Given the combination of rising costs and growing customer price sensitivity, convenience stores will need to get creative with pricing to woo customers to open their wallets in 2025. Peter Rasmussen, CEO and founder of Convenience & Energy Advisors, pointed to value-based pricing as one potential approach.
“Emphasizing value through strategic pricing, bundle offers and promotions will help attract more cost-conscious consumers,” he noted. But it’s important that retailers pay attention to the data.
“Buy/Get performs better than two-fors, as an example — so don’t just discount, but discount with the highest possible take rate,” he said.
Retailers can also take a trade up/ trade down approach. In other words, provide a mix of premium and value options across categories, allowing retailers to cater to a broader customer base.
“Price tiers help balance the need for higher margins on premium items, while still appealing to more budget-conscious customers,” Rasmussen explained. “Just the same, a consumer may purchase value and premium together, as we all enjoy attainable luxury.” But it’s important not to discount everything, Rasmussen warned. “Don’t discount products and categories that will command full retail despite your pricing strategy,” he said.
Whatever pricing strategy c-stores choose, retailers should ensure it is data driven, category specific and that they balance margin with value, noted Matt Riezman, a partner at NexChapter, a c-store advisory firm.
With access to more data than ever, retailers can leverage these insights to deliver value, protect margins and understand a category’s role in the customer journey — whether it serves as an impulse buy or a trip driver — while integrating these factors into their pricing strategies.
While price volatility is expected to persist through 2025, Riezman noted the silver lining is that c-stores have the tools to navigate these challenges by leveraging data effectively, establishing strong strategies and staying committed to them in the year ahead.
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