Resilient reinvention
As I listened to Prime Minister Carney give his speech at the World Economic Forum in Davos, Switzerland, about how Canada and other “middle powers” must adapt to a new, emerging world order, I couldn’t help but bridge the parallels between his commentary and the new normal for Canada’s convenience industry.
“We're in a rupture, not a gentle transition. The old rules-based world order? It's crumbling under great power rivalries, where tariffs weaponize trade and supply chains become chokeholds. But middle powers like Canada aren't helpless. We can forge a new path through "values-based realism"—principled yet pragmatic, building coalitions, diversifying ties, and claiming strategic autonomy,” the PM said to global accolades.
Sounds familiar.
Canada's convenience industry is living through its own “rupture.” Our 2025 State of the Industry (SOI) report paints a sector battered by COVID aftershocks, inflation and ongoing trade wars, all in the wake of increased competition.
Store counts dipped 2.9% to 21,256 last year with closures slowing from four a day in 2022 to 1.5 now—a decelerating contraction, but contraction nonetheless.
Employment held at 182,808, yet sales categories like cigarettes plummeted to $3.8 billion amid a thriving contraband nicotine black market. Add sky-high credit card fees (c-stores second-highest expense) and 47% of $53.4 billion in sales funnelled to governments, the picture becomes clear—the old model is fracturing.
Yet, like PM Carney's middle powers, corner stores aren't powerless. We’re the definition of grassroots and ubiquity is our strength, serving 60% of Canadians weekly in 21,000 communities across the country.
And for years, retailers have been forced to endure the challenging and unfair status quo –comply with excessive and punitive regulations, absorb increasing fees and watch profit margins erode.
But the SOI results prove that we are forging our own, new path. Resilience makes up c-store retailer DNA. Post-pandemic, we’ve pivoted to meet ever-changing customer demand including focusing on prepared food options, adopting technology to serve a new and younger clientele all while being forced to do more with less.
The real gamechanger? Ontario's alcohol liberalization in September 2024, a CICC advocacy win after 98 years of monopoly. More than 4,000 stores added beer, wine, and ready-to-drink beverages, spiking sales 12% overall—33% on long weekends. It's not just booze; it's bigger baskets, lapsed shoppers returning (51% say they would come back), and young adults (35% of 19-24s planning purchases) re-engaging.
Ontario's move is values-based realism in action; principled and pragmatic. It boosts local businesses, enhances consumer choice while offsetting declines in legacy categories.
CICC Board Members echo this sentiment. Sunoco LP’s Elliott Collyer calls closures "portfolio strengthening," not defeat. 7-Eleven's Marc Goodman stresses growth per store over sheer numbers. Harnois Énergies' Mathieu Robillard highlights illicit markets forcing evolution. They're building autonomy—reducing reliance on double-digit shrinking tobacco sales and increased competition by innovating in foodservice and ethnic products.
Diversify tops the convenience industry’s to-do list. By 2035, population growth hinges on newcomers; CICC's multicultural shopper study reveals opportunities in ethnic foods, non-alcoholic beverages, and community ties. Urban/suburban markets are transforming where there was a bigger demand for halal snacks, Diwali promotions and Lunar New Year deals to capture diverse tastes.
Innovation is also key. Adopt tech for data-driven personalization. As CICC executives put an increased focus to know your customer, personalize the offering to better serve that customer and become a destination.
The Prime Minister says nostalgia isn't a strategy; neither is clinging to old products on shelves. Canada's convenience stores embody his "power of the powerless"—we are lifelines in rural areas, yet community anchors everywhere.
By adapting and taking bold steps, the industry can thrive in this new reality that as PM Carney outlines, which demands “we stop pretending, to name reality to build our strength and act together.”
After all that’s what the convenience industry has been doing for the better part of the last decade, while forging new alliances and innovating relentlessly.
The future isn't revival; it's resilient reinvention.
