario, Canada i3international.com John Evans’ Sons LLC Lansdale, PA springcompany.com Kanva Botanicals Boise, ID kanvabotanicals.com MI Incorporated Anaheim, CA Mega Bump Beverages LLC Saint Petersburg, FL mega-bump.com

Padilla Import Sales & Marketing Eagle Pass, TX padillagroup.com POS360 Westlake Village, CA Koia Anaheim, CA drinkkoia.com LottoReco Saratoga, CA lottoreco.com Sofrito Foods/Fillo’s Geneva, IL fillos.com Don Chelada San Antonio, TX donchelada.com Sweet Craft Dolceria Oceanside, CA sweetcraft.com TOK Manufacturing Garden City, KS tokmfg.com Units Moving & Portable Storage Daniel Island, SC unitsstorage.com WWD Complete/ WireWorx Displays Mississauga, Ontario, Canada wwdcomplete.com

CONVENIENCE CARES

As of this year, every QuikTrip location in the U.S. is part of the National Safe Place Network, making each store a safe place where young people in crisis can tap into a network of support and resources.

QuikTrip Expands Partnership With the National Safe Place Network Young people in crisis can find access to support services at more than 1,200 stores.

Q

uikTrip is expanding its partnership with the National Safe Place Network, “ensuring youth can connect to immediate support at any of the company’s more than 1,200 stores across 21 states,” the retailer said.

Safe Place Network is a national program where trained employees can connect youth in crisis to immediate help. QuikTrip has partnered with the nonprofit for more than 30 years.

Any young person facing abuse, homelessness or other crises can be

18 JUNE 2026 convenience.org

linked with trained professionals at Safe Place locations, including QuikTrip stores, or via TXT 4 HELP, a free, confidential 24/7 text service.

The expansion was announced during National Safe Place Week in March.

Over the last year, QuikTrip reported that its employees facilitated 268 calls in partnership with 24 Safe Place partner agencies, helping connect young people around the country to local resources and services.

To access the TXT 4 HELP program, youth in crisis can text “SAFE” and

their location to 4HELP (44357).

They will receive an immediate reply with the nearest Safe Place, contact information for a local youth agency or shelter, and the option to begin a confidential text conversation with a mental health professional.

“Young people facing difficult circumstances should always have a place they can turn to for help,” said QuikTrip President Kevin Thornton.

“For decades, our employees have been proud to support the Safe Place program in the communities we serve.”

In the Community Every year, the convenience retail industry dedicates billions of dollars to advancing the futures of individuals and families in our communities. The NACS Foundation unifies and builds on NACS members’ charitable efforts to amplify their work in communities across America and to share these powerful stories.

Learn more at conveniencecares.org.

1 CLIFF’S LOCAL MARKET FUNDS HEART RESEARCH Central New York-based Cliff’s Local Market raised $33,276 for the American Heart Association during its annual fundraiser, held February 2-March 6.

“All 22 Cliff’s Local Market locations across Central New York joined forces to raise funds for the Heart Association as part of the ‘AHA Has Heart’ campaign,” the retailer said.

In addition to in-store fundraising, Cliff’s Local Market also formed a team for the 2026 America’s Greatest Heart Run & Walk in the Mohawk Valley on March 7.

2 TRAVELCENTERS OF AMERICA HONORS TRUCK DRIVERS At the Mid-America Trucking Show on March 27, TravelCenters of America (TA) announced its 13th annual Citizen Driver Award honorees: Steven Brand and Bruce Jones.

The award was created to recognize professional drivers who demonstrate a high level of respect for the truck driving profession through leadership, safety, health and wellness, good citizenship and community involvement.

In addition to the awards, TA made a $5,000 donation to TAT (formerly known as Truckers Against Trafficking) on behalf of Brand and Jones.

3 TIGER FUEL SUPPORTS

CHARLOTTESVILLE STUDENTS

Tiger Fuel Company, which operates Virginia-based The Markets

by Tiger, debuted a spirit pump initiative in partnership with the Charlottesville citywide parent­ teacher organization (PTO) fund.

Until July 31, 2026, one cent per gallon of each fill up from The Market at Preston’s Spirit Pump will support the PTO fund in its mission to “increase funding to support academic enrichment and school programming, address inequities in PTO fundraising across all Charlottesville City schools and to amplify the overall impact for students and educators districtwide,” according to the retailer.

4 RACETRAC RAISES MONEY FOR PARKINSON’S RESEARCH In recognition of Parkinson’s Awareness Month in April, RaceTrac partnered with The Michael J. Fox Foundation for the 15th edition of its annual Coffee for a Cause fundraiser, a “centerpiece of the company’s longstanding commitment” to advancing Parkinson’s research, the retailer said.

Throughout April, guests at any RaceTrac location could support Parkinson’s research by adding $1 to their purchase or picking up a $2 candy bar at the register.

During Coffee for a Cause week, April 12-18, RaceTrac donated 100% of all coffee proceeds to The Michael J. Fox Foundation.

Since 2011, RaceTrac has raised more than $10 million to support the foundation’s research programs through in-store fundraisers and the annual Run for Research

5K. The late RaceTrac Chairman Emeritus Carl Bolch Jr. and his father, company founder Carl Bolch Sr., both lived with Parkinson’s.

5 CASEY’S FIGHTS HUNGER In partnership with Feeding America and DoorDash, Casey’s committed to helping provide 10 million meals to local Feeding America food banks in its communities.

From early March through April 7, customers could round up instore purchases, add a donation to online orders or order Casey’s through DoorDash, which will donate the monetary equivalent of one meal for every delivery.

The retailer said donations directly support 61 local Feeding America partner food banks serving communities in Casey’s footprint.

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NACS JUNE 2026 19

Cleaning Up Illegal Vapes

BY DOUG KANTOR

The new Regulate Smarter Coalition pushes regulators for more clarity and enforcement around illicit nicotine products.

20 JUNE 2026 convenience.org

T

obacco products have long been a significant part of the business of convenience stores. Consumers like the ability to buy those products quickly and conveniently.

Over the past decade, however, that market has changed significantly. New alternative products including electronic cigarettes or vapor products, heat-notburn products, and oral products have come to market. The change has been profound enough that the market is often referred to as the nicotine market rather than the tobacco market. Consumer preferences are in flux.

Unfortunately, regulation in Washington has not kept pace with these changes, which has had profound implications for convenience businesses and the nation.

REGULATION COMPLICATIONS In 2016, the Center for Tobacco Products (CTP) within the U.S. Food and Drug Administration (FDA) decided that these new nicotine products were “tobacco” products under federal law and therefore would be regulated by CTP. That raised a complication because new tobacco products under federal law need authorization from the CTP before they can be sold. But the products were already being sold when the decision was made that the existing law applied to

Evgeniy Grishchenko/iStock

INSIDE WASHINGTON

Up to 85% of vaping products sold in the U.S. are illegal.

With clear, reasonable regulation in place, business can be won on the merits by the best operators—not by those willing to skirt the rules.

them. CTP could have tried to order all those products off the market pending authorizations. Of course, that would have caused chaos.

Instead, CTP allowed the products to be sold while manufacturers applied for authorization and received decisions. Applications for vapor products on the market were due in September 2020. CTP said that the products could continue to be sold for one year after applications were filed to give regulators time to make decisions.

But that didn’t go the way the CTP planned. It’s been five and a half years since the application deadline and thousands of applications are

still pending. CTP has authorized a small number of products—39 vapor products and 26 oral/pouch products to be exact—and denied millions of others. Many of the denials have been challenged with enough success that many of them can still be sold.

Along the way, the FDA decided that it wouldn’t tell anyone the specific products that were denied or those that were tied up in challenges to their denials. What they couldn’t explain was how market participants were supposed to do business the right way when key information was secret and there weren’t enough authorized products to go around. The industry found itself in the regulatory equivalent

NACS JUNE 2026 21

INSIDE WASHINGTON

NACSPAC DONORS NACSPAC was created in 1979 by NACS as the entity through which the association can legally contribute funds to political candidates supportive of our industry’s issues. For more information about NACSPAC and how political action committees (PACs) work, go to www.convenience.org/nacspac.

NACSPAC donors who made contributions in April 2026 are: William Armstrong 7-Eleven Inc.

Kathleen Byrd Home Market Foods

Kevin Farley InStore.ai

Farris Jamal Chestnut Market

Thomas Bachrodt HJB Convenience Corp.

Marco Calderon Jump Start Stores Inc.

Kristin Ghere Jump Start Stores Inc.

Nancy Jones Stinker Stores

Patricia Barry Juul Labs

Mike Caldwell Rovertown

Ramona Giderof Diageo

Seb Kiureghian LottoShield

Tumay Basaranlar Atlantis Management Group

Drew Cornwell Keurig Dr Pepper

Mike Gilroy Mars Snacking

Jack Kofdarali J&T Management

Travis Duncan Weigel’s Stores Inc.

Brandon Hofmann The Parker Companies

Denny East Dash In Food Stores Inc.

Kiley Hylton NACS

Jeff Kramer NRC Realty & Capital Advisors LLC

Daniel Bernstein iSee Store Innovations James Bozzone The Vita Coco Company

of Dean Wormer from “Animal House” declaring that Delta Tau Chi was on “double secret probation.”

Bad actors took advantage of the regulatory confusion and started flooding the space. In fact, FDA Commissioner Martin Makary has said that as much as 85% of vaping products sold in the U.S. are illegal.

Many of those products are coming into the country illegally from China.

The problems for convenience stores trying to do the right thing are obvious. Those that try their best to comply often lose sales to unscrupulous vape shops that are willing to sell illegal product—often at lower prices and with flavors that careful stores can’t sell.

The problems for consumers are real as well. No one can know for sure what is in illegal products from China. Almost by definition, those manufacturers are not following all the laws on safe manufacturing practices.

And vape shops willing to sell those

22 JUNE 2026 convenience.org

products are much less likely to keep them out of the hands of minors than convenience stores that follow the law.

CLEANING UP THE MARKET NACS has made advocacy to clean up this market a top priority. Last year, NACS was part of the formation of the new Regulate Smarter Coalition. It was put together to push regulators to bring greater clarity and enforcement to clean up the nicotine market.

There have been some successes along the way. Last fall, the FDA took action to seize millions of dollars in illegal vapes before they got into the U.S. market. But much more still needs to be done.

During NACS Day on the Hill in March, every meeting included conversations with congressional offices about this problem. Members of Congress agreed to sign letters pressing the FDA to crack down, including by giving the market more regulatory clarity to allow

Chris Lindinger Rovertown

for voluntary compliance and by increasing enforcement.

There is no reason that such a large part of the nicotine market should be illegal. These products actually have less health risks than traditional tobacco products. It appears they are the future of the category. With clear, reasonable regulation in place, business can be won on the merits by the best operators—not by those willing to skirt the rules.

There are signs that the FDA understands all this. The problem was not of the current administration’s making. They inherited it, but now it’s up to them to fix it. NACS’ goal is to ensure the administration acts to clean things up. After all, we’ve all seen the alternative path laid out by Dean Wormer—it didn’t end well.

Doug Kantor is the general counsel/ vice president of government relations at NACS.

NACS JUNE 2026 23

INSIDE WASHINGTON

Jerry Marfut Pace-O-Matic Kevin Martello Keurig Dr Pepper Kayzell Milton Keurig Dr Pepper

Giulio Petraccaro SEB Professional North America

Michael Robinson Armor Safe Technologies LLC

Solomon Plater Altria Group Distribution Company

Lisa Rountree TruAge

Drew Mize PDI Technologies

Gabe Purvis The Convenience Group, LLC

Erik Ogren Patron Points, Inc.

Michael Quagliano Keurig Dr Pepper

Richard Owen Convenience Distribution Association

Trish Riddle Keurig Dr Pepper

Matt Pereira Seurat Analytics

Larry Robinson Armor Safe Technologies LLC

John Rudolfs The Parker Companies Elizabeth Salceda Family Express Corporation Jaden Shemesh NACS Alyssa Snyr Imperial Trading Company S. Abraham & Sons Inc

Megan Terry TruAge Heather Webb Patron Points Inc. Michael Williams LottoShield Melissa Willis PDI Technologies Marie Wise Imperial Trading Company S. Abraham & Sons Inc Alison Wong NACS

NACS State of the Industry® Talent Insights Dashboard

117.9%

Explore the 2025 Benchmarks Convenience.org/talent



Voluntary resignations for part-time sales associates averaged 24.4% from 2024

How does your retention compare?

Source: 2025 NACS Talent Insights Dashboard

Contact Information Chris Wise NACS Research Analyst cwise@convenience.org (703) 518-4247

©2026 ITG Cigars Inc. 3

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NACS STATE OF THE INDUSTRY SUMMIT

“The more you connect with each other—retailers and suppliers— the more we make each other better and make the industry better.”

FRANK GLEESON

President and CEO, NACS

26 JUNE 2026 convenience.org

5 BIG

Takeaways From the 2026 NACS State of the Industry Summit

The north star for retailers?

Be unique and unrepeatable— and consistent.

BY JEFF LENARD

T

here is no question that the theme of the 2025 NACS State of the Industry (SOI) Summit was uncertainty. Last year’s event took place as the stock market was roiled by President Trump’s announcements—and subsequent modifications—of tariffs.

Now, a year later, there is even more uncertainty caused by more global events—but uncertainty was not a central theme of this year’s SOI Summit. The question is, was that because everyone’s now accustomed to uncertainty or are they better able to manage it? It’s likely a combination of both.

Several themes did emerge at this year’s SOI Summit, but the most prominent was this: The consumer who is in your store isn’t the same consumer who was in your store 10 years ago, or five years ago, or even last year. Speakers at the SOI Summit shared game plans for success that focused on understanding today’s consumer needs and tailoring retail offers to capture revenues—and profits—at a time of, well, uncertainty.

NACS JUNE 2026 27

1

EVERYONE WANTS VALUE Today’s consumer has less spending power. Those tariffs that were such a hot topic a year ago have cost the average American household $850 in higher prices, and elevated oil prices are driving up not just the cost of gas for their own cars, but the cost of transportation for all goods and services.

These—and other financial concerns—are taking their toll on consumer spending. Nearly 40% of convenience customers surveyed say that they have changed how they shop because of their financial situation, according to the 2025 NACS Convenience Voices annual study of convenience shoppers.

There is a definite correlation between how consumers feel and how they spend, according to Chris Rapanick, managing director of NACS Research. Inside transactions at c-stores decline when consumer sentiment drops, he said.

Despite significant financial headwinds facing much of the population, total U.S. consumer spending is actually up. “Spending is up, but not for everyone,” said Thomas Weinandy, principal research economist for Upside.

Lower-income consumers are cutting back and upper-income consumers are spending more, leading to what is known as a K-shaped economy, in which one line goes up and the other goes down.

No matter what their economic situation is, consumers are seeking out value. For many con­sumers that means price. The good news is that while consumers have noticed higher prices at quick-service restaurants (QSRs), they haven’t noticed them at

convenience stores, said Caitlin Root, executive vice president of customer experience at Datassential.

But value does not mean the lowest price point.

Customers will pay a premium for products or services that are life-balancing. They will also seek out stores that have modern, well-maintained facilities and better food. According to Marco Valentini, managing director at Alvarez & Marsal, 56% of consumers say they are trading up for quality ingredients and 40% report trading up for health benefits.

The bottom line is that “consumers are stressed,” said Andrew Baill, Wawa’s senior category manager of fresh beverages.

But there also could be opportunity with that stress. What do people do when they are feeling down? Half of them say they have a snack, said Datassential’s Root. She encouraged retailers to pay attention to the “little treat culture” in which consumers are spending on affordable luxuries that help them boost their mood.

Whichever way people define it, “Value is a trend that’s not going away,” said Rapanick of NACS.

Value is a trend that’s not going away.

The 2027 NACS State of the Industry Summit will take place April 21-23 at the Omni Fort Worth Hotel in Fort Worth, Texas.

28 JUNE 2026 convenience.org

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NACS JUNE 2026 29

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2

FOODSERVICE IS THE FUTURE … BUT THERE ARE CHALLENGES Foodservice continues to be a key profit driver in the store, representing 28.5% of in-store sales—and 38.9% of in-store profits. Foodservice includes prepared food, commissary and hot, cold and frozen dispensed beverages. If all five foodservice categories were ranked within the top ten merchandise categories, all except for commissary would fall into the total in-store top ten in terms of sales.

Foodservice also has seen enormous growth within the industry. Part of that growth is because of how well it aligns with what consumers want—and expect—at stores.

“Foodservice delivers two of the three need states, ‘I’m thirsty, I’m hungry,’” said Baill. (The third need state is fueling/charging; more on that later.)

However, there are challenges. Adjusted for inflation, c-store foodservice sales were down in 2025.

More alarming, while c-stores offers are often on par with that of quick-service restaurants, one in three c-store customers are going to a QSR within 30 minutes of leaving a c-store, according to NACS’ annual Convenience Voices study. This trend has been increasing over the past five years—it is a worrisome trend as QSRs up their offers to meet the competition.

The QSRs are innovating and c-stores need to keep up with them, said Nancy Wilson, Wawa’s senior director of quality assurance, risk management and

With fuel, everyone’s fine. Without fuel, everyone’s exposed.

30 JUNE 2026 convenience.org

safety, during the Food Safety Forum, which took place immediately before the SOI Summit.

Consistency also is critical. There is an enormous difference between top-decile and bottom-decile performers by profits, and much of the difference can be attributed to foodservice and how it’s executed. “The biggest gap in foodservice is around consistency,” said Mike Wilson, chief operating officer at Cubby’s (and no relation to Nancy).

“This is not a knowledge issue. This is a consistency issue. Everyone knows what to do. It’s a cultural issue,” Mike Wilson said.

A focus on food safety is also critical.

“Food safety cannot be a priority. Priorities can change. It needs to be foundational,” said Amy Costello, director of food safety and quality assurance at Casey’s, during the Food Safety Forum.

“We want to keep the hospital out of hospitality,” added Betsy Craig, founder and CEO of MenuTrinfo at the Food Safety Forum.

Despite the challenges related to c-store foodservice, 2026 looks promising. While overall foodservice sales across all channels are expected to grow 1.1%, foodservice sales at c-stores are projected to grow at 1.7%, said Datassential’s Root.

3

FUEL SAVES THE DAY “With fuel, everyone’s fine. Without fuel, everyone’s exposed,” said Charlie McIllvaine, chairman and CEO of Coen Markets and moderator for the SOI Summit.

The numbers support his point. NACS Research calculates that the profit associated with the typical in-store basket, after subtracting all expenses, was 1 cent per transaction in 2024. In 2025, it shifted 8 cents lower, meaning that every transaction inside the store lost 7 cents.

Simply put fuel sales—specifically fuel margins—were the reason that stores were profitable in 2025.

More accurately, fuels and in-store sales work in tandem and support each other.

“Don’t let fuel be a shield” that masks bigger operational problems, noted Valentini.

Mike Wilson was even more blunt, noting that there are now two business models in the industry.

“One is fuel-supported retail. The other is retailsupported fuel. If fuel tightens, that whole model falls apart,” said Wilson.

Could fuel tighten? The conflict with Iran will have long-term ramifications well after hostilities end, said

Denton Cinquegrana, chief oil analyst for OPIS. He said that the longer the conflict goes on, the more likely there will be more damage to the petroleum infrastructure in the Middle East. He also said that he expects it to take a minimum of 12 weeks for normalization after hostilities end—with increased world demand through early 2027 to build back depleted inventories.

While the U.S. does not currently have a supply problem, that could change in the coming months.

“I worry about the West Coast and a little about the East Coast later this year for gasoline supply,” said Cinquegrana.

And as far as pre-war prices that were below $3, “Kiss that goodbye for 2026 and the start of 2027,” Cinquegrana said.

Elevated gas prices also could lead to a shift in how gas consumers shop. The average American used to have to work four minutes to pay for a gallon of gas. Now it’s up to six minutes (at $4.00plus a gallon).

Long-term elevated prices could push drivers to put more of a focus on finding the lowest price, a trend that Cinquegrana has already seen.

“I see people waiting an hour in line to save 20 cents per gallon at my local Costco,” he said.

NACS JUNE 2026 31

4

THE PEOPLE VS. AI While the average c-store basket increased 24 cents to $7.69, expenses rose faster.

For the second straight year, direct store operating expenses have increased at a faster rate than inside gross profit—and three or more years would be a problem, said Rapanick.

Chief among those costs is labor, which is responsible for $1.60 per in-store transaction. AI could provide relief to growing expenses—but it’s still early to determine when and how to best use it.

“Just as mechanization, electricity and computers changed jobs, so will AI,” said Weinandy. “We just don’t know when.”

AI could be an option to help trim expenses, but it will be important to measure its success, said Rapanick.

There are other impacts. AI also is changing how customers interact with stores, said Mike Templeton, a partner with NexChapter. Consumers are now engaging with AI to serve as their agents and guide them to their shopping destinations, just as a GPS guides them to the endpoint of their journeys. “We’ve spent decades optimizing for people. Now we must also optimize for AI that guides their decisions,” said Templeton.

The most important factor to consider with AI is how it makes the customer experience better—and differentiates your offer from the competition.

How to Do Different Things Differently What does it take to lead a transformation?

That’s what Tucker Bryant, an artist and motivational speaker who spent a decade working at places like Google and Stanford University, asked the audience during his keynote speech.

“I believe that when we treat the work of our businesses like art, we unlock ideas that can transform not just our businesses, but our industry,” said Bryant. He shared three principles with the audience to help them think like artists: • Look twice: “Coming up with breakthrough ideas isn’t a problem of having enough information. It’s a problem of knowing what to do with it. Our brains are a filter and compress all the data that reaches us into a quick and concise answer. That’s obviously a useful process. But the problem is, we’re now so used to doing this filtering, we often miss out on the chance to come up with a new perspective,” Bryant said.

So look twice. Refuse the first answer that comes to mind. Looking twice can lead an artist or innovator to a new perspective on a challenge. Once you start looking twice, you’ll start asking questions and noticing possibilities that were hiding in plain sight the entire time.

32 JUNE 2026 convenience.org

• Reach beyond: “The problem is that our best ideas and solutions to our most challenging problems often aren’t found within our playbooks, because if they were, there’s a good chance we would already be exploring them.

Instead, to find those ideas, we often must reach just beyond the fringes,” Bryant said.

Good ideas don’t come from thinking harder. They often come from thinking across perspectives, domains, tools and approaches.

Entertain the unreasonable. Imagination is simply the result of removing a rule you forgot you were following.

• Think inside the box: Constraints often end up being the best fuel for innovation.

“Whether that box is changing consumer expectations, or it’s the budgets we must align to, we’re all beholden to it. The box is a reality of every opportunity and every challenge we face. There’s so much to be made by helping us see our own constraints, not as dead ends, but as opportunities for us to find creative ways to navigate them,” Bryant said.

NACS JUNE 2026 33

5

BE UNIQUE AND UNREPEATABLE Convenient choices are everywhere, whether at nearly 152,000 c-stores, 220,000 QSRs or 40,000 dollar stores—or with any other retailer that sells convenience.

“It’s a sea of choices out there. How do you pierce that frontal lobe” and get consumers to think about your offer, asked McIlvaine.

“If you don’t have a value proposition, it’s tough to compete,” added Rapanick.

So how do you compete? Define what you stand for—and can do better than anyone else.

“Be unique and unrepeatable” is how 2025-26 NACS Chair Annie Gauthier, CFO/Co-CEO of St. Romain Oil Company LLC (dba Y-Not Stop), put it.

Gauthier said that more than 80% of the items sold in her stores are sold at every other c-store in the country. So how do you differentiate your offer and create loyalty?

Your voice can affect issues around the industry, because you matter.

Charlie McIlvaine Chairman and CEO, Coen Markets

34 JUNE 2026 convenience.org

“Customer experience drives loyalty,” added McIlvaine, a topic that was the focus of keynote speaker Brittany Hodak, author of “Creating Superfans.” “Every employee is in the experience business,” said Hodak—and how your employees are part of that customer experience will define your success. “It’s been a while since I bragged to friends about saving $1.50. But I have shared stories about great customer service,” she added. And it’s probably true for all attendees.

Good isn’t good enough in terms of what consumers expect today. Or to put it in Hodak’s memorable phrase: “Good is good enough to be forgotten.”

WHAT’S NEXT The good news is that retailers have a lot of levers to pull to attract customers and grow their businesses.

More importantly, they have resources.

“This is an industry that shares,” said McIlvaine, encouraging retailers to network and build out their contacts.

Not only will that help grow individual businesses, it’s also good for the industry as a whole, said NACS President and CEO Frank Gleeson.

“The more you connect with each other at events— retailers and suppliers—the more we make each other better, and make the industry better. The more data you provide to our research team, the better this event is—and our ability to tell our industry’s story, whether on Capitol Hill or with the media,” Gleeson said.

Jeff Lenard is the NACS vice president of media and strategic communications.

NACS JUNE 2026 35

NACS STATE OF THE INDUSTRY SUMMIT

“Superfans are created at the intersection between your story and the customer's story.”

BRITTANY HODAK

Author of "Creating Superfans"

36 JUNE 2026 convenience.org

TO FIGHT CUSTOMER APATHY,

Be Super

Interactions in your store can win superfans— or risk losing a customer forever.

BY LAUREN SHANESY

“R

egardless of the industry you’re in, we’re all ultimately in the experience business,” said Brittany Hodak, award-winning entrepreneur, customer experience expert and author.

Eighty percent of consumers say that the experience a company provides matters just as much as its products or services. “And guess what? They’re not just comparing you with your direct competitors. They’re comparing you with the best experiences they’ve had anywhere,” she said. The ease of DoorDash, the speed and simplicity of Amazon or the personalization of Netflix are what consumers expect now—it’s the new normal.

As competition heats up in retail—from competitors within the channel, adjacent sectors and from other forces such as economic headwinds or consumer sentiment around household budgets—capturing market share and cultivating customer loyalty is becoming more important than ever.

In the convenience business, retailers can accomplish that by creating superfans, said Hodak.

Hodak’s definition of a superfan is “a customer or stakeholder who is so delighted by their experience that they become an enthusiastic advocate.” In other words, customers who create more customers.

NACS JUNE 2026 37

When you tell consumers how great you are, that’s just marketing.

Everybody does it, including your competitors. But when [consumers] tell their friends how great you are, that’s magic.

Hodak said there is one threat that can under­ mine even the most profitable businesses. “That threat is apathy. It’s customers who just don’t care enough to choose you. They see you as simply a commodity provider and not a category of one,” she said. “So in a world where apathy is everywhere, being good enough isn’t good enough. You’ve got to be super.”

Creating super experiences for your customers is what kills apathy and will help you differentiate your business.

“Superfans are created at the intersection between your story and the customer’s story—when those two overlap, that is where apathy dies. That is where you

38 JUNE 2026 convenience.org

have the chance to prove to them that you are unlike anybody else, that you care about them and their experience and that you’re going to do everything in your power to make them a superfan of your brand.”

“Advocacy is one of the only forces in the world more powerful than apathy. When your customers are advocates, when they’re telling the world why they love you, that is more effective than just about anything you can do on your own because it lends credibility,” said Hodak.

So how do you create superfans? With the SUPER Model.

Customers can have one of three types of interactions with your store—positive, negative or neutral. “The key to creating superfans is to find those neutral touch points and elevate them to positive ones.”

Hodak has a five-step formula for creating superfans.

S|

STORY. Storytelling is the most underrated skill in business, Hodak said, quoting from Gary Vaynerchuk. A story is what gives you the chance to connect with your customers. “Our brains are hardwired for connection and to react to stories. So everything you are doing in your business, every touch point, is an opportunity to bring your brand story to life. What are those touch points for you that show why you deserve superfans? Everything communicates.”

U|

UNDERSTAND YOUR CUSTOMER. Connecting with your customers starts with understanding them. According to a

recent study of 13,000 people by Salesforce, 61% of customers said the majority of companies that they deal with treat them like a number.

“When you begin treating your customers as interchangeable numbers, that’s the minute they start seeing you as an interchangeable commodity provider,” she said. “So think about how to train your teams to connect with your customers. To showcase curiosity, empathy or connection while they’re in the store. When we do that, when you connect your story to theirs, it becomes very easy to personalize those moments.”

P|

PERSONALIZE. Hodak said there are two types of personalization—high tech and high touch—and you’ve got to have both to have high impact. High tech are the things you can automate, like loyalty programs or analytics, and high touch is everything else, those one on one interactions. “Those human-tohuman moments are what people are going to tell their friends about. Because I don’t know about you, but it’s been a while since I made a post online or went out of my way to tell a group of friends about saving $1.50 on something or getting a little bit of extra cashback. My challenge to all of you is to think about all of the things that you can do to exceed the expectations of those customers that are coming into your stores every single day,” she said.

Empowering Employees to Power Experiences We can all think of a time where a single experience or interaction shaped our entire perception of a brand—whether for good or bad. Based on research that customer experience expert Brittany Hodak presented, two-thirds of customers will abandon a brand after only one or two bad experiences.

“Every single person on your team is ultimately in the experience department, regardless of their job or their role, even if they’re never face to face with customers at all—the decisions they make shape the way consumers think about your entire brand. In those moments, everyone is the Acting Chief of Experience,” she said.

In a world where apathy is everywhere, maybe you don’t just have apathetic customers, but apathetic employees as well. Hodak encouraged the audience to think about how to turn their employees into advocates of their brand and be the reason customers have an amazing experience at the store. “Everybody on your team has the power and the responsibility to turn customers into superfans and advocates.”

In a world where apathy is everywhere, being good enough isn’t good enough. You’ve got to be super.

NACS JUNE 2026 39

The Swiftie Strategy Customer experience expert Brittany Hodak has worked with Taylor Swift, as well as other music powerhouses such as Dolly Parton and Katy Perry.

She said that Swift, early in her career, used a superfan strategy. When Swift was still in her teens, she used MySpace, the biggest social media networking site at the time, to connect with her followers. Swift spent hours per day on her tour bus personally replying to messages from fans.

“I’ll never forget what she said to me: She said, ‘I know that if I’m going to sell a million copies of this record, I’ve got to make a million people care enough about me to care about my music. And in order for them to care about my music and me, I want them to know I care about them.’”

Hodak said Swift’s philosophy encapsulated what so many people don’t understand—that fandom is a two-way street. “If you want your customers to be loyal to you, you need to be loyal to them. If you want them to love you, you need to show up and make them feel loved too,” she said.

The biggest threat to all of your businesses is something that may not be on your radar. That threat is apathy.

E|

EXCEED EXPECTATIONS. Exceeding expectations is about intentional experience design, she said. “Ask yourself, what are all of the moments that I know are likely to occur again and again, and how can I design something that can be consistently delivered? In other words, how do I elevate this interaction into a memorable experience?”

On a vacation at Legoland, one of Hodak’s family’s favorite parts of their stay was the resort elevator, which was decorated with murals, had a disco ball and played music.

“My kids were obsessed with this elevator.

It wasn’t until about the third day and 10 rides that I realized that this is probably the slowest elevator on the planet. They took something that would have been annoying, clunky and had friction, and they totally transformed it,” she said.

“I guarantee you right now, your business probably has some slow elevators. Maybe your customers

40 JUNE 2026 convenience.org

are feeling them, maybe your team is feeling them, but instead of throwing your hands up in the air and saying, ‘Well, we can’t control that,’ I want you to ask yourself, even if you can’t make the elevator go faster, what would it take to make it feel faster? What’s the creative or intentional approach that you can use to architect the feeling around that experience?”

R|

REPEAT. Vincent van Gogh once said that great things are done by a series of small things brought together. “I’m going to say that super things are done by a series of small things brought together consistently.

Because we know that consistency compounds.

Repetition isn’t boring, it’s branding,” she said.

“It’s what sets the super brands apart from the rest. The ones that get chosen sometimes from the ones whose customers can’t wait to come back and tell their friends about it.”

Lauren Shanesy is a writer and editor at NACS.

NACS STATE OF THE INDUSTRY SUMMIT

“We all hope that fuel margins hold and baskets grow, but we need to step up and take action on customer transaction counts inside the store and on the forecourt and find ways to reduce expenses.”

CHRIS RAPANICK

Managing Director, NACS research

42 JUNE 2026

Where the Industry Goes From Here Five key metrics outline the health of the industry—and your business.

BY CHRISSY BLASINKSY

A

fter a morning packed with data, benchmarks and hard truths about convenience industry financial and operational performance in 2025, Chris Rapanick’s final slide during his NACS State of the Industry Summit presentation brought the conversation to a simple yet complex question: What now?

His suggestions were not spaghetti on the wall. The path forward comes down to discipline: get to know the story your P&L statement is telling you, focus on the fundamentals that drive profitability and act on the metrics that matter.

Rapanick’s message was clear: Hope is not a strategy—you have to have a plan. There are five key areas retailers can focus on.

NACS JUNE 2026 43

1

TRACK YOUR BREAKEVEN POOL MARGIN Breakeven pool margin represents the fuel margin required to cover total store operating expenses after inside gross profit. It’s a direct measure of how depen­ dent a store is on fuel profits to keep the lights on.

“This is the best measure of fuel dependency. If you haven’t been monitoring this, now is the time,” said Rapanick, managing director of NACS research.

Operating a convenience store has become signifi­ cantly more expensive in the past five years, with total expenses up 23.3% since 2021. Rapanick said that knowing how much margin is needed to cover oper­ ating costs allows retailers to determine how exposed they are when fuel margins tighten, as well as how much pressure is placed on growing inside sales.

In 2025, fuel margins averaged over 40 cents per gallon, which helped offset weaker inside GP growth.

However, rising expenses mean those margins are increasingly used to cover costs, leaving less room for error if fuel prices rise or volatility increases.

“NACS has been beating the drum for years that retailers should work to pay an entire site’s bills by using inside gross profits,” he said, adding that the business today requires higher fuel margins just to break even, let alone make a profit.

As we get past the halfway point in 2026, geo­­ political issues are putting pressure on oil supply, and subsequently gas prices, right as the peak summer months hit.

“This is why we care about breakeven pool margin,” said Rapanick. “With the current war in the Middle East and other geopolitical issues,

Hope is not a strategy—you have to have a plan. supply will likely get tighter, crude prices will rise and that leaves retailers in a tough situation,” he said, adding, that retailers can either hold margins against higher prices at the pump and breakeven, “or they can let some margin go and keep prices as low as possible and risk short-term profitability.”

2

MAKE INSIDE TRANSACTION COUNTS THE CORE MISSION One area where the call to action was loudest was growing inside transactions.

Total transaction counts across the convenience industry declined in 2025, falling 3.0% as both in-store and forecourt trans­ actions decreased. After a brief uptick in 2024, inside transactions slipped back below 2023 levels, while fuel transactions fell to their lowest point since 2021.

Total Industry Transaction Counts Declined Inside and Out ​

YoY:

- (17.3)%

YoY:

+ 8.5%

YoY:

- (1.6)%

YoY:

+ 0.7%

YoY:

- (3.0)%

50

12.8B

14.2B

14.6B

14.4B

13.4B

39.2B

42.2B

40.9B

41.5B

40.8B

40

30

Inside Transactions YoY - (1.7)%

20

10

0 2021

2022

2023

2024

2025

Sources: NACS CSX Convenience Benchmarking Database and NACS/NIQ YE2025 Convenience Store Census ​

44 JUNE 2026 convenience.org

Pump Transactions YoY - (6.9)%

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Inside Operating Profit Per Transaction Decreased by 8 Cents

Metric (Per Store/ Per Month)​

2024​

2025​

Change​

Basket Value ​

$7.45​

$7.69​

24¢​

Net Cost Of Goods Sold ​

$4.61​

$4.72​

11¢​

Inside GP$ + Other Income per Transaction​

$3.03​

$3.16​

13¢​

Net DSOE + Facility Expense per Transaction​

$3.02​

$3.23​

21¢​

1¢​

(7)¢​

(8)¢​

Inside Operating Profit/Transaction​

Source: NACS CSX Convenience Benchmarking Database ​

Operating a convenience store has become significantly more expensive in the past five years, with total expenses up 23.3% since 2021.

The transaction counts raise a critical question for retailers: How do industry trends compare to what’s happening at your own stores?

Every initiative—from foodservice programs to product marketing, loyalty strategies, promotions and store redesigns—will succeed or fail on a retailer’s ability to get customers from the forecourt to inside the store.

Although time will tell if fuel margins hold or pricing conditions improve, sustainable growth will come from increasing customer counts. “If you’re not actively strategizing around traffic, you’re leaving your future to chance,” said Rapanick.

46 JUNE 2026 convenience.org

3

GROW BASKET VALUE—ONE ITEM AT A TIME An effective way to build basket value doesn’t come from sweeping changes or expensive remodels—it’s adding one item to every basket.

Rapanick noted that 2025 delivered a 24-cent year-over-year increase in basket value, which is good news on its own. However, the year-over-year increases in cost of goods sold and total expenses delivered a tougher result.

“The small increase in inside gross profit didn’t come close to offsetting the growth on direct store operating expenses, which led to an 8-cent decline in basket profitability in 2025 vs 2024,” he said.

Rapanick suggested that as retailers strategize how to increase transaction counts, they do so in tandem with strategizing how to grow basket value.

“Think about your store teams upselling and running effective promotions. Basket profitability is a game of pennies, where adding one item to a basket can turn a loss into profit,” he said.

4

TREAT EXPENSE CONTROL AS A STRATEGIC DISCIPLINE As the saying goes, you can’t manage what you can’t measure.

“Expense control is paramount.

When sales and gross profits are contracting, the best defense is to track expenses and cut meticulously,” said Rapanick.

Direct store operating expenses (DSOE) continue to outpace inside gross profit dollar growth. Total DSOE was just under $166 billion in 2025, but the good news is that the rate of growth did slow to 4.2% compared to the 7.1% rate of growth experienced in 2024.

Despite the slower pace, every expense category grew in 2025 except for a slight decline in merchandise shrink, which had trended upward the past few years.

Rapanick noted that card fees were expected to decline as gas prices declined. However, 2025 was the third consecutive year were the average price per gallon declined and card fees continued to grow.

“For this to happen, it comes down to the volume of dollars paid with credit cards,” said Rapanick. In 2025, 82% of the $817 billion in industry sales was transacted on a card.

Every initiative—from foodservice programs to product marketing, loyalty strategies, promotions and store redesigns—will succeed or fail on a retailer’s ability to get customers from the forecourt to inside the store.

In 2025, the convenience industry paid $21.3 billion in credit card swipe fees including $4.6 billion in fees on taxes collected, noted Rapanick. “If you aren’t asking your Members of Congress to vote yes on the Credit Card Competition Act, we strongly suggest that you start,” he advised.

DSOE Growth Slowed, But Still a Roadblock​

$159.8B

+ 3.8%

$165.8B

$2.7B

- 3.7%

$2.6B

$21.1B

+ 1.0%

$21.3B

$48.4B

+ 5.0%

$50.8B Merchandise Shrink

$87.7B

+ 3.0%

Card Fees

$90.3B Other DSOE Wages & Benefits

2024

% Diff.

2025

Sources: NACS CSX Convenience Benchmarking Database and NACS/NIQ YE2025 Convenience Store Census ​

NACS JUNE 2026 47

Across the Industry, Wages Rise, Turnover Falls

$120,000

130%

$110,000

120%

$100,000 110% $90,000 100%

$80,000

$70,000

90%

21 22 22 22 22 22 23 23 23 23 23 24 24 24 24 24 25 25 25 25 25 21 21 21 21 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 1/ 5 1 3 1 1 9 1 11 5 5 3 5 3 3 9 9 9 5 3 9 11 11 11 11

Convenience Wages and Benefits

Employee Turnover

Linear (Convenience Wages and Benefits)

Linear (Employee Turnover )

Source: NACS CSX Convenience Benchmarking Database

5

REDUCE TURNOVER TO UNLOCK PRODUCTIVITY Reducing turnover is a perennial issue for the convenience industry. Over the past five years, wages and benefits expenses increased from about $80,000 per store, per month to about $104,000.

During that timeframe, employee turnover had been on a general path of decline: average turnover spiked in 2021 at about 130% and dropped to as low as 99% in late 2024.

“This is likely not causal, but it does give some assurance that increases in wages appear to be money well-spent,” said Rapanick.

Turnover for both store managers and store associates improved in 2025, although manager turnover spiked in Q4 of 2025.

Although employee turnover for the industry is still over 100%, “the industry gained a lot of momentum in 2025,” said Rapanick, adding that low turnover translates to higher productivity, improves employee morale, promotes shopper loyalty and reduces operating expenses.

MEASURE WHAT MATTERS AND TAKE ACTION The challenges and opportunities shared by Rapanick were straightforward: Identify the metrics

48 JUNE 2026 convenience.org

that are most important to your business and create a strategy to address them.

“If you aren’t measuring your business in these five ways, I suggest you look at ways you can rethink and lean in,” said Rapanick. “We all hope that fuel margins hold and baskets grow, but we need to step up and take action on customer transaction counts inside the store and on the forecourt and find ways to reduce expenses. These things will all lead to lower breakeven pool margin and, ultimately, a more profitable business for you and your companies.”

Chrissy Blasinsky is the NACS digital and content strategist.

If you’re not actively strategizing around traffic, you’re leaving your future to chance.

2025 Industry Data Sales are open!

Official Publication Date: June 15

 Benchmark against your peers  Learn from top performers Understand performance by category  and region

Get the Report Convenience.org/SOIReport

Contact Information Raei Tesfazghi NACS Research Analyst rtesfazghi@convenience.org (703) 518-4216

NACS STATE OF THE INDUSTRY SUMMIT

“When you bring all of merchandise together, every category has a unique role to play—it becomes an ecosystem.”

ANDREW BAILL

Senior Category Manager Fresh Beverages, Wawa Inc.

52 JUNE 2026 convenience.org

In-Store Sales DRIVE GROWTH

Leveraging foodservice and merchandise can lead to higher transactions and help build bigger baskets.

BY CHRISSY BLASINSKY

TWO KEY TAKEAWAYS that were shared at the 2026 NACS State of the Industry Summit: 1 Focus on growing inside transaction counts 2 Build bigger baskets—one item at a time

Inside transactions declined 1.6% in 2025 versus 2024 on a per store, per month basis. Despite an increase in basket value by 24 cents year over year in 2025, higher costs offset that gain, as increases in cost of goods sold and operating expenses outpaced inside gross profit growth, resulting in an 8-cent decline in inside transaction basket profitability from 2024.

Although the c-store industry had record in-store sales in 2025 for the 23rd consecutive year, it was a close call. Merchandise and foodservice represented 35.0% of average store sales and 57.4% of gross profit.

Here’s a look at the in-store metrics shared at the 2026 NACS State of the Industry Summit.

NACS JUNE 2026 53

Merchandise and Foodservice are the Biggest Drivers of Sales and Gross Profit

Sales 10.0%

Gross Profit 3.7%

22.3%

25.0%

38.8%

Other Operating Income

Foodservice

65.0%

35.1%

Merchandise Fuel

Source: NACS CSX Convenience Benchmarking Database

FOODSERVICE IS THE GROWTH ENGINE The fast-growing role of foodservice over the past five years is impressive. It continues to prove a powerful growth engine, accounting for 28.5% of inside sales and 38.9% of inside gross profit.

Defined as the combined categories of prepared food, commissary and hot, cold and frozen dispensed beverages, foodservice is a main trip driver for why customers visit convenience stores: to satisfy hunger and thirst.

At the category level, prepared food alone would rank as the No. 1 in-store category overall, surpassing packaged beverages in both sales and gross profit.

(More to come on those metrics.)

As we look at overall foodservice performance in 2025, there are some ups and downs that will continue throughout 2026: • PREPARED FOOD SALES were nearly flat year over year, reflecting ongoing consumer financial stress and aggressive value promotions from QSR competitors.

• HOT DISPENSED BEVERAGES delivered higher sales but saw margin decline, driven by rising commodity costs and global coffee supply pressures.

• COLD DISPENSED BEVERAGES, meanwhile, surged thanks to product innovation and trends like dirty soda.

54 JUNE 2026 convenience.org

• COMMISSARY peaked during the Covid pandemic

as quick, fresh, grab-and-go packaged items were in high demand. In the past few years, the category has remained relatively flat.

Foodservice is where the stakes are the highest.

Companies with well-developed, industry-leading foodservice programs didn’t build those programs overnight. To be successful with food, it cannot be treated as just another category.

PLUGGING THE FOODSERVICE ABANDONMENT GAP Given the opportunities with foodservice, there is an abandonment issue to address—and it’s a costly one.

Roughly one-third of convenience store shoppers plan to stop at a QSR within 30 minutes of their visit.

This translates to over $100 billion per year that the c-store industry is losing to QSRs. Why are they leaving? According to NACS shopper insights research from the Convenience Voices program, shoppers consistently cite variety and availability as top reasons for going elsewhere. At the same time, the reason they choose a convenience store in the first place is for convenience.

This creates both urgency and opportunity.

Convenience stores don’t need to out-QSR the QSRs— but they can take a page or two from their playbook.

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Sales Growth Has Stabilized for Center Categories, Held Steady for Packaged Beverages and OTP

Packaged Beverages

Cigarettes

OTP

Beer

Salty Snacks

Sales $ (per store, per month)

$47,221

$44,346

$21,594

$18,150

$10,933

Sales $ YoY Change

+ 6.3%

- (5.2)%

+ 8.4%

- (1.8)%

+ 3.5%

Candy

Alternative Snacks

General Merchandise

Packaged Sweet Snacks

Milk

Sales $ (per store, per month)

$9,618

$4,532

$4,541

$3,878

$3,761

Sales $ YoY Change

+ 6.9%

+ 7.9%

+ 2.1%

+ 1.6%

+ 0.5%

Source: NACS CSX Convenience Benchmarking Database

We hear a lot about differentiation and leaning into what you can be famous for. People know what they can expect at a QSR, whether it’s a burger, pizza, Mexican or chicken chain, and they know which QSR brand will satisfy their craving.

Many convenience stores, however, don’t have this type of food-forward recognition—at least not yet. Traditionally, c-stores sell the same thing. This creates a sea of sameness inside the store that transfers to the foodservice offer. To excel at foodservice, think about differentiating your offer and being famous for something.

MERCHANDISE IS THE WORKHORSE After years of inflation-driven price increases, 2025 brought some relief to the six core c-store merchandise categories: cigarettes, OTP, packaged beverages, beer, salty snacks and candy, which make up the lion’s share of in-store sales and profit.

Packaged beverages and cigarettes remain the largest categories in terms of sales contribution.

In terms of year-to-year sales growth, packaged

56 JUNE 2026 convenience.org

In the 2025 Convenience Voices survey, 33.3% of c-store shoppers were planning to stop at a QSR within 30 minutes of their visit.

beverages and OTP led the way, while salty snacks, candy, and alternative snacks also saw strong growth.

Here are some in-store merchandise highlights: • For the first time, OTP surpassed cigarettes in gross profits per store, per month, likely due to a combination of factors including polyusage and consumers shopping both categories.

A Drink and a Snack The merchandise categories of beer and packaged beverages, combined, represent about a quarter of both inside sales and inside gross profit contribution. In 2025, growth in packaged beverages (6.3% sales growth year over year) offset declines in beer.

The Cold Box Stays Steady 6.7% goes here3.6% Chart

25.4%

25.7%

18.7%

22.1%

Categories Included (Legend) Packaged Beverages Beer Candy Salty Snacks Other Tobacco Products Cigarettes Foodservice Categories All Other Categories

Inside Gross Profit Contribution

Inside Sales Contribution

Candy and salty snacks combined to contribute almost 10% of inside gross profit.

Both of these key categories saw growth in 2025, with candy (6.9% increase in sales) stronger on a year over year basis than salty snacks (3.5% increase in sales).

Sweet and Salty Highlight Center Store A

8.4%

3.7% 4.7%

B

9.8%

4.9% 4.9%

Categories Included (Legend) Salty Snacks Candy Beer Other Tobacco Products Cigarettes Packaged Beverages Foodservice Categories All Other Categories

Inside Sales Contribution

Source: NACS CSX Convenience Benchmarking A Database

Inside Gross Profit Contribution

B

NACS JUNE 2026 57

• Inside the cold vault, packaged beverages and

beer are responsible for just over 25% of both sales and gross profit, with over 80% of that profit coming from packaged beverages.

• Energy drinks continue to drive growth for the packaged beverage category, but the category stays strong by satisfying a variety of customer needs.

• “I’m thirsty” is the No. 1 reason shoppers visit c-stores, according to NACS Convenience Voices data.

• Beer sales decline in 2025 was a result of several factors, including shifting consumer behavior and increased consumption of ready-to-drink wine and liquor-based products.

• Candy and salty snacks lead innovation and keeping the channel “fun;” 435 new candy and salty snack items were introduced into the channel in 2025.

OPPORTUNITY INSIDE THE STORE The in-store business is not just sales and units—it’s financial health, category and product assortment acumen, attention to shopper behavior and overall operational efficiency.

There’s no question that 2025 was a challenging year, and there are forces at play on a geopolitical stage that could impact consumer sentiment and shopping behavior throughout 2026. It’s important to make sure no stone is unturned. Make a plan and identify:

58 JUNE 2026 convenience.org

• Specific categories that can do more work for

the business • Customer segments that offer the greatest

opportunity for higher frequency and loyalty • How you can streamline operations and reduce

controllable expenses to protect profit when trips are down Customers come to convenience stores hungry, thirsty and looking for a quick and easy solution. The industry is uniquely positioned to meet those needs and keep the focus on boosting transaction counts and building bigger baskets.

Chrissy Blasinsky is the NACS digital and content strategist.

There’s no question that 2025 was a challenging year, and there are forces at play on a geopolitical stage that could impact consumer sentiment and shopping behavior throughout 2026.

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NACS STATE OF THE INDUSTRY SUMMIT

“AI is not about doing away with jobs.

It’s about empowering people.”

JEFF HASSMAN PDI Technologies

60 JUNE 2026 convenience.org

Using AI to

Unlock Potential The goal is to get the most from employees— not replace them.

BY STEVE HOLTZ

“T

here is always more work to do than we have employees to do it,” Jeff Hassman said during a NACS State of the Industry Summit workshop. “It really is about how you reallocate and optimize re­­sources so that your people are working on the best things.”

Nearly a decade before becoming the general manager of agentic AI and analytic solutions at PDI Technologies, Hassman was a market manager for a major oil company and retailer in the Mid-Atlantic.

There, he oversaw a star category manager for packaged beverages who helped pioneer the now familiar 2-for Gatorade promotion.

The promotion drove “phenomenal” traffic and sales in stores. Hassman said that today, AI could independently accomplish the same thing in a fraction of the time.

He stands fast in his belief, however, that if AI were around 10 years ago, it wouldn’t have replaced the high-performing category manager. Rather, using an AI agent would have allowed the category manager to invest her time in developing equally profitable promotions elsewhere in the cooler and beyond.

The promotion was a huge success but was also timeconsuming and complex, Hassman said. “The morning boot crowd would come in, they would fill up all their equipment [at the pump], and get everything they need to drink for the day. ... And they loved the 2-for Gatorade promotion.”

But there was a problem: “The first 90-degree day we would knock out our entire inventory.”

As a result, the category manager dedicated time each spring to manually calculating and predicting when each store could expect that first 90-degree day so that stores would be prepared.

Beyond predicting the weather, “a big part of this category manager’s success was figuring out appropriate stocking and deliveries each spring by running the calculations … of all of the stores based upon what their cooler sales were, what kind of promotional lift they were getting, what size back room they had,” Hassman said.

NACS JUNE 2026 61

Today, the time dedicated to those calculations can be cut to minutes or even seconds by artificial intelligence, according to Hassman—as long as both the data and the direction are good.

With AI increasingly entrenched in corporate HQs, bringing the tool to the frontline worker is next.

Hassman said that the next step is to “work to build a system around our store employees that allows them to focus on the thing that really matters, which is a great experience for our customers—the one thing that AI won’t do for us.”

“When we think about building AI systems and processes to save money and drive efficiency, I think that the area of opportunity for us is really about empowering our most valuable asset, which is our store employees,” he said.

Hassman pointed to two things driving the next applications of AI: 1 Technology firms continue to improve their AI platforms and performance.

2 College graduates are moving into the job market

with experience using AI platforms and pointing AI in the right direction to achieve useful solutions.

62 JUNE 2026 convenience.org

The area of oppurtunity for us is really about empowering our most valuable asset, which is our employees.

“I personally really believe that AI is not about doing away with jobs. It’s about empowering people,” he said, “and when you position it that way and if you treat it that way, then you can grow.”

Steve Holtz is a c-store journalist with more than 20 years in the industry and president of Holtz Media Consulting.

NACS JUNE 2026 63

NACS STATE OF THE INDUSTRY SUMMIT

64 JUNE 2026 convenience.org

Regional

Reports From the 2026 NACS State of the Industry Summit

In a challenging year for in-store sales, regional highlights show growth opportunities.

BY MICHELLE CASSIDY, BEN NUSSBAUM, NOELLE RIDDLE

A

s part of its State of the Industry reporting, NACS separates the United States into six regions, which are loosely based on the U.S. government’s Petroleum Administration for Defense Districts, or

PADDs. The regional location of a store has an enormous impact on performance— some regions are stronger on foodservice, and a store without a robust offer may be perceived as falling behind; in other regions, fuel remains a much more important part of the mix. Operating costs, including wages and benefits, also vary widely by region. Breaking down national data into the six regions gives operators an opportunity to spot trends and gain insights that are most relevant to them while also gaining a better understanding of operational models in other locations.

NACS JUNE 2026 65

$88,977 $4,402 Average gross profit from foodservice categories per store, per month in Region 1, 134.7% higher than the national average.

While direct store operating expenses (DSOE) are higher in Region 1 than the rest of the country, they remained stable year over year despite rising utility costs. In 2025, the average DSOE per store, per month was $159,061, just barely higher than the 2024 average of $159,023.

Per store, per month sales of ice cream in Region 1—2.1 times greater than the national average.

6.2% Year-overyear growth in alternative snacks sales in Region 1.

REGION 1: NORTHEAST Region 1, the Northeast, is typically home to strong sales and store performance where gross profit is close to evenly distributed between fuels, merchandise and foodservice. That pattern carried into 2025.

The number of inside transactions was 22.3% higher than the national average, and inside sales per store, per month— $429,284—was 70.9% higher than the national average.

From a year-over-year perspective, Region 1 saw slower growth than the national average. Total fuel sales per store, per month fell 9.3%, compared to the national average of a 5.4% decline; inside sales per store, per month fell 2.5%, compared to 1.7% growth nationally.

A bright spot: Compared to sales figures, gross profit suffered less of a decline, dipping 1.9% overall and 1.5% in terms of in-store results.

The Northeast traditionally leads the industry when it comes to gross profit, particularly in foodservice. Even in a down year, in-store gross profit was 84.3% higher than the national average in 2025 while gross profit from foodservice was 134.7% higher.

Mirroring national trends, turnover continued to improve. At 86.9%, non-manager turnover was 28.4 points lower than the national average, and fell 5.6 points from 2024. Manager turnover rose 2.6 percentage points to 26.8%, but remained below the national average.

REGION 1 REPORT CARD Metric Per Store, Per Month

National

Region 1

Region 1 vs.

National

Inside Transactions

32,657

39,932

22.3%

Average Basket Value

$7.69

$10.75

$3.06

Inside Store Operating Profit

$(3,677)

$(187)

$3,490

Non-Manager Turnover (annual)

115.3%

86.9%

(28.4) pts

Manager Turnover (annual)

27.6%

26.8%

(0.8) pts

Inside Gross Profit per Labor Hour

$40.70

$53.19

30.7%

Wages & Benefits as a % of Gross Profit $

30.9%

32.0%

1.1 pts

Source: NACS CSX Convenience Benchmarking Database

66 JUNE 2026 convenience.org

REGION 2: SOUTHEAST Region 2, the Southeast, is known for being strong in fuel sales. In 2025, the region’s operators sold 18.4% more gallons than the national average (186,536 per store, per month), a figure that ticked up 0.2% year over year.

Total transactions fell 4.3% year over year, with inside transactions dipping 3.8%. Of the top 10 in-store merchandise categories, only packaged beverages, OTP, and candy avoided year-over-year sales declines. Beer, salty snacks and packaged sweet snacks all saw sales declines of more than 5%.

Despite the challenges, in-store gross profit rose slightly (2.5%), buoyed by a 5.3% increase in gross profit from foodservice. Overall, total gross profit was $153,581 per store, per month, 9.1% less than the national average.

Turnover in Region 2 has long been higher than the national average, and the news in 2025 was mixed. Non-manager turnover fell from 152.8% to 141.6%, while manager turnover increased from 39.9% to 42.2%.

From 2024 to 2025, the prepared food category grew sales by 6.0% in Region 2, with gross profit from prepared food growing 8.2%. Cold dispensed beverage sales rose 7.1%, with gross profit from the category jumping 12.7%.

4.1%

72.0%

6.0%

The year-over-year growth in wages and benefits in Region 2.

The percentage of sales in Region 2 that come from fuels—the national average is 64.6%.

Growth in prepared food sales year over year in Region 2.

REGION 2 REPORT CARD Metric Per Store, Per Month

National

Region 2

Region 2 vs.

National

Inside Transactions

32,657

22,336

(31.6)%

Average Basket Value

$7.69

$9.78

$2.09

Inside Store Operating Profit

$(3,677)

$(15,850)

$(12,173)

Non-Manager Turnover (annual)

115.3%

141.6%

26.3 pts

Manager Turnover (annual)

27.6%

42.2%

14.6 pts

Inside Gross Profit per Labor Hour

$40.70

$39.16

(3.8)%

Wages & Benefits as a % of Gross Profit $

30.9%

25.0%

(5.9) pts

Source: NACS CSX Convenience Benchmarking Database

68 JUNE 2026 convenience.org

The average basket in Region 3 fell slightly on the year, from $9.05 to $8.84.

That average basket size was $1.15 more than the national average, reflecting the region’s higher percentage of trips that involve fill-in groceries—like milk.

$6,266 REGION 3: MIDWEST Region 3, the Midwest, typically closely mirrors national averages. In 2025 that continued, but with slightly rosier outcomes than the rest of the country.

Inside store operating profit improved from -$244 to $2,543 on a per store, per month basis. Bucking national trends, total transactions increased, inching up 0.6%, driven by a 5.2% increase in inside transactions. Removing cigarettes from the mix, merchandise sales grew a healthy 4.8% to $148,039 per store, per month. That total is 9.5% higher than the national average.

The backbar outperformed national averages, with cigarettes sales falling 2.4%, compared to a national decline of 5.2%, and OTP sales grew 10.1%, compared to national sales growth of 8.4%.

The positive year for Region 3 resulted in a 10-cent turnaround in inside operating profit per transaction, as the region moved from -4 cents per transaction to a 6-cent profit.

The region, which historically has low turnover, continued to improve in that area.

Non-manager turnover fell 4.0 points to 103.7%, while manager turnover fell 1.2 points to 23.2%

Per store, per month sales of milk in Region 3, $2,505 more than the national average.

2.1% Foodservice gross profit growth in Region 3 from 2024 to 2025.

12.1% The year-over-year increase in “Other Income” in Region 3.

This includes carwash, games and amusements, and income from ATMs.

REGION 3 REPORT CARD Metric Per Store, Per Month

National

Region 3

Region 3 vs.

National

Inside Transactions

32,657

30,477

(6.7)%

Average Basket Value

$7.69

$8.84

$1.15

Inside Store Operating Profit

$(3,677)

$2,543

$6,220

Non-Manager Turnover (annual)

115.3%

103.7%

(11.6) pts

Manager Turnover (annual)

27.6%

23.2%

(4.4) pts

Inside Gross Profit per Labor Hour

$40.70

$36.11

(11.3)%

Wages & Benefits as a % of Gross Profit $

30.9%

33.3%

2.4 pts

Source: NACS CSX Convenience Benchmarking Database

NACS JUNE 2026 69

Region 4’s foodservice mix is traditionally high on commissary (about double the national average) and low on prepared food. For the year, commissary sales increased 1.0% while prepared food sales dipped 0.3%.

9.2% Year-over-year growth of alternative snack sales in Region 4.

REGION 4: SOUTH CENTRAL Region 4, South Central, is the site of c-store growth. Texas, home to most of the region’s population, added 88 stores to its count according to the 2025 NACS/TD Linx store count. With 16,504 sites, it has a store for every 2,000 people, making the region unusually dense.

With strong projections for continued population growth in the region, it makes sense that operators are building now. In the short term, the region’s performance in 2025 showed a strong reliance on fuel. Fuel accounted for 70.5% of the region’s sales, compared to 64.6% nationally, and 41.4% of the region’s gross profit, compared to 38.5% nationally.

Inside transactions were below the national average by 24.4% and also fell 9.4% year over year. Basket size increased 70 cents to $6.81, but still lagged the national average.

Total, sales were $549,330 per store, per month, 23.4% below the national average.

Expenses, however, were also low, with a total direct store operating expense (DSOE) of $68,657, 27.1% below the national average.

Operators in the region kept DSOE in check, with the figure just 2.1% higher than a year ago.

Another bright spot was turnover.

Non-manager turnover fell 17.2 points to 114.1% while manager turnover fell 5.2 points to 28.9%.

No. 9 Where ice ranks in the top in-store categories.

Region 4 is the only region with ice as a top 10 category.

1.9% Year-over-year growth in wages and benefits in Region 4.

REGION 4 REPORT CARD Metric Per Store, Per Month

National

Region 4

Region 4 vs.

National

Inside Transactions

32,657

24,705

(24.4)%

Average Basket Value

$7.69

$6.81

$(0.88)

Inside Store Operating Profit

$(3,677)

$(12,148)

$(8,471)

Non-Manager Turnover (annual)

115.3%

114.1%

(1.2) pts

Manager Turnover (annual)

27.6%

28.9%

1.3 pts

Inside Gross Profit per Labor Hour

$40.70

$32.72

(19.6)%

Wages & Benefits as a % of Gross Profit $

30.9%

28.5%

(2.4) pts

Source: NACS CSX Convenience Benchmarking Database

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$40,657 Per store, per month sales of packaged beverages in Region 5 in 2025.

While still trailing national averages, that’s a 7.7% jump year over year.

REGION 5: CENTRAL To start with the bad news: Pump transactions in Region 5 declined 12.6% year over year, and fuel sales were 26.7% below the national average.

However, inside transactions were up 13.6% in Region 5 year over year as national inside transactions declined 1.6% year over year, a noteworthy accomplishment. That transaction growth saw foodservice sales increase 4.4% and inside merchandise sales grow 3.1%. Removing cigarettes from the mix, inside merchandise sales grew 4.8%. Top perfomers included packaged beverages, OTP, candy and alternative snacks, which all saw year-over-year growth of at least 7.4%.

The region continued to have lower direct store operating expenses (DSOE) than the national average. The region’s per store, per month DSOE of $71,982 was 23.6% lower than the national figure of $94,179, despite 5.1% growth on the year. Region 5 benefits from low turnover—98.9% for non-managers and 24.8% for managers. Those numbers showed little change year over year, with non-manager turnover up 0.3 points and manager turnover down 1.1 points.

24.7% The percentage of shoppers planning on visiting a QSR 30 minutes after visiting a c-store in Region 5 in 2025— about 9 points lower than the national average.

4.9%

Lower direct store operating expenses (DSOE) led to baskets in Region 5 being more profitable than the national average. The inside operating profit per transaction was 14 cents, higher than the national average of -7 cents per transaction.

Increase in prepared food gross profit in Region 5 from 2024 to 2025.

REGION 5 REPORT CARD Metric Per Store, Per Month

National

Region 5

Region 5 vs.

National

Inside Transactions

32,657

30,039

(8.0)%

Average Basket Value

$7.69

$6.56

$(1.13)

Inside Store Operating Profit

$(3,677)

$4,392

$(8,069)

Non-Manager Turnover (annual)

115.3%

98.9%

(16.4) pts

Manager Turnover (annual)

27.6%

24.8%

(2.8) pts

Inside Gross Profit per Labor Hour

$40.70

$34.01

(16.4)%

Wages & Benefits as a % of Gross Profit $

30.9%

32.7%

1.8 pts

Source: NACS CSX Convenience Benchmarking Database

72 JUNE 2026 convenience.org

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REGION 6: WEST Region 6, the West, remains an outlier compared to the rest of the nation. Due to its smaller store sizes and foodservice programs that aren’t as developed as those in the rest of the country, the region is more dependent on fuels than the rest of the country, with fuels accounting for 80.9% of sales.

However, stores in the West continue to evolve.

Foodservice sales were up 11.8% to $35,811 per store, per month, while inside sales grew to a total of $202,681 per store, per month, a 6.5% increase despite a 1.8% dip in inside transactions.

While foodservice growth was strong, the opportunity remains large. Foodservice leakage— defined as the percentage of people at a convenience store who plan to visit a QSR within 30 minutes—was 41.3%, outpacing the national average of 33.3%.

Operators in Region 6 face a high minimum wage and high overall operating expenses relative to store size. However, 2025 saw inside gross profit grow 12.7%, outpacing the growth of direct store operating expenses, which grew 6.3%.

When it comes to foodservice, Region 6 is a matter of perspective. Sales are about half the national average ($35,811 per store, per month in the region compared to $72,061 nationally) but growth is strong.

The year-over-year increase in candy sales in Region 6.

$11.95 The average basket size in Region 6 in 2025, an 8.4% increase.

$2,718 The average wine sales per store, per month in 2025 in Region 6, up 6.6% year over year.

REGION 6 REPORT CARD Metric Per Store, Per Month

National

Region 6

Region 6 vs.

National

Inside Transactions

32,657

16,965

(48.1)%

Average Basket Value

$7.69

$11.95

$4.26

Inside Store Operating Profit

$(3,677)

$(23,407)

$(19,730)

Non-Manager Turnover (annual)

115.3%

103.5%

(11.8) pts

Manager Turnover (annual)

27.6%

24.6%

(3.0) pts

Inside Gross Profit per Labor Hour

$40.70

$37.58

(7.7)%

Wages & Benefits as a % of Gross Profit $

30.9%

26.0%

(4.9) pts

Source: NACS CSX Convenience Benchmarking Database

74 JUNE 2026 convenience.org

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NACS STATE OF THE INDUSTRY SUMMIT

“Leading c-stores redefine what the convenience format means, making stores into destinations that people will go out of their way to visit.”

ERICH KAHNER

VP of Retail Strategy and Insights, dunnhumby

Findings from dunnhumby reveal the attributes that earn consumer preference.

BY STEVE HOLTZ

C

onvenience operators have a lot in common, from product mix and a focus on speedy transactions to the actual layout of the store.

Nevertheless, banners can differentiate themselves and rise to the top. The rewards of doing so are worth the effort, according to the results of the most recent dunnhumby Retailer Preference Index.

“The c-store format as a whole faces trust gaps,” said Erich Kahner, head of competitive strategy and

76 JUNE 2026 convenience.org

insights for dunnhumby. “Leading c-stores redefine what the convenience format means, making stores into destinations that people will go out of their way to visit.”

Speaking in a breakout session, Kahner encouraged retailers to find what makes them unique and turn it into a calling card for their stores.

“Convenience and speed is a saturated need,” Kahner said. “C-stores that position themselves as being known for a quality experience and quality products see stronger market results.”

Dunnhumby’s Retailer Preference Index (RPI) collects consumer sentiment about convenience and other channels to reveal strategic takeaways for retailers and suppliers navigating the fast-changing landscape.

The RPI aggregates six pillars of the customer value proposition: affordability, quality experience and products, frictionless experience, visibility, product variety, and speed and convenience.

Winning

THE CONVENIENCE TRIP Here’s what the latest index, released in October, revealed.

• The most important of these pillars is providing quality experiences and quality products. The least important is convenience and speed.

• Together, the six pillars drive the total reach of a store’s market footprint, transactions beyond gasoline, growth potential and emotional connections.

• Retailers are best served to create a differentiated retail value proposition, one that is specifically relevant to its market and its customers.

This allows a retailer to grow faster than the competition, and do so sustainably.

• C-store chains with the highest RPI outperform other retailers on quality and rival even the best QSRs on foodservice and atmosphere.

• C-stores with top-tier value propositions were the only group that, on average, grew foot traffic in 2025.

• C-stores that are considered meal destinations by a majority of their customers experience the most growth.

• Top tier c-store banners had a big trust edge over lower-tier performers. However, other retail formats, significantly grocery, have a trust edge over convenience.

• C-stores in general have an advantage over QSRs in product variety. But QSRs are recognized for

a better variety of ways to place orders and for combo/value meal usefulness.

• Corporate-run c-stores, on average, have stronger scores when it comes to customer value proposition than banners with a franchise or independent model. However, franchise and independent stores are more likely to offer a higher-end experience than corporate stores.

Finally, convenience retailers with leading customer value propositions have some things in common.

• Their loyalty app penetration is two times better than banners in the third tier of performers.

• They offer better drink and meal option variety than QSRs. • They have strong visibility beyond their physical location, including digital, social, and off-property advertising, such as billboards, radio and television.

Readers can view the complete 2025 dunhumby Retailer Preference Index—Convenience Channel report at dunnhumby.com.

Steve Holtz is a c-store journalist with more than 20 years in the industry and president of Holtz Media Consulting.

NACS JUNE 2026 77

NACS STATE OF THE INDUSTRY SUMMIT

“Consumers care less about the brand on the box or the package as on the attributes that define it, and they’re looking for new ways to find value in what they buy.”

CHAD LUSK

Managing Director, Alvarez & Marsal Consumer and Retail Group Mike Templeton, NexChapter; Jessica Starnes, Weigel's; David Jackson, Kwik Trip

78 JUNE 2026 convenience.org

THE 24-CENT

Difference Consumers are always looking for better quality and lower prices. Private label and loyalty programs can help forge paths forward.

BY STEVE HOLTZ

I

t takes just a handful of statistics from the 2026 NACS State of the Industry (SOI) Summit to tell a significant story about convenience store sales.

It starts with good news: Dollar sales continue to grow. At a record $341 billion, total inside sales grew 1.7% in 2025. The other side of that coin (let’s call it a quarter) is not so shiny: Store traffic is down and inside transactions are hurting—the latter declined 1.7% year over year, according to preliminary NACS SOI data.

The slim difference, the thing that’s keeping the c-store channel in the black, was that quarter— from 2024 to 2025, the average basket size grew 24 cents to reach $7.69.

Add in a full-year inflation rate of 2.7%, and it’s clear the industry has a challenge to overcome.

“Convenience revenue is up 0.6%, but inflation is over 2.5%,” said economist Thomas Weinandy of Upside. “Prices are rising faster than consumers can keep up.”

This dilemma has many retailers considering two strategies to keep the ship moving in the right direction: building store traffic and investing in loyalty programs.

NACS JUNE 2026 79

‘BEGGARS CAN BE CHOOSERS’ The reason for the decline in store traffic is clear, according to former convenience retailer Chad Lusk, now managing director at management consulting firm Alvarez & Marsal (A&M), New York.

“Consumer sentiment is down. Has been for years. That’s not new,” Lusk said during the summit, citing results from Alvarez & Marsal’s semiannual consumer sentiment survey.

“Consumers are making deliberate and meaningful changes in their behavior in order to be able to survive the economy today,” he said. “Over 60% of consumers told us that they are traveling less in order to complete all of their shopping. That comes in the form of fewer trips and fewer store [visits].”

They’re doing it to save money, according to the survey results, as they consolidate trips to limit fuel use. That’s a double whammy for retailers as consumers cut spending and fill their gas tanks less often.

“In the quest to save money, our financially constrained consumers are changing theirshopping trips and patterns pretty significantly in the form of where they’re shopping and how they’re shopping,” Lusk said.

At the same time, according to Lusk, there’s a counter trend that opens a door of opportunity for retailers. “[While consumers] are making these changes to drive value, they’ve never been more

68%

The percentage of consumers who say the quality of house brands is as good or better than national brands.

Source: 2026 Alvarez & Marsal Consumer Survey

discerning and demanding,” Lusk said. “Beggars actually can be choosers. Who knew?”

This dichotomy—a desire to spend less but purchase higher quality goods—has opened a door to consumer experimentation and put a spotlight on private-label products.

“Brand experimentation is at a peak across categories,” Lusk said. “[It’s] driving trade-up behavior.”

This comes as 68% of consumers say the quality of house brands is as good or better than national brands, according to A&M’s consumer survey. In

Building Differentiation Value is the entry point. Loyalty is the reward.

Differentiation is the catalyst. That’s the essence of consultant Mike Templeton’s view on loyalty programs.

“We live in a world where people are moving fast, options are everywhere. We’re constantly distracted,” said the partner and vice president at NexChapter. “It’s becoming harder and harder to be differentiated in your market. [You need to] think in new ways about who you are.”

technologies. You’ve got to think about how to orchestrate all of these things together into one system for the consumer.”

Simplicity wins. Loyalty should be effortless.

“There’s a lot of things that have to go into making that possible, but if it’s not easy, they’re not going to buy in.”

Templeton outlined four trends to differentiation that can be amplified by loyalty programs:

The trust contract. You earn relevance in real time from your customers. “Every single moment that passes, you’ve got to make sure that you’re maintaining the trust that they put in you and your brand.”

One value system. This is where loyalty and promotions combine, according to Templeton.

“Yes, you’ve got a price book, you’ve got a back office, you’ve got a loyalty platform, an app. The customer doesn’t care that those are all separate

Go beyond transactions. Give customers new reasons to engage with the retail brand.

“It underscores your commitment [to your customers],” Templeton said. “Everything is vying for consumer attention; you must matter more.”

80 JUNE 2026 convenience.org

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addition, consumers find private-label brands provide a better variety of unique flavors and meet more dietary or lifestyle needs.

“Product brand loyalty is waning. In other words, consumers are reorienting where brand fits in the hierarchy of their decision-making. It’s falling,” Lusk said. “Consumers care less about the brand on the box or the package as on the attributes that define it, and they’re looking for new ways to find value in what they buy.”

Retailers can take advantage of this shift by investing in private-label products and variety in the form of unique flavors and product attributes, such as high-protein or gluten-free.

“Store-banner brand loyalty is actually greater than product brand loyalty right now,” Lusk said. “In the categories that are of particular importance for this industry—snacks and beverages—in the past six months alone, the percentage of snackers and beverage drinks who have been trying and experimenting with multiple brands is growing.”

Data shows this experimentation is happening across all age demographics but, Lusk said, it overindexes for younger consumers. “Never have we seen more brand switching or experimenting and less attachment to any single brand than today.

It shows the importance of having options and experimentation, and the variety and versatility that consumers are looking for and demanding these days.”

LOYALTY AS DIFFERENTIATOR This trending acceptance of store brands and the desire for variety opens a door to building store loyalty, said Marco Valentini, managing director and grocery and food retail lead at A&M. “Driving loyalty through innovation is very important,” he said. “You can offer unique flavor profiles, unique brands, unique forms [of products]. We see categories that historically have low penetration for private brands now are driving differentiation for [retailers] that are able to deliver them.”

He acknowledged that digital platforms have fast become the primary path to store loyalty today.

“Digital loyalty provides an important choice factor,” he said, adding that loyalty program penetration remains low in the c-store channel at less that 30% of

Never have we seen more brand switching or experimenting and less attachment to any single brand than today.

Consumers Value Convenience, Efficiency and Rewards What Drives Store Choice When Price Is Equal?

Top 3 Drivers

66%

66% of shoppers

of shoppers

Convenience & ease of access

Simple and quick checkout

Rewards & loyalty benefits

Efficient and shoppable with fast, seamless transactions

Rewards are a core lever to drive frequency and retain trips

of shoppers

Proximity and frictionless access are key drivers of store choice

Source: 2026 A&M Consumer Survey

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61%

3 Strategies to Build Store Traffic Citing the strategies of some of the leading retailers in convenience, consultant Chad Lusk of Alvarez & Marsal recommended the following strategies to build store traffic.

Build a superior shopping experience. This is winning at the basics: speed of service, clean bathrooms, a well-stocked coffee station, fresh food and so on.

“Seventy percent of shoppers link cleanliness to their beliefs around the freshness of food,” Lusk said.

“Freshness equals quality.”

Win on value and differentiated offer. “We need to provide a really compelling, value-oriented assortment. ... Value does not mean lowest price point. Value exists across all price points in the spectrum.” It can mean better taste and better ingredients, even if it’s at a premium price.

retail locations, which is well below other food retail channels, which average above 60%.

“C-stores can unlock stickiness and profitability by scaling core digital capabilities and offerings,” he said.

That’s what Weigel’s is accomplishing with its MyWeigel’s Rewards platform. “Ninety percent of our promotions run through our loyalty platforms,” said Jessica Starnes, director of loyalty for the Powell, Tennessee-based chain of about 80 stores.

That statistic differs dramatically from Kwik Trip’s Kwik Rewards, where about 50% of offers are made through the loyalty platform. “We very much rely on foot traffic and a broad appeal to drive traffic,” said David Jackson, director of marketing at Kwik Trip Inc., a La Crosse, Wisconsin-based retailer with more than 900 stores across the Midwest. “We offer a lot of commodity promotions that help set us apart from other retailers.”

At the smaller Weigel’s, on the other hand, “We have folks who grew up with us,” Starnes said. “That’s an advantage of being a local company. We earn customers’ trust through our reputation.”

MyWeigel’s loyalty members receive points for every purchase they make in a Weigel’s store or on the forecourt. Points add up to free products. Other benefits include “clubs” that award a free gallon of milk or slice of pizza, games to earn rewards and a

Activate digital and loyalty ecosystems. The functions can improve the elements above by removing friction and driving frequency and engagement. “Consumers demand speed of service, convenience and in-and-out executional abilities.

Finding points of friction in the shopping experience and eliminating them is super critical.”

mobile payment option that saves customers 10 cents per gallon at the fuel pump.

Customers can sign up for the rewards program online, via the MyWeigle’s app or in stores.

Maintaining that flexibility has proven important to driver enrollment. After launching the program in 2018, Weigel’s struggled to build membership early on, Starnes said. The solution was to offer loyalty benefits to customers who shared their phone number at checkout, whether they were members or not.

“We were having a problem with registration. We couldn’t reduce the friction of signup,” Starnes said.

Now, when a customer shares a phone number, “We immediately send a text link to sign up as soon as they leave the store. We get about 40% conversion from that.”

The results are undeniable: In 2025, MyWeigel’s Rewards supported more than 20 million reward transactions and delivered more than $17 million in savings to its customers. It’s also driving traffic and sales where it matters most. “Our top redemptions are proprietary items and fuel discounts,” Starnes said.

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C-store Shoppers Who are Members of a Store Loyalty or Rewards Program

75.0% 65.9% 56.8%

56.6%

2020

2021

68.9% +18.2 pts

54.6%

2022

2023

2024

2025

Source: 2025 NACS Convenience Voices Annual Study, 2020-2025

Kwik Trip has also grappled with getting customers to register for its digital loyalty platform.

With many stores in small, rural communities, it finds some customers don’t want to share a phone number or don’t have a smart phone.

“The tech itself is a friction point,” Jackson said.

The solution was to maintain familiar tools from the predigital era of loyalty. “We still have a paper application for those who need it. We still have a punch card [to earn a free gallon of] milk. So, customers can be loyal to KT without the technology.”

Kwik Rewards awards point on every purchase that can be redeemed for free food and merchandise and discounts at the pump. Members can take advantage of digital reward cards to replace those physical milk cards. Mobile payment is also available, among other attributes.

“The biggest thing for us is making sure it’s working like it’s supposed to [and addressing] store education,” Jackson said. “We want to make sure our associates understand the program so they can explain it well and provide the best possible customer service.”

Both retailers also acknowledged a need to extend the brand beyond the store.

Weigel’s does it through NIL (name, image and likeness) sponsorships with local athletes. Starnes said celebrating a great play by local athletes provides opportunities for news coverage by local media outlets, getting the Weigel’s name in front of consumers in unexpected ways.

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Meanwhile, Kwik Trip has built sponsorship relationships with several professional sports teams in their markets, including the Green Bay Packers, Milwaukee Brewers and Minnesota Twins. For customers, the Fan Zone feature of Kwik Rewards can add up to sports merchandise, gift cards, sweepstakes entries and even game tickets.

“This is our way to branch out rewards beyond the box, beyond the store,” Jackson said. “We’re helping our loyal customers get experiences that they otherwise would not achieve.”

Mike Templeton, partner and vice president of technology consulting firm NexChapter, calls it “loyalty in daily life,” moving beyond transactions.

“How do you show up in their daily life?” he asked. “Take your brand beyond the store. ...

Emotional and experiential loyalty will reshape brand relationships.”

Whether that’s a formal loyalty offer, unexpected rewards, or creating acceptance of store brands, retailers have a template to differentiate themselves to improve store traffic and basket spend. Remember, 24 cents can make a world of difference.

Steve Holtz is a c-store journalist with more than 20 years in the industry and president of Holtz Media Consulting.

11% Basket size increase when customers bought from an open cooler instead of a closed-door cooler with the exact same merchandise.

RETHINKING THE COLD CASE Strategic merchandising helps customers shop faster, drives impulse purchases and builds bigger baskets.

F

or another consecutive year, foodservice led convenience inside sales in 2025. Foodservice accounted for 28.5% of the total sales mix—up from 11.9% in 2005—and 38.9% of in-store gross profit dollars. Across the industry, a pattern continues to

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become clear: Foodservice is a growth and profit opportunity for operators.

“C-stores are in a perfect spot right now to capture market share of foodservice customers,” said Danielle McMiller, vice president of marketing at Structural Concepts,

a manufacturer of temperaturecontrolled display cases. “They are positioned to meet the new betterfor-you health trends and changes in consumer eating habits due to GLP-1s, and are keeping their stronghold on packaged beverages.”

This interview is brought to you by Structural Concepts.

Merchandising food items and products effectively can drive sales and increase basket sizes. “Merchandising strategy is what allows consumers to really engage and interact with your offerings, and operators can optimize sales versus limiting themselves to what types of products they can put in a cooler—which can create cross-selling opportunities,” said Patrick Rooney, director of marketing at Structural Concepts.

“With the right food products, the right merchandising elements and the right equipment to present it all, it’s the perfect combination that’s really going to allow c-stores to shine,” McMiller added.

BREAKING DOWN BARRIERS According to a study conducted by Structural Concepts and data consulting company Kantar, customers are 50% more likely to buy items from an open cooler versus a closed-door cooler.

They can find the products that they’re looking for more easily—the study found that customers spend 10% less time (or around 15 seconds) in front of the open cooler versus a cooler with a door, even when the items in each are the same. Participants in the study also spent $1.23 more (11%) when shopping from an open cooler.

In an aisle with both cooler options, 63% of participants gravitated to the open cooler first. “It makes a difference that there are no barriers between the consumer and the products,” said McMiller. As a reason for choosing it

C-stores are in a perfect spot right now to capture market share of foodservice customers.

first over a doored cooler, participants said the open cooler was easy to shop and provided easy access to products.

Without doors as a barrier, customers were more impulsive, selected items faster and put more items in their basket.

“In c-stores, we are seeing a lot more open coolers or smaller displays in the center store, closer to checkout or on end caps to get that impulsive buy from the consumer,” said McMiller. “People shop with their eyes and they want accessibility, so when something is in front of them and creates a barrier, it can stop them from buying more.”

Open coolers, islands and gondolas also lend themselves better to cross merchandising, allowing retailers to showcase products together and allowing consumers to build meals in their minds.

“With a cooler door, you’re only looking at it straight on and typically it has the same product row after row,” said Rooney. “Ours are designed to showcase the whole suite of fresh food options—salads, sandwiches, prepared meals—and beverages together, creating an enticing sightline and as well as that impulse opportunity for the customer that maybe only came in for one specific thing, but is now adding to their basket.”

End caps and undercounter units can also help merchandise every square foot of space in c-stores’ small footprint and optimize the inventory, said Rooney.

Placing salty snacks next to island coolers, for example, can encourage the customer to build their basket.

Dual hot and cold merchandisers can also save space in a small footprint and allow retailers to present more food options to customers.

LESS LABOR, MORE AUTONOMY No retailer is immune to challenges around labor. Tight headcount and high turnover often mean that it’s critical for store teams to prioritize efficiency.

NACS JUNE 2026 87

Without doors as a barrier, customers were more impulsive, selected items faster and put more items in their basket.

“There’s no magic button,” said McMiller, but compared to doored coolers, open coolers can be easier for employees to stock with easy access from the front and/or rear doors.

“Not having doors makes loading, merchandising or refilling coolers easier and faster,” Rooney said. “It gives operators more flexibility and opportunity. As promotions or dayparts change, you’re able to rotate stock quicker.”

The company’s Q Series merch­ andiser was developed specifically for convenience settings. “The intent was to be low profile with a rear ledge that was accessible so that you could see into the kitchen and the prep area, and still be interactive with the customer and be able to load from the back of the display,” said McMiller.

McMiller said one piece of equip­ ment that has been increasing store labor efficiency is autonomous merch­ andisers. “We’re on the verge of those autonomous merchandisers being a game changer for a lot of operators.”

Autonomous merchandisers can provide access to fresh food for consumers during off-peak or store closure hours. The company said it has particularly seen adoption in California markets with heavy EV-charging

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usage. These merchandisers “give the customer the ability to grab what they want, pay right there and leave,” said McMiller. “It takes the labor away from having to work the register and other areas, so you gain that labor back to then deploy to other areas of the store.”

Many consumers also prefer contactless shopping. According to data from the company, automated stores had an 11% sales lift compared to stores with little to no automation, as well as an 11% increase in trip frequency.

“The difference between autonomous merchandisers and vending is that autonomous merchandisers are not a single transaction for a single product— once a consumer swipes their card, they can open the door and get as much product as they need. There is a higher ticket price and a much higher quality of food available,” said McMiller.

She noted that 74% of small and mid-sized businesses in a study said they expect their customers to continue to prefer contactless payment as much as or more than they do currently.

“Some people just want to be in and out of the store quickly, especially in convenience. Perhaps they don’t want to wait in a line. That’s where I think these autonomous merchandisers have a big role,” said Rooney.

PROACTIVE MONITORING Equipment downtime can be detrimental to profits—and reputation. An out-of-commission cooler can result in lost foodservice sales and diminished customer experience.

Structural Concepts new FreshWatch remote monitoring program, launching this summer, monitors more than 10 data points to help operators pinpoint where an error might occur ahead of one actually happening, reducing downtime of equipment and maintenance.

“There’s a proactive element of this data being available and being able to understand when something isn’t going the way it should ahead of the unit breaking down,” said McMiller.

Technology like FreshWatch can also help reduce labor. “Retailers want equipment to be functional—to do its job in a way that they don’t have to worry about it. One of the biggest challenges they have is that they don’t have the labor on site to keep a close eye on equipment, and don’t know something is wrong until it’s too late,” said McMiller. “From our perspective, it’s about peace of mind—for the operator, their store teams and the customer.”

NACS JUNE 2026 89

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READ PART ONE OF OUR CONVENIENCE SUMMIT ASIA COVERAGE IN THE MAY ISSUE

Strategic Issues Facing C-Stores Lessons from Convenience Summit Asia: Four key issues serve as catalysts for growth and change.

BY HENRY O. ARMOUR, PH.D.

I

f there’s one word that resonated throughout the NACS Convenience Summit Asia, from the store tours to the presentations, it’s differentiation.

Businesses are always trying to explore the best ways to stand out from the crowd.

Along those lines, there are four strategic issues our industry is facing around the world. Depending on the country, these issues may be transpiring at a different life cycle, and we need to pay attention to them.

NACS JUNE 2026 91

This sea of sameness— everyone having the same offer—over time becomes a battle of scale and margin.

1|

SEA OF SAMENESS Over two decades ago I had the privilege of touring Japan with then-CEO of Seicomart, Tomoyasu Marutani. He shared with me that convenience retail in Japan was like a sea of sameness. Whether it was a 7-Eleven, a FamilyMart or a Lawson store, the stores were all alike inside, selling the same products and services.

As I travel around the world, I continue to see what he was talking about 20 years ago. Why is that?

I think it’s because we serve and reach more people on a daily basis than any other retail channel. In a global industry that serves millions of people per day, it’s easy to fall into the trap of having to be all things to all people, thinking that we have to satisfy all their shopping missions.

This sea of sameness—everyone having the same offer—over time becomes a battle of scale and margin.

2|

BECOMING A REAL FOODSERVICE PLAYER The future of our industry will increasingly rely on foodservice, especially as two of our core categories (fuels and cigarettes) continue to decline.

We also have to be realistic that a c-store’s foodservice business won’t quadruple by stealing foodservice sales from the convenience store competitors down the street. You have to steal it from quick-service restaurants.

I’m a huge believer in looking at what makes a competitor tick and what drives their model.

This goes back to my first point about the sea of sameness we’re operating in. What drives the QSR model is being famous for something. McDonald’s is famous for burgers. KFC is famous for chicken.

Pizza Hut is famous for pizza. Taco Bell, Arby’s, Burger King, Popeye’s—we all know what type of food they’re serving. For convenience stores, I can count on one hand the food some of our largest chains are famous for. This level of differentiation, of standing out among a sea of sameness, is a huge opportunity.

Think about how much the quality of foodservice in convenience stores has been elevated over the last decade. No longer do we only have roller grills. We have exceptional food, but it’s often the same food as your c-store competitor down the street.

Another consideration is the role of technology and removing friction. If our industry is going to successfully compete with QSRs, it will be tough to do so without mobile order and pay.

I used to think Starbucks was the most inconvenient place to buy a cup of coffee. That shifted with mobile order and pay. I can save my

If our industry is going to successfully compete with QSRs, it will be tough to do so without mobile order and pay.

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order preference, place my order, pay for my order within the Starbucks app and pick it up without waiting in line.

To really drive foodservice, we have to start making choices and stop treating foodservice like it’s just another category in our stores—it is your business, if that’s what you want it to be.

3|

LEVERAGING REAL ESTATE In almost every country I go to, I hear from retailers who say real estate is getting more expensive. That’s likely not going to change.

We saw fantastic examples in Shanghai’s coffee shops of how they’re leveraging real estate. They’re extending their offer into an entirely new daypart— what was essentially dead real estate from 5 p.m. onward instead becomes a bar that sells alcohol.

In Warsaw, Poland, Shell opened its Shell Café concept with no fuel. During the day, it’s a coffee shop.

Around 5 p.m., the lights change, the music comes on and it becomes a cocktail lounge.

In Argentina, YPF opened a two-story store in Buenos Aires that competes with WeWork. At YPF, the average basket of the person renting a shared workspace is three and a half times higher than the basket of the typical shopper. That’s leveraging real estate. It costs more to go up, but there are no incremental dirt costs.

Repsol, the largest petroleum convenience retailer in Spain, has had Amazon lockers outside of its stores for a decade. Great for delivery, but what about returns? Repsol asked Amazon whether it could find a solution to use the lockers for returns, and today Repsol is doing more transactions as returns than deliveries.

These examples may not work for every site, and that’s an important aspect to recognize.

We all know there are no silver bullets in retail.

Every market is different, customer flows are different … but think about what you could do, because real estate will continue to cost more and more over time.

4|

CHANGING OCEANS Will Rogers is an American icon famous for saying: “Even if you’re on the right track, you’ll get run over if you just sit there.” We see this a lot in retail, where companies keep doing things a certain way, not progressing and not embracing change.

As the world changes, not only can the train run over you, but the tracks can move. An example of this is coffee. The U.S. convenience channel used to be the

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As our customers evolve, we have to evolve with them.

That’s the value of looking around the world; to help us understand how we have to change.

No. 1 channel for immediate consumption coffee. Now it’s No. 4. What happened?

Well, Covid happened, and so did a change in the consumer’s path to their first cup of coffee.

Convenience stores lost the morning commuter, and their first cup of coffee shifted to the home. Sales of Keurig machines went through the roof along with the pods during the pandemic.

Although the customer’s journey to their first cup of coffee has perhaps forever changed, here’s the real change our channel missed: Young people don’t drink hot coffee. We missed that completely. Cold brew, iced coffee, espresso and lattes—demand for these types of beverages changed with a younger demographic and we didn’t change with them. And not just the beverages, but also the health and wellness intent with condiments like soy, oat and rice creamers. The average c-store didn’t embrace these radical shifts.

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THE 2026 NACS CONVENIENCE SUMMIT EUROPE WILL TAKE PLACE IN WARSAW, POLAND, FROM JUNE 16-18.

STAY TUNED FOR DETAILS ON THE 2027 NACS CONVENIENCE SUMMIT ASIA IN KUALA LUMPUR, MALAYSIA.

There’s also a changing tide in how customers shop, where and when. It’s the difference between proximity retail and convenience retail.

Convenience retail is all about immediate consumption, whereas proximity retail is about selling the merchandise your customers take home for later.

Regions with higher population densities have high-frequency purchasing. Oftentimes there are smaller, dual-income households that shop each day rather than stock up. Their shopping occasions are driven by proximity. How can c-stores fill this gap? In some countries, grocery stores aren’t open on Sundays but the local convenience store is. This changes the offer.

Yes, people still want to buy immediate con­sumption, but they also have other missions. As our customers evolve, we have to evolve with them.

DARE TO BE DIFFERENT There are two enduring competitive advantages the convenience channel has. First, we have the best real estate and the biggest footprint of any channel. The second is our unique and personal relationships with our customers.

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Your store teams know their customers. They know each other as human beings and they value that. No other retail channel has this type of relationship with its customers.

This is why we’ve got to be careful when we scale our businesses, and we’ve got to be careful with technology. Be careful not to convert your store into a vending machine that becomes this undifferentiated retail stop. Convenience stores offer an entire experience, from the time a customer pulls onto the lot, shops the store, purchases what we’re selling and hopefully returns the next day.

Canadian futurist William Gibson said, “The future is already here—it’s just not evenly distributed.” We have to look around the world to see where part of the future is occurring, what to learn from it, and how to adapt it into our local cultures and customers’ habits.

That’s the value of looking around the world; to help us understand how we have to change.

Henry Armour Ph.D. is the chairman emeritus & CEO International of NACS.

Join me at a NACS Executive Education Leadership Program.

NACS Executive Education series is the only comprehensive, multi-discipline industry curricula that offers customized, Ivy League training exclusively for senior convenience management.

convenience.org/NACS-Executive-Education

Differentiating Your Offer

NewSaetiew/iStock; AntonioDiaz/Adobe Stock

Do your stores stand out from the crowd?

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This is the third of a five-part series that explores exclusive NACS consumer data.

This month’s article dives into consumer perceptions on other conveniences like checkout times and speed of service.

BY JEFF LENARD

R

etail experts often talk about a sea of sameness, where retail offers are indistinguishable from each other.

When that’s the case, the main reason customers select a c-store is because it’s the closest location when they need something.

But with virtually all retail channels also focusing on convenience, retailers need to find ways to differentiate themselves, whether in how they save customers time, how they promote their offers on social media or how they deliver value.

NACS JUNE 2026 101

Perceptions of Convenience Stores In the 2026 NACS Convenience Voices survey, 56% of consumers say that convenience stores differ quite a bit from each other, versus 38% of consumers who say c-stores are generally the same. How does that unlock opportunities for progressive retailers, and what does this mean for overall industry image?

Unlike the quick-service restaurant industry, which has an estimated 220,000 highly consolidated locations around large franchises, the convenience store industry is dominated by smaller operators who operate a few stores that can vary considerably. Overall, 95,672 of the 151,975 convenience stores in the U.S. are owned by a company that has 10 or fewer stores, representing 63% of the total store count. Meanwhile, companies operating 500-plus convenience stores own 33,810 stores, or 22.2% of the overall total.

From an industry image perspective, there is a big difference in how to interpret what consumers say perceptions of store quality means. Do they think some stores are better than others or do they think some stores are worse? Saying that another way, looking at extremes, are they thinking of a Michelin-rated dining experience or an unkempt place with the bathroom key attached to a dirty hubcap?

Fortunately, it appears that the image is largely positive.

Overall, three in five consumers have a positive opinion of the industry—10 times more than the percentage who have a negative view. The 56% of consumers who say that stores “vary quite a bit” have an even more positive impression of convenience stores, with 68% of this group saying they have a positive impression. However, not all demographics are as positive; only 51% of consumers who are in the West and 53% of women have positive impressions.

Most consumers also say that shopping at c-stores is something that they enjoy (54%), as opposed to a chore (24%).

However, grocery store shopping scores higher as something

WHAT IS YOUR OPINION OF CONVENIENCE STORES?

that consumers enjoy (63%), even though more people also say it is a chore (31%). Improving already fast speed of service may be one way to make c-stores even more enjoyable.

Speeding Up Service Fast transactions have always been a big part of the convenience offer. On average, it takes less than four minutes for a customer to get out of the car, go inside to shop, pay for items and return to the car, although that time can increase if prepared food or beverages are purchased.

Consumers give the industry credit for quick transactions: 90% say shopping at stores is easy and 88% say that convenience stores are fast. The only two attributes that score higher are associated with location and hours of operation, attributes that don’t have room for much adjustment—either you are nearby and open or you are not.

HOW STRONGLY DO YOU ASSOCIATE THE FOLLOWING WORDS WITH CONVENIENCE STORES? A LOT

SOME

TOTAL

62%

29%

91%

Open 57%

33%

90%

Easy 53%

37%

90%

Fast 52%

36%

88%

Welcoming

37%

40%

77%

Friendly

36%

42%

78%

Stress-free

35%

41%

76%

Effortless

35%

40%

75%

Clean 29%

41%

70%

Safe 29%

41%

70%

Close/nearby

Neutral/ no opinion

Positive

6%

Negative

102 JUNE 2026 convenience.org

Charts and insights are based on a national survey of 1,207 consumers conducted January 30-February 6, 2026, for NACS by national public opinion research firm Bold Decision (bolddecision.com). In some cases, total may not add up to 100% because of rounding.

34%

60%

About the Consumer Survey

However, of all the elements tied to a c-store shopping experience, the part that consumers most want to see speeded up is the time spent waiting in line and paying, with 37% identifying those two areas as the most inconvenient elements of shopping at a c-store.

WHAT FEELS MOST INCONVENIENT WHEN SHOPPING AT A C-STORE?

Waiting to pay

31%

Finding items 18% Parking 16% Going to the store 15% Paying/checking out 6% Entering the store 5% Leaving the store 4%

Consumers say self-checkout is the top technology that can improve convenience, with 55% citing that offer, far ahead of other time-saving methods like mobile pay (35%), or order ahead (21%).

As stores consider self-checkout to enhance speed of service, it’s important to also protect the overall customer experience. As speakers at NACS events note, technology is best used to enhance how employees interact with customers, rather than replace that interaction. Similarly, other channels have embraced self-checkout to reduce costs, and it has negatively affected the customer experience for those who want a human connection.

Time to Embrace Social Media Whether or not you are on social media, your customers are.

Social media presents an enormous opportunity to attract new customers or to get regular customers coming to your store more frequently.

Social media allows you to showcase your culture and brand, and to give people a sense of your store without ever setting foot in it. Compare that to just 10 or so years ago, when the reason most stores gained first-time customers was because they were that convenient right-hand turn when a consumer needed something, whether fuel, food or beverages.

Social media has been particularly effective for showcasing food at c-stores—and has made stars out of “Gas Station Tailgate Review” creator Stafford Shurden and the “Gas Station Gourmet” (and NACS Magazine writer) Al Hebert, among others.

If you aren’t posting on social media, your competitors are; 40% of consumers overall—and 64% of the prized age 18-34 years old demographic—say that they see social media posts about food in their area at least somewhat often. (Eight percent of consumers say they are not on social media; the largest demographic not on social media, unsurprisingly, are those ages 65 and older.) Frequent c-store customers—those who shop inside the store at least weekly—are also likely scrolling though social media; 61% say that they see social media posts on places to eat at least somewhat often.

HOW OFTEN DO YOU SEE SOCIAL MEDIA POSTS ON PLACES TO EAT IN YOUR AREA?

30%

Only occasionally

22%

Somewhat often

18%

Very often

16%

Not applicable

14%

Never

69%

of frequent c-store customers who see social media posts about food say that they have gone to a place because of the post.

NACS JUNE 2026 103

And consumers who see food-focused videos take action.

Of the 70% of consumers who say that they occasionally see social media posts about places to eat, most (56%) say that a social media post has led them to eat at a place. That percentage jumps even higher for those who are frequent c-store shoppers (at least weekly) and those ages 18-34.

Prices Can Drive Customer Traffic Even before the recent spike in fuel prices, consumers said that they were price sensitive. When the survey was conducted, gas prices nationally were in the $2.80s. That price sensitivity has only increased as gas prices have increased.

While convenience stores generally sell many of the same items, especially for packaged food and beverages, prices can vary from c-store to c-store. Roughly half of consumers say that gas prices and in-store items can vary considerably from store to store.

COMPARED TO OTHER LOCAL BUSINESSES, WHAT ARE PRICES AT C-STORES?

10%

Don’t know

15%

The same

60%

15%

More

Less

COMPARED TO OTHER LOCAL BUSINESSES, HOW PROFITABLE ARE C-STORES?

50%

say that gas prices vary a lot depending on the store.

51%

say that in-store items vary in price depending upon the store.

Consumers also say that prices are higher in the convenience channel—and that might also affect their opinion that convenience stores are more profitable than other local businesses.

With consumers concerned about high prices and value, it may become even more important to become engaged on social media to tell your story, not just about food, but about value and overall customer experience.

The Good News: They Like Us Clearly, there are some opportunities for convenience stores to differentiate themselves. How stores take advantage of these opportunities will continue to raise the bar on overall perceptions related to our industry, which are already strong.

Consumers are much more likely to agree that convenience stores are an important part of their community.

THE C-STORE CLOSEST TO ME IS AN IMPORTANT PART OF THE COMMUNITY

11% Don’t know

29%

40%

Don’t know

More profitable

14% 17%

Less profitable

104 JUNE 2026 convenience.org

Similar profits

77% Agree

12%

Disagree

Let’s end this on a high note. By a more than 6:1 margin, consumers say that convenience stores are an important part of their communities. And even more impressively, consumers say that convenience stores make life more, well, convenient.

CONVENIENCE STORES MAKE MY LIFE EASIER

79%

Agree

13%

Disagree

8%

Don’t know

NACS CSX is the benchmarking and performance analytics database behind the NACS State of the Industry Report®.

CSX updates monthly with aggregated financial and operational retail data.

Learn More convenience.org/csx

IN PREVIOUS ARTICLES, we focused on the forecourt customer and consumer preferences for delivery and drive-thrus.

Future segments of this five-part series will look at what consumers say are important elements of customer service and attitudes and actions related to food.

Jeff Lenard is NACS vice president of media and strategic communications.

HOW TO REVITALIZE AN UNDERPERFORMING FUEL RETAIL SITE 106 JUNE 2026 convenience.org

This interview is brought to you by SNK Petroleum Wholesalers.

Innovation, technology and a solid plan can breathe new life into an old site.

F

or those who aren’t afraid to take on a challenge, aging fuel retail sites present rich opportunities.

Bringing an underperforming site back to life requires dedication, a smart plan, and an investment of time and resources—but it doesn’t always mean knocking things down and starting from scratch. “When you’ve done a lot of turnarounds, you understand that it’s the little details that matter,” said Messim Kirmani, COO of SNK Petroleum Wholesalers.

With a network of more than 250 stations across nine states in the Northeast and the Midwest, SNK Petroleum Wholesalers has grown in part by refurbishing old sites and modernizing the customer experience.

Rather than tearing down existing locations, the company focuses on strategic improvements that elevate both operations and customer experience.

Coming to America, all I brought with me was a dream and a willingness to work hard.

This country gave me the opportunity to build something meaningful.

“Experience means everything,” said Messim Kirmani. Investing in features like good lighting, a potholefree parking lot, clean stores and updated bathrooms can make all

the difference—“little details that you wouldn’t imagine make a huge difference really do,” he said.

THE FUTURE IS BRIGHT SNK’s approach to redevelopment often includes new fuel canopies, fresh paving, renovated interiors and, critically, good lighting. Investing in a canopy with LED lighting can make a site feel safer and more comfortable, according to SNK. It can also contribute to making an old site feel completely refreshed. “I want customers who remember the old location to come back and be completely surprised by what it’s become,” said Messim Kirmani.

SNK helps its partner retailers by providing a data-driven business model and coaching services to improve station performance and unlock new opportunities. The company works with construction teams to identify what elements of a site need improvement and get those projects completed quickly.

“We coach them, we guide them,” said Ali Kirmani, who co-owns the company with wife Fatima Kirmani. “This is not a one-time thing. We turn things station around and we have a high success rate.”

The goal of a site renovation should be to wow returning customers who were familiar with what it used to look like. “I want them to be completely impressed by how it’s changed,” said Messim Kirmani. A strong investment in new fixtures that make the forecourt and the store comfortable and approachable can go a long way toward drawing in new and old customers alike. “People may

NACS JUNE 2026 107

Modern canopies and fuel dispensers are integral parts of a site redesign, according to SNK Petroleum Wholesalers.

Interiors that are clean, modern and well-stocked can contribute to customer loyalty.

not always enjoy filling up their tanks, but at least we can make it the best experience that we can make possible,” he said.

TECHNOLOGY DRIVES LOYALTY Investing in the latest technology—new pumps with touch screens, video players, and easy-to-use card readers—can go a long way toward improving the customer experience.

Customers want to have a whole experience in addition to a good deal, reports Messim Kirmani. “You could have the cheapest gas in town, but if the experience isn’t there, customers won’t come back,” he said.

The company is investing in technology that drives customer engagement. In many of its site renovations, SNK installs modern fuel dispensers with integrated digital media systems.

During the couple of minutes that customers are filling up their tank, they can see what deals are available inside the store, and any promotions that might be going on. “It’s very userfriendly—you can check the weather, you can check the map, you can see traffic updates,” he said.

“The future of fuel retail will increasingly revolve around direct digital engagement with consumers,” said Messim Kirmani. SNK is preparing

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to launch a proprietary loyalty rewards app, a debit payment system and integrated fuel savings and rewards programs.

A 2026 consumer survey by NACS found that among c-store loyalty program members, more than half (53%) said they were willing to shop at a c-store because of its loyalty program. There’s a lot of opportunity to grow those programs—the same survey found that only 16% of consumers reported sales, deals or discounts “very often” when shopping at convenience stores.

“The most important thing is to build not just a one-time customer, but a loyal customer base that wants to come back,” said Messim Kirmani.

MORE THAN A STORE The NACS consumer survey found that refueling is the main reason for most consumers’ trip to a convenience store, but nearly two in three consumers (62%) say they also went inside the last time they bought gas. “The gas station is not a gas station anymore,” said Ali Kirmani, “it’s whatever you need it to be.”

Inside the store, SNK works with retailers to tailor product offerings to the surrounding communities by analyzing consumer demographics, local competition, traffic patterns

and purchasing behavior. That data guides recommendations on where to invest more resources—an area with no grocery store nearby might be able to drive sales by providing produce or other staple food items; a chicken program is more likely to succeed if the site is surrounded by burger restaurants.

“Every area has a different set of demands, and it’s crucial that you cater to all types of customers,” said Messim Kirmani. That careful, location-specific investment helps improve the community around a site.

“When we improve a site, we improve the neighborhood around it too,” Ali Kirmani said. “That responsibility matters to us.”

SNK is a family-run business, and it sees its partners as extensions of the family. That shared investment in success is part of what has built their success. “We started in 1996 working in a gas station, but we had a big dream,” said Ali Kirmani.

Today the company supplies millions of gallons of fuel per year and continues to expand its locations across the Northeast and Midwest.

With investments in retail operations, transportation and technology, SNK aims to surpass 300 retail locations and reach over 500 million gallons in annual fuel volume by 2029.

NACS JUNE 2026 109

TODAY’S

Top Workplace

COMPLIANCE CONCERNS

110 JUNE 2026 convenience.org

Join convenience industry professionals at the next NACS Human Resources Forum in Charlotte, North Carolina, March 22-24, 2027.

From AI to workplace monitoring tools, the NACS Human Resources Forum covered what convenience retailers need to know now and what the future holds.

VZ_Art/Adobe Stock

BY CHRISSY BLASINSKY

C

ompliance is a strategic priority for many convenience retailers, especially those that operate in multiple states. From wage and hour exposure to artificial intelligence (AI), immigration and diversity, equity and inclusion (DEI) scrutiny, today’s regulatory environment requires awareness, coordination and proactive planning.

Organizations are experiencing compliance fatigue.

Laws change quickly, oversight can be fragmented across departments and enforcement priorities can shift. For convenience retailers that operate with lean teams, high turnover and multistate footprints, the risk of falling behind can be costly.

At the 2026 NACS Human Resources Forum, moderator Julie Jackowski, who previously served as the 2019-2020 NACS chair, shared top-level insights on what employers should pay attention to.

“You need to tune into compliance. If it’s something your company doesn’t focus on often, you need to at least have a grasping knowledge of when you need to contact legal counsel for guidance,” she said.

NACS JUNE 2026 111

A SHIFT IN THE REGULATORY LANDSCAPE Although the current federal environment is more employer-friendly, Jackowski emphasized that regulatory risk has not gone away—it’s shifted. With limited federal action, states and local governments are driving more employment regulation.

This shift leads to compliance inconsistencies in areas like pay data reporting, immigration, AI use, privacy, wage and hour laws and DEI. “Because the federal government is not rapidly moving forward in these areas, many states and localities are taking legislative or regulatory action instead, which can create more inconsistencies in the legal application, especially for multi-state employers,” she said.

She cautioned that HR leaders don’t need to be legal experts, but they should know when an issue rises to the level of calling legal counsel.

PAYROLL COMPLIANCE REMAINS A PRIME TARGET If you haven’t faced a wage and hour claim yet, Jackowski warned the chances are good that you will.

She noted that plaintiffs’ attorneys continue to target payroll compliance because it is often ripe for class actions, especially if technical violations are uncovered. Timekeeping errors, overtime misclassification, break violations and inconsistent pay practices can create exposure—especially as organizations grow.

Regular audits help identify risks. While comprehensive audits are often conducted with legal counsel, even limited internal reviews, such as sampling overtime calculations or exemption classifications, can help prevent costly surprises.

on race- or sex-based preferences. Jackowski noted that the Equal Employment Opportunity Commission has appeared to commence pursuit of reverse discrimination cases, particularly where policies or practices appear to favor or exclude specific groups rather than relying on merit-based decisions.

HR leaders don’t need to be legal experts, but they should know when an issue rises to the level of calling legal counsel.

COMPLIANCE CAN’T LIVE IN SILOS One of the biggest risks organizations face isn’t a lack of policies—it’s a lack of coordination.

Safety, transportation, HR, operations, IT and payroll may all be doing their jobs well, but if compliance oversight is fragmented, it can lead to important changes being missed. “Compliance should be overarching across all of these departments,” she said, adding, “You may not be able to hire a compliance officer, but you do need someone making sure your teams are not operating in silos.”

Jackowski explained that poorly designed or improperly worded DEI programs can expose employers to litigation.

In recent years, enforcement focus has shifted toward private employers, with increased scrutiny of hiring, promotion and training practices that rely

112 JUNE 2026 convenience.org

VZ_Art/Adobe Stock

DEI: INCLUSION WITHOUT EXCLUSION

NACS JUNE 2026 113

One of the biggest risks organizations face isn’t a lack of policies—it’s a lack of coordination.

IMMIGRATION AND WORKFORCE AUTHORIZATION Immigration compliance remains a concern for many employers, particularly in regions experiencing labor shortages or increased enforcement activity.

I-9 compliance continues to be an area of focus, and penalties for errors can be significant.

Employers should ensure that managers understand completion timelines, proper document handling and storage requirements, especially if paper forms are still in use.

Staff should also know what to do if a government inspector arrives on site. A clear protocol—verifying credentials, contacting HR or legal counsel and responding professionally—can make a meaningful difference during an audit.

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For employers using visa programs, increased scrutiny of work authorization and permit renewals makes tracking expiration dates and renewal requirements essential.

PAY EQUITY AND TRANSPARENCY: PREPARING FOR CHANGE While federal pay equity initiatives have slowed, many states and local jurisdictions are moving forward with transparency and reporting requirements. Litigation is also increasing in states that have pay equity laws, which makes it even more important to have a compensation strategy.

Job architecture, pay bands and titling consistency all help reduce risk. Employers should understand where employees fall within ranges, why pay differences exist and whether long-tenured employees have drifted outside market norms.

Jackowski noted that pay audits aren’t just about compliance; they’re also critical for budgeting and long-term workforce planning.

WORKPLACE SURVEILLANCE AND EMPLOYEE PRIVACY As technology advances, so do questions around workplace monitoring. Remote work has accelerated the use of tools

VZ_Art/Adobe Stock

The message isn’t to abandon DEI, but to ensure programs are truly inclusive. “If your DEI programs and practices exclude specific groups of people, you may want to review the same,” she said, noting it’s important for organizations to audit DEI language, affinity groups, and hiring or promotion practices to ensure they are genuinely inclusive, legally defensible and aligned with skills and qualifications.

Regular audits help identify risks. Even limited internal reviews, such as sampling overtime calculations or exemption classifications, can help prevent costly surprises.

like geofencing, biometric timekeeping, activity tracking and automated monitoring software.

These tools are designed to improve efficiency, but they can raise legal and cultural concerns around privacy and data protection.

Employers should clearly communicate when these tools are being used, what data and information is being monitored, why it is being collected and how data is stored and used. Be aware that remote employees are generally subject to the laws of the state where they reside and not where the company is headquartered.

WAGE AND HOUR: STILL STATE-SPECIFIC Wage and hour compliance remains one of the most complex areas of employment law. Minimum wage increases, predictive scheduling rules, break requirements and rest-day laws continue to vary by state and sometimes by city, Jackowski explained.

Multistate employers should consider whether to manage compliance on a jurisdiction-by-jurisdiction basis or adopt a stringent standard across the board.

Either approach should be intentional, documented and consistently applied.

THE NEXT COMPLIANCE FRONTIER: AI Jackowski noted that AI-generated content— including hiring filters, automated decisions, meeting notes, chat summaries and drafted emails— is most likely subject to discovery and will become a major litigation battleground in 2026 and beyond.

HR teams should keep track of where AI is being used, assess whether it truly improves outcomes and ensure policies, training and monitoring are in place.

Jackowski warned that AI does not shield employers from liability. If an algorithm results in discriminatory outcomes, employers—and potentially vendors—may be held accountable, regardless of intent. Courts are increasingly allowing claims against employers and vendors on the grounds that both can be held responsible for understanding the tools they use and the risks built into those algorithms.

Chrissy Blasinsky is the NACS digital and content strategist.

NACS JUNE 2026 115

Cool New Products Guide This advertorial-style guide of services and packaging appears monthly and is an information-packed tour of ideas and approaches that can change how consumers view your store or choose your brand. It spotlights the newest thinking in convenience and fuel retailing and gives you an advance look at ways of staying in front of industry trends.

Products are categorized the same way we organize the Cool New Products Preview Room at the NACS Show each year in October— New Design, New to the Industry, New Flavors, Health & Wellness, Green (EcoFriendly), New Services and New Technology.

Products are considered “new” this year if they’ve been introduced since October 2025.

The products featured here also can be seen in the Cool New Products Discovery Center at www.convenience.org/coolnewproducts.

NEW TO THE INDUSTRY

Bake’n Joy Bake’n Joy Originals Whoopie Pies

Bringing Back the Fun and the Flavor

The classic favorite is back! These individually wrapped treats, in chocolate or vanilla, will hit the sweet spot for those wishing for a bite of yesteryear. They offer incredible convenience and zero prep - simply thaw and sell. And with their exceptional ambient shelf life of 30 days, consistent quality, satisfying taste and unrivaled visual appeal, you’ll have a product that will attract eyeballs and delight taste buds. To learn more, visit bakenjoy.com

116 JUNE 2026 convenience.org

NEW TO THE INDUSTRY

Shark Eyes, Inc Licensed Realtree® & VP Racing®

Realtree® & VP Racing® Shark Eyes #1 C-Store Distributor Retail Ready Counter & Floor Displays Drop Ship Available with Free Shipping Open Stock for Refill Private Labeling & In-house Specialized Tagging Custom Programs and Specialized Pricing Many More Eyewear Options Available

NEW TECHNOLOGY

Shell Shell App

Shell Unifies Fuel, Loyalty and Technology

Shell is bringing fuel, loyalty, and the customer experience together with the launch of the enhanced Shell App experience—a single, modern digital platform designed to meet evolving customer needs. Following Shell’s acquisition of Fuel Rewards® and initial integration milestones introduced last fall, Shell® Fuel Rewards® is now fully embedded into the Shell App, unifying two experiences into one seamless journey. Every new Shell App registration automatically enrolls customers in Shell® Fuel Rewards®, simplifying participation and driving engagement across the network. The launch is supported by Shell’s strongest acquisition offers, a refreshed design, enhanced functionality, and a modern user interface—driving site traffic, strengthening loyalty, and reinforcing Shell’s long‑term value for wholesalers and dealers.

NACS JUNE 2026 117

NEW TO THE INDUSTRY

C. Cretors and Company T-3000 2 Ft Self-Serve Popper and Warmer

Cretors Introduces a New Self-Serve Popper Designed to Boost Profits

Designed for maximum self-service efficiency and profitability, the new Cretors 12 oz. T-3000 2ft Self-Serve Popper/Warmer reduces labor costs by shifting service from employees to customers – while driving impulse sales. A customer-controlled conveyor system dispenses fresh popcorn directly into the containers, eliminating hand contact and elevating sanitation.

Perfect for c-stores, retail spaces, theatres, bars, cafeterias or any environment offering free refills or a self-service concession experience. Contact Shelly Olesen at 847-616-6901 or visit www.cretors.com.

NACS

HEALTH WELLNESS

CIGTRUS

NACS: National Association of Convenience Stores

Natural Nicotine-Free Smoking Habit Replacement

Convenience Voices

Natural Alternative for Smokers

Solve what keeps you up at night

Cigtrus is a smokeless, tobacco-free inhaler designed to satisfy the hand-to-mouth smoking ritual—without nicotine, smoke, or vapor. A differentiated habit-replacement product built for today’s growing alternative shopper.

• Strong Margins & Repeat Purchase Potential • No Vape Restrictions / No FDA Approval Required • Ideal for Front-End & Health/Beauty Placement

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Shopper insights are your roadmap to staying ahead in a fast-changing market.

Confidently position your business to meet customer needs by partnering directly with Jayme Gough, NACS Director of Research & Development on a custom shopper insights study. With deep expertise in the industry, she’ll deliver expert analysis and insights into your most pressing business issue within a month. Learn anything from what motivates purchase decisions - or deters them - to how to drive loyalty and repeat visits. Book a free consult with Jayme at convenience.org/meet-with-jayme.

NEW FLAVORS

Monster Energy Company Monster Energy Ultra Red, White and Blue Razz

ZERO SUGAR FLAVOR UNLEASHED

“Here at Monster, we honor, respect and admire our heroes in camo and navy blues – past to present. As a show of appreciation to those who devote their lives to defend this great country, we created a new Ultra in their honor. Made with zero sugar, Ultra Red, White & Blue Razz is light, refreshing and super easy drinking. Loaded with our legendary energy blend to help you stay frosty and get after it.”

NEW FLAVORS

Kretek International Cuban Rounds Sweets Cigars

Cuban Rounds Sweets - Smooth flavor with a subtle twist.

The Cuban Rounds Sweets Cigars blend adds just the right touch of sweetness to an already smooth smoke. Balanced and approachable, it’s a laid-back favorite that brings a little extra flavor to the everyday ritual.

NACS JUNE 2026 119

NACS

NACS: National Association of Convenience Stores NACS THRIVR

96% of consumers use the internet to find local services

If customers don’t see your store online, they’re seeing your competitors and shop there. NACS THRIVR makes it easy to show up and stand out everywhere they search. Manage your online listings, reviews, and social engagement across 130+ platforms like Google and Yelp from one simple tool. Keep your store’s information accurate and respond to reviews to show you are active and open. For retailers who want big-brand digital marketing at a small-store price, NACS THRIVR is the essential tool to grow foot traffic and customer trust.

Book a demo and see how quicky you can transform your digital presence at convenience.org/talk-thrivr.

NEW TO THE INDUSTRY

Ovention Ovens MiLO and Shuttle

More Than Convenience. It’s A Destination.

With the Ovention MiLO and Shuttle ovens, ventless operation means no costly hoods, while high-speed cooking means less waiting and more selling. From crispy pizza to melty sandwiches and everything in between, you can expand your menu without expanding your footprint.

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Conference: October 6-9, 2026 Expo: October 7-9, 2026 Las Vegas Convention Center

Speed Is Advantage. → The faster you see it, the faster you act on it.

Save $300 Register before June 12* See what’s next.

Challenge your thinking.

Find solutions that actually work in today’s reality.

nacsshow.com

*Early bird pricing ends at 11:59 PM EDT

Southworks/Adobe Stock

FUELS & ENERGY

What to Expect in J Fueling and Charging in the Year Ahead

BY JEFF LENARD

The conflict with Iran continues to have long-term implications, while the EV market is shifting.

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une 1 is a big date in the transportation energy industry.

It marks the completion of the spring transition to summer blend fuels because it is the date at which retailers in non-attainment zones must fully switch to selling summergrade gas. This year, June 1 could be important for another reason: It could be when the fueling market is significantly different than it was in late April.

4 million barrels The approximate amount of oil the U.S. imports from Canada per day THE STATE OF FUELING

“For the last 40 years, the market has gamed out what would happen if the Strait of Hormuz closed,” said Denton Cinquegrana, chief oil analyst with OPIS during the 2026 NACS State of the Industry Summit in April. “We’re finding out now.”

Cinquegrana said that the conflict with Iran, even if it is quickly resolved, marks the beginning of a prolonged period of elevated prices—what he repeatedly described as a “higher-for-longer” environment.

The closure of the strait, through which about 20% of the world’s oil passes, will have profound, and growing, effects on world oil supply and prices.

In addition to the reduced flow through the Strait of Hormuz, production and refining operations in the area have been reduced or shut down because of safety concerns related to drone attacks. Roughly 35% of the region’s refining capacity is offline, particularly affecting diesel and jet fuel supply.

And it could get worse. “The longer the conflict goes on, the more likely there will be damage to infrastructure,” said Cinquegrana.

SUPPLY INCREASINGLY A CONCERN The end result of the ongoing turmoil is that a projected global surplus for oil and refined products has turned into a global deficit—and there aren’t many options to fill in supply gaps.

“How do you destroy 10.5 million barrels a day of demand?” Cinquegrana asked—that amount equates to about 10% of overall world demand.

Asian and European countries, which are more dependent upon the strait for refined product than the United States, already are feeling the supply crunch. In parts of Asia, governments are encouraging four-day workweeks and work-fromhome policies. Pakistan has implemented rolling blackouts to conserve fuel.

One reason the United States is better positioned than Europe or Asia is domestic production, which has climbed to nearly 14 million barrels per day.

Additionally, the U.S. imports 3-4 million barrels per day from Canada.

“The U.S. has put itself in a position where it doesn’t need as much Middle Eastern oil,” Cinquegrana said. However, in a global market, supply shortages anywhere are felt around the world as prices increase.

SUPPLY ISSUES COULD HIT THE U.S. “We don’t have a supply problem—we have a price problem,” Cinquegrana said. But that could change this summer and if it does, it will start in California.

Long before the present crisis, the state had been shedding conventional refining capacity. Two major refineries have closed, while others have been converted to renewable diesel facilities.

“California just doesn’t have the refining depth it used to,” he said. The state has become increasingly reliant on imported fuel—from Asia, India, South Korea and even storage hubs in the Bahamas.

You can kiss $2.96 gas goodbye for 2026, and probably the start of 2027.

NACS JUNE 2026 123

FUELS & ENERGY

U.S. fuel demand is declining, but slowly MONTHLY VOLUME CHANGE COMPARED TO PREVIOUS YEAR

-1.6%

-2.0

-2.3% -2.9% -3.2% -4.0

-3.5% -3.5%

-3.5%

-3.7%

-3.9%

-4.2%

-4.2%

-4.3%

-4.5%

APR ‘26

FEB ‘26

JAN ‘26

DEC ‘25

NOV ‘25

OCT ‘25

SEP ‘25

AUG ‘25

JUL ‘25

JUN ‘25

MAY ‘25

APR ‘25

MAR ‘25

MAR ‘26

-5.6%

-6.0

Source: Oil Price Information Service LLC

But that dependence is risky. Many exporting countries are now restricting exports to protect their own domestic supply: China has suspended exports; South Korea and India are prioritizing domestic demand.

Pipeline reversals and new infrastructure could help, but not overnight. “This isn’t flipping a switch,” Cinquegrana cautioned. Real relief may not arrive until late 2026 or beyond.

On a national level, the U.S. government has taken some steps to address the market, including temporarily waiving the Jones Act to allow foreign‑flagged ships to move fuel between U.S. ports. But soaring global shipping rates have negated much of the price benefits.

Even once the conflict ends, Cinquegrana estimates that it will require at least 12 weeks of normalizing the region to stabilize supply, and that many countries will increase oil demand through 2027 to rebuild inventories.

That means that prices are unlikely to retreat to pre‑war norms. “The price of oil is going to stay

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20% The percentage of the world’s oil that passes through the Strait of Hormuz elevated,” he said. “You need to motivate producers to bring supply back—and you’ve got countries refilling storage on top of that.”

“You can kiss $2.96 gas [the price before the conflict] goodbye for 2026, and probably the start of 2027,” he said.

FUELS & ENERGY

THE STATE OF CHARGING

“Internal combustion engine (ICE) vehicles aren’t going anywhere. Electric vehicles aren’t going anywhere. There are opportunities in charging, but don’t give up on the fuel island,” said John Eichberger, executive director of the Transportation Energy Institute (TEI), during his presentation at the 2026 NACS State of the Industry Summit. “If you ignore the reality of where this is headed, you will be left behind.”

“If you are making strategic business decisions based upon the headlines, I guarantee you’re going to be disappointed,” said Eichberger. Instead, he told attendees to focus on data.

VEHICLE SALES ARE EVOLVING … SLOWLY In the first quarter of the year, electric vehicles (EVs) accounted for about 6% of U.S. vehicle sales, while roughly 94% of vehicles sold still relied on combustion engines, including hybrids that require liquid fuels.

Sales figures, Eichberger stressed, are often confused with vehicles in operation—an error that leads to inflated conclusions about fuel demand.

Overall, EVs represent only about 2% of registered vehicles, with at least one-third of all EVs in California. “Your business depends on what vehicles people are driving, not what they’re buying,” he said.

Over the past 13 years, approximately 97% of vehicles sold have included a combustion engine.

Given average vehicle lifespans are 12 to 15 years— and even longer for diesel trucks—ICE vehicles will dominate for decades.

Affordability, so far the word of the year in economics and politics, plays an outsized role related to vehicle sales … and the transition to EVs. With the average new vehicle price approaching $51,000 and monthly payments nearing $800, fewer Americans can afford new cars. That has led to drivers holding onto vehicles longer and further slowing fleet turnover.

While EVs get headlines, hybrids that don’t require charging and operate like traditional ICE vehicles are having a profound impact on fuel sales.

Around 13% of vehicle sales are hybrid electric vehicles, many of which achieve fuel economy above 50 miles per gallon.

“Hybrids don’t change customer behavior, and they still generate fuel demand, despite increased efficiency,” Eichberger noted, pointing to models like the Toyota Camry that are now offered exclusively as hybrids.

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There are opportunities in charging, but don’t give up on the fuel island.

For fuel retailers, that creates a new dynamic: Gallons per visit may decline, but trips may not because these more efficient vehicles often have smaller tanks, requiring more frequent fueling stops even as miles per gallon rise.

EV MANDATES ARE ALSO EVOLVING Some aggressive zero-emission vehicle (ZEV) mandates are evolving. You can see the shifting priorities reflected in legal challenges to California’s zero-emission vehicle rules, Canada’s suspension of its 2035 ZEV mandate and Europe’s reconsideration of outright ICE bans.

“It’s not that leaders don’t care about emissions.

They care more about availability, supply and affordability,” Eichberger said.

Energy security concerns—highlighted by Europe’s response to the loss of Russian natural gas—have forced policymakers to balance climate goals with basic economic realities.

“We must reduce carbon emissions ‘at all costs’ is an easy thing to say if you’ve never struggled to pay a bill,” Eichberger said.

SOME CHARGING OPPORTUNITIES EV charging presents opportunities, but Eichberger cautioned against unrealistic expectations.

Installation costs can be considerable, grant funding

$50,712 Average price of a new light-duty vehicle in April 2026

FUELS & ENERGY

The EV charging market is still in a build-out phase The number of DCFCs in the TEI Charging Analytics Program, representing more than 95% of the total U.S. DCFC infrastructure.

70,000

CHARGER COUNT

60,000 50,000 40,000 30,000 20,000

DEC ‘25

NOV ‘25

OCT ‘25

SEP ‘25

AUG ‘25

JUL ‘25

JUN ‘25

MAY ‘25

APR ‘25

MAR ‘25

FEB ‘25

JAN ‘25

DEC ‘24

NOV ‘24

0

OCT ‘24

10,000

Source: TEI Charging Analytics Program powered by Paren

is dwindling and electricity rate structures are still poorly suited for retail charging. “Selling electrons is really difficult to make money on,” Eichberger said.

Still, TEI data drawn from more than 70,000 DC fast-charging ports suggests demand continues to grow. Utilization has remained steady even as charging inventory expanded by more than 50%, signaling unmet demand in many markets.

As used EV inventory rises—driven by more than a million vehicles coming off lease over the next two years—public charging demand may shift.

Lower-income and apartment-dwelling buyers, less likely to have home charging, will rely more heavily on public infrastructure.

“This is where your local market really matters,” Eichberger advised. Looking ahead, Eichberger

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sees technology—especially AI-driven search and invehicle systems—reshaping how customers choose where to stop.

“The customer of the future is going to ask their phone or their car where to refuel or recharge, and if you’re not part of that system, you’re going to be missed,” he warned, noting that retailers have multiple options to be found, including THRIVR, the digital marketing platform developed by NACS. Jeff Lenard is NACS vice president of media and strategic communications.

From the freezer To The Fryer To The Customer Hold time of up to 4 hours under heat lamps FLAVORS: - Bacon Cheddar & Chive - Crab Feast - Bacon Jalapeno - The Reuben - Buffalo Chicken - Chorizo Burrito - Breakfast Skillet - Cheese Bomb Request Samples Today!

taterkegs.com

GAS STATION GOURMET

Plate Lunches and a Perfect Burger At Mire’s Grocery in Vatican, Louisiana, the menu is filled with Southern staples and hospitality.

BY AL HEBERT

“A

little c-store with big flavor,” is how Amanda Mire, who co-owns Mire’s Grocery with her husband Jimmie, describes her store. The store is small, and it’s located in the unincorporated community of Vatican, Louisiana.

“My husband’s grandparents opened the store in 1979,” she explained.

The store was built in front of their house, and eventually her husband’s grandfather opened a small gas station on the side. In 2013, they retired after

running the store for 31 years, and passed operations onto the younger generation.

When Amanda and Jimmie took over in 2013, they decided to focus on foodservice. “If we were going to make it, we had to do more with food,” she said. “We couldn’t compete with Dollar General on typical c-store items. Each month I was pulling items off the shelf because they expired.”

When the Mires first added plate lunches, they sold around 14 plates

a day, filled with pork sausage and jambalaya, chicken rice with gravy and corn macque choux. Even though they couldn’t afford much advertising, word spread. Today, they sell about 40 plate lunches a day.

“We only had two employees at the time,” Mire said. Today, even with a much larger staff, she says they can barely keep up with the demand some days.

A year after they took over the store, Mire left her full-time job. “I took over everything and hired a couple more Amanda Mire and her husband Jimmie took over the family store in 2013. They have built an impressive menu that brings customers in from miles around.

130 JUNE 2026 convenience.org

hands.” One of those hands was Sue Guilbeau, who became the full-time cook at Mire’s Grocery. “She has the same culture as my husband and me,” said Mire. “She used the same taste in seasonings. She knew what we liked spice-wise.”

On Fridays, Mire’s Grocery does a seafood special, which Mire reports is their most popular plate lunch. “We always have a variety of seafood,” she said, adding, “when we do crawfish or shrimp étouffée as well as meatball and shrimp stews, it goes quickly.”

Sometimes they sell out by 11:15 a.m.

BUILDING A PERFECT BURGER Plate lunches are the foundation of the menu, but the most popular item is the Mire’s Burger. It’s made with halfpound patties that are a mix of beef and pork. “We use fine-ground beef, mix it with our seasonings and ground Boston butt. Then we grind all of it again,” said Mire. “Grinding it a second time helps it to break down more and it has a more delicate bite.”

Mire likes her hamburger to be perfect in every way, including its shape and size. “We make the patties half an inch wider than the bun. ...

When they shrink they fit the buns. I want the patty to cover the bun from edge to edge,” she said.

They use an unusual tool to perfect the shape of their patties: a ring fashioned out of a hose clamp. “We used to make the patties by hand,” said Mire, adding “I had a girl come in and she had heard of someone using a hose clamp.” They bought some from a home improvement store, sterilized them, and found that it helped with cooking time. “I’m always looking for ways to make life easier,” said Mire.

A hamburger that size can be tough to finish, so the Mires came up with a solution: the Pony Burger. It’s exactly the same as the Mire’s Burger, but a quarterpound patty instead of a half-pound.

Mire estimates that they sell about 450 burgers in a week. On Thursdays, customers who buy a burger can get half

The Mires removed shelving to make space for tables and chairs where customers could sit and eat.

We were worried about [dollar] stores hurting our business, but that didn’t happen.

Because we have homestyle meals, people keep coming back. off a second one. “Customers come from miles around,” said Mire.

ALL ABOUT THE CUSTOMERS Going all the way to keep people happy is one of the things that keeps customers coming back to Mire’s. If a

customer asks for something that isn’t on the menu, the kitchen staff will make it if they can.

“Someone came in the store and asked for Kitchen Bouquet,” a popular seasoning, Mire recalled. The seasoning wasn’t on the store shelves, but Mire had it in bulk in the kitchen, so she sold the customer a little cup.

“We’re a convenience store. I’ll try to find what they want,” said Mire. “It keeps them from driving out of town to a large store.”

There are some large dollar stores in the area, but Mire is confident that their offerings set them apart from the chains. “We were worried about new stores hurting our business, but that didn’t happen,” said Mire. “Because we have the homestyle meals, people keep coming.”

Al Hebert (GasStationGourmet. com) is the Gas Station Gourmet, showcasing America’s hidden culinary treasures.

NACS JUNE 2026 131

CATEGORY CLOSE-UP CANDY

Candy Rises Despite Challenges Innovation helps balance out inflationrelated challenges in the candy category.

Jiri Hera/Adobe Stock

BY TERRI ALLAN

6.9%

The year-over-year increase in candy sales Source: NACS State of the Industry Report® of 2025 Preliminary Data

D

espite some major headwinds, the candy category remained mostly resilient in 2025 with overall convenience store sales largely consistent with those of 2024. Product innovation, aggressive promotions and consumers’ continued cravings for sweet indulgences helped drive sales of candy—a top 10 in-store category—at a time when inflation and rising emphasis on healthy eating were top of mind.

With those conditions still persisting in the first half of 2026, retailers are cautiously optimistic that candy will remain stable. The category remains key to impulse and incremental sales that build baskets.

“In 2025, the candy category in convenience stores showed resilience

amid continued channel shifting and inflation-driven pressure on trips,” said Beau White, vice president of convenience stores and out of home at Ferrara. “While overall traffic remained challenged, candy delivered steady performance, with innovation and merchandising quality playing an outsized role. Bold flavors, unique textures and differentiated formats helped convert fewer trips into meaningful purchases.”

Across all outlets, including e-commerce and vending, confectionery sales reached $55 billion in 2025, according to the National Confectioners Association. C-stores hold nearly 16% share of candy category sales by channel.

INNOVATION SPARKS CURIOSITY “The candy category had a lot of big viral moments in 2025 between freezedried candy and Dubai chocolate,” said Hailey Miller, snacks and candy category manager at RaceTrac. “Consumption was rooted in both satisfying cravings for nostalgic flavors and seeking out something exciting and new.” She also pointed to the roles that innovation and social media buzz played in building consumer interest in some products.

Flavor and texture innovation have been big levers employed by candy

% of In-store Sales

Avg. Sales/Store/Month

2024

2024

3.6% 3.7% 2025

$9,000 $9,618 2025

marketers of late. “The more intense the flavor, the better,” said Miller, pointing to confections that are both sweet and spicy, “10 times sourer,” or with maximized fillings, such as caramel.

Coupled with social media popularity, innovative candy products “kept the consumer curious and coming back,” Miller continued.

The candy category had a lot of big viral moments in 2025 between freezedried candy and Dubai chocolate.

Gross Margin %

50.74% 51.34% 2024

2025

Source: NACS State of the Industry Report® of 2025 Preliminary Data

NACS JUNE 2026 133

CATEGORY CLOSE-UP CANDY

Candy Sales Per Store, Per Month Jan. 2022-Dec. 2025

n 2022 n 2023 n 2024 n 2025

$11,004 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $-

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Innovation plays an important role in keeping the category fresh, particularly when it introduces new textures and interactive experiences.

134 JUNE 2026 convenience.org

Candy marketers said that with category sales so impulse driven, constant innovation is a necessity.

“Innovation plays an important role in keeping the category fresh, particularly when it introduces new textures and interactive experiences,” remarked Nik Culver, category management director for c-stores at The Hershey Company. The company’s recently-introduced Reese’s Oreo Cups, for example, have received a strong response from consumers and demonstrates how “chocolate continues to evolve through texture and indulgence while staying rooted in formats and brands that shoppers know,” he said.

Mondelēz has also been immersed in a wave of innovation for its con­­ fectionery products, such as the launch of Sour Patch Kids and Swedish Fish Glow Ups, which the company said are the first gummy candies that glow under a black light, thanks to turmeric extract.

“Non-chocolate candy trends are heavily shaped by social media and what young people prefer,” explained Chantal Butler, category president, confectionary, at Mondelēz North America. As such, among the new innovations for the Sour Patch Kids franchise are Sour Patch Kids Chews, sweet candies on the outside and sour on the inside, with a soft, chewy texture; Sour Patch Kids Besties, four Sour Patch Kids linked together; and Sour Patch Kids MVP Mix, a bag filled with many popular flavors, inspired by the “candy salad” trend seen on social media.

Freeze-dried candy expressions continue to find favor with consumers. New entries include M&M’s Pop’d Caramel from Mars North America and a new line of freeze-dried candy from Ferrara, featuring the Lemonhead, SweeTarts

Mara Zemgaliete/Adobe Stock

Source: NACS CSX Database

Chocolate and Non-Chocolate Growth Drove Overall Category Performance to The Positive YoY Sales Change

3.5%

10.9%

4.1%

8.6%

7.1%

2.4%

41.5%

4.3%

4.2%

3.4%

Novelities/ Seasonal

Candy Rolls, Mints, Drops

Bulk Candy

0.3%

34.5%

23.7% 16.3% 11.5%

Chocolate Bars/Packs

Bagged or Repackaged Peg Candy

Non-chocolate Bars/Packs

Gum

2.1% Change Makers/Penny Counter goods

% of a Category Sales Source: NACS CSX Convenience Benchmarking Database

and Spree brands. Ferrara has also expanded its popular Nerds Gummy Clusters franchise with Nerds Juicy Gummy Clusters.

COCOA CRUNCH While much of the excitement and innovation in candy is occurring in the non-chocolate segment, chocolate remains the No. 1 subcategory in c-stores, accounting for 34.5% of category sales, according to the NACS State

of the Industry Report® of 2025 Data. In overall Circana-measured outlets, dollar sales of chocolate jumped nearly 7% in 2025, while unit sales fell 1.5%, largely a result of spiraling cocoa costs.

Convenience retailers reported pushback from customers on higher chocolate prices. “The chocolate segment is being hit hard by inflation,” said RaceTrac’s Miller. “King-size bars are cents away from breaking $4, which is more expensive than a 20-ounce beverage. Wallet pressure is real.” At Greg’s Market, with two locations in West Virginia, owner Greg Cassis noted that he has stopped stocking standardsize chocolate bars in favor of king-size bars at $3.69 each. “The standard bars kept shrinking in size and customers complained,” he explained.

Candy marketers concede that higher chocolate prices are having an impact on category trends and sales but emphasize that the subcategory plays a vital role in c-stores. “Chocolate remains a core driver of the candy category in

The Power of CSX Data CSX, the engine behind category metrics and NACS State of the Industry data, provides current and customizable tools for financial and operational reporting and analysis in the convenience industry.

Retailers can measure their company by any of the myriad metrics generated via our live database.

Contact Chris Rapanick at (703) 518–4253 or crapanick@convenience. org for a complimentary executive walkthrough.

NACS JUNE 2026 135

CATEGORY CLOSE-UP CANDY

136 JUNE 2026 convenience.org

and Swedish Fish, to make room for a growing crop of new flavors.

The chocolate segment is being hit hard by inflation.

TARGETING YOUTHS Non-chocolate candy skews toward younger consumers and, therefore, is a critical loyalty-building segment for c-stores. “Gen Z shoppers are especially enthusiastic about textural snacking and playful formats,” said Dodge, “a trend that is informing our strategy as we lean into freeze-dried and gummy formats.” According to Culver, gummies and chewy formats have led the subcategory in recent years, buttressed by brands with unique textures, such as Hershey’s Jolly Rancher Ropes.

Among other candy subcategories, trends have been relatively stable, marketers and retailers said. “Mints in c-stores have remained steady, delivering small but stable growth,” commented Hertzig from Ferrero, the marketer of Tic Tac. “While innovation has been light and average items are flat, the category is experiencing growth from price.”

Gum, meanwhile, continues to be shaped by quick trips and fast decisions, Culver noted. At RaceTrac, gum is one of the strongest candy performers, Miller said. “New pack sizes on core flavors and brands supported on-the-go consumption within the gum segment,” last year, she explained.

Change makers—while a tiny subcategory—remain a contributor to overall candy sales. Cassis leverages the opportunity, merchandising products like Reese’s Peanut Butter Cups and York Peppermint Patties (2 for $1) in baskets at the checkout counter. “Change makers still sell well for when customers want just a little bite of something sweet,” the retailer remarked.

‘MINDFUL INDULGENCE’ The biggest challenge facing c-store operators related to the candy category today is inflation. “Rising costs have put a lot of constraint on consumers’ wallets, turning a once-impulsive purchase tied to a ‘nice to have, not a need to have’ category, into a true contemplative consideration,” said Miller. “If we don’t start to explore price-point friendly pack sizes or offers, we’re going to continue to see declines amid segmented spending pressures.”

Michelle Jackson, manager of Ready Mart in Asheboro, North Carolina, said her biggest challenge with candy is product proliferation. “With so many options and new products, I’m sometimes concerned that if sales don’t meet expectations, I’ll be left with

Jiri Hera/Adobe Stock

convenience, led by trusted brands and familiar single-serve formats,” that are often purchased at checkout, said Culver. Indeed, some brands remain healthy. Ferrero North America’s mainstream chocolate portfolio grew 4% last year, according to Marissa Hertzig, category management director, “driven by trusted brands and a strong innovation pipeline.” In particular, Butterfinger Salted Caramel drove 30% volume growth, she noted.

Similarly, innovation at Mars is “driving purchase intent” for its leading brands, according to Jim Dodge, vice president, convenience, specialty, and unattended retail. The Snickers franchise, for example, recently introduced Snickers Pecan, while Snickers Xtreme, “a fan favorite for the ultimate peanut lover,” made a return. And Milky Way now offers Milky Way All Caramel.

Bagged or peg candy has been gaining share in recent years. Growth is coming from innovation in the non-chocolate space, including multitextured offerings and flavor combinations, Emma Tainter, NACS research analyst, remarked, as well as the expansion by many convenience retailers into private-label candy. “Pegged candy continues to be a high-performing format, especially when supported by shopper-informed merchandising that improves visibility and shopability,” Ferrara’s White said.

At Greg’s Market, pegged candy is the best performing segment, Cassis reported. In fact, earlier this year, he expanded his selection of bagged gummies, including Sour Patch Kids

candy that I’ll have to discount and lose margin on,” she explained.

Rising consumer awareness on health and wellness is also impacting consumer candy-buying behavior. “Customers are reading the labels more, checking for carbs and sugar content,” reported Jackson. But others say c-stores have been somewhat immune to healthier eating practices. “We hear a lot about people wanting healthy snacks when they shop c-stores, but they still buy the chocolate bar,” remarked Tainter. “It seems to be what they crave.”

Marketers are well aware of health and wellness behavior but believe that candy can coexist in that environment. “Health and wellness are raising expectations, not killing demand,” said Hertzig, noting that “mindful indulgence” is on the rise. “Eightytwo percent of consumers believe it’s perfectly fine to occasionally have a

piece of chocolate or candy.” Ferrero and other candy suppliers now offer smaller package sizes for those occasions, including individually wrapped chocolates.

Conditions that adversely impacted the candy category in c-stores in 2025

I expect it to continue to be a challenge that requires more strategic planning than ever before.

remain in 2026. “I expect it to continue to be a challenge that requires more strategic planning than ever before,” remarked RaceTrac’s Miller. “We’ll have to be creative when it comes to driving volume and protecting margin.”

But Hershey’s Culver has a “glasshalf-full” perspective. “Even as shoppers face continued macro pressure, they’re still treating,” he remarked. “The biggest opportunity for candy in c-stores is continuing to win as a discovery and trial destination. Convenience is often where shoppers encounter what’s new first, making it a natural launchpad for culturally relevant innovation.”

Terri Allan (terri4beer@ aol.com) is a freelance writer who specializes in consumer products and retail channels.

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BY THE NUMBERS

How Profitable Was the 2025 Basket?

Basket Value

The average in-store basket value in 2025 was $7.69, according to the NACS State of the Industry Summit. This increased 24 cents year over year, but growing expenses chipped away at profitability.

Data-savvy retailers can use this exercise to evaluate the overall health of the inside business without the influence of fuel gross profit dollars.

$7.69*

Less Cost of goods

$4.72

Inside GP$

$2.97

The largest line of direct store operating expenses (DSOE) is typically wages and benefits.

Other Income per Transaction

+ $0.19

Less Net DSOE + Facility Expense per Transaction:

$3.23

=

Other income includes lottery, carwash and ATM fees.

Inside Operating Profit/Transaction:

-7¢

The average c-store operator lost 7 cents per inside transaction in 2025, after making 1 cent per inside transaction in 2024.

*This does not include fuel gross profit dollars to subsidize the transaction.

Source: NACS CSX Convenience Benchmarking Database

140 JUNE 2026 convenience.org