U.S. Convenience Store Sales Decline as Consumers Cut Back on Spending
Americans are buying fewer snacks, cigarettes, and convenience items, reflecting broader financial strain amid shifting tariff policies, economic uncertainty, and recession fears.
Sales volume at U.S. convenience stores declined 4.3% in the year ending February 23, according to market-research firm Circana. Frozen foods, tobacco, and general food categories saw some of the sharpest drops, The Wall Street Journal first reported.
Economic Pressures on Consumers
The decline comes as working- and middle-class households pull back on spending, driven in part by President Donald Trump’s trade war and evolving tariff policies. Concerns over stagflation—a combination of slow growth and high inflation—are growing, with top executives like JP Morgan’s Jamie Dimon warning of potential inflationary and recessionary effects.
Other factors include:
- Higher gas prices: Though costs are beginning to ease, elevated fuel prices have already squeezed consumer budgets, leaving less for impulse purchases at convenience stores.
- Shifting consumer habits: More Americans are choosing healthier options, leading to a decline in traditional convenience-store staples.
Consumers Cutting Back Across Multiple Categories
Beyond snacks and cigarettes, Americans are scaling back discretionary spending in categories like apparel, footwear, and electronics, according to McKinsey & Co.. Many households have less cash in checking and savings accounts, making it harder to absorb higher costs.
A Shift in Spending Patterns
Despite the overall downturn, not all sales are disappearing. Jeff Lenard, vice president of media and strategic communications at the National Association of Convenience Stores, noted that some consumer dollars are shifting from packaged foods to prepared foods inside stores.
Still, he acknowledges that consumer sentiment remains weak, and convenience stores must work harder to attract and retain customers in a challenging economic landscape.