2025 Industry Outlook

Stephen Bown 

Vice-president sales—convenience retail, Coca-Cola Canada Bottling

In 2025, Convenience & Gas in Canada is poised to be dynamic and innovative, leveraging an understanding of broad consumer trends to develop strategies to drive traffic and maximize baskets. Beverages will continue to play a crucial role in this direction and success.

The emphasis will remain on creating engaging exterior messaging and partnerships to attract buyers, thereby increasing foot traffic and potential sales. Establishing multiple in-store touchpoints to engage impulse buyers, both ambient and chilled, will be crucial. Additionally, enhancing the execution of the entire beverage portfolio to appeal to diverse shoppers is critical. Marketing communications should resonate with key passion points, such as sports, popular culture, and music, to forge stronger connections with customers.

 In the food and snacking category, developing and promoting relevant bundles will capitalize on eating out and snacking occasions. This approach will tap into the growing demand for convenient and enjoyable meal and snack options.

Finally, to convert digital shoppers, it is vital to integrate offerings into retailers’ programs and websites. Ensuring seamless digital integration with retailers’ loyalty programs and online platforms will enhance the shopping experience and drive engagement.

Jeff Dafoe

President, Premier Brands

Established in 1988, our mission was clear: to introduce Canadians to world-class beers, helping consumers discover authentic and innovative styles that redefine the beer-drinking experience. We believed then, as we do now, that beer is more than just a beverage—it’s a story, a culture, and an opportunity for connection.

Back in the late ‘80s, we foresaw a future where private retailers would embrace the opportunity to sell beer. What we didn’t anticipate was the 36-year journey it would take to see that vision realized. Fast forward to today: the beer revolution is finally here. Ontario has opened its doors to a new retail reality, enabling convenience stores the ability to compete and thrive alongside established beer retailers by offering convenience, variety, and outstanding customer service. 

For Premier Brands, this isn’t just an opportunity—it’s a call to action! Selling beer isn’t just about stocking shelves—it’s about creating a great customer experience. Our mission is to work closely with retailers on everything from beer styles and tasting notes to consumer preferences and trends. We believe that this knowledge helps retailers serve their customers better and fosters loyalty. We also understand the importance of margins. Our team is dedicated to helping retailers strike the right balance between offering affordable prices and ensuring sustainable profits for their business. This isn’t just about selling beer; it’s about building a business model that thrives.

Hélène Drolet

Vice-president operations excellence NA, Alimentation Couche-Tard

As we look towards 2025, the convenience store business in North America is ready for transformative changes driven by evolving consumer behaviours and technological advancements. One significant trend is the increasing emphasis on value. Customers, particularly in the wake of economic fluctuations, are becoming more discerning about their spending. They seek not only competitive pricing but also perceive value in quality and convenience. Stores that can leverage loyalty programs, bulk buying options and exclusive promotions will likely gain a competitive edge.

With the rise of digital payments and a growing preference for contactless transactions, many customers are opting for cashless experiences. However, a segment of the population still prefers cash transactions for various reasons, including budget control and privacy. Convenience stores must adapt to this dual demand, ensuring that they maintain adequate cash availability while also investing in digital payment solutions.

To thrive in this evolving landscape, convenience store operators should focus on understanding their customer base's preferences and concerns. By aligning their offerings with these expectations, businesses can enhance customer loyalty and drive sales in an increasingly competitive environment.

Mack Ewing

Director of strategic initiatives, Transchem Group

Going into this year and going forward, the big trend we see is on value: people coming to us as a supplier of car wash chemicals and cleaners, and equipment, want to be assured they are getting value for their investments.

Not just value as in a great price, but on ensuring that we are there as a partner for them and making sure they are getting the full value out of their investments to provide their car wash customers with the highest quality of service. We understand that. We know that operating a car wash today is expensive and people are looking to make sure the investments they make in the needed equipment and chemicals will pay off with higher customer satisfaction with their wash and higher customer retention.

That is why we are focused on making sure we are a partner who is there to support them in what remains a highly competitive car wash market here in Canada.

John Fournaris

Director, sales strategy, capabilities, Hershey Canada Inc.

The confectionery market is poised for continued growth and transformation in 2025, with Hershey driving innovation and addressing evolving consumer trends.

Hershey's commitment to innovation is a key strategic focus, keeping both the chocolate and sweets categories dynamic and exciting for consumers. Regular product launches help maintain the brand's relevance and drive consumer interest, as Hershey looks to stay ahead in the highly competitive market.

One such innovation is the highly anticipated Reese's+ Nougat, which capitalizes on the growing demand for indulgent, convenient snacking options. Research shows a rise in afternoon snacking occasions, and Reese's+ Nougat is designed to satisfy consumers' desire for the beloved peanut butter-chocolate combination in a portable format that fits their lifestyles. Hershey's is supporting the launch with a comprehensive 360-degree marketing plan, including integration with the brand's NBA partnership and strategic merchandising.

Moreover, Hershey's innovations have a proven track record of expanding the overall confectionery market. The company expects Reese's+ Nougat to attract both loyal Reese's fans and new consumers to the category, further driving growth.

On the other hand, building on the exceptional first-year performance of Reese's Caramel Big Cup, Hershey is poised to sustain momentum through ongoing media support and continued in-store presence, demonstrating the brand's confidence in the product's long-term potential and its unwavering commitment to meeting evolving consumer preferences.

Marc Goodman

Vice-president and general manager, 7-Eleven Canada

I believe the state of the economy will continue to challenge retailers in the convenience channel. While interest rate cuts in the second half of 2024 along with cooling inflation rates will be beneficial in the long run, it will take considerable time to really impact Canadians’ pocketbooks. This means Canadians will continue to have less disposable income in 2025, leading to more value driven shopping.

More specifically, shoppers will continue to seek out the lowest price.  If our industry continues to believe we should command traditional “convenience store pricing” we should continue to expect to see customers switching their shopping habits from our channel to shop more frequently at club and discount retailers.

It means Canadians will continue the movement to pay less and get more from private brands, versus purchasing the higher priced leading national brands. It means shoppers will seek out the hottest deals and simply become less brand loyal to our channel, as well as the retail brands within our channel, in order to get the best price.

We look forward to continuing to bring our customers high-value offers in-store and on delivery, as well as expanding our 7-Select private brand options. 

Paul Hogan

General manager, Conagra Brands International

There are several key themes we consider could be impactful in 2025. As Canada’s newcomer population grows, so will the demand/interest for global flavours in stores and recipes. 

We’ve responded to this increased demand with product innovations and flavour expansions across our snack, sauce and frozen meal portfolios and will continue to grow this area in 2025. Some new offerings include P.F. Chang’s Home Menu Frozen & Sauces, Swanson Chicken Taco Bake, Healthy Choice Chicken Fajita and Angie’s Boomchickapop Sweet Chili Puffs. 

This demand presents a unique opportunity within the industry to inspire and encourage consumers to welcome new origins, ingredients and flavours that will emerge locally and globally.

Andrew Mackay

President, BG Fuels

Rising costs are putting a lot of pressure on discretionary spending. Let’s face it, most of the products we sell in our stores are discretionary. For a gas and convenience retailer, there is something to be said for a smaller footprint, high-throughput site managed by a single attendant, which is why we’ve merchandised every square inch of available space with the top selling SKUs in our smaller Waypoint format stores. The lowest unit cost retailer can best withstand the pain when the competitive pressures intensify and will take the joy straight to the bottom line when markets turn around. I think we’re going to see consumers increasingly shopping for value, which means retailers are going to have to look long and hard at their unit costs and ensure that every $1 they spend generates at least $1.10 of value.

Finally, government action and inaction are increasingly detrimental to our business. By many accounts Illicit tobacco has overtaken legitimate, tax-stamped tobacco. Thieves help themselves with total impunity, laughing and urging the staff to call police as they walk out. The only recent bright spot in government intervention is the introduction of beer and wine in Ontario. What all this means for us as retailers is that we need to be more informed and get involved in the political process to ensure that our collective voice is heard.

Trends come and go. Some may stick, many will distract, most will eventually fade into oblivion. I believe the winners will be those that don’t venture too far from the tried and true…manage the costs, provide consumers with value, and engage with government on reducing regulation and enforcing compliance.

Tiina McCombie

National market director – energy fueling, National Energy Equipment Inc.

Replacing aging infrastructure, keeping up with technology and compliance with regulations can be a burden for many businesses. For c-store fuel retailers, these are everyday realities that have owners seeking ways to manage operations against rising costs and complexity, while finding new revenue streams. Many retailers who install pay at the pump technology for the first time or replace outdated devices, will make use of technology advancements with digital screens and connectivity at the fuel islands to deliver rich media content for marketing and targeted advertising to increase in-store visits and generate additional revenue with an elevated customer experience. Retailers increasingly have loyalty program partnerships with other merchants, which is spurring a rise in purchase of bar code scanners with contactless payment at the pump for enhanced consumer engagement, convenience, and participation to maximize the cooperative benefits.

Opportunities for installing EV fast charging continue to grow as more battery and plug-in hybrid electric vehicles hit the road. These installations require careful long-range planning with the help of industry specialists to maximize opportunities for tapping into funding programs for charging infrastructure and avoid unexpected pitfalls. Funding programs are becoming more strategic with specific use cases for qualification that address the need for more powerful chargers and to serve medium and heavy-duty transport.

With the increase in biofuels availability and use in Canada, fuel wholesalers and retailers are preparing their facilities for higher blends of ethanol and renewable diesel in the energy mix for reducing carbon emissions in transportation.

Serge Nadeau

Vice-president projects and development, Groupe Beaudry

Going into the new year and next, we will continue to see an evolution of the convenience market, with customers turning to convenience stores for more of their shopping needs. 

Convenience stores are becoming shopping destinations for Canadians who are looking for fast, freshly made meals (both to eat on the road or to take home with them) be it for lunch or dinner, and at prices that are easy on the pocketbook.

This year and in the following years, we are going to be working to make our convenience store partners destinations for breakfast, lunch and dinner, from family take-home frozen meals to desserts. 

Our teams here at Groupe Beaudry are always working to create new and exciting fresh food options, healthier options and an ever-expanding cuisine of flavours and choices for customers to try. 

Nicolas Parra

Negotiation and merchandising director, Proximity banners, Metro

The economic outlook for 2025 appears cautiously optimistic, though uncertainty lingers. Quebecers, grappling with recent declines in purchasing power, are expected to stay mindful of their budgets while seeking moments to indulge and treat themselves.

Our Proximity banners, especially our Servi Express convenience stores, are well-positioned to meet these evolving consumer needs. Through investments in store upgrades and supply chain modernization, we are offering a greater variety of products and a higher level of service. Our private labels, particularly our [newly rebranded] Irresistible signature, stand out by delivering like-for-like to superior quality at competitive prices, ensuring customers find value without compromising on quality.

The year will also bring significant external changes. Planned tobacco tax increases are likely to either reduce consumption or drive more consumers toward contraband, presenting challenges for the industry. Additionally, Quebec’s new deposit regulation, effective March 1, 2025, marks a transformative shift for both customers and retailers. As discussions continue, adapting to these changes will be critical.

Whatever challenges or opportunities lie ahead, we are prepared to navigate 2025 with a focus on supporting Quebecers and strengthening our connection to the communities we proudly serve.

Anthony Ruffolo

President, McCowan Design & Manufacturing

As the Canadian c-store industry continues to grow and diversify its revenues, McCowan is being driven by three market trends as we approach 2025. The modernization of forecourts, the on-going growth of foodservice offerings and reimagining the tobacco back bar.

Forecourts are being modernized to accommodate EV charging and improve services offered to customers at the pumps. Trash units are being updated to provide a modern aesthetic ready for the future. Rusty old merchandisers are being replaced with long-lasting options that are more economical, environmentally friendly and make a positive first impression on customers.

Foodservice offerings continue to increase in scope and sophistication. To meet these growing requirements, refrigeration is commonly being integrated into our modular cabinets. Solid surface and metal counter tops are the new standard because of their outstanding durability and ease of cleaning. Millwork features are being used to create warm and inviting environments. Aesthetics and cleanliness in the food service area are a valuable tool in helping to communicate the quality of your food offering to customers.

 Tobacco back bars are evolving. Back walls are increasingly being used to communicate with customers through digital advertising or act as a feature wall to vend product. It has become common to vend tobacco from security cabinets under the counter. Tobacco security has become a significant consideration when designing a cash counter.

2025 will be a year of continued progress in our industry and McCowan is excited to support it.

Scott Simmons

President, Ontario Craft Brewers Association

I believe a key trend for 2025 will be local convenience stores embracing ‘real’ hyper-local craft beer. Ontario convenience store owners currently need to fill at least 20% of their shelves with local brewer products by law, and I encourage every store owner to seek out and stock the brands of the brewers in their local community. It makes sense for stores to over index, and stock more of their shelves with craft beer as these breweries are the essence of local. ‘Community’ is a defining feature of Ontario’s craft beer sector, and we know convenience stores are landmarks and gathering spots in many towns across Ontario. 

 Craft beer is also what many consumers want, as the breweries are always innovating through seasonal rotations and collaborations with other breweries, featuring different ingredients and styles that embrace their community. This provides an amazing opportunity for convenience stores to provide a range of beer styles for every consumer’s taste. It’s clear that featuring hyper-local craft beers is also a great way to improve a store’s bottom line. There is significant data from grocery stores that craft beer consumers generate larger overall basket sizes when they shop, which could help generate more sales in the convenience store channel. 

 So, my message to store owners is to make 2025 the year they embrace craft beer and put in the effort to become a craft beer destination in their community for locals and visitors alike. It’ll be a true win-win and a very exciting future!

Karen Smith

President, Canadian Car Wash Association

In 2025, the car wash industry in Canada will focus on making things easier and better for customers, while taking advantage of smart automation.

Customer experience will be front and centre, as businesses try to offer more personalized and convenient services. Features like app-based payments, subscription plans and loyalty rewards will become the norm, making it simple for customers to get the services they need. Technologies like AI and license plate recognition (LPR) will play a big role in making the customer experience seamless, from automatic vehicle identification to customized wash preferences and faster service.

Monica Izzi, operations manager at the Valet Car Wash in Niagara Falls, Ont. said, “I would say a big trend is leaning further into AI and updated technology. A lot of our locations (and any new ones being built) are upgrading to plate scanning technology. We want to make interactions with customers as smooth as possible, especially for members, who just want to pull up, redeem their wash and move on with their day. Personal interactions are still important, especially for new customers, but once they know the drill, getting them in and out of the wash as smoothly as possible (while still maintaining our quality standards) is super beneficial for us and the on-the-go customer.”

On the automation side, new technology will continue to change how car washes operate. Smarter systems, like AI that helps manage busy lines or advanced sensors for precise cleaning, will speed up the process and deliver consistent results every time. Jaclyn Kennedy, operations manager, Valet Car Wash says there is a, “push on ceramic and graphene in the car wash industry. It's a big buzzword right now.”  These upgrades not only make things run more smoothly, but also create a faster, hassle-free experience for customers.

But at the end of the day, no matter how much technology we add, the goal stays the same: delivering a clean, dry, shiny car!