C-stores push further into grocery

DES MOINES, Iowa — Convenience retailers are moving beyond the traditional fuel-and-snacks model, expanding fresh food, private-label, and everyday essentials as they compete for a larger share of consumers’ grocery spending.

The opportunity is not necessarily to replace the weekly supermarket trip. Instead, c-stores are positioning themselves to capture more of the in-between trips, whether shoppers need dinner, milk, beverages, or a few forgotten essentials.

“The convenience stores offer the ultimate quick trip,” said Julie Craig, vice president of shopper insights at Kantar, in discussing the trend last year.

That advantage has become increasingly important as consumers look to save both time and money. Casey’s president and CEO, Darren Rebelez, has pointed to the retailer’s prepared-food business as a value alternative to quick-service restaurants.

“As consumers start to look for value, we’re a great trade-down opportunity from a price perspective, but not a trade-down in quality,” Rebelez said during a 2025 earnings call.

Casey’s is particularly well positioned for the shift. The retailer operates nearly 3,000 stores across 19 states, including many in smaller communities, where its assortment of prepared foods, groceries, beverages and everyday necessities can serve as an alternative to a longer supermarket trip.

“Our food business is at the center of Casey’s three-year growth strategy and continues to be one of our strongest differentiators,” said Tom Brennan, chief merchandising officer at Casey’s.

In fiscal 2026, Casey’s grocery and general merchandise same-store sales increased by 3.9%, while prepared food and dispensed beverage sales rose 5.2%. The company plans to open at least 400 stores over the next three years while continuing to develop its food and private-brand businesses.

7-Eleven is pursuing a similar strategy. Parent company Seven & i Holdings plans to remodel more than 7,000 North American locations through 2030, with greater emphasis on foodservice, fresh food, and proprietary products. The company has also set a goal of approximately $2.6 billion in private-label sales by 2030.

Seven & i president and CEO Stephen Hayes Dacus identified “advancing our food leadership” as one of the company’s priorities for 2026.

The evolution puts c-stores in closer competition with supermarkets, drug stores, dollar stores and restaurants for smaller shopping trips.

For convenience retailers, that makes the fill-in grocery trip increasingly valuable. Their traditional advantages of proximity and speed are now paired with broader assortments, stronger private brands and more sophisticated fresh-food programs.