How retailers and manufacturers can win in a value-driven market
Canada’s convenience and gas (C&G) sector remains a vital part of daily life, with 97% of Canadians visiting gas stations and 90% shopping convenience stores in a typical three‑month period. Yet despite this dependable traffic, in‑store spending is shifting, driven by rising price sensitivity, changing category performance, and new shopper segments with distinct needs. For both retailers and manufacturers, the path to growth now depends on reframing value, re‑energizing trip missions, and reconnecting with younger and newcomer shoppers who are reshaping expectations across the channel.
Market overview: Stable traffic, but behaviour in flux
Over the past year, Canada’s convenience and gas channel held steady (+0.0%) in dollar sales while unit volumes increased +1.5%, driven largely by alcohol and energy drinks. Although traffic remains steady, the way Canadians shop the C&G channel is evolving. Currently 65% of fuel trips still include an add‑on item but baskets are shifting. Tobacco, beer, and extreme energy drinks remain the biggest traffic drivers, while refrigerated juices and bakery items are seeing notable declines. Overall, growth is concentrated in quick‑trip, indulgent, and immediate‑consumption categories.
Even though convenience stores attract shoppers primarily for fuel, but two‑thirds also purchase FMCG items, showing strong opportunity to build baskets beyond the pump. The most‑shopped categories are beverages, snacks, and perishable foods, highlighting the role of quick, immediate‑consumption needs in driving in‑store sales.
Price sensitivity is rewriting the trip mission
Across the country, shoppers are calibrating their behaviour around the cost of fuel and in‑store items. More than half of Canadians say gas prices affect how much they fill up, and one‑third delay purchases until prices drop. When consumers spend more on fuel, many spend less on snacks, drinks, and lottery, amplifying the ripple effect of volatile gas prices inside the store.
In the convenience store environment, price remains the top barrier: 69% of consumers cite higher prices as the primary reason for avoiding c‑stores outside of fuel needs. This dynamic makes pricing, competitive promotions, and loyalty‑linked value more critical than ever. Shoppers continue to seek speed and ease, but they no longer accept a premium without justification.
Convenience store missions: Reliable frequency, evolving needs
Convenience store usage remains steady, with 79% of shoppers expecting to maintain their current visit frequency next year (24.5 trips / year). Location dominates store choice, but mission types are shifting toward quick in‑and‑out needs, familiar services, and essential top‑ups rather than destination purchasing. Beverages, confectionery, and snacks continue to anchor baskets, yet these same categories are seeing strong pull toward value formats in warehouse clubs, dollar stores, and ethnic grocers. Maintaining competitiveness in both price and assortment will be essential to defending share.
Mapping growth opportunities for retailers and manufacturers
Retailers’ first opportunity is to redefine value in a way that resonates with today’s more cost‑conscious consumer. This means offering promotions and bundles that align with common missions such as drinks-and-snacks, highlighting clear price points, and more tightly linking loyalty rewards to in‑store categories. By helping consumers feel that a quick stop offers strong value, retailers can counterbalance the dampening effect of rising gas prices.
The second opportunity lies in better converting fuel‑only shoppers into in‑store customers. With most consumers paying at the pump, retailers must bring the store to the fore with pump‑level prompts, digital displays, and targeted on‑the‑go offers that highlight convenience, speed, and freshness. Improving quick‑grab assortments can also capitalize on the 40% of shoppers open to unplanned purchases. Together, these strategies turn routine fuel stops into meaningful retail occasions.
Manufacturers can help reinvigorate beverages, snacks, confectionery, and other core C&G categories through value‑forward innovation. Developing new flavours, formats, and pack sizes that meet immediate‑consumption needs at accessible price points can help counteract the leakage to value channels.
The second opportunity is to appeal to emerging segments, especially newcomers and younger consumers, through culturally relevant flavours, essentials and assortments. Packaging and merchandising that reflect cultural diversity and on‑the‑go relevance can strengthen category performance and reconnect these shoppers with the C&G channel.
The future may be uncertain, but consumers will continue to depend on convenience and gas retailers for quick, value‑driven solutions as price sensitivity shapes their choices. In the year ahead, winning retailers will be those who pair strong everyday needs with experiences that foster loyalty and keep shoppers coming back.
