Current Conditions in Retail Channels Company Works With STUDY 2025
VERY/SLIGHTLY POSITIVE
NEUTRAL
VERY/SLIGHTLY NEGATIVE
65%
9%
26%
Convenience
60%
19%
22%
Grocery
51%
22%
27%
Dollar
48%
35%
17%
Mass
36%
33%
30%
41%
27%
Restaurant
32% Drug
Anticipated Impact of Issues on Sales & Profitability RANKED BIGGEST IMPACT
RANKED IN TOP 3
Inflation and national economic issues
20%
46%
New product development in your category
13% 29%
Consumer spending decline
13%
43%
Labor turnover and hiring
11%
23%
Consumer spending growth
9%
20%
Investments in foodservice
7%
Retailer unit expansion
5%
Increasing operational costs
5%
Increasing regulation
5%
Raw materials costs
5%
Supply chain issues
4%
21%
Retailer consolidation
4%
18%
E-commerce 48 Convenience Store News C S N E W S . c o m
11% 13% 34% 18% 11%
5%
on their sales and profitability in 2025 and 46% put it in their top three. Along the same lines, 13% cite consumer spending decline as their biggest challenge and 43% place it in their top three. Other top challenges are labor turnover and hiring, and increasing operational costs.
“Innovation will increase as economic conditions improve.” —Supplier/distributor participant
Reasons for Optimism
Despite concerns, convenience channel suppliers and distributors have a lot to say about their reasons for optimism heading into 2025. Comments include: • Economy: “We anticipate fuel prices to continue to remain steady and even decline, which would spur more driving and trips to convenience stores.” • Business Growth & Expansion: “We are a growth company with a tremendous upside and have just started larger business rollouts.” • Innovation & Technology: “Innovation has slowed through the inflationary period and I believe it will increase as economic conditions improve.” Other leading reasons for optimism are operational improvements, and changing political and regulatory factors following the November 2024 presidential election. C-store industry suppliers and distributors are also bullish on new product development and retailer unit expansion. CSN