A growing appetite among consumers-on-the-go for the broader selection of food options and other grocery items offered at larger, modern convenience stores is fueling a wave of consolidation and new development in the often overlooked triple-net convenience store segment of U.S. retail.
The Association for Convenience and Fuel Retailing (NACS) reports the number of c-stores in the country increased 0.2% in 2016 from the prior year to 154,535, accounting for more than $575 billion in sales. While roughly 80% of c-stores sell gasoline, lower gas prices have helped bring in more foot traffic to convenience stores, with more drivers on the road and stopping into the store during fill-ups to buy a growing mix of merchandise.
Colby Moore, director of Transwestern's national net-lease and sale-leaseback group, expects another strong quarter for the c-store sector, with low gas prices, stronger consumer confidence and warmer weather helping to boost sales.
"The biggest change is certainly that players are coming in and building larger, more retail-focused properties," Moore said.