Struggling consumers skimp on chips and cigarettes as convenience store sales slip

Sales volume at U.S. convenience stores dropped 4.3%.

Mar 14, 2025 - 15:46
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Struggling consumers skimp on chips and cigarettes as convenience store sales slip

Consumers are forgoing bags of Doritos and packs of cigarettes as convenience stores across the U.S. face sales declines. It's another sign of stress for Americans, who are dealing with ever-changing tariff policies, fears of stagflation, and a potential recession.

Sales volume at U.S. convenience stores dropped 4.3% in the year ending Feb. 23, according to data from Circana, a Chicago-based market-research firm, and first reported by the Wall Street Journal. Refrigerated and frozen products, tobacco, and general food sales saw some of the steepest declines.

The sales slip comes as working-class and middle-class households are pulling back spending and overall consumer sentiment is dropping due in part to President Donald Trump's ongoing trade war and fast-changing tariff policies. Top CEOs like JP Morgan's Jamie Dimon are becoming increasingly worried about the possible inflationary and recessionary effects of the president's evolving policies.

There are other factors at play, like higher gas prices, WSJ reported. Though the cost is coming down now, it has been elevated, meaning people have less to spend on a quick snack or drink inside a gas station's convenience store. And some consumers are looking for healthier options.

And it's not just convenience items. Consumers say they are planning to pull back discretionary spending in a number of areas, according to McKinsey & Co., including apparel, footwear, and electronics. In general, Americans have less in their checking and savings to absorb higher prices.

That said, Jeff Lenard, vice president of media and strategic communications at the National Association of Convenience Stores, says some of the lost consumer dollars stores are experiencing in packaged food is going toward prepared food in the stores, so not all is lost. Still, he says consumer sentiment is not strong and stores "really need to fight for customers."

This story was originally featured on Fortune.com