Here’s What C-Store Retailers Need to Do to Succeed in 2025

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As we put a wrap on the crazy year that was 2024 and look ahead to 2025, what exactly are you doing to help your business survive, be relevant, grow, increase profits and be top in the consumer’s mind? Now is the right time to explore what we have seen over the last year and prepare for a new year. As a practice lead at W. Capra, a retail consulting company, we work with large and small companies in all areas of their business.

What has been the focus during 2024 and what are the five areas that you should be concentrating on during 2025?

1. Get the small stuff right. The first thing your organization, be it very large or small, must do is ensure that your systems are running on the latest version of software. Are you using a software package that is scheduled for sunsetting, and what is your plan going forward? Especially back-office systems; software providers are constantly updating their software to help you run the business more efficiently.  You need to make sure that you are fully leveraging all its functionality and at the same time eliminating manual processes within your organization. If spreadsheets still proliferate, that is a sign that you are not using your systems to the fullest. Do not get stuck in the rut of letting your employees resist change and accept. “That is how we have always done it.” If you do, you will not move forward.   
2. Foodservice.  An effective program is so much more than just putting ovens in the back rooms and sending out frozen breakfast sandwiches and pizza to be cooked up. Today, we are becoming destinations for freshly prepared meals, gourmet coffee and artisanal sandwiches. The growth of foodservice within convenience stores is not just about meeting consumer demand; it is also a strategic move to differentiate from competitors and drive higher profit margins. It starts at the top, and it will take time, patience, dollars and, most importantly, a developed culture around food.  Even the smallest of offerings needs a positive and constructive culture around preparation, amount for sale at various times, packaging, cleanliness and waste. Are you utilizing the tools that are available to help your business with your foodservice program?   
3. Margin.  Addressing the margin pressure that every retailer has experienced over the last couple of years. Wholesalers tightening up contracts, inflationary pressures on product costs and understanding how high retail prices can go without customers balking have really added a new element that most retailers have not had to face in years. Are your category, pricebook and accounting teams ready for this challenge?   

• For your category teams: Now is the time ensure that you are carrying the best product mix as slow-moving/dead inventory hurts in so many ways. Are they maximizing rebates and vendor offerings and creating value-added promotions for your customers to generate that incremental sale? 
• For the price book team: Are they communicating the flood of cost changes that they have been seeing to ensure retail is keeping up? Are they getting price changes and promo start-and-stop dates in properly and downloaded on time? Do you have a system for unauthorized products to not appear in your sites? You must maintain control over what you are selling.   
• For the accountants: Are they verifying all the vendor rebate and promotional dollars are being collected and reconciled? Are they following up with the vendors to collect underpayments? 

4. Electric vehicles and alternative fuels. Yes, the landscape is changing, but EV is not going away. How does it fit into your business and your customer roadmap?
5. Customer experience. How are you reaching your customers and what are you communicating to them? What is it like to stop and fuel up at your facility and is there something to draw your customers inside? Are you curating the customer journey with purpose? Where does delivery fit into your strategy? Are you capturing all the data you can about your customers and using it to connect one-on-one with them? The industry has come a long way from using punch cards for loyalty coffee purchases. Is your business keeping up?

One overarching question is: With all the acquisition activity, should you consider putting up the for-sale sign for your business, or should you consider being a buyer? Do you know how to create a meaningful valuation for your business or understand what other businesses are worth? Even if you are not for sale at this point, you should understand the value of that business asset; you might be surprised.

The convenience-store industry in 2024 was characterized by dynamic changes and strategic adaptations. Mergers and acquisitions are reshaping the competitive landscape, delivery services are redefining retail operations, foodservice is continuing to be a key growth driver, and some legacy systems are facing sunset. The future of your stores will depend on how well your company can navigate these changes and leverage new opportunities. Those that can successfully integrate technology, enhance their foodservice offerings and maintain a customer-centric approach will be well-positioned to thrive in the ever-evolving retail environment.

Tom Newbould is the business and transformation lead at W. Capra. He has more than 30 years’ experience at BP Amoco and TravelCenters of America. He can be reached at tnewbould@impact21.com.