Convenience as a Media Channel
Why C-Store RMNs ‘Punch Above their Weight’ with In-Store Ads
In July 2024, 7-Eleven opened its latest Coca-Cola themed store in Taipei, Taiwan. Emblazoned on its bright red brick exterior is a two-story Coke bottle and the brand’s iconic logo.
This is, quite literally, next-level retail media.
For a long time, most retailers have been “media companies in denial.” But convenience stores aren’t in denial—they exist to engage, entertain, and indulge our hedonistic impulses.
Despite being ideal venues for in-store retail media, c-store RMNs are mostly an afterthought in the US retail media conversation. In the quest for CPG brand dollars, they take a back seat to Amazon, Walmart, Kroger, Instacart and nearly a dozen others.
Outside the US is a different story. RMNs like Co-op Media Network in the UK, OXXO in Mexico, and Couche-tard in Canada are among the marquee names in their respective markets.
As standalone RMNs, c-stores in the US can be a tough sell. Collectively, there are more than 150,000 store locations accounting for ~20% of CPG food & beverage sales. The top 10 chains represent just 20% of the market, with market leader 7-Eleven boasts 13,000 stores and about 8.5% market share. It gets more fragmented from there.
For other c-store RMNs to achieve viability, the market will ultimately need to consolidate into an aggregated media network.
Because collectively, c-stores “punch far above their weight as a media channel,” according to Dean Harris, Head of Co-op Retail Media, based in the UK. It’s all due to the considerable—yet underappreciated—value of in-store retail media in small format stores.
“We need to move away from seeing in-store media as ‘products with media near them’ towards ‘media with products near it.’,” Harris argued. “This shift reframes retail media as a true advertising channel—one that builds brands first and drives transactions as a secondary effect.”
This dovetails with my argument in How In-Store Advertising Works that in-store media is about reach, quality, and performance—in that order.
C-Stores Have What Brands Crave
CPG brands have an incentive to focus on driving volume at c-stores vs. other channels, because they primarily carry impulse items like snacks, candy, and beverages—and mostly of the single-serve variety. These purchases represent incremental sales occurring at attractive margins, giving c-stores a disproportionate impact on profitability.
“Customers are more willing to be swayed and have even been proven to be more price elastic when shopping at convenience retailers,” said Sean Crawford, managing director for North America at SMG. “They are more open to trialing new products and buying into multiple categories.”
It’s easier for advertising to work in c-stores. Each additional unit is more profitable to the retailer and brand. This is a built-in multiplier effect that doesn’t exist with other retail media.
It’s not just about high-margin incremental sales, though. Convenience’s value as a media channel extends far beyond that.
“Retail media’s unique advantage is that these media benefits occur right at the point of purchase, making immediate sales impact a natural outcome,” added Co-Op’s Harris. “But that’s the additional benefit of retail media, not the primary one. Its true power lies in its brand-building potential, given its strength in delivering high reach, frequency, attention, and contextual relevance. The industry could have it all backwards—especially in convenience.”