WASHINGTON — U.S. convenience store sales lost ground in the second quarter of 2025, falling 0.1% in dollar terms and 2.7% in units compared with the year-ago period, according to the new NACS NIQ Global Convenience Store Industry Report. The results marked a contrast with the broader retail market, where sales rose 2.6% and units climbed 1% over the same span.
Performance was essentially unchanged whether tobacco was included or not, suggesting that pressure extended across the store. By comparison, convenience retailers in Canada and parts of Latin America saw stronger growth, underscoring the uneven pace of recovery across regions.
Pricing and Promotions Offer Little Relief
Inflation, which had supported topline growth in earlier quarters, played a minor role in Q2. Average unit prices at U.S. c-stores increased 2.6%, only slightly ahead of the 1.6% rise in the broader market.
Convenience operators increased promotions by 2.1% compared to last year, but their levels remained significantly lower than those of other channels. Just 22.6% of units sold in U.S. convenience stores were on promotion, compared to 31.8% in supermarkets and other outlets. This gap highlights the continued challenge for c-stores to use promotions as a lever for traffic and sales.
Bright Spots in Alcohol and Beverages
Despite overall weakness, some categories performed well. Alcohol once again provided momentum: wine sales rose 14% in the quarter, while liquor gained 7.6%. Cold dispensed beverages also posted a 4.3% increase, reflecting consumer demand for refreshment amid warmer weather. Other tobacco products edged up 5.7%.
These results suggest that shoppers continue to turn to c-stores for specific occasions and categories, particularly alcohol and ready-to-drink beverages.
Core Staples Continue to Decline
Staple items showed persistent weakness. Packaged bread sales declined 9.3% in Q2, while commissary and other packaged products fell 7.6%. Fluid milk was down 6%, ice dropped 5%, and salty snacks slid 3.9%. Four of these categories were also among the top decliners in Q1, indicating structural headwinds rather than seasonal fluctuations.
The continued erosion in everyday categories suggests a shift in shopper missions, with consumers increasingly buying staples in other formats, while relying on c-stores for immediate consumption or discretionary purchases.
A Sector in Transition
“The second quarter of 2025 showcased a rapidly evolving convenience retail landscape, shaped by persistent inflation, shifting consumer preferences and localized regulatory changes,” said James Hunt, managing director, commercial at NIQ. “Across 33 countries, retailers responded with agility—tailoring strategies to meet market demands, optimizing promotions and driving innovation within key categories.”
Hunt emphasized that the industry remains resilient. “As we move into the second half of 2025, convenience stores continue to prove their resilience and relevance within the local markets they serve. This quarter’s findings reinforce the importance of agility, strategic adaptation and category innovation.”
Outlook: Finding Growth in a Changing Market
For U.S. convenience operators, the outlook for the rest of 2025 will depend on how effectively they can offset ongoing declines in core staples. Alcohol, beverages and other discretionary categories remain bright spots, but promotional strategies and sharper value propositions may be needed to bring shoppers back to bread, milk and snack categories.
The challenge will be balancing convenience’s traditional role as a destination for quick trips with growing pressure from supermarkets, dollar stores and online delivery channels that are expanding their own definitions of “convenience.”
