Convenience Stores & Truck Stops
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. Average annual revenue per worker is about $450,000 for gas station/c-store combinations and $145,000 for c-stores without gas.
Opportunities
Offering Additional Services - To reduce dependence on gas sales to drive traffic, c-stores are providing a growing number of services, including banking, dry cleaning, and pharmacies. Drive-thru services...
Business Challenges
Narrow Margins on Gas - While c-stores rely on fuel sales to drive store traffic, gas carries extremely low margins and fluctuating wholesale prices can drastically reduce profits. Driven by...