Convenience stores have long played a critical role in communities, providing essential goods and services to customers who need quick, accessible shopping options. However, economic factors such as possible changes to trade tariffs and reductions in government assistance programs—most notably the Supplemental Nutrition Assistance Program (SNAP)—may challenge retailers in the coming year. While we are uncertain what changes will be implemented, preparing strategies to address all possibilities is critical. At H&S Energy, we aim to keep owners and managers aware of possible economic shifts on C-stores in 2025 so you can quickly implement plans for continued business success.
Possible Tariffs and Impact on Prices
One of the most significant concerns for C-store managers is the increasing cost of goods due to tariffs on imported products. These tariffs can impact pricing in several ways:
- Higher Prices on Packaged Goods – Many C-store staples, such as snacks, beverages, and processed foods, rely on imported ingredients or packaging materials. Increased tariffs on these imports translate to higher wholesale costs for retailers, making everyday products less affordable for customers.
- Increased Fuel Costs – If tariffs affect oil imports, gas prices may rise, leading to higher delivery costs for store inventory. In turn, convenience stores that rely on fuel sales may see decreased consumer spending on in-store items as customers allocate more of their budgets to gasoline.
- Supply Chain Disruptions – Tariffs can also lead to unpredictability in supply chains, resulting in product shortages or delayed deliveries. Retailers may find themselves scrambling to keep shelves stocked, and alternative sourcing options may come with added costs.
With rising wholesale costs, convenience stores must make difficult pricing decisions. Absorbing these increases cuts into profit margins while passing them on to consumers can reduce sales. Either scenario places financial pressure on store owners, making exploring alternative revenue streams and operational efficiencies essential.
Possible Cuts to SNAP Benefits
SNAP benefits help millions of low-income Americans afford groceries, and convenience stores are essential in serving these customers—especially in areas without traditional grocery stores. If federal or state policies reduce SNAP funding, the impact on convenience store revenue could be substantial.
- Declining Food Purchases – Customers with lower SNAP benefits will have less money to spend, leading to fewer purchases of essential food items such as dairy, bread, and produce.
- Shift Toward Cheaper, Lower-Margin Items – Shoppers will likely seek out lower-cost alternatives, which could mean less spending on higher-margin products like grab-and-go meals and premium snacks.
- Reduced Foot Traffic – SNAP recipients often visit convenience stores to make frequent small purchases. If their budgets tighten, they may consolidate shopping trips to lower-cost grocery stores, reducing the number of visits to local convenience stores.
Rising product costs and reduced consumer spending power create a perfect storm for convenience store owners. Retailers must prepare for potential shifts in customer behavior and identify opportunities to diversify their income sources.
Strategies to Adapt and Thrive with Possible Economic Shifts on C-stores in 2025
Convenience store owners should consider diversifying their product offerings and enhancing their service models to navigate these economic pressures. Here are some strategies to consider:
1. Expand Non-Food Offerings
With food affordability becoming a challenge, retailers can explore adding high-margin, in-demand items such as:
- Lottery tickets – A consistent revenue generator for many convenience stores.
- Tobacco and vape products – While regulated, these products often bring in high profit margins.
- Personal care essentials – Stocking hygiene and personal care items can attract new customers who need quick solutions.
- Automotive essentials – Expanding offerings like motor oil, windshield wiper fluid, and car accessories can increase sales.
2. Invest in Grab-and-Go Fresh Options
If tariffs make processed foods more expensive, C-stores can shift toward fresh, prepared food options, including:
- Freshly made sandwiches, salads, and meal kits
- Locally sourced snacks that are not impacted by import tariffs
- More affordable and SNAP-friendly options to attract lower-income customers
3. Enhance Fuel and Car Services
For stores that offer fuel, adding services such as car washes, tire inflation stations, or vacuum stations can create additional revenue streams.
4. Introduce Subscription or Rewards Programs
Loyalty programs and subscription services can encourage repeat business and help stabilize revenue, even when consumer spending is under pressure.
5. Optimize Inventory and Reduce Waste
Retailers should closely monitor sales trends to adjust inventory levels accordingly, minimizing waste and ensuring shelves are stocked with high-demand items. Leveraging technology for automated inventory management can also streamline operations and reduce costs.
Proactive Adaptation is Your Key to Success No Matter What Economic Shifts on C-Stores Appear in 2025
Convenience store operators face a challenging road ahead with economic factors such as tariffs and SNAP cutbacks influencing the industry. However, those who take proactive steps to adapt to these changes will be better positioned for long-term success. Expanding product offerings, optimizing store operations, and considering alternative revenue streams will be essential in maintaining profitability.
H&S Energy understands the challenges convenience store owners face and is here to help. If you are looking for expert guidance on expanding your store’s products and services or ways to make your operations more efficient, contact H&S Energy today. Our team is ready to provide tailored solutions that help you thrive in a shifting market landscape.
