C-Store Dive Outlook for 2023

Jeff Lenard is longing for some normalcy in the c-store industry. 

NACS’ vice president of strategic initiatives said he’d “love a boring year” in 2023, as the past couple have been riddled with challenges resulting from the COVID-19 pandemic and other socioeconomic issues. This past year, especially, retailers dealt with increased labor and supply chain shortages, rising gas and merchandise costs and even an increase in crime in some areas.

“You could argue 2023 will be the first year of normalcy in a while,” Lenard said. “You could also argue 2023 will continue to force retailers to pivot and react quickly to things few saw coming.”

While 2022 is in the rearview mirror, the many challenges they face aren’t. But experts also foresee plenty of opportunities for c-store retailers to separate themselves from the competition, driven by consumer demands for quality and an evolving digital landscape.

“Plan for normalcy, but always prepare for the pivot,” Lenard said.

Here are the top trends likely to dominate — and possibly disrupt — the c-store industry in 2023.

Retail media will take off

Two of the largest c-store chains in the U.S., 7 Eleven and Casey’s General Stores, launched retail media networks in quick succession late last year, positioning themselves at the crest of what experts believe will become a breaking wave in 2023.

“In other channels, many retailers have a retail media network now and now it's starting to trickle down to the convenience channel,” said Scott Love, senior vice president of retail client solutions for market research firm IRI.

Retail media has taken off in large part due to Google’s decision to do away with third-party cookies, an audience measurement tool frequently used by advertisers. The value of retailers’ first-party data — information that customers willingly give a brand — has grown rapidly as a result, and Emarketer estimates that by 2024, more than $61 billion in digital advertising will flow through retail media networks.

Jordan Berke, founder and president of Tomorrow Retail Consulting, said c-stores can leverage their unique properties — namely, impulse purchases and fuel — to earn valuable media dollars from suppliers.

With that growth come challenges, however. Berke said retailers and retail media firms have had a tough time recruiting top talent to fuel their networks. And suppliers have complained about a lack of standard practices across platforms. 

Ultimately, retail media may further widen the divide between large chains that have the ability to spend large sums on digital innovation and the industry’s smaller players, Berke said.

“The dimension of retail media that I think most people underestimate or don't appreciate enough is that the media business innovates at a pace that I would argue is five times the pace of retail,” he said.

C-stores — a place to hang out?

Retailers' growing focus on foodservice underscores the belief that c-stores can become community hubs where shoppers want to eat, drink and spend time, instead of simply a place to fill up on gas or grab a bag of chips. And with electric vehicles on the rise, this is becoming even more prevalent, as consumers could be on site longer as they charge their cars.

By becoming more of a “hangout” where consumers can not only order food but spend time and even relax, c-stores can gain more foodservice traction, said Donna Hood Crecca, principal for market research firm Technomic.

“Consumers are into the type of seating and offering in a c-store that invites you to stay a while,” she said. “For that younger consumer to come in for half an hour, watch TikTok, there’s an opportunity to build that.”

For example, retailer Tri Star Energy operates Twice Daily c-stores throughout Tennessee, Alabama and Kentucky, and also owns White Bison coffee shops. About 16 of the 70 Twice Daily stores have an adjacent White Bison, all of which include indoor and outdoor seating, mobile charging ports inside the restaurant, a full menu of espresso and blended coffee and tea varieties, pastries and more. 

And some of these locations don’t offer fuel, either.

“It feels like you’re walking into a Starbucks,” said Jeff Hoover, director of strategy and insights for customer experience vendor Paytronix.

Using AI to improve labor

Some experts foresee technologies like cashierless checkout and AI-enabled scheduling impacting how c-stores approach labor next year. Gautham Vadakkepatt, director of the Center for Retail Transformation at the George Mason University School of Business, noted that such technologies can not only remove “mundane” tasks from employees, but even offer them the “safety and security” needed to do their jobs more efficiently. 

“[Technology] replaces jobs and creates new jobs,” he said. “That's historically been the trajectory.”

John Eichberger, executive director of the Fuels Institute, said he expects to see “a lot more” cashierless checkouts popping up in c-stores. And as labor costs increase, so will retailers’ reliance on store technology.

“I think you're going to see a lot more innovation in that space than we've seen in the past,” he said.

According to workforce management company Legion, 60% of c-stores operators still rely on manual processes for things like scheduling hourly shifts, which adds “unnecessary stress” onto retailers, Kristin Brennan, vice president of marketing for Legion, said during a recent NACS webinar.

Digital loyalty is poised for a boom in 2023

As the broader c-store space tries to catch up technologically to competing industries like grocery stores and QSRs, a big focus this year will be getting as many people as possible into loyalty programs. According to Paytronix, the total number of loyalty members for convenience retailers dropped 16% from 2019 to 2021.

Since many c-store transactions are cash-based, there’s no way to gather information about customers and understand their behaviors, said Love with IRI. That changes when customers join a loyalty program.

“Give them the right offer that is valuable to them,” Love said. “Be able to communicate in a personalized way.”

Additionally, Love said he expects to see more c-store retailers use membership-specific prices and other incentives to increase loyalty participation, and focus on engaging current members to attach their account to every purchase.

“I fill up my car outside, and then I go into the store,” Love said. “And maybe for one of those, I use my loyalty card, but not both. And so a lot of retailers are really trying to figure out how to be able to incentivize for every transaction.”

Vadakkepatt said that loyalty programs and their associated apps should continue to reduce friction for customers on everything from ordering food to getting a car wash.

And while the c-store space may be moving more toward fresh, made-to-order foodservice, Jessica Williams, founder and CEO of c-store consultancy Food Forward Thinking, said she expects the trajectory of loyalty programs to stay squarely on the c-store essentials. 

“I see the food taking a backseat to fuel and packaged beverage in loyalty apps,” Williams said. “Foodservice is not the No. 1 item on a loyalty app — it’ll always be beverages and fuel.”

EV charging will become more accessible for c-stores

While the move toward electric vehicles feels relentless — several states plan to outlaw sales of internal combustion engines in the coming decades — one of the biggest changes for c-stores next year should actually be on the charging side.

Installing chargers will become accessible for more smaller stations as the technology and variety of types of chargers increase.

“Two years ago, you could do it yourself, and it was pretty painful,” said Eichberger of the Fuels Institute. “Or you could contract a third party, let someone else run chargers on your property. … The options that you do yourself are so much better [now] than they were two years ago.”

That includes options like battery-assisted EV chargers for locations with cramped footprints. 

Government assistance, including the first round of federal National Electric Vehicle Infrastructure (NEVI) funding, should improve access even further. However, 2023 may see c-stores installing chargers even though their customer base doesn’t have enough EVs to sustain that business.

“My concern is that we're going to see retailers in markets where there are no electric vehicles installing chargers,” said Eichberger. 

It’s all about delivery

Various players in the c-store space began investing in delivery operations last year, and delivery will continue to be a focal point for c-store operators in 2023 — especially when paired with their fast-evolving foodservice programs, Williams said.

“Any innovation you see in foodservice in 2023 will have to apply to delivery,” Williams said. 

Williams said she foresees large and small c-store chains getting into delivery, with retailers prioritizing menu items that travel well. For example, cold sandwiches and wraps travel much better than French fries, which “are hard to deliver” because they can get cold or soggy by the time they arrive.

“Hot [foods] can be harder, but sandwiches and burritos are great for delivery,” she said.

Although rapid delivery firms like Gopuff have struggled to expand in the U.S. amid high operating costs and intense competition, these options will continue to be available for c-stores to explore, Vadakkepatt said. And when it comes to the smaller retailers, he predicts we may see some delivery partnerships aimed at keeping up with bigger chains.

“We will have smaller c-stores probably think about collaborating to have a uniform strength-in-numbers approach,” he said. “We're getting scale and being more meaningful. It’s a challenge, but I think that's where I see companies having to go.”

Smaller portions, higher quality

C-store chains that prioritize foodservice — such as Wawa, Royal Farms and Sheetz — are already challenging fast food restaurants for consumers’ dollars. But how can they level up their offerings in 2023? 

Focusing on quality ingredients and items is one way, said Williams. She noted she’s seeing c-store retailers choose items that are “an improvement in quality” so they can recapture lost margins by slightly elevating the price. 

“Customers can expect to see smaller portions but higher quality,” she said. “How can we take our bacon from something small and flimsy to something that’s thicker and has a smoked flavor?”

Michael Lawshe, president of c-store design firm Paragon Solutions, expressed a similar sentiment, noting that he’s seen more c-stores offering farm-to-table foods as consumers become more “discerning” with their food choices.

“There's not a warmed-over burrito or corn dog, or whatever, from the past,” he said.

New store format experiments will ramp up

As c-stores look to reach new markets and evolving consumers — and as the adoption of electric vehicles continues to gain steam — companies are experimenting with new formats that go beyond the traditional fuel canopy and store model.

2023 will be the year when store experimentation really starts to ramp up, said Frank Beard, a longtime c-store analyst who currently works in marketing and customer experience at Standard AI.

“I think a lot of companies are going to throw everything at the wall and see what sticks,” he said.

Some chains are adding walk-up c-stores without fuel to their lineup in an effort to reach into urban markets and college campuses. Casey’s opened its first non-fuel location last April near Drake University, while QuikTrip opened its first walk-up store in several years this past summer in Oklahoma City, and has more in the pipeline.

Wawa and 7-Eleven have opened stores with drive-thru restaurant service in recent years, while Allsup’s has started opening stores that are more spacious than its traditional format. 

As c-stores increasingly cater to EV customers, they’ll need to experiment with new store models with amenities that complement the charging process, like enhanced foodservice options, curbside service and even an area for people to walk their dogs, said Lawshe with Paragon.

“If I were pushing for that EV customer, I'd offer curbside [service] for anything they want,” he said.

Inflation and the threat of recession will loom over the industry — and present opportunities

While sky-high inflation rates have begun to ease, they’re still much higher than usual. And while many industries are battening the hatches, c-stores should be able to weather the storm, experts believe.

Eichberger said that while in-store sales take a hit from high inflation, at a certain point, they’ll start to improve.

“Instead of going to the convenience store to get gas and going to the grocery store, then going to a QSR, [consumers] go to the convenience store to fill up gas, walk into the store and buy a bunch of stuff,” he said.

A trend that may persist if inflation stays high is an increased boost in private label goods as consumers look for cheaper alternatives as they shop, said Love with IRI.

Meanwhile, if a full-on recession hits, c-stores are still broadly set up for success, said Lawshe. Because the higher interest rates accompanying inflation could make building new stores less attractive, c-stores may be able to use a potential recession to refocus their attention and money.

“What I see happening is people look at remodels … as opposed to an new to industry capital investment,” he said. “And they're getting great returns on capital by doing that.”

Art Sebastian and his team of digital marketers weren’t floored when they saw the advertising landscape quickly changing a few years ago. As consumers were shopping online more than ever, data privacy became increasingly important and companies began deprecating third-party cookies.

“It's no surprise that brands were looking for advertising opportunities where there was higher ROI,” said Sebastian, vice president of digital experiences for Casey’s General Stores.

More than two years later — after building its digital ordering experience, implementing customer-facing experiences and even tapping into artificial intelligence to enhance its shopper insights — Casey’s is debuting its retail media network this year. It’s the second major U.S. c-store chain to do so, behind 7-Eleven.

The network, Casey’s Access, offers CPG companies and other vendors access to Casey's first-party customer data. Like with 7-Eleven’s retail media network, vendors in the program can then use that data to create and target relevant promotions, offers and other marketing content back through the network to customers.

For many c-store operators, retail media networks may be an enigma. But Emarketer estimates that by 2024, more than $61 billion in digital advertising will flow through retail media networks.

“Retail media has been a massive secular trend in marketing, and depending on the analysts that you believe, it's either going to be the fastest- or second-fastest-growing channel amongst all marketing budgets,” said Michael Greene, senior vice president of global vertical strategy for commerce media company Criteo. “You're reaching consumers at the most important time in their shopping journey — when they're going to buy.”

Retail media networks promise to be one of the shiniest new toys for c-store operators in 2023, bringing plenty of new growth and opportunities. But alongside its potential rewards come challenges and risks, experts say.

Frequent visits and impulse buys

In distinguishing from other retail media-focused industries like grocery and big-box retailers, c-store operators have a few advantages. One of those is the frequency with which their core customers visit.

“In grocery, you're thrilled if your guest is in your store once every seven to 10 days to stock up,” said Sebastian, who spent two decades at grocers like Jewel Osco, Albertsons and Meijer before joining Casey’s in 2018. By contrast, the best c-store guests make multiple trips a week, he said, “so that means that there is a high level of frequency of the relationship between the guest and the brand.”

Sebastian noted that this frequency means c-stores have a higher likelihood of getting their ads in front of guests — and engaging them — more often than other retailers.

“I think that's super unique for our channel,” he said.

When consumers visit c-stores, they’re often swayed by impulse purchases. This, too, can play to the industry’s advantage with retail media, said Jordan Berke, founder and CEO of Tomorrow Retail Consulting. 

Berke noted that since c-stores are all about immediate consumption, advertisers can drive high margins because customers will likely visit a c-store within hours of seeing a product advertised. He suggested c-store-based retail media give advertisers the chance to market products that benefit from this “immediate top-of-mind mentality.” 

“It's not like a planned purchase,” he said. “It’s like, ‘Now I need it.’”

Fuel represents another touchpoint c-store retailers can utilize in their retail media efforts, Berke said.

Casey’s is already tapping into fuel trips with Casey’s Access, having planned for this since it installed video screens at its fuel pumps years ago, Sebastian said.

“We did that intentionally because we knew that at some point, we would want to light those screens up with personalized content,” he said.

Sebastian noted the importance of c-store retailers taking advantage of the dwell time created by gas trips in relation to in-store media.

“If your tank is empty, and you've engaged the pump and you're fueling, we've got a captive audience and they're already on the property,” he said. “Delivering the right content is a huge opportunity to drive forecourt in-store conversion.”

Paul Brenner, president and chief strategy officer for Vibenomics, a company that powers audio in-store for businesses as part of their retail media networks, also sees fuel as a big retail media opportunity for c-stores. But he acknowledged that retailers must better connect the entertainment and ads at the pump with the products inside the store, calling fuel stations “programmatic clearing houses.”

“If you're going to take advantage of the pump, you're going to have to do more creative things to drive people into the store,” he said. “It's got to be a continuation of the experience.”

A small talent pool

In an area that’s so new, c-stores are relying on a mix of in-house marketers and outside talent to manage their retail media networks. Brenner said he’s never seen a retailer not work with a third-party service in building their retail media network.

While some of these third-party companies offer clients a white-label service that may give the retailer more control over their program, when it comes down to the coding and the work to “connect the dots and move the pieces,” it’s out of the retailer’s expertise, he said. Brenner noted that even on the media sales side — where a retailer may be a bit more qualified — they still need to source a third-party provider.

To help with Casey’s Access, Casey’s tapped third-party provider CitrusAd, whose “best practices and implementation teams” have been helpful, Sebastian said. CitrusAd has also worked on retail media networks for Hy-Vee, ShopRite, Lowe’s, Kohl’s, AT&T, Bed Bath & Beyond and others.

But that doesn’t mean Casey’s doesn’t have its own people working on Casey’s Access too.

“We manage our own paid media, so we have folks that understand the space,” Sebastian said. “We have folks that come from digital merchandising backgrounds, so we have a mix of talent internally that we've been able to leverage.”

The fact that Casey’s has employees who have experience in some aspects of retail media seems to put them ahead of the curve. Greene said that, historically, internal marketing or merchandising teams have been “thrown” into a new role or given new responsibilities and told to “figure it out” when their company takes on a retail media venture. 

“It was experimental,” he said. “It was, ‘Go find somebody who’s eager to do this, who understands the business, understands the relationships and see what they can do.’”

But as more retailers tap into retail media, some are realizing they need to “professionalize” their workforce, Greene said. Retailers are increasingly looking to hire people who come from digital media backgrounds, and they’re even poaching people from big tech companies like Google for these roles, Greene said. 

Bringing in people with this type of expertise is necessary if c-stores want to scale their retail media businesses, he said.

“This can't be a side gig,” he said. “This needs to be something [retailers] hire for with a dedicated skill set that's going to help build this.”

Harder on the smaller players

At a basic level, c-store operators will be challenged by the fact that the retail media business is far different than the traditional retail business they’re used to, Berke said. 

He noted that addressing this gap takes a “considerable amount of learning and investment,” which favors larger operators who likely have the investment capital and capacity to learn, acquire and build retail media muscle over time.

Smaller operators, meanwhile, will need to be more strategic. Berke suggested these types of operators form a retail media network alongside other independent or regional brands, since advertisers are only going to deal with so many platforms at once.

“The advertiser can't deal with thousands of small advertising channels,” he said. “You've got to figure out a way to become meaningful and have enough reach, data and trust to be able to compete.” 

Brenner agreed that smaller retailers with fewer assets will have a tougher time getting retail media networks up and running. He noted that many of Vibenomics’ c-store customers starting retail media networks — some of which even have hundreds of stores — are struggling to scale for these same reasons.

“C-stores are going to have to see a lot of buy-in across a lot of small groups to get the attention that they want in retail media,” he said.

Another challenge facing c-store operators is the low participation in loyalty memberships compared to other industries like restaurant and grocery. Since first-party loyalty data is directly tied to retail media programs, boosting loyalty participation should be a priority for any c-stores creating a retail media venture, said Brenner.

“The only value in retail media is when you have the first-party data about the person,” he said. “I need to know that [the customer] is a guy that comes here twice a week and buys these things.”

Beyond the investment, loyalty and scaling challenges, retail media networks come with risks for c-store operators as well. One is the possibility of fundamentally harming their core business by disrupting the shopper experience, Greene said. He noted that even testing a retail media venture is a “leap of faith” for many retailers.

Avoiding this risk is a “balancing act” that involves lots of trial and error, Greene said. This is why he suggests operators take baby steps into the space, so they don’t do anything that would detract from the core mission of their business and alienate their shoppers.

“You want to get that customer and keep that customer,” Greene said. “I think that's one area that every retailer including c-stores need to be looking out for.”

Reasons like these are why Casey’s took two years to develop its retail media network before launching, Sebastian said.

“With something like this, you've got to take your time, which is why we've been very methodical,” he said.

Getting creative with the data and ads

What does innovation look like for a c-store operator whose retail media network is implemented and churning out profits?

Greene said he’s seen retailers invest in new, higher-value ad formats as their networks grow, creating incremental opportunities for brands to scale.

“We're seeing a lot of retailers experiment with things like adding video ad units to their site,” Greene said. “Two years ago, that was unthinkable.”

Additionally, Greene has seen retailers focus more on data monetization as their retail media networks grow, meaning they’re applying loyalty data to things like social channels or even connected TV (CTV), a form of digital advertising within streaming content. Beyond that, he’s seen retailers offer brands new types of shopper insights beyond transactional media buying data.

One non-c-store retailer at this stage is Walmart. Greene referenced the company’ Luminate products, which use advanced data science to synthesize insights from across its omni-channel offerings.

“How do we influence a brand or agency's planning process with our data?” he said. “How do we go beyond audience data and bring things like shelf data in a programmatic way?”

Despite getting creative with how loyalty data is used, Brenner believes innovation in retail media comes down to one thing.

“Get results for the advertisers — just get results,” he said. 

The return of in-person shopping over the past year or so has cast a spotlight on the store experience for retailers across various channels. But according to design expert Michael Lawshe, many c-stores haven’t kept pace with evolving consumer expectations.

Too many stores, he said, have focused over the years on maximizing the number of products they can fit onto their retail floors. The result is an experience that offers everything consumers need — but that often feels “jumbled up” and “doesn’t flow,” said Lawshe, president of c-store design firm Paragon Solutions.

But this year, c-store operators will at least begin making store design changes that focus less on assortment and more on other areas like shopping flow, efficiency and aesthetics, he noted.

“I do see the more intentional, intellectual design coming to the forefront,” said Lawshe.

Experts expect c-stores to continue iterating on services and innovations that have been introduced within the past few years, all in the name of offering a better customer experience. This comes as the number of c-stores in the U.S. grew for the first time in four years and major chains are extending into new markets while other chains, like Mapco and Stewart’s Shops, are opening new locations and investing in site refreshes.

“Our industry is in the midst of an evolution, not a revolution,” said Lawshe.

That evolution includes the growing role of convenience stores as a place to browse, relax or dine. Jennifer Perron-Micek, vice president of marketing and innovation for retail services firm Marmon Retail Solutions, said stores need to think about how customer expectations are changing, and explore novel ways draw customers into stores and drive repeat visits, be that increasing the convenience factor, offering more healthy options or rethinking the interior. 

“Where before it was just a convenience store, now it's a market,” Perron-Micek said. “Before it was the local gas station. Now it's a fast-food experience.”

Moving beyond maximizing SKUs

Lawshe said successful, modern c-store designs are focused on getting customers to “linger longer.”  

“It's easy to look at a small piece of the puzzle and say, ‘What am I going to do in this 100-square-foot area?’” said Lawshe. “That's really just a Band-Aide. You have to pull yourself away and look at the entire customer experience.”

Stores will continue moving to less cluttered designs as well. Mapco, for instance, is remodeling old stores and building new ones to fit with its “Store of the Future” design, which incorporates aspects like a more open floor plan and self checkout. The updated design also includes tech enhancements like mobile scan-and-go checkout as well as more spacious bathrooms.

Perron-Micek also called out Kwik Trip and 7-Eleven for embracing this more customer-friendly aesthetic.

“It's more upscale … coffee bar elements, WiFi, areas for people to do work,” said Perron-Micek. “There's an opportunity to create consistency, but something that is open and inviting to customers.”

Chris Pratt, executive vice president of strategy and development with retail branding and merchandising company Big Red Rooster Flow, said he sees self checkout, like the program being rolled out by Parkland USA,  continuing to gain traction in 2023.

Pratt’s company has been working with Circle K on installing its computer-vision self-checkout machines into some locations. He noted that age-restricted items are the one big hiccup, given how tobacco and alcohol make up a large percentage of c-store sales. 

“I don't think the self checkout systems have licked that problem yet,” he said, adding, “Maybe they'll be able to tackle that in the future.”

Lawshe also mentioned that stores will begin thinking more about the specific needs of self-checkout customers. 

“What does [that customer] need?” Lawshe asked. “He needs a little more space to put his stuff down, scan, bag, and so it's a different process.”

One big design change that owes a lot to pandemic concerns is a move toward better bathrooms. 

“Clean, functioning restrooms in general,” Pratt said, noting that Circle K has also been enhancing this aspect of their stores. “But also moving towards more and more touchless [technology].”

Some features Pratt has seen installed in bathrooms meant to augment motion-activated appliances include zigzag entrances and foot pulls, both of which eliminate the need to touch a door.

An inviting forecourt

As c-stores become more of a destination rather than a gas-and-go stop, Lawshe said companies may want to rethink how they do even simple things, like parking. 

“When [customers] pull onto the lot, is it easy to get to the parking that they want, or do they have to fight through the gas traffic to get there?” he asked. 

He also pointed out that while there are legal minimums for the size of parking spaces, companies may want to consider making them larger, to make the store more inviting for customers. 

Pratt said he thinks 2023 will also bring more of a push toward self branding for the smaller, independent c-store operators. He said that some stores have historically been overshadowed by the name on the gas canopy, leading to people thinking of them in terms of the gasoline on offer, instead of the c-store.

“They still use those terms: ‘I'm gonna run over to the Shell and grab a soft drink,’” he said. “Well, you're really not getting anything from Shell. They don't sell soft drinks.”

As stores increasingly lean into foodservice and loyalty programs, Pratt said he expects to see more locations attempt to strengthen their personal branding and “create homogeny, between the backcourt and the forecourt.”

Outdoor seating is also increasingly common among c-stores. For example, Chicago-based Foxtrot has open-air dining areas in all 23 of its locations, according to a spokesperson. 

“We’re doing, depending on the location, more outdoor seating, more dog parks within the outdoor seating,” said Lawshe. “Again, [getting customers to] linger longer.” 

And parks aren’t just for dogs. Perron-Micek said that while she has not worked with any companies that ended up implementing them, potential designs including child play areas have been coming up more often.

Another big forecourt trend is electric vehicle charging. While experts see more stores adding EV charging in 2023, Pratt expects to see more c-stores start thinking about EV charging the way they do about fueling now — making sure they’re under canopies, are well lit and provide direct and easy access to the convenience store. 

“At this point in the game, EV drivers are more affluent, as a generality,” Pratt said. “If so, why are we relegating them off to the side?”

He added that while he hasn’t seen it yet, he wonders if c-stores in areas with high EV adoption may begin to replace some of their fuel pumps with EV chargers and start putting their charging prices on their price signs. 

Several experts also brought up how many c-store chains, like Love’s Travel Stops & Country Stores, are using Amazon pickup lockers as another way to draw customers onto the site. That amenity has an opportunity to expand. 

“They've got a lot of lockers in a lot of convenience stores,” said Pratt. “But I would imagine there will be a movement towards [Amazon] return facility services as well.”

Hiring and retention challenges continue to plague the convenience store industry.

Turnover in the space in 2021 reached 150% — its highest level since 2012, according to NACS’ most recent State of the Industry Compensation Report. Despite pandemic-induced business closures and slowdowns no longer being an issue, the hiring and retention woes for c-stores don’t seem to be getting any easier, experts say.

“It’s gotten harder to attract and retain, especially in the last year,” said Rick Schlenker, co-founder and executive vice president of sales and marketing for Logile, a retail workforce management company.

With labor challenges top of mind for most c-store retailers in 2023, some are tapping into innovative methods to help improve hiring and retention for the long haul.

Flexible scheduling is key

Flexibility is one of the most common traits current and prospective c-store employees are looking for in their jobs, said Schlenker. Specifically, c-store employees want predictability, stability and more control over their working hours.

“Whoever can give [employees] that is just going to be the clear winner,” he said.

Needing a way to help keep current staff on board, Weigel’s introduced a four-day work week at one of its locations last January. The Powell, Tennessee-based c-store chain had thought of the idea during the thick of the COVID-19 pandemic, and after a series of employee surveys, decided to run with it, said Melanie Wilson Disney, director of human resources for Weigel’s.

The idea was “well received,” among employees at the test location, and the hourly workers “jumped on it” quickly, Disney said. One quarter in, and Weigel’s started to see turnover “trimmed down.” By the third quarter of 2022, “the results were phenomenal,” she said.

After the success of the test site, it didn’t take long for Weigel’s to roll its four-day work week out to hourly workers across all of its nearly 80 stores. Fast forward about a year, and when asked if the four-day work week has helped improve employee retention, Disney didn’t hesitate.

“Absolutely,” she said.

Beyond a shortened work week, c-stores can implement a type of flexible scheduling where associates can pick and choose their shifts — down to the exact number of hours on specific days, Schlenker said. 

“They don't even have to pick the entire shift,” he said. “Say a shift runs from 8 a.m. to 2 p.m. — they have the ability to say, ‘I can do 8 a.m. to 12 p.m., but not until 2 p.m.’”

Nouria Energy, a chain of about 170 c-stores on the East Coast, is exploring a version of this concept. The Worcester, Massachusetts-based retailer is looking to tap into two-to-four-hour shifts at its stores, even allowing associates to complete shifts during multiple periods throughout the day, Fouad El-Nemr, executive vice president for Nouria, said during a recent roundtable discussion held by Convenience Leaders Vision Group, a division of retail knowledge-sharing network Vision Group Network.

“We were actually at a meeting, talking about splitting up shifts for the mom that has to pick up her child in the afternoon, then take them home and then they can come back to work,” he said.

C-stores can also take notes from companies like Lyft and DoorDash that capitalize on the gig worker economy, Schlenker said. Gig workers are usually independent contractors who do short-term work for multiple businesses, whether on an hourly, part-time or ongoing basis. This can be especially helpful for retailers who may be short-staffed or seeking extra help on any particular day, Schlenker said.

It’s not just smaller c-stores that can tap into gig workers, either. During the Convenience Leaders Vision Group roundtable, Joe Sheetz — executive vice chairman of Altoona, Pennsylvania-based c-store giant Sheetz — said the company has experimented with gig workers “in very strategic ways,” mainly by having them help unload delivery trucks, stock coolers or “[do] things that most of the full-time workers in the store don’t want to do.”

Although skeptical at first, tapping into gig workers has “gone much better” than he thought, Sheetz said. 

“It’s better in some markets than others, but it’s letting us pick off a bunch of task work in a more efficient way than having full-time people work overtime or having to drag in part timers,” he said.

Better pay, more often

Recent statistics show that hourly c-store clerks earn around $24,000 per year, a level that lags grocery clerks. The role averages out to under $12 an hour, or less than half of the average salary in the U.S. according to the Bureau of Labor Statistics.

C-stores need to stay competitive when it comes to wages to hire and retain employees, Schlenker said. However, since many c-store retailers can’t counter the wages offered at major cross-channel competitors such as Kroger or Walmart, that makes their benefits package and scheduling flexibility all the more important, he noted. 

Both Weigel’s and Pilot Co. have increased their hourly wages over the past few years. Although neither retailer specified by exactly how much, both noted the raises were implemented to retain employees and attract new ones.

“We have remained competitive and responsive to the market in terms of pay,” Jamie Landis, vice president of team member experience for Pilot, said in an interview.

Retailers who may not be able to raise their hourly wages can consider letting their employees — especially those working mainly in foodservice — receive tips. 

Kevin Smartt, CEO of Texas Born c-stores, said in the Convenience Leaders Vision Group roundtable that he’s begun adding tipping to some of his locations, and that he’s “shocked” at the amount of tips his employees have received — which, on average, hit about $50 to $60 per worker every week.

“I definitely see the benefit in doing it,” Smartt said in the roundtable. “Our employees are happy.”

Not only does the amount c-stores pay their employees matter in hiring and retention, but how they pay can make a difference as well. About a year and half ago, Weigel’s rolled out same-day pay for its store associates, which kicks into effect once an employee is on board for at least a week. After that, through a mobile app connected to Weigel’s payroll system, associates can access up to 50% of their pay for any regular work shift in real time.

“I think it’s helped [increase retention] a lot,” Disney said.

Schlenker said he sees same-day pay becoming more popular in c-stores as 2023 progresses, as employees will increasingly want to get paid the same day they work.

“We’re seeing companies do it because their employees say, ‘I want to get paid at the conclusion of my shift. I want those funds to be available,’” he said.

Create a path for growth

For retailers, offering workers clear chances for advancement within the company can boost morale and have a significant impact on retention.

“People want to come in and know there's a path,” Schlenker said. “They want the ability to start off at a clerk level and very quickly be able to become certified to do other things in the store that will advance their pay [and] give them some variety.” 

Supporting associates in their career growth is “one of the most important and effective ways” Pilot retains its employees, Landis said. The company offers a variety of opportunities on this front, including its General Managers Leadership Development class and a rotational development program, both of which feature hands-on training, e-learning, self-study and classroom work, according to the retailer’s website.

“We recognize talent, loyalty and dedication and provide paths for these team members to grow their careers with us, providing long-term stability and opportunity,” Landis said.

At Weigel’s, employees in corporate or management positions are hired “mostly internally,” meaning they’ve learned the business “from the ground up,” Disney said. The retailer has a management development program, Weigel’s University, that enrolls new store associates at the nomination of said store’s district manager.

“We've got a lot of opportunities out there,” Disney said.

As Weigel’s increasingly focuses on hiring, retention and career growth this year, the company is going to start setting benchmarks to track its performance in these areas, Disney said.

“That's our big focus for this year,” she said.

Meanwhile, the team at Pilot is choosing to focus on the things it can control — such as how it treats its team members — as there’s no telling how the labor situation will evolve this year, Landis said.

“When team members feel valued, they become some of our longest-serving team members,” she said. “Those team members also are likely to recommend Pilot to family and friends as a great place to work.”