Convenience Stores & Truck Stops Industry Overview

Excerpt from Convenience Stores & Truck Stops Report

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.

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.

Products, Operations & Technology

Fuel accounts for about 75 percent of sales; other sources of revenue include groceries, cigarettes, and alcoholic beverages. Fuel includes regular, mid-grade, and premium unleaded gas; and diesel fuel. Convenience stores with no fuel sales generate about 40 percent of sales from groceries and 25 percent from tobacco products. Groceries include soft drinks, candy, snacks, and dairy products. Stores may also sell meals or lottery tickets. Services include money orders and check cashing.