It’s an exciting time in the ever-evolving retail media industry, with near-daily advancements in technology, new Retail Media Networks (RMNs), and enhanced capabilities creating fresh opportunities for both retailers and CPG brands.
While retail media has made a significant impact across retail, its greatest success has been in grocery, where robust loyalty programs and regular, returning shoppers provide a strong foundation. However, another sector is equally poised for success: convenience. The convenience retail sector has seen remarkable growth, embedding itself firmly in consumers’ purchasing routines.
According to the 2023 Convenience Store News Industry Report, total U.S. convenience store sales reached a record $814 billion last year—a substantial 23% year-over-year increase. The number of convenience stores also grew by 1.5% in 2023, surpassing 152,000 locations nationwide. Major chains like Wawa are expanding their footprints, reinforcing the sector’s strength.
As Jeffrey Bustos, VP of Measurement, Addressability, Data & Commerce at the IAB, recently wrote, “C-stores present a largely untapped opportunity in the realm of RMNs, ripe with potential.”
Convenience retailers are already capitalizing on their unique positioning. In March, Wawa launched Goose Media Network, joining Casey’s (Casey’s Access) and 7-Eleven (Gulp Media). At SMG, we anticipate more convenience retailers will enter the RMN space in the coming years due to three key factors that drive incremental ad spend from CPGs.
1. Shopper Mindset and Mission
Convenience store shoppers typically seek immediate fulfillment rather than a large stock-up trip. While basket spend may be smaller than at a grocery store, C-store shoppers are highly open to impulse purchases and brand inspiration. A survey by NCSolutions found that 71% of shoppers discover new products and brands in convenience stores. This presents a significant opportunity for retail media campaigns, as consumers are more likely to purchase closer to the moment they see an ad.
2. Frequency of Visits
Shoppers visit convenience stores far more frequently than traditional grocery stores, particularly in North America, where fuel-related trips drive consistent traffic. This regularity increases ad exposure and improves targeting opportunities. Data from SMG’s proprietary Plan-Apps technology shows it typically takes 3-5 interactions to drive a purchase—a threshold that convenience stores can meet faster than grocery retailers.
3.Store and Product Format
With smaller store footprints than grocery chains, convenience retailers can more effectively track a shopper’s journey and optimize ad placement. The compact format increases the likelihood of engagement with brand advertisements, maximizing CPG investment. Additionally, C-store products are often sold in smaller, trial-friendly formats, making them attractive for CPGs looking to test new products before wider distribution. The higher margins on convenience store products further enhance their appeal as an investment channel.
Convenience stores provide a unique and highly personalized setting for retailers and CPGs to reach new audiences. Through our work managing Co-op Media Network for Co-op, the UK’s leading convenience retailer, we have seen the benefits of leveraging the scale and unique dynamics of convenience shopping. As Kenyatte Nelson, Chief Membership and Customer Officer at Co-op, explains, “Convenience shopping and supermarket shopping are different purchasing occasions, and brands will see greater sales and brand-building benefits by executing media against both.”
With RMNs often ranking as the most profitable segment of a retailer’s business, the question isn’t whether convenience retailers will capitalize on this opportunity—but which one will be next.
