As c-store retailers see shifts in categories like tobacco and foodservice, young executives are paving the way forward in an evolving industry.
Today’s young executives and leaders of tomorrow are inheriting a rapidly evolving c-store landscape. Nowhere is that more evident than in the tobacco category where regulatory heat and changing consumer preferences are reshaping the backbar.
Given declining cigarette sales and ongoing tobacco regulations, retailers are branching into new profit centers, particularly in the foodservice arena. But food trends are ever-changing as well and foodservice strategy is also shifting for retailers. This month’s food column, “Six Factors for Success in C-Store Foodservice,” discusses how c-stores are modifying their approach to food to fit new customer needs.
But even as the industry changes and more c-stores add food, tobacco remains a key category for c-stores.
Convenience stores account for 70% of U.S. tobacco sales, pointed out Don Burke, senior vice president, Management Science Associates, in this month’s cover story, “Tobacco and Nicotine: Charting the Way Ahead.”
“This level is unlikely to change dramatically over the next several years, meaning that even though tobacco is a declining category, it is still one of the largest revenue-producing categories for many convenience stores and is also a strong driver of store visits,” he continued.
Out of all the tobacco segments, vape is currently feeling the most heat on the federal level. As this month’s article, “Compliance Vital for Vape,” points out, the Food and Drug Administration at press time had only approved 23 tobacco-flavored vape products and had started enforcement actions against retailers selling illegal vapes. But confusion abounds for retailers, who are often unclear on where products are at in the approval process or how best to handle products that wait in limbo without a marketing denial order or a marketing granted order.
Meanwhile, as covered in this month’s article, “Retailers React to Menthol-Ban Moratorium,” the final rules on a proposed ban on menthol cigarettes and characterizing flavors in cigars has again been bumped down the line — likely until after the election. But a possible future ban still hangs over the categories.
At the same time retailers must remain vigilant about changing regulations at the state and local level.
One thing is certain: the tobacco category is shifting as is the c-store marketplace itself, and it is next-generation and young executive leaders that will be bearing the brunt of navigating these changes in the industry.
This makes it more important than ever that next-generation leaders have a community of peers with whom they can discuss the unique challenges ahead.
CStore Momentum
To that end, CStore Decisions and the National Advisory Group (NAG) are introducing CStore Momentum (formerly the Young Executives Organization Conference). This exclusive event is tailored to young leaders (traditionally under or around 40 years of age) in the convenience store industry and offers a transformative experience designed to propel emerging leaders to new heights of excellence and help prepare them for the challenges of tomorrow.
This year’s event will take place Sept. 18-20 at the Texas Motor Speedway in Fort Worth, Texas, hosted by Yesway. Young executives and next-generation leaders will have the opportunity to engage in educational sessions on topics such as foodservice, leadership and consumer engagement; interactive workshops; and networking opportunities to help expand their industry knowledge and cultivate the skills needed to thrive in a fast-paced, evolving environment.
CStore Momentum is a NAG member-only event. Attendees must be employed by a NAG member company or have been inducted into the 2023 class of the 40 Under 40. Learn more and register at cstoremomentum.com.
