Convenience is a large and mature industry, but it’s also dynamic, nimble and always looking to get ahead of what the consumers’ needs are.
That’s according to Donna Hood Crecca, senior principal at CSP’s sister research company Technomic, who spoke Monday at CSP’sC-Store Women’s event in San Antonio, Texas.
“And the people in this room, every single one of us, is going to drive this business for the foreseeable future. So, are you ready?” Crecca asked.
Crecca laid out five ways in which the c-store industry is evolving, and she shared with attendees some skills that can help them take an active role in this.
The first was about how the c-store industry is evolving structurally—through organic growth and mergers and acquisitions (M&A). There are more than 152,000 c-stores in the United States, according to NACS, and 60% are single-store locations. That’s been shrinking over the years, though, Crecca said.
“The trend is ongoing contraction overall between smaller operations within the industry, those with between one and nine locations,” she said, adding this could be because of them being hard hit by the economy, or not having a succession plan in place.
Through this May, there’s been a 20% year-over-year increase in M&A, “and from what I can see, it’s going to continue at quite the clip going forward,” Crecca said.
There’s also regional growth, with chains like Wawa and QuikTrip building new stores but expanding their regions.
“And so, we’re taking what was historically a fragmented industry driven primarily by smaller operators, is now consolidating, and evolving into a more chain-driven industry,” and that means organizations are going through integration processes or expanding and scaling operations, Crecca said.
So what are the critical skills necessary for leaders to support this type of consolidation? Crecca said:
- Strategic planning: This involves the ability for senior leaders to navigate market consolidation and not only support requirements for organization, but support the growth opportunities that come from that.
- Financial acumen: Understanding the M&A dynamics and how to drive those sound investment decisions.
- Change management: Leading teams through reorganization transition and then adapting to the new business models.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.