Chicago- For the third consecutive year, the NACS Show set an attendance record for its respective host city, following record crowds in Atlanta (2023) and Las Vegas (2024). Overall, 25,136 attendees from 73 countries experienced four days of education, networking and a look at what’s hot and new in the global convenience and fuel retailing industry.
As most MSSA members know, in the past several years, our industry is dwelling in uncertain times and looking for many answers from inflation impacting their stores, customers and the future of loyalty programs, and the latest state of the industry data.
The NACS Show’s 48 Education Sessions, designed by retailers for retailers, had strong attendance counts, averaging more than 220 attendees per session. Two Education Sessions topped 400 attendees: “Refreshing Your Stores Without Razing and Rebuilding” (431 attendees) and “Economic Trends Shaping the Future of Retail” (403). The 2026 NACS Show will take place October 6th through the 9th in Las Vegas; question is, will you be there? (Please See Executive Director Recap inside Newsline)
Every year as your Executive Director I navigate the NACS Show, seeing old friends and meeting new ones! Always finding my way to the Altria booth searching for my industry contacts and reviewing what is in store for 2026 as for regulatory updates and challenges. Basically, adapting to our great environment around the C-store industry. This year a few MSSA board members made the trek with me ultimately sharing their thoughts about the 2025 NACS show.
In attending my State Executive Roundtable meeting with other state association Directors, NACS Grassroots staffers, lobbyists and other NACS government relations team focusing on trends within the C-store/petroleum industry allowing Executive Directors like me to have a first-hand look inside what is happening in other states.
Discussions about the discontinuation of the Penny. Retailers in our industry face complex issues with rounding of the penny. State and local laws, SNAP Compliance and pricing issues with Below Cost laws. Rounding the penny “up” exposes risk in lawsuits. Rounding “down” is extremely costly to businesses. NACS is working on Federal legislation allowing rounding and preempts other laws (legislation is known as the “Common Cents ACT”)
Last year Illinois passed a law exempting retailers from paying credit-card fees on state and local taxes and fees. A great opportunity and a blueprint in how to pass state legislation as banks argue preemption. Update: a day after our State Executive Round table meeting, President Biden was pursing the Illinois Governor to repeal the new legislative activity. Business as usual in the jungle. May have to look at a new Blueprint for 2026.
Of course, SNAP issues plaquing our industry. Yes, many MSSA members do not accept SNAP/EBT, however some do. More and more states are making these benefits more “un-user friendly for retailers and consumers.
I have attended many educational seminars, as I am willing to share some key points from my seminars and hope MSSA members find my information useful. – Lance
Breaking Down the Latest State of the Industry Data
As many MSSA members navigated through the past four years of Bidenomics also known as inflation, it is always good to measure industry data from a few years ago to as many as fifteen years ago. Reviewing fundamental changes in our business, inside store performance, operational metrics and what’s next.
Looking back 2024 versus 2025, the breakeven pool margin per gallon of liquid fuels is up $.0183 per gallon. However, inside store transactions are down 1.9%. Average basket value (purchases) is up 3.2%, mostly caused by inflation. Alarming is the inside store operating profitability is down $2,133. As most know, wages and benefits as a percentage of Gross profit dollars are up about .2 points.
So far in 2025, store counts decreased in the liquid fuels industry. Within large chains, losing 35 stores in 2025 and 230 independent locations. Fuel sales in dollars are down 7.1% (lower fuel retails) as fuel gallons in 2025 are up 1%. Average selling price per gallon of fuel went from $3.35 per gallon to $3.09 per gallon. Total inside-store transactions decreased 1.5% from prior year.
Overall gross profit dollars per fueling site increased by 3.3%. The most alarming statistic is, when I visited the same educational session in 2024 in Las Vegas, after all the shrink, spoilage, labor, controllables and non-controllables, average inside store transaction lost $.11 per transaction. This year that number rose to a loss of $.32 per transaction. Labor benefits have increased, inflation of inside merch and retailers making margin on fuel not paying attention to the inside of the store. Also, with media talking about inflation, consumers are well aware of price increases and have changed their buying habits. Lesson- pay attention to your inside store sales, profit centers, costs/inflation and your labor/employees.
Liquid Fuel Volume and Profitability
As we know, the transportation energy market is dominated by liquid fuels. Sitting through this presentation, liquid fuels will remain in domination of the energy sector for many decades to come. However, the demand for per vehicle is projected to decline due to a variety of factors, including fuel efficiency improvements and growth of electric vehicles. With liquid fuels representing a large portion of MSSA members bottom line, this session mostly looked at both demand and profitability in helping our industry get most of the forecourt.
Energy evolution versus energy transition includes trade barriers, AI, Waning EV enthusiasm and of course, Political uncertainties. From the past couple of years, our industry has seen a modest decline in liquid fuel demand. Year to date 2024 versus 2025, averaging a decline around 4% throughout the industry. In a time of declining fuel volume and level margins, market share becomes critical.
How can a fueling retailer improve margins? State tax credits such as bio-fuel credits for e15 like in Iowa. Blending fuels and becoming a blender of record recording and maximizing RINS (Renewable Identification Numbers). Since 2019, unbranded fuel volumes have rose to 60% of the fuel sold in the U.S.
Decoding the FDA’s Traceability Rule
The clock is ticking and many MSSA members do not know it? The FDA Food Safety Modernization Act- Retail Food Traceability Regulations. Proposed compliance date of July 28, 2028, as retail companies such as C-stores will have to trace where their food/deliveries came from and recordkeeping requirements by lot codes. Retailers will need to have a traceability plan requirement including a sortable electronic spreadsheet requirement for tracing FTL (Food Traceability lists) for two years. More information will become available as MSSA looking at future webinars for the members.
Aging Infrastructure and Underground Storage Tanks
More than one-third of underground storage tanks (UST’s) are over 30 years old. This does raise questions about risk of releases and eligibility for financial assurance required by state and federal tank regulations. Insurance companies and state tank funds (like Minnesota’s petro fund) apply different policies (such as MPCA rule 7150) related to tank age, and owners must know their option(s) to remain compliant as their UST systems age.
The primary concern is the increasing costs to maintain financial responsibility for aging UST’s. The secondary concern is potential for unsubstantiated mandatory age of thresholds on UST systems. The third concern is new fuels mandates such as E15 in Iowa demanding complete UST system upgrades due to compatibility.
EPA concerns of aging tanks and infrastructure are potential risks that may affect the likelihood of a release. In all reality MSSA owners and other liquid fueling sites may have higher maintenance costs, and fewer capabilities to sell certain fuels.
As of 2025 52% of underground storage tanks are 30 years or older. About 67% of underground storage tanks will be 30 years or older by 2030. Potential cost for replacing one of more UST’s at a facility will cost between $250,00- $750,000. In closing, take advantage of state and federal grant programs when available and re-invest in your business.
Every now and then MSSA board members attend the NACS Show investing their time, money and energy in the Industry and Association. I personally challenged each board director to share with MSSA members their thoughts and what they gained from the 2025 NACS show… enjoy!
Chan Smith- MSSA President
*National average basket over $7.
*National candy margin is 50.5%, which beats what retail pricing in our market will allow
*From 2020 to 2024 Shrink doubled. Fearing our industry might be victims of this if not higher. Most forget about the cost of shrink.
*Energy drink category has beaten soda for two years running.
*80.5% of transactions are paid with credit/debit. Up 2 points over previous year. All the more to be proud of our processing relationship with Delta Payments.
Small stores have to be careful now more than ever to not overspend on knee jerk change chasing the “Big” stores but…. don’t wait till it changes you. Our advantage should be bottom-up change from intimate knowledge of our stores.
GLP1 is changing the sku’s desired by customers in our stores. Protein options are making a push.
The traceability requirements will be a major hurdle. I wish every one of our dealers could have sat in on that session to know the seriousness. I didn’t take-away a path to solution but I surely have increased interest and willingness to pay attention. I think help in this area could be a tangible value to our members.
EV had a lot of content, data etc. Life of equipment similar to a laptop……My takeaway was do not worry about it, won’t be a real threat in the next few years. Still no clear pathway to profitability or ROI in our size business, especially with the current decreasing federal funding. Nothing imminent to work to be added to. In my opinion better to put effort into higher ethanol blends!
Karen Koehnen- MSSA Board Director
With this year being my first year, I felt that I was in observation mode. Taking it all in and getting a feel of what it is about. Most importantly, I felt like I got to know everyone better from the board, which in my mind helps to see how people feel about issues and solutions to our industry and board decisions. I thoroughly enjoyed it and came away more energized about making my business better.
One of the seminars that I attended was about the GEN X population:
-they want brands
-once established a store they will be loyal
-they will trust you when discussing products or merchandise
-they are looking for healthier options
-looking for energy, they are totally into energy drinks