4 Trends Shaping the Future of C-Stores

Several macro trends are shaping the convenience-store business today, Donna Hood Crecca, principal at Winsight’s sister company Technomic, said at CSP’s Outlook Leadership Conference in Rancho Palos Verdes, California.

While 2030 may seem far away, shifting demographics, soaring sustainability demand and other trends may redefine what successful c-store retailing looks like seven years from now, she said.

Take a closer look at the trends to watch out for…  

America is aging, Crecca said. Twenty-one percent of the population will be 65 or older by 2030, up from 17% in 2020.

“Ignore seniors at your own risk,” Crecca said.

Retailers should strategize now to meet evolving needs when it comes to things like preferences in vehicles and products.

The U.S. population is also becoming extremely diverse, she said. In 2030, just more than half (56%) of the U.S. population will be white. Assume diversity is the norm, Crecca said. Retailers should monitor immigration and migration trends; optimize their offering to local demographics; and embrace diversity, equity and inclusion, she said.

Product assortment should be localized and relevant to a diverse consumer base, she said.

In 2030, Gen Z, which Crecca defines as those born between 1993 and 2004, will be 20% of the population, and a peak age for foodservice usage. And Gen Alpha, those born in 2005 and after, will start coming into early adulthood. These two generations are game changers, she said. 

Gen Z is very large and very diverse, as a little over half are white, Crecca said.

“They’re a force to be reckoned with,” she said. “They’re not millennials 2.0, believe me, they’re different. They’re very individualistic but they’re highly connected and very empowered, thanks to being really the true digital natives.”

Convenience is expected for them, she said, as they are very busy.

“It’s really important to understand that Generation Z expects—and more importantly they will reward—specific amenities, like omni-channel access to your store’s offerings,” Crecca said. “They’re going to use whatever purchase mode suits them, suits their needs in the given moment. And they don’t carry cash…. So contactless, mobile options, it’s a must.”

They’re also individualistic, so everything needs to be customizable, whether it’s through promotions or their foodservice orders, she said.

Gen Alpha has young millennial and Gen Z parents who allow them early agency. They are self-possessed, impatient, fiscally responsible and also have brand awareness and preferences early. Artificial Intelligence will drive their primary technology tools, Crecca said.

To win Gen Alpha, c-stores need to win their parents and proactively test and invest in next-level technology, she said.

Sustainability initiatives will become more important over the next seven years in foodservice. About three-quarters of foodservice operations say they will be investing in sustainability and making it a priority through 2030, Crecca said.

That number rises to about eight in 10 for convenience, she said.

The increased interest in sustainability is driven by a sense of moral imperative and a desire to satisfy those growing consumers expectations, while also getting ahead of what may be more regulatory mandates in things like recycling, packaging, water usage and more, she said.

For those operators who sustainability will not be an increased priority, they’re saying it’s because they don’t see the consumer demand or other business strategies will take priority.

“But we just heard that Generation Z is reaching that peak age for foodservice usage, and sustainability is vitally important to them, it drives a lot of their decisions, their behaviors,” Crecca said. “So it’s extremely possible that by not engaging now, that by 2030, those operators that don’t engage now will very likely be left behind.”

Ninety-three percent of c-store retailers say store-level staff retention is a top concern, Crecca said. And 91% say recruiting enough store staff is a top concern.

Assume the labor challenge will deepen, Crecca said, because labor participation rates are projected to decline through 2031.  

Most convenience operators are already paying well-above the federal minimum wage of $7.25 to compete, she said. But even with that, as an industry, we still typically lag others on the wage front, Crecca said.

“So when you combine that with the shrinking, younger labor pool, we know that competition for workers becomes even more intense in the next three, five, seven years. So we need to plan now for this deepening labor challenge. From product to processes, what can be streamlined? What can be managed with fewer hands or perhaps by automation or robotics?”

Long-term planning needs to account for fewer workers, she said.