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American Business Brokers & Advisors Founder & President MERGERS & ACQUISITIONS BUSINESS VALUATIONS
JANUARY 2026
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The Future of Convenience Stores in 2026 & Beyond
As we begin a new year, I always like to try to look into the future and think of what things will look like going forward. From what we have seen in 2025, it would appear that a lot of the things we thought were futuristic, such as flying cars, robots who not only work in factories but ones that will be servicing us on a personal level, are soon to become the norm. We already have Siri, Alexa, navigational devices that talk to us, and now ChatGPT, and if it is up to Elon Musk, every home will have an electric car and a personal robot butler. We are looking a lot more like the cartoon characters of the Jetson family. (For those of you who are not old enough to know who the Jetsons were, here is a link to one of their shows: YouTu.be/-rVeOh1I-uY .) For the last 25 years, I have worked specifically in the convenience store industry, and I can say that for those of you who are in the convenience store industry, you have done well to pick an industry that is going to be around
for a long time to come. There was some concern a few years ago because of all the talk about electric cars and how the industry was going to change with the reduced consumption of fossil fuels being sold by convenience stores. Both of these issues were correct going forward, but not as soon as people may think because they were not market driven. Instead, they were being driven by politics instead of what the market really wanted. To help you understand why I think the convenience industry is going to be around for a long time, we need to think back to when our interstate highway system was created in 1956. It was originally supposed to be limited to 41,000 miles but later was expanded to 43,000 miles, and presently, we have 46,876 miles of interstates within 48 states. In 1956, the population of the United States was approximately 168,000,000, and in 2025, our population is 347,000,000. Let’s think about this. Our interstate system has not changed much in 70 years, but our population has doubled, and we are in the “convenience” store business, with convenience being the underlining business. We are not in the gas business or “cokes and smokes” business, but the convenience business. We offer products and services to people, which is why the business will be around a long time and the products and services will continue to change. It would appear from the number of people who live in the United States, and the limited number of interstates we have, that we should have more convenience stores to service the people.
But over the past five years, the number of convenience stores in the U.S. has not grown like it should have. In the last five years, we have actually decreased in the number of convenience stores in the U.S.
• 2020: 152,720 stores • 2021: 150,274 stores • 2022: 148,026 stores • 2023: 150,174 stores • 2024: 152,396 stores • 2025: 152,255 stores
Now, I am not the sharpest stick in the box, but it seems to me that if the population increases and we still have the same number of highways we had 70 years ago, there should be more convenience stores to service the population. Therefore, just by the facts alone, the future for the convenience store industry looks very promising, and this is before we get into what kind of convenience store the public is looking for. In regard to the consolidation of the industry, yes, it is going to continue with the larger operators continuing to expand and acquire more stores from their competitors. This is a natural evolution based on demographics of the baby boomers retiring as I have talked about many times in my articles and presentations. But the consolidation must happen in order to serve the customers who are available to the marketplace. And yes, we will see more stores being built, and they will Continued on Page 2 ...
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Retiring from a business you founded isn't like leaving a job. It's a personal, financial, and emotional process that takes time and coordination. Whether you want to sell, pass the business to family, or simply step away, the best outcomes follow thoughtful preparation. FIRST, START WITH A CLEAR PLAN. Begin by asking key questions: When do you want to retire? Do you want to sell, transfer ownership, or wind down operations at your business? Do you have a particular person in mind to take over? The answers will shape everything from your tax strategy to your lifestyle goals. GET A PROFESSIONAL VALUATION OF YOUR BUSINESS. You need to know what you're working with. Most people know the value of their home and financial portfolio, but very few know what their business is worth. Find a good business broker or mergers and acquisitions person from your industry to find out. If a sale is likely, make sure your financial records are How to Retire Gradually From Your Business
clean and your management team is stable, as buyers will pay more for a business that can run smoothly without you. You could also ask trusted employees to sign retention agreements to reassure potential buyers by protecting continuity. DECIDE HOW YOU'LL EXIT. If you plan to sell, work with your financial and tax advisers to coordinate the sale with your broader retirement strategy. You need a tax- smart withdrawal plan that covers personal and business assets so that neither your retirement income nor your company's value takes an unnecessary hit. If you'd rather stay involved, consider scaling back instead of stepping away completely. Many founders shift to advisory or consulting roles, providing high-level insights without being involved day-to-day. This approach preserves connection and purpose while giving you more freedom, but your ongoing commitment may delay the financial rewards of a full sale. Family succession is another path. Passing the business to children or other relatives can create a legacy, but it requires early and open discussions. Make sure potential successors want the role and understand its responsibilities. If multiple family members are interested, try to prevent conflict by establishing clear ownership and leadership structures. Remember that transferring ownership as a
gift may trigger gift tax obligations for you and potential tax consequences for your successor, so plan these transitions carefully. TAKE IT SLOWLY. Gradual transitions often work best. Reducing your work hours, delegating responsibilities, and mentoring future leaders together ensure continuity for your team and your clients. A slow handoff allows you to pass along institutional knowledge and ease into retirement, both emotionally and financially. Outside the office, consider what you're retiring to, not just what you're leaving behind. Many founders find fulfillment by serving on boards, mentoring startups, or investing in interesting ventures. Channeling your experience into fresh projects can replace the structure and sense of purpose your business once provided. You've spent years defining yourself through your company's success. A deliberate, well- planned transition allows you to preserve that legacy even as you build a new life focused on curiosity, connection, and independence. It also helps you reap the benefits of receiving the reward of being paid for the many years of hard work that it took to retire.
–Terry Monroe
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be bigger stores with more items, products, and services available to their customers. Can anyone say “Buc-ee's”? Of course, we have seen mobile apps and self- checkout kiosks to reduce labor and quicken the checkout process. Then we have the multitude of foods being introduced with a strong focus on healthier, fresh food offerings aimed at fitness- oriented millennials and other demographics. These will become a priority because prepared food is a must for the convenience store in the future to serve all your customers. Overall, the big convenience store chains will grow in number of stores, and the middle- market convenience store chains consisting of 200–500 stores will continue to grow, but the owners of the 100 stores and fewer will be consolidated or reduced in size because of labor costs going forward and the lack of
infrastructure. The 1–5 convenience store operators will be able to continue to operate their stores with family and friends and control their labor costs, but the multi-store operators above the 5-store number going forward will have a harder time controlling their costs because they are not big enough to have all the benefits of a 200-store chain that has built a strong infrastructure and can take the hit of a new competitor coming into their marketplace. If you have 1–40 stores, and a competitor builds a new store down the street from you that is larger, has a great food service program, and is a good operator, you cannot afford to lose 40%–50% of your business. If you have more than 40 stores, this means you will probably have 3–5 new stores being opened in your marketplace every year just because of the demographics and evolution of the convenience store business.
I make these statements because of my 25 years working in the M&A business, helping convenience store owners understand what their businesses are worth and helping them convert their many years of hard work into cash so they can retire or share their wealth with their family. I never talk anyone into selling their business, but what I do is provide information as to what is happening in the industry, and only they know their situation and when the time is right to step away. I believe the convenience store industry is one of the great industries still available with a long future, but you have to be ready to change with the times. Happy New Year and get ready for an exciting 2026 and beyond. –Terry Monroe
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SUDOKU (SOLUTION ON PG. 4) Take a Break!
Clear the Shelves in anticipation of Terry’s new book coming out in 2026! Get your FREE copy of “Selling with Certainty” by Terry Monroe by simply emailing him at Terry@terrymonroe.com with “Straightforward Advice” in the subject line. With “Selling with Certainty,” Terry Monroe has written the go-to book for anyone who has
considered, is considering, or may consider selling their
business. Monroe provides friendly, appealing, no-nonsense advice to business owners about how to avoid the common pitfalls of selling their businesses, while ensuring they get full value from the years of hard work they've put in. Stay tuned for more information on the upcoming 2026 book project! TERRY’S QUOTES OF THE DAY “The first step toward getting somewhere is to decide you’re not going to stay where you are.” –J.P. Morgan “Tomorrow is the first blank page of a 365-page book. Write a good one.” –Brad Paisley “Every single year, we’re a different person. I don’t think we’re the same person all of our lives.” –Steven Spielberg “I don’t know where I’m going from here, but I promise it won’t be boring." –David Bowie “I hope that in this year to come, you make mistakes. Because if you are making mistakes, then you are making new things, trying new things, learning, living, pushing yourself, changing yourself, changing your world. You’re doing things you’ve never done before, and more importantly, you’re Doing Something.” –Neil Gaiman
1. Michael Douglas co-starred as a police inspector in what 1970s TV series? A. “The Dead Pool” B. “Dirty Harry” C. “Bullitt” D. “The Streets of San Francisco” 2. What disc jockey coined the term “Rock and Roll” in the early 1950s? A. Wolfman Jack B. Alan Freed C. Dick Clark D. Dick Biondi 3. Who broke the Major League Baseball career home run record in 1974? A. Hank Aaron B. Mickey Mantle C. Roger Maris D. Willie Mays 4. The 1979 nuclear disaster at Three Mile Island occurred in what U.S. state? A. New Jersey B. Pennsylvania C. Maryland D. Ohio TERRY’S BABY BOOMER TRIVIA
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How to Retire Gradually From Your Business
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New Book Coming in 2026!
Unlock Explosive Growth With Micro Pivots
Why Small Shifts Can Drive Big Wins in Business Micro Pivots That Move Mountains
In business, waiting until the storm hits to change course is too late. The most successful entrepreneurs don’t rely on dramatic reinventions or risky overhauls; they win by staying ahead with sharp, calculated micro pivots . These small but mighty shifts can unlock new opportunities, protect your bottom line, and keep you two steps ahead of your competition.
complete business pivot. The brilliance lies in the balance: You’re adapting without disrupting your core mission. WHY ENTREPRENEURS CAN’T IGNORE THIS STRATEGY Today’s market isn’t just fast, it’s ruthless. Consumer expectations shift overnight, competitors spring up from nowhere, and yesterday’s strategy can quickly become tomorrow’s liability. By practicing micro pivoting, you’re not waiting until something breaks to fix it. You’re catching opportunities in real time and avoiding risks before they become costly mistakes. HOW TO MASTER MICRO PIVOTING Here’s how to make micro pivoting part of your business DNA. • Pinpoint your performance drivers: Focus only on the metrics that fuel growth, like revenue streams, retention rates, and customer lifetime value.
• Mine the data gold: Use analytics and real-time insights to spot trends and pain points. • Chase high-impact tweaks: Look for small changes with the biggest payoff, such as simplifying a checkout flow or reshaping a sales script. • Experiment like a scientist: Test,
measure, and adjust. Small-scale trials mean low risk and faster learning curves.
WHAT MAKES MICRO PIVOTS A POWER MOVE
Think of micro pivoting as fine-tuning. It’s about spotting subtle shifts in customer behavior, market conditions, and team performance, then making small adjustments before these little issues snowball into major problems. This could mean tweaking your marketing message, adjusting pricing, or shifting resources toward a service feature that’s gaining traction. These changes might not seem dramatic, but when stacked over time, they can transform your trajectory without the upheaval of a
The key? Repeat relentlessly.
THE ENTREPRENEUR’S EDGE Micro pivots are your secret weapon against stagnation. While others cling to outdated strategies or bet on risky overhauls, you’ll build resilience and momentum one smart shift at a time. So, ask yourself: What’s the next micro pivot that could change everything for your business?
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