Northeast: Region 1

The Northeast (Region 1), which extends from Maine to Virginia, saw best-in-class sales and gross profit performance in 2024. Fuel declines for Region 1 followed a similar pattern as the national benchmarks, while total sales were 46.7% higher than the national average.

“Compared to the national average, Region 1 averaged larger stores, higher inside transaction counts, higher basket value and more inside sales per square foot,” said Jayme Gough, director of research and development at NACS.

The Northeast is known for its high inside sales and expansive foodservice programs—13.8% of total sales are attributed to foodservice, compared to the national average of 10.3%. Foodservice also represents 31.2% of total store gross margin, compared to 24.0% for the national sample.

The region saw a 2.6% decrease in total sales, a result of fuel sales down 6.6%, driven by the average selling price drop of 4.5%. Inside sales rose 1.2%, but not enough to offset the decline in fuel.

Though flat year over year, total transactions in Region 1 were 19.0% higher than the national average in 2024.

$9.84 the average basket in Region 1

Direct store operating expenses (DSOE) growth outpaced inside gross profit growth in the Northeast last year. Inside gross profit was up 2.6%, or about $4,300 per store, per month, while DSOE was up 10.6%, or about $14,000 per store, per month.

The average basket value was $9.84, $1.79 higher than the national average of $8.05. Inside operating profit per transaction was 30 cents in 2024, down from 62 cents in 2023, impacted by rising expenses.

“Region 1 saw strong sales and profit figures supported by large expenses, and as expenses continue to grow, we must keep an eye on them,” Gough concluded.

Southeast: Region 2

Region 2, which consists of southern states from Florida to Tennessee, saw fuel gallons up year over year while most other regions were flat or down in 2024.

Fuel in Region 2 accounts for a larger part of total sales and margin mix compared to the national sample. Fuel generated 73.8% of total sales mix in Region 2, compared to 65.8% for the national sample, and 48.2% of margin mix compared to 38.3% for the national average.

Fuel sales in the region were 23.2% higher than the national average, despite being down 3.9% year over year. Fuel gross profit grew 4.6% from 2023 to 2024 and was 11.7% higher than the national average.

On the other hand, Region 2 saw a lower sales mix from foodservice, though within the region there has been sales growth. Region 2 also saw high food spoilage growth over the past two years. Gough suggested this significant increase could be attributed to “growing pains” as food-forward retailers in the region invest heavily in foodservice.

Total inside sales were essentially flat year over year, but foodservice sales in Region 2 grew by a notable 7.3%. Inside gross profit in the Southeast grew 1.8% from 2023 to 2024, a result of double-digit (10.2%) growth in foodservice gross profit year over year.

Other positive takeaways for the region included improving turnover—non-manager turnover decreased from 169.0% to 145.7% in 2024. And while the labor market is “exceptionally difficult” in Region 2, turnover and productivity metrics still showed positive trends, noted Gough.

189,567 fuel gallons sold per store, per month in Region 2

Inside transactions also grew 1.7% year over year in 2024, and pump transactions were down 3.1%, which netted out to a very slight increase of 0.1% in total transactions.

The Southeast saw an average basket size of $8.78 per transaction per store, per month in 2024, down 17 cents from the year before. After accounting for the cost of goods and other expenses, the profitability of the basket was negative 36 cents of inside operating profit per transaction, which was a 16-cent swing in the wrong direction from the previous year’s negative 20 cents.

Gough emphasized that this calculation does not include fuel and stressed that retailers should not be alarmed by this negative figure when considering the overall store performance. That said, pushing this figure into the positive is a key indicator of the health of the in-store aspect of the business.

Midwest: Region 3

Region 3 mostly mirrors the national sample in terms of sales and gross margin mix, though the region generates more profit mix from the inside of the store compared to the national sample, specifically from merchandise.

Fuel sales, slightly less than the national average, followed the path of the national sample, down as a result of year-to-year selling price decline. Total inside sales, 1.4% higher than the national sample, were flat year to year, the result of a merchandise sales decline offset by foodservice sales growth.

Transaction counts in the Midwest were a bright spot. Total transactions increased 1.9% year to year, and saw growth both at the pump (up 3.1%) and inside the store (up 1.6%).

While nominally, the region generates less gross profit compared to the national sample in all areas with the exception of merchandise, the Midwest saw year over year increases in key areas inside the store. Foodservice gross profit increased 2.8% year over year while merchandise increased 1.7%, leading to a total inside gross profit increase of 2.2%.

Region 3 saw growth in direct store operating expenses (DSOE), yet at a slower rate in 2024 compared to previous years. While lower than the national average, total DSOE increased 3.1% year over year. All expense lines increased year over year, with the largest increase in repairs and maintenance (up 9.3%), followed by wages and benefits (up 3.5%) and supplies (up 1.8%).

“Labor costs in Region 3 are higher than the national average across all metrics excluding workers’ compensation,” said Jenna Collard, director of education engagement at NACS. “However, a double-digit increase in worker’s compensation year-over-year significantly contributed to the region’s higher expenses.”

A bright spot: Larger investments in labor expenses may have positively impacted turnover rates, which improved year over year, down 13.1 points to 97.3% for non-managers and 2.6 points to 27.1% for managers.

Despite inside transaction growth in Region 3, basket value declined by 11 cents from $7.25 to $7.14. Coupled with the cost of goods and expense increases year over year, inside operating profit per transaction swung from positive 4 cents in 2023 to negative 7 cents in 2024.

South Central: Region 4

Region 4, centered on Texas and including surrounding states, “outpaced the national average in fuel volumes but faltered a bit on the inside,” said Chris Rapanick, managing director of NACS Research. Total sales in the region declined year over year but were 4.9% higher than the national average ($769,976 compared to $733,897). Fuel sales were also 12.6% higher than the national average and fuel gallons were 21.8% higher. Within the region, fuel gallons increased 1.2% compared to 2023, while total fuel sales declined 7.5% year over year due to a drop in selling price.

“It’s positive that there was improvement in the fuel versus inside sales mix. Fuel was 76.2% of the business in 2022 when gas prices were high, and over the past two years the business has trended back to the inside,” said Rapanick.

Foodservice sales gained ground, increasing from 6.1% of sales in 2023 to 7.1% of sales in 2024, following the national trendline. Region 4 also picked up more merchandise share of the sales mix: 21.8% in 2024 compared to 20.7% in 2023.

8.2% increase in foodservice gross profit in Region 4

Although about one-third of gross profit in the region is from fuel, 42.4% comes from merchandise, higher than the national average of 34.3%. Region 4 lagged behind the national average in foodservice gross profit, but outpaced in other income categories (6.5% compared to 3.4%), with a large portion coming from car washes.

Inside the store, Region 4 does less sales per store, per month compared to the national average, but saw 1.6% improvement year over year, driven wholly by a 7.8% improvement in foodservice sales. However, inside transaction counts declined 6% in Region 4 (down to 33,163 per store, per month).

From 2023 to 2024, total store gross profit was up 1.3%, primarily due to an in-store gross profit increase of 1.8%, a result of strong foodservice gross profit growth of 8.2%. Other income was up 2%, and fuel and merchandise gross profit were relatively flat with a less than 1% change.

When evaluating the profitability of the basket, which averaged $6.28 in sales, inside operating profit was down 30 cents after subtracting the cost of goods and direct store operating expenses.

“With inside transactions down, but the fuel business up in this region, retailers should zero in on increasing transaction counts. If someone is at the pump, you have an opportunity to convert them inside the store and that profitability is key,” said Rapanick.

Region 5: Central

Stores in the Central region, which spans from Montana to Missouri, showed strength in foodservice and in-store merchandise sales in 2024.

Fuel makes up 64.4% of the region’s sales mix, followed by in-store merchandise at 25.5% and foodservice at 10.1%, which are close to the national average. The region’s margin mix also mostly mirrored the national average.

“In 2024, the Region 5 merchandise gross profit mix was nearly two points higher than the national average because it is less densely populated with people per retail outlet,” said Collard. “Consumers shop their local convenience store for fill-in items before larger shops at bigger retail outlets, which might be further away.”

The region reported outstanding growth in foodservice as it catches up to the national averages. Overall, the region reported $52,610 foodservice sales per store, per month, trailing the $71,569 national number.

Fuel sales in the region decreased 4.6% despite a 4.6% increase in fuel gallons sold, driven by an 8.8% drop in fuel price. Inside sales increased 5.4% overall, driven by increases in both foodservice (up 7.1%) and merchandise sales (4.7%). Total transactions in the region were also up 3.6% from 2023, a result of strong inside transaction growth of 4.4%.

The region’s total gross profit increased 5.4%. In-store gross profit was a driving force behind the growth with an 8.4% increase year over year, even though the increase in fuel volumes helped fuel gross profit increase 1.0%. Other income was also a highlight, with a 4.1% year-over-year increase in gross profit.

Basket value for the Central region improved 6 cents year over year, and unlike many other regions saw a decrease in the cost of goods sold. This combined with an increase in other operating income helped the region remain positive and positively grow inside operating profit per transaction. The region increased from 6 cents of inside operating profit per transaction in 2023 to 11 cents in 2024 and was the only region to see an improvement in this metric year over year.

7.2% increase in prepared food sales in Region 5

Direct store operating expenses (DSOE) continued to climb in 2024 compared to the national average. “Forward-thinking retailers should strategize to not depend solely on the fuel gross profit dollars to cover operating expenses,” Collard said.

West: Region 6

The West region includes nine states, headlined by California.

The region is known for high fuel volume and a high reliance on fuel, with 81.2% of sales mix being from fuel. Total fuels sales outpaced the national average by 18.1%, with the average selling price of $3.69 11.5% higher than the national average. Additionally, the West saw fuel account for 57.3% of total gross margin.

Fuel sales in the West declined 14.0% from 2023 to 2024, largely driven by the lower average selling price in 2024 (a 10.9% decrease) and a slight decline in fuel gallons sold (a 3.5% decrease). “This is the same kind of phenomenon that we saw with the national averages … If you look at your selling price year over year, $4.14 was the average in 2023 and it was just $3.69 in 2024,” said Rapanick.

Rapanick noted that there is opportunity for retailers to diversify revenue streams using the high fuel margin, which is 55.5% higher in the West than the national average. “If you’re an owner/operator earning an almost 64 cent margin on fuel, I would suggest to you take that money and reinvest it into your business,” he said. “If you have the capacity to do foodservice and you think there’s an opportunity, do it. If you can build a car wash, then do it. Fuel margins aren’t as reliable as they used to be.”

14% decline in fuel sales in Region 6

Region 6 averages smaller stores and typically has less inside business. However, the region saw year over year improvements in inside categories. Foodservice sales in the region increased 13.0% year over year and merchandise sales grew 3.2%, leading to total inside growth of 4.7% year over year.

In-store-store gross profit also improved in 2024, up 3.7% compared to 2023. While the increase was primarily driven by a substantial increase in foodservice gross profit (up 9.5%), merchandise also improved 2.5% year over year.

The West does well in other income, which includes items like lottery, ATM and car wash. The region saw $7,438 per store, per month from other income, which is 21.5% higher than the national average. “[Retailers] should continue to provide services to customers that they can make a money on, and it also helps customers see them as a destination for that type of visit,” Rapanick said.

While smaller than the national average on a per store, per month basis in all lines with the exception of card fees, total DSOE increased 8.4% year over year in Region 6. In fact, two expense lines, repairs and maintenance and supplies, were both up over 20% year to year.

DSOE and facility expense growth also impacted inside operating profit per transaction in the West. While Region 1 has the highest average basket value across the regions ($10.03), a per-transaction increase in expenses pushed the inside operating profit per transaction metric further into the negative, from 70 cents in 2023 to 95 cents in 2024.