Top Retail Fuel Industry Trends to Watch in 2025

This article originally appeared in MobilityPlaza.

As the retail fuel industry moves into a new year, operators face a pivotal choice: Adapt to rapid change or risk falling behind. From leveraging AI and automation, to developing employees into brand ambassadors, to elevating the 360-degree customer experience, staying ahead means mastering the dynamics to not only foster growth but also redefine the future of fueling.  

Here’s what we see as the top trends shaping 2025 as savvy operators focus on turning challenges into opportunities. 

1% Write-offs Are Over 

Though traditionally accepted by retail fuel operators, there’s no longer an excuse for the standard 1% annual write-off. In the coming year, more retailers will turn to automation as a way to pinpoint inventory variance issues, including fuel loss root cause. By using integrated technology to refine and enhance supply logistics, the write-off threshold once considered the usual cost of doing business will be significantly reduced. Data analytics will provide faster, more accurate, immediately actionable answers to fuel loss questions, prompting quicker resolution and preemptive planning to avoid future loss.  

Additionally, the time and money traditionally needed to identify, investigate, address, and test inventory variance issues manually—potentially a significant amount, depending on what’s discovered during that cycle—will be greatly minimized or eliminated. As a result, innovative retail fuel operators will be able to reallocate budget toward business enhancements, rather than operational deficits. 

AI Goes Mainstream 

At the NACS 2024 Show, Accenture analyst Brian Gray said that 97% of executives believe artificial intelligence will fundamentally change the mobility retail business over the next five years. Not by replacing human functions, he noted, but by allowing people to spend more time on the things that they want to do at work. The overarching message? Learn about AI and test it out—now. 

From supply and contract management to predictive forecasting, universal dispatch, BOL reconciliation and invoicing, AI-driven insights significantly reduce reliance on manual decision-making processes, optimizing the entire fuel supply chain. For fuel retailers under pressure to improve margins without a steep learning curve, the choice will be easy in 2025: Fortify workflows with easily implemented AI solutions to provide measurable, near-term ROI—all while keeping pace with, or surpassing, data-driven competitors. 

Mid-Market Enters the Innovation Race 

Enterprise-level technology isn’t just for the big players. This year, we’ll see plenty of midmarket fuel operators adjusting even the tightest budgets to level the playing field with automation. The payoff? Streamlined operations, centralized data analytics and faster invoice reconciliation, all combining to optimize fuel operations from end to end.  

Especially for smaller retailers, integrated solutions will reduce the need for extensive manual labor and specialized skills, allowing them to do more with less. Using scalable tools, operators can continually assess and track the ROI of their fuel management systems, adjusting as needed in near-real time without losing inventory or revenue to common issues like fuel variance, delivery reconciliation or carrier accountability. Overall, whether poised for growth or acquisition, midmarket retailers will embrace the efficiency of automation to power their business goals. 

Workforce Development Gets Real 

C-store leaders have been steadily upping their game to provide top notch offerings for customers. This year, that investment will extend into training the folks who bring that experience to life each day. We’ll see enhanced focus on employee development, from hiring ahead of need to proactive career planning. 

It’s no small task in an industry traditionally plagued by high turnover and burnout rates. One McKinsey study named lack of workplace flexibility as a leading cause of attrition—tough to address in a brick-and-mortar setting.  

Here again, integrated technology will open new doors. With new tech systems rolling out within an organization, retailers will provide comprehensive training for staffers, filling skills gaps as needed. Employees will gain new capabilities as part of greater workforce development, while automation frees up management time to focus on customers. The flexibility workers are looking for is covered by technology too, as more fuel retailers engage predictive AI scheduling software. Cross-reference worker availability with store profile, sales and traffic forecast data will enable automated staffing plans to improve workforce operations and boost employee satisfaction. 

Brand Emersion is the New Customer Experience 

Boy has the retail fuel industry upped its game since loyalty programs were the next big thing. Today’s c-stores are all about the 360-degree experience—a trend that will continue to evolve in the new year. Fresh produce, local beverages and sandwiches made to order are just the beginning. In 2025, customers will be more likely to see a professionally trained chef prepping meals to order, perhaps in an open kitchen. While they wait, they may try food samples offered by concierge staff member walking the floor. 

Beyond grocery items, ambiance will be a top priority in the coming year. Open concept, bright, organized layouts will define locations designed to make customers feel welcome and relaxed when stopping in during a hectic day or a long road trip. This level of enhanced customer experience will be in part powered by technology. Integrated platforms will capture personalized preference data, leveraging it to create custom beverage subscriptions, car wash subscriptions, and more to keep customers coming back. 

It’s safe to say that technology—AI in particular—will drive success for retail fuel operators in 2025, initially from optimizing supply logistics to streamlining back-office functions. In addition, resource reallocations made possible by integrated platforms will create opportunities for proactive workforce development and enhanced customer experience, both central to successful business strategy. We’re excited to be part of what promises to be a transformative year.