Wells Fargo Securities outlines industry trends.

Wells Fargo Securities LLC hosted Wells Fargo’s 2nd Annual Convenience Store Forum in conjunction with the National Association of Convenience Stores (NACS) conference in Las Vegas last week.

Wells Fargo listed five key themes for the c-store industry:

(1) Industry is ripe for consolidation, which should drive efficiency and scale;

(2) Favorable demographics including the growth of Hispanic consumers who are heavy users of c-stores;

(3) Increased focus on women and Millennials;

(4) Shifting consumer preferences to “Fresh” and “better-for-you” product in c-stores; and

(5) Increased importance of foodservice to drive traffic as gas demand continues to decline.

“We expect continued multiple expansion for the best-in-class c-store operators as the industry embarks on a new era of growth and sophistication,” noted Bonnie Herzog, managing director, beverage, tobacco and convenience store research, Wells Fargo Securities LLC.