The U.S. convenience store sector remains a vital force in American retail, according to the latest mid-year analysis from investment brokerage firm B+E, marked by steady listing activity and subtle shifts in investor sentiment as the supply of properties on the market edged up from 302 to 310 since the end of last year while average cap rates saw a slight increase to 5.57%. Throughout this period, a clear investment preference persists: a significant majority of these properties—more than 80%—offer lease terms of 10 years or longer, and these longer commitments continue to command lower cap rates among discerning buyers.
Transitions within the sector highlight both continuity and change. Market leaders like 7-Eleven maintain dominance, with the brand accounting for nearly 40% of active listings. Its assets remain attractive to investors thanks to a consistently low average cap rate, a testament to the company’s strong credit standing.
Similarly, Wawa’s properties set themselves apart with the lowest cap rates on the market, underscoring the premium placed on their long-term ground lease structures by investors seeking stability.
Wider industry metrics reinforce the importance of the convenience format in the American retail landscape. With store counts exceeding 152,200 nationwide—most selling fuel—convenience stores now outnumber groceries, drugstores and dollar stores combined. Brands are keeping pace with consumer expectations by expanding food service offerings, rolling out digital ordering and loyalty programs, and even investing in electric vehicle charging infrastructure.
Recently released financial figures paint a nuanced picture. Overall, total convenience store sales dipped 2.6% to $755.2 billion, a decrease driven largely by falling gasoline prices. However, in-store sales reached an all-time high, albeit with only slight growth and continued to outpace fuel in generating gross profits.
The sector’s growth trajectory remains resilient over the long term, with projections showing a jump from $1 trillion in 2023 to $1.64 trillion by 2028 and continued expansion expected through the next decade.
Policy developments are further fueling industry evolution. The reinstatement of 100% bonus depreciation for qualifying properties provides new incentives for investment and modernization, promising to keep stores competitive and well-equipped for changing market demands.
Major chains are navigating a constantly shifting landscape of mergers, expansions and new builds. Business maneuvers such as Alimentation Couche-Tard’s abandoned pursuit of Seven & i Holdings and its purchase of Giant Eagle’s GetGo and WetGo sites illustrate the sector’s ongoing reshuffling. Meanwhile, chains like 7-Eleven, Wawa, RaceTrac and Murphy USA are aggressively growing their store footprints, modernizing properties and enhancing distribution networks.
Geographic trends also tell an important part of the story. States like Florida, Texas and California lead in property listings and typically feature cap rates below the national average, while some Midwestern and Southeastern markets yield higher rates that reflect both local demand and property specifics.
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