Beverage Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Beverage Industry logo
  • NEWS
    • R&D News
    • Supplier News
  • PRODUCTS
    • New Products
    • Reader's Choice Poll
  • CATEGORIES
    • Alternative Drinks
    • Beer
    • Bottled Water
    • Cannabis Beverages
    • Carbonated Soft Drinks
    • Energy Drinks & Shots
    • Juice & Juice Drinks
    • Plant-Based Beverages
    • Sports Drinks
    • Tea and Coffee
    • Wine & Spirits
  • R&D
    • Beverage R&D Features
    • Ingredient Spotlight
  • PACKAGING
    • New Packages
    • Packaging Equipment
    • Packaging Material
  • OPERATIONS
    • Distribution
    • Plant Focus
  • TOP LISTS
    • Beer Market Report
    • Executive of the Year
    • State of the Beverage Industry
    • Top 100 Beverage Companies
    • Truck Report
    • Wholesaler of the Year
  • MEDIA
    • eBook
    • Podcast
    • Polls
    • Videos
    • Webinars
  • DIRECTORIES
    • Annual Manual
    • Contract Packaging Guide
    • Take a Tour
  • MORE
    • Classifieds
    • Channel Strategies
    • eNewsletters
    • Events
      • Membrane Technology Forum
    • Interactive Product Spotlights
    • Market Insights
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • Archived Issues
    • Advertise
  • SIGN UP!
Channel Strategies

Despite the pandemic, convenience stores continue to thrive

Operators look for new ways to make convenience stores live up to the name

By Chloe Alverson, Associate Editor
7-Eleven

Image courtesy of 7-Eleven

August 30, 2022

Convenience stores tend to live up to their name. There’s a pot of hot coffee ready to be grabbed during the morning rush, when you’ve only got five minutes to run in and out but you know you’ll be too tired without caffeine. There’s an array of sodas, sports drinks and energy drinks to choose from when you need an afternoon pick-me-up. Somehow, no matter what time it is, convenience stores are truly that: convenient. 

During the past couple of years, the grab-and-go style of convenience stores has changed a bit, with people working hybrid schedules or working remotely. According to Jeff Lenard, vice president of strategic industry initiatives for the National Association of Convenience Stores (NACS), Alexandria, Va., convenience stores conduct nearly 160 million transactions every day. In other words, convenience stores serve about half the population of the United States each day. 

“Those working at home or not working don’t feel the need to stop at stores during either rush hour,” Lenard says. “Instead, we are seeing a late-morning spike in traffic as people not commuting find the need to get out of the house to run errands or take a break. The same trend occurs in mid-afternoon.”

 

Speedway
Image courtesy of Speedway

 

How the pandemic played out

Like most aspects of life, convenience stores were impacted by the COVID-19 pandemic. When travel was limited and consumers rarely left home, it left convenience stores in a unique position, scrambling to generate revenue in new ways while ensuring consumer safety. 

Lenard describes the pandemic as having a “significant impact” on convenience store sales in 2020. 

“In April 2020, fuels demand was down more than 40% as consumers stopped driving,” he says. “Demand was so light that oil futures were trading negative — a significant difference from 2022, when we experienced record-high gas prices as demand largely returned.” 

Lenard notes that, during 2020, convenience stores saw a shift in the types of products sold. 

“Convenience stores saw a large increase in beer and wine sales, as well as packaged beverage sales, as on-premise consumption at bars, restaurants and sporting events was significantly curtailed,” he says. “Meanwhile, c-store foodservice sales also suffered in 2020, as fewer stores were able to sell fountain beverages and coffee or meals, and fewer commuters also had a major impact on demand.”

Shahool Al Bari, lead industry analyst at IBISWorld, Los Angeles, says the pandemic “forced many operators, both small and large, to change aspects of their business.” Contactless payments and curbside pickup, for example, were implemented as safety measures, and as consumers found these factors useful, they stuck in place. 

“Convenience stores have performed well over the past year due to the general retracement of health and safety protocols along with advancements in technology,” Al Bari says. “Convenience stores have added additional methods of convenience to attract consumers and provide them with a more streamlined service. According to IBISWorld, revenue grew 10% in 2021, following a 6% decline in 2020 due to COVID-19.” 

NACS Lenard adds that the fuel aspect of convenience stores also is bouncing back as we emerge from the pandemic. 

“Convenience stores sell approximately 80% of the motor fuels purchased in the United States and saw a return to the pumps as more consumers and commuters hit the road again in 2021, although below pre-pandemic levels in 2019,” he says. “Total fuel gallons sold increased 4% in 2021, but were still 7% below the level they were in 2019.” 

Refreshment rage in c-stores 

Joan Driggs, vice president of thought leadership at Information Resources Inc. (IRI), Chicago, says that many beverages that sell within the convenience store channel are thriving. Energy drinks are up 6.8% compared with a year ago (YA), carbonated soft drinks are up 7.6% vs. YA, water up 7% vs. YA and sports drinks are up 11.3% vs. YA. 

“IRI data finds that consumers are opting for lower-priced beer, along with lower-priced cigarettes and other tobacco products,” Driggs says. “Together, these items make up more than half the total convenience store sales.”

Additionally, prepared cocktails are “trending up in the convenience channel,” Driggs says, as the sales are up 42.1% vs. YA. 

“Following the path of hard seltzers, consumers appreciate the convenience and variety of prepared cocktails,” she points out. “They’re also more affordable than their on-premise (in bars and restaurants) counterparts, making experimenting with new flavors a plus. By their nature, convenience stores are an easy place for people to pop-in to purchase drinks to enjoy at home or someone else’s home.”

IBISWorld’s Al Bari echoes the sentiment that ready-to-drink (RTD) canned cocktails and seltzers will continue to “increase rapidly, according to various convenience store managers in an interview with CSP Magazine.” The IBISWorld lead analyst also notes that water and energy drinks have become “significantly popular,” especially with more better-for-you (BFY) energy drink choices.

“These drinks have become popular as they provide consumers with energy without too much sugar and calories,” Al Bari says. “Furthermore, many energy drinks have sugar-free or low-calorie options for more health-conscious consumers.” 

According to data from IRI and CSP Magazine, the Top 3 performing drink categories within convenience stores are domestic beer at $14.6 billion; energy drinks, with sales of $11.3 billion; and carbonated beverages at $9.3 billion. 

“Despite declining over the years, beer still remains the best-selling beverage,” IBISWorld’s Al Bari says. “Energy drinks have increased due to them being a popular substitute for more sugary drinks. However, carbonated beverages still remain one of the top sellers because of their popularity and historic dominance. Furthermore, many carbonated drinks have introduced diet or zero-calorie alternatives to provide health-conscious consumers with an alternate option.” 

Going beyond the pump

To gain more foot traffic in convenience stores, Al Bari says that gas station operators have “followed consumer health trends.”

“The addition of groceries, healthy and ready-to-go meals has been a huge attraction point for consumers who are looking to grab a bite without the hassle of waiting for food to be made,” Al Bari notes. “These additions provide consumers a one-stop shop for all their needs, instead of taking multiple stops to various stores.”

IRI’s Driggs adds that the convenience channel “needs to increase its promotional activity, likely tied to supply challenges.” Because inflation and climbing prices are a “top pain point for consumers,” consumers will be on the hunt for good deals. Driggs says that retailers also should be reaching out to their best consumers through apps with personalized offers. 

For example, Dallas-based 7-Eleven was honored at this year’s Modern Retail Awards for Best Overall Digital Transformation. The store’s subscription delivery service, “7NOW Gold Pass,” allows customers to waive delivery fees for just $5.95 a month. 

“Store brands can be the perfect vehicle for promotions, because they are both of a point of differentiation for the retailer and also are performing well against national brands in the convenience channel,” Driggs notes. “Dollar sales of store brands in the convenience channel were up 12.9% in Q2, compared to a national brand sales increase of just 2.8%.” 

Going forward, convenience stores are headed toward more convenience, NACS’ Lenard asserts. 

“The convenience industry is one of rare channels that is a concept, not the items stocked on the shelf,” he says. “That means the industry has to constantly reinvent its core offer — convenience. We have seen more change over the past three years than we saw in the preceding decade, and that change will continue at a rapid pace.

“The next few years, we will continue to see experimentation and implementation of new ideas and rapid change of how retailers go to market,” he continues. “And just like for the past 95 years, convenience stores will be at the fore of this innovation.”


KEYWORDS: beverage sales convenience stores customer service

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Chloe alverson

Chloe Alverson is Beverage Industry’s associate editor, writing and editing for the magazine about all sorts of beverages and companies. She earned a Bachelor of Arts in Journalism from Michigan State University and resides in Metro Detroit.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Chocolate, Strawberry, Vanilla shakes

    Classic flavors provide reliable, consistent results for beverage-makers

    Classic flavors of chocolate, vanilla and strawberry...
    Ingredient Spotlight
    By: Chloe Alverson
  • Free Spirits Instant Bar Bundle

    Lifestyle trends drive growth for non-alcohol category

    As lifestyle trends continue to drive growth for the...
    Wine & Spirits
    By: Lauren Sabetta
  • Younger generation displays unique habits when it comes to beverage consumption

    Generation Z shakes things up in beverage

    Experts share that Gen Z is changing the standard on what...
    Beverage News
    By: Chloe Alverson
Subscribe For Free!
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine Subscription
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Beverage Industry audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Beverage Industry or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Fourpeople toasting with cocktails made with low-sugar ingredients, celebrating healthier drink options.
    Sponsored byCargill

    What’s Hot in Sugar Reduction: Beverages

  • chocolate milk
    Sponsored byCargill

    Sweetening the Future for Dairy and Dairy-Alternative Beverages

  • woman pouring a drink
    Sponsored byFFP

    Building a Beverage System: Meeting Consumer Demand for Precision Wellness

Popular Stories

halfday sodas

Beverage-makers turn to fiber, prebiotics and more to support consumer needs

smoothie

Opportunities abound for relaxation, stress-relief beverages

Mountain Dew Mango Rush

Mountain Dew, Little Caesars launch Mountain Dew Mango Rush

Vote for your favorite new product

Have your say in what makes it to the top this month!
Vote for your favorite new product and help us celebrate excellence.


VOTE NOW!

Events

April 16, 2025

2025 State of the Industry Series: Alcoholic Beverages

On Demand In Beverage Industry’s annual State of the Industry: The Alcohol Beverage Market, analysts at S&D Insights LLC delve into these trends and how they’re shaping the industry.

View All Submit An Event

Poll

Retail Coffee Segment

What retail coffee segments will fare well into the next year?
View Results Poll Archive

Products

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

See More Products

Related Articles

  • Big Gulp

    Convenience stores continue to evolve

    See More
  • eCommerce Shipt alcohol

    eCommerce channel continues to thrive

    See More
  • Discount retailers

    Discount, drug stores offer savings, convenience amid pandemic

    See More
×

Elevate your expertise in the beverage marketplace with unparalleled insights and connections.

Join thousands of beverage professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing