Economic uncertainty is reshaping the way consumers spend, but convenience stores continue to prove their resilience. Those that act decisively — rather than waiting for conditions to settle — will be the ones to come out ahead.
At Upside, we monitor the most extensive set of fuel and convenience metrics available. This summer, we noticed an encouraging rise in transaction volume, which led us to dig deeper into the data.
The findings were mixed. In July 2025, average revenue per transaction and per item inched up compared to last year. Yet those gains fell short of inflation, and shoppers responded to higher prices by trimming down the number of items in their baskets.
On the surface, sales appear steady but shrinking basket sizes and inflationary pressure tell a more complex story. Operators who want to get ahead must lean into strategies like basket-building, time-of-day offers, operational discipline, and digital engagement to sustain growth.
Four strategies to capture more share
Upside’s research shows just how tenuous customer loyalty is in this channel. Nearly 75% of fuel customers are “uncommitted” — they visit a given retailer less than once per month. And 59% say they’d willingly change their behavior if the right loyalty, rewards, or membership program gave them reason to.
The opportunity is clear: retailers that design incentive programs carefully can create value for consumers while protecting their own margins. Here are four ways to make that happen:
- Build bigger baskets: Pair routine purchases with higher-margin items. For example, offer a discount on a beverage when customers buy a prepared sandwich.
- Use dayparting to stand out: C-stores have a natural advantage early mornings and late nights when other businesses are closed. Promotions like breakfast bundles or after-hours grab-and-go meals can differentiate from competitors like quick-service restaurants and grocery.
- Safeguard profitability with efficiency: Since cost pressures aren’t going away, operators who fine-tune scheduling, renegotiate supplier terms, or cross-train employees free up margin to reinvest in customer experience.
- Expand digitally: Nearly 90% of fuel-only customers say they’d buy something in-store if the right offer was presented. Personalization ensures those offers match individual preferences, lifting conversion and frequency.
Why digital is the untapped growth lever
Despite the upside, digital isn’t a near-term priority for most retailers. In a recent survey of the broader retail community, only 24% called digital strategy one of their top areas of focus. That hesitation is understandable: building a digital ecosystem from scratch takes time and capital that many operators can’t spare.
Digital marketplaces offer a faster path. They let operators connect with new shoppers instantly, extend reach beyond existing store footprints, and influence purchasing decisions before customers even arrive. It’s a way to get the benefits of digital engagement without the heavy lift of building it all in-house.
Turning data into action
Industry metrics can be read two ways. Some will see slowing basket growth and inflation as red flags. The better perspective is to treat them as signals to innovate.
Traffic is still coming through the doors — and that’s the most important foundation. The real question is how much of each customer’s wallet and how much long-term loyalty operators will capture. For c-stores willing to act boldly with innovation, personalization, and smarter execution, today’s modest growth can become the springboard for much bigger wins.
