Since 2020, the convenience store market has transformed dramatically into full-fledged retail and foodservice hubs.
In 2024, U.S. c-stores set an in-store sales record of $293.2 billion (a 1.9% rise over the prior year), contributing to overall industry sales of about $755.2 billion. But that headline masks challenges: inflation and online shopping are squeezing margins and curbing demand for staples.
As a result, growth has slowed to the low single digits. At the same time, consumer tastes are shifting toward premium fresh foods, which now drive foot traffic and sales growth.
Competitive Race
Major chains are racing into new markets. In recent years, QuikTrip opened its first stores in Tennessee and Louisiana, and RaceTrac Petroleum reentered Alabama after a 15-year hiatus.
Industry analysts call this an unprecedented expansion wave for convenience retail. With few big acquisitions left, companies are “buying smaller chains or growing organically through new construction now,” explains industry veteran Dennis Ruben.
Essentially, the giants of the c-store world are sprinting across the map, seeding dozens of new stores and fundamentally shifting the competitive landscape.
Regional Dynamics
Much of the focus is on the booming Southeast. That region now holds about 28% of all U.S. c-store locations, making it a prime growth frontier.
Alabama’s Gulf Coast is especially hot. Baldwin County — home to Gulf Shores and Orange Beach — saw its population jump nearly 30% from 2012 to 2022.
It’s now Alabama’s fastest-growing county and among the fastest in the nation. This surge of residents and tourists translates directly into gas and convenience sales.
Simply put, retailers “follow the people,” so new stores are popping up where growth is highest.
Philadelphia Pioneer
Wawa got its start in suburban Philadelphia in 1964, and it has since built a loyal following far beyond Pennsylvania.
Today the family-owned chain operates roughly 1,100 stores in nine states and D.C. Wawa pioneered many industry trends: its made-to-order hoagie sandwiches and specialty coffee created what some call a “cult-like following”.
The chain has also embraced technology early – adding self-checkout lanes and EV charging stations in recent years.
Its focus on fresh, high-quality food and tech-savvy service helped it jump from a regional chain to a retail powerhouse.
Alabama Arrival
Wawa’s Alabama debut came in April 2024, kicking off a $260 million plan for South Alabama and the Florida Panhandle. Six locations are now open — 50% more than Wawa’s initial goal. Local reaction has been enthusiastic.
Gulf Shores resident Jordan Callaway says he’s thrilled: “I used to live in Florida, and Wawas were everywhere. I thought I’d never have one here, but Wawa followed me.
It’s great to hear Wawa is coming!”. Mobile-area leaders are upbeat too.
Mobile Chamber President Bradley Byrne calls Wawa’s investment an “affirmation of economic growth here because they’ve done their market study”.
Economic Impact
Each Wawa store is a major investment. The company spends about $7.5 million to build a store (including kitchen) and hires 30–35 people.
Wawa’s six Alabama stores have injected roughly $45 million into the coastal economy. Each store becomes a local hub: it brings steady traffic that lifts nearby cafes, markets and suppliers.
With about 35 new jobs per location, over 200 Alabamians now work at Wawa.
In this tourism-driven region, the new Wawas quickly became everyday destinations for residents, travelers and industry workers alike.
Community Response
Alabamians are welcoming Wawa warmly. At a Mobile opening, Wawa President Brian Schaller said, “We’re grateful for the warm welcome in Alabama…as we open our fourth store in 2024.
With every new store, we fulfill lives with fresh food…and provide new jobs to friends and neighbors”.
Local leaders echo that sentiment. Mobile Chamber President Bradley Byrne says Wawa’s expansion is an “affirmation of economic growth here because they’ve done their market study”.
The general public feels it, too. Shopper Maria Lopez adds, “It’s nice to have another fresh food option nearby.” In short, the community sees Wawa as a welcome boost.
Competitive Landscape
In Alabama, Wawa steps into an already crowded landscape. RaceTrac operates over 500 stores in the Southeast, and QuikTrip has more than 1,000 locations in 17 states, all offering fuel and fast food.
Observers note that a chain like Wawa can quickly upend markets.
As Frank Beard writes, when a chain like Wawa “drops 30 locations into a new market, it fundamentally changes consumer behavior and competitive dynamics”.
Wawa’s arrival forces incumbents to sharpen their offerings — from pricing and rewards to food quality — to keep customers loyal.
Industry Evolution
The convenience sector is now a $755 billion market where foodservice drives growth.
Prepared food sales (made-to-order sandwiches, salads, coffee and more) surged 16% in 2024, reflecting c-stores’ evolution into dining destinations.
Over 150,000 U.S. locations now chase food dollars, investing in kitchens and mobile apps. The result: success is judged as much on menu quality as on fuel volume.
Wawa led this trend with its “restaurant-quality” hoagies and snacks, forcing others to follow with expanded fresh menus and digital ordering.
Strategic Revelation
This Alabama push is just the beginning of a massive expansion. Wawa’s leaders call it the company’s “largest expansion period” ever.
Over five years, the chain is investing $1.2 billion to open hundreds of stores in Ohio, Indiana, Kentucky and beyond.
Wawa VP John Poplawski emphasizes that “it will be the largest five-year period of expansion in Wawa’s history”.
Already, Wawa is breaking ground beyond its home region: “We are excited to start construction on our first West Virginia store,” Poplawski announced, highlighting the chain’s aggressive reach.
Growth Tensions
Analysts caution that such rapid growth must be handled carefully. They warn that Wawa “will need to be careful of overextending themselves and keep execution high in areas like foodservice”.
Former Wawa executive Lou Maiellano agrees, noting that the chain could lose its edge: he asked whether Wawa will “maintain their consistency” or risk “becoming stale” amid such growth.
Opening stores faster than ever could strain Wawa’s supply chain and training programs.
The company’s challenge is to grow without diluting the fresh-food quality and friendly service it’s known for.
Leadership Vision
Brian Schaller – Wawa’s president since 2023 – is the architect of this expansion. A 20-year company veteran, he oversees finance, store operations, fuel and strategic sourcing.
Schaller helped build Wawa’s fuel business from scratch to one of the nation’s largest (selling over 2.4 billion gallons per year), which he often cites as evidence of his ability to scale operations.
That combined experience in fuels and foodservice underpins Wawa’s growth strategy.
His vision is to use operational strength to ensure the rapid rollout doesn’t compromise the customer experience.
Distribution Strategy
Supporting this growth, Wawa has expanded its distribution partnerships. In April 2025, it announced a deeper tie with McLane Company, leveraging McLane’s 80+ distribution centers nationwide.
For example, McLane’s Bluegrass DC in Kentucky now feeds Wawa stores in Ohio, Indiana and Kentucky.
McLane now services over 1,100 Wawa stores out of DCs in Kentucky, Virginia, New Jersey and Florida.
This extensive network ensures on-time deliveries and maintains cold-chain logistics. In effect, McLane’s two-decade partnership gives Wawa the backbone to scale its fresh-food program into new regions.
Future Outlook
Despite these successes, retailers face a demanding outlook. Inflation and economic uncertainty have tightened wallets, flattening sales growth.
Fuel remains central, but even its market is volatile. Experts say winning chains will be those that adapt — leaning into fresh food and loyalty programs to keep customers.
means holding the line on prices and promotions while maintaining the high menu quality and service that premium c-stores promise.
Analysts warn that chains which fail to offer great value risk losing customers, even if they rapidly expand.
Market Questions
The big question now: can Wawa turn its Philadelphia-area magic into success everywhere? The chain faces savvy local rivals and varied regional tastes.
As Lou Maiellano put it, Wawa must “maintain their consistency” or risk “becoming stale” amid such rapid growth.
The expansion boom has a deadline: either Wawa keeps its fresh-food quality and culture intact in every new market, or it could trigger diminishing returns.
How Wawa answers this will determine if the current boom leads to sustainable growth or simply oversaturation.
Economic Implications
For Alabama, landing Wawa ties into a larger economic plan. State and local leaders actively court retail investment to boost jobs and tax revenue.
Coastal Baldwin County’s tourism economy is a case in point: in 2022 it hosted 8.3 million visitors who spent $7.9 billion in the county.
That volume of traffic means demand for fuel, coffee and snacks is year-round.
The area’s $7.9 billion tourism engine creates ideal conditions for convenience stores to flourish, making Wawa’s gamble on Alabama a win for local growth strategies.
Regional Expansion
Wawa’s Southern strategy doesn’t stop at Alabama. On Nov. 14, 2024, Wawa opened its first Georgia store, announcing two more by year-end.
In North Carolina, the company plans 10 stores by the end of 2024 and up to 90 within ten years.
These focused rollouts mirror the strategy of QuikTrip and RaceTrac, which built dominance by clustering dozens of outlets in regions served by a common distribution hub.
Wawa’s approach in Georgia, the Carolinas, Ohio and beyond follows that same successful playbook.
Regulatory Environment
Convenience store expansion often hits regulatory hurdles. Zoning and environmental rules can limit new forecourt development (stormwater runoff rules, fuel-storage permits, etc.).
In some states, public health groups have even proposed “junk food” zoning to restrict fast-food and c-store outlets near schools.
Meanwhile, adding kitchens and seating brings restaurant-style regulations into play (ventilation codes, occupancy limits).
Each new market means navigating a patchwork of local ordinances — from permit delays to community hearings — which can slow or reshape expansion plans.
Cultural Shift
Wawa’s rise also reflects changing consumer tastes. Younger shoppers in particular expect digital convenience and fresh, customizable meals on the go.
Loyalty apps, mobile ordering, and endless beverage varieties are now table stakes. In fact, industry data show that 27% of c-store visits are driven primarily by food and beverage choices.
To meet these demands, premium chains invest heavily in technology and kitchens.
The result is a cultural shift: convenience stores are now judged by their coffee bars and apps as much as by their pump prices.
Future Implications
Wawa’s Alabama push signals a broader transformation in convenience retail. Once a patchwork of mom-and-pop shops, the industry is coalescing around well-known regional brands that emphasize loyalty and efficiency.
The key takeaway: growth alone isn’t enough. Future winners will be those who expand rapidly while keeping food quality and service high. In practice,
This means balancing “more stores” with “more value” — consistently fresh food, fast checkout (apps and kiosks) and friendly service.
Those who strike this balance will define the next era of convenience retail.