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Despite rapid consolidation by some of its largest players, the U.S. convenience store industry is at its healthiest in terms of total store count since before the COVID-19 pandemic. In January, there were 152,396 C-Stores in the USA — a 1.5% increase from a year ago and the largest since 2020, according to NACS. Nearly all states increased their c-store count last year, with only seven seeing a decline.
But no state has more C-stores than Texas, which 16,304 locations has had 4,000 more locations since January than California, which is in second place.
According to NACS, Texas is home to more than one in 10 c-stores in the U.S. 7-Eleven is headquartered near Dallas and operates over 1,360 stores in the state; Alimentation Couche-Tard, the parent company of Circle K, has over 650 stores in Texas; and QuikTrip, based in Oklahoma, has more stores in Texas—about 280—than in any other state.
Top 5 states by number of C-stores
No state has more c-stores than Texas, which had over 4,000 more locations in January than second-place state California.
Growth in and expansion into Texas has become a focus for convenience retailers large and small over the past year and especially in 2024.
A typical example: The giant from the Midwest Casey’s General Stores is coming to Texas last November with the takeover of 22 locations, then agreed last month Acquisition of 148 CEFCO C-Stores from Fikes Wholesale. TXB has further expanded its presence in the state by six new branches in 2024, with another planned for next year. And in one of the most surprising M&A moves in recent times, FEMSA, the owner of Latin American c-store giant Oxxo, agreed to Acquisition of 249 convenience stores from Delek US Holdings – most of them are located in West Texas.
Since Texas is the largest state in the U.S. by area, it makes sense that it would be a hotspot for c-stores. But the state’s appeal to convenience retailers goes far beyond its size, experts say.
Desirable for building and living
Despite Texas’ dominance in terms of the total number of c-stores, some analysts have not always viewed the Lone Star State as the epicenter of the c-store industry.
“Probably the Mid-Atlantic region is by far the most aggressive and progressive (region for c-stores),” says David Marcotte, senior vice president at market research firm Kantar, where he is responsible for international retail, business process and technology insights.
Marcotte is referring to areas like Pennsylvania, where he says there is “fierce” competition between c-store chains like Wawa, Sheetz, EG America, Rutter’s and GetGo Café + Markets. This competitive environment, Marcotte said, has produced “best-in-class” retailers across the Mid-Atlantic region in recent years.
But with moves like those by Casey’s and FEMSA, Marcotte stressed that Texas is a prime location for building and acquiring c-store retailers.
Earlier this month, FEMSA, owner of Latin American c-store giant Oxxo, agreed to take over Delek’s 249 c-stores – most of them in West Texas.
He pointed to a lack of zoning regulations in parts of Texas as a possible reason for the rise of C-stores in the state. Houston, for example, is the largest city in the US that there is no city-wide, comprehensive development plan regulation.
“Because of the soil conditions in most parts of Texas, it’s very easy to build – you just pour a base and you’re ready to go,” Marcotte said.
Another reason for the growth of c-stores in Texas is that consumers are flocking there. The state added 473,453 new residents in 2023, more than any other state last year, according to the U.S. Census Bureau. Texas has the second-highest total population in the U.S. after California, whose population declined by over 75,000 in 2023, the bureau reported.
The 5 states with the fastest growth by population
Consumers are flocking to Texas. The state added 473,453 new residents in 2023, more than any other state.
Peter Rasmussen, founder and CEO of c-store consulting firm Convenience and Energy Advisors, agrees that Texas’ rapid population growth is a likely reason for the increase in the number of new c-stores. He said the same is true across the southern U.S. Florida, for example, was just behind Texas in population growth last year.
“If you look at where many of the major (C-store) providers are currently building, it’s this southern belt,” he said.
The growing population is leading to more c-stores because Texans simply shop at c-stores more than consumers in other states, Marcotte said. He said that’s because of the state’s sprawling geography and car-first culture. 6% of households in AustinFor example, they don’t have cars.
“They’re shopping at convenience stores, which isn’t the case in other parts of the country,” Marcotte said. “Where you might normally go to the liquor store or the grocery store … a lot of people in Texas are going to the convenience store.”
