Convenience Stores & Truck Stops Industry Profile

Companies in this industry operate physical retail locations that primarily sell fuel, groceries, cigarettes, and alcoholic beverages. Major companies include 7-Eleven (the North American subsidiary of Seven-Eleven Japan); Circle K (a division of Canada-based Couche-Tard); Love's; and The Pantry.

The US convenience store (c-store) and truck stop industry includes about 120,000 stores with combined annual revenue of about $490 billion and is expected to grow at a low rate in the next two years. Key growth drivers are consumer and commercial driving habits, economic trends, and fuel pricing.

The industry includes establishments that are gas station/c-store combinations, as well as c-stores that don't sell fuel. Gas stations that don't include c-stores are covered in a separate industry profile.

COMPETITIVE LANDSCAPE

Consumer and commercial driving trends drive demand. The profitability of individual stores depends on competitive pricing, effective merchandising, and the ability to secure high-traffic locations. Large companies have advantages in purchasing and finance. Small companies can compete effectively by acquiring superior locations or offering specialized merchandise or services. The industry is fragmented: the top 50 companies account for about 40 percent of industry sales.

Because c-stores sell gas, food, and other types of merchandise, companies compete with a wide range of retailers, including gas stations, grocery stores, mass merchandisers, and warehouse clubs. C-stores that sell prepared meals also compete with restaurants.

PRODUCTS, OPERATIONS & TECHNOLOGY

Fuel accounts for about 75 percent of sales; other sources ...