By Frank Gleeson, NACS president and CEO
There’s no question we’re operating in a changing and sometimes uncertain environment—economically, politically and operationally.
When we wrapped up a successful and informative NACS State of the Industry Summit on April 16, my message to retailers was simple: There’s plenty of uncertainty, but the focus should be on your business. Control what you can improve upon and respond to outside events as the market changes.
At NACS, one of the most important things we do on your behalf is aggregate our industry’s impact—and the numbers are powerful. Every day, 160 million transactions take place in convenience stores across the United States. That means the average American is walking into one of our stores every other day. We also collect $232 billion in state and federal taxes, making our industry incredibly important to government. We can drive change, but only when we work together. That’s why it’s critical we have a strong, unified voice.
We’re fighting some long-standing challenges. Credit card swipe fees —$21.3 billion annually taken out of our industry—remain an unfair cost to our businesses. This is a pervasive issue we’ve been working on for over two decades, with some notable successes along the way. Grassroots engagement will be key to finally bringing competition to credit cards through market-based reforms.
Fuel continues to be a strong contributor to industry profitability, and I believe liquid fuels will remain the primary transportation fuel for a long time. Yes, EVs are coming, and yes, vehicles will become more efficient, but fuel is still a massive and essential category.
Advanced technology used inside the vehicle, whether smartphones or the vehicle’s own system, will increasingly influence customer path to purchase. Through industry organizations like the Transportation Energy Institute and Connexus , we’re focused on data, standards and digital infrastructure that help retailers adapt as vehicles and technology evolve.
Inside the store, we’re watching some softer transaction trends closely. Through the NACS/Coca-Cola Retailing Research Council , we’re conducting research to better understand trips and identify opportunities for improvement.
A lot has been said about AI—and for good reason. It’s real, it’s here, and it will change your business. My advice is to test AI where it makes sense, and focus on the problem you want to solve: inventory management, category management, in-store efficiency. Labor is expensive, and so is inefficiency. AI won’t solve everything, but smart experimentation will make you more competitive.
Value will always matter—especially in what many are calling a K-curve economy , where higher-income consumers are doing well while lower-income consumers feel real pressure. Forty percent of consumers say their financial situation has changed how they shop. That means choices matter, and so does understanding the value proposition at every individual site.
As competition intensifies—from QSRs to dollar stores—differentiation is critical. For decades, foodservice has been one of the strongest drivers of traffic and profitability, but only if it’s executed consistently. In fact, consistency is foundational across the entire business. Retailers who get it right build trust, loyalty and repeat visits.
Foodservice represents one of the biggest opportunities for our industry because it can drive multiple visits a day, build meaningful loyalty and create strong impulse purchases across adjacent categories. It’s not just another category; when done well, it can turn customers into “super fans” who return often and develop a deep connection to your brand.
While innovation matters, customer experience—especially human connection—remains essential. Convenience stores are deeply rooted in their local communities. It’s important to remember that for some of your customers, a team member may be their only point of human interaction that day. Human connection will always be our competitive advantage.
Finally, we’re stronger together. The more you engage with NACS, the better we can represent your needs and advocate on your behalf. This is a big year for issues like credit card fees, illicit tobacco , SNAP and regulatory fairness—and your voice matters.