Convenience Stores Poised to Continue Major Growth, Coldwell Banker Commercial Report Finds

Rhea-AI Summary

Coldwell Banker Commercial, an Anywhere (NYSE: HOUS) brand, has released a Trend Report highlighting the significant transformation of convenience stores (C-stores) into food destinations. The report reveals that C-store prepared food sales have increased 12.2% year-over-year, with 56% of consumers now viewing them as alternatives to fast-food chains.

Despite narrow profit margins of 5-7%, C-stores are attracting strong investor interest due to high product turnover and steady consumer visits. Major players like 7-Eleven plan to expand with 500 new stores by 2027, while regional chains such as Wawa, Sheetz, and Buc-ee's are entering new markets.

The sector's investment appeal is strengthened by long-term leases (up to 20 years), low vacancy rates, and strategic locations. C-stores are adapting to changing consumer needs by expanding store formats, returning to urban centers, and exploring non-traditional spaces like college campuses.

Positive

• Strong 12.2% YoY growth in prepared food sales
• 56% of consumers view C-stores as fast-food alternatives
• Expansion plans by major chains (7-Eleven: 500 new stores by 2027)
• Low vacancy rates and long-term leases up to 20 years
• Market consolidation creating stronger tenant profiles

Negative

• Narrow profit margins (5-7%)
• 60% of stores independently owned, indicating fragmentation risk

News Market Reaction

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+0.30% News Effect

On the day this news was published, HOUS gained 0.30%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

C-stores are capturing market share from grocery and fast-food chains, driving strong investor interest in the net-lease market

MADISON, N.J., April 1, 2025 /PRNewswire/ -- Coldwell Banker Commercial®, an Anywhere (NYSE: HOUS) brand, today released its latest Trend Report examining how convenience stores (C-stores) have shifted from quick stops for snacks and fuel to popular food destinations. This shift has made C-stores an attractive asset class for commercial real estate (CRE) investors, especially in the net-lease market.

"The convenience store industry is evolving to meet changing consumer needs," said Dan Spiegel, SIOR, senior vice president and managing director of Coldwell Banker Commercial. "With smaller households, more urban locations, and evolving food preferences, the sector is undergoing significant transformation. Given their frequent visits, convenience stores must stay closely connected to shifting consumer lifestyles to remain competitive in the retail market."

C-Store Product Mix Drives Growth

The report highlights how C-stores have adapted from being fuel and snack retailers into quick-service food and grocery alternatives. Sales of prepared food have risen 12.2% year-over-year, and 56% of consumers now consider C-stores viable substitutes for fast-food chains. This growth, fueled by demand for convenient, affordable, and healthier food options, has added to the sector's stability, even though profit margins remain narrow (around 5% to 7%). However, the high turnover of products and steady consumer visits compensate for the tight margins, making C-stores a reliable source of income for investors.

The shift in consumer behavior–especially as inflation raises grocery prices–has positioned C-stores as an attractive alternative for those seeking fresh food at affordable prices.

Changing Real Estate Needs

As C-stores add more food service offerings, real estate needs are expanding. Chains like QuikTrip, Casey's General Stores, RaceTrac, and Wawa are investing in larger store formats to accommodate food preparation areas. Many operators are returning to urban centers and exploring non-traditional spaces, such as college campuses and downtown locations, which provide new opportunities for real estate investors.

Investment Opportunities for C-Stores

Despite 60% of C-stores being independently owned, the sector is seeing significant consolidation. Major players like 7-Eleven plan to open 500 new stores in the U.S. and Canada by 2027, while regional chains such as Wawa, Sheetz, and Buc-ee's are expanding into new markets. This consolidation creates opportunities for investors to acquire properties with stronger tenant profiles and more predictable cash flows.

The sector's strong position, driven by convenient locations, long-term leases (up to 20 years), and low vacancy rates, makes C-stores a stable investment option in the net-lease market. These factors, combined with steady demand, make the sector appealing to net-lease investors seeking reliable, long-term returns.

C-Stores in the Future of CRE

As consumer preferences shift, C-stores are becoming a go-to destination for those looking for quick, fresh meals. This transformation, paired with economic trends like inflation and rising grocery costs, ensures that C-stores will remain a key asset class for investors in the net-lease real estate market.

"With a new generation of consumers focused on health, value, speed and convenience, C-stores are perfectly positioned to expand," the report concludes, highlighting why investors continue to view this evolving retail category as an attractive addition to their portfolios.

For more information on C-stores and other retail real estate trends, visit cbcworldwide.com.

About Coldwell Banker Commercial
Coldwell Banker Commercial is a trusted leader in commercial real estate, delivering expert solutions across office, retail, industrial, and multifamily properties globally. Serving owners and occupiers with specialized leasing, acquisition, and disposition services, Coldwell Banker Commercial brings over a century of proven expertise to every transaction. Founded in 1906 in San Francisco, the company has grown to include a network of 158 independently owned and operated affiliates as well as owned brokerage and more than 3,300 professionals. Ranked No. 1 in brand loyalty, the company spans 45 countries, offering clients personalized, results-driven services tailored to meet diverse real estate needs. Trailblazers in the industry, Coldwell Banker Commercial boasts a long-standing reputation for dedication, integrity, and transparency while continuing to rank among the Top 15 commercial real estate brands in the U.S. based on sales volume. For more information, visit cbcworldwide.com.

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SOURCE Coldwell Banker Commercial

FAQ

What is the year-over-year growth rate of prepared food sales in convenience stores?

Prepared food sales in convenience stores have increased 12.2% year-over-year according to the Coldwell Banker Commercial report.

How many new stores does 7-Eleven plan to open by 2027?

7-Eleven plans to open 500 new stores across the U.S. and Canada by 2027.

What are the typical profit margins for convenience stores according to the HOUS report?

According to the report, convenience stores operate with narrow profit margins of around 5% to 7%.

What percentage of consumers now consider convenience stores as alternatives to fast-food chains?

56% of consumers now consider convenience stores as viable substitutes for fast-food chains.

How long are typical convenience store lease terms according to the Coldwell Banker Commercial report?

Convenience stores typically offer long-term leases of up to 20 years.