Distributors Keep Independent Convenience Stores Competitive As Operational Demands Rise

Independent operators make up the bulk of the U.S. convenience store market, and distributors are the partners that keep them competitive. Out of roughly 150,000 stores nationwide, nearly two thirds are small businesses that rely on distributors for the products, support, and insight that shape their day to day success. In a space defined by tight margins and constant change, this relationship is the steady engine that helps independent retailers adapt and grow.

According to Richard Owen, the distributor’s role is the central, untold story of convenience retail success. As the President & CEO of the Convenience Distribution Association (CDA) and a former Director of Agricultural Affairs for the Office of the U.S. Trade Representative, Owen brings a unique perspective on the systems that power commerce.

"Of the 150,000 convenience stores out there, about 65% are independents. Our members serve that entire group, and the distributor is often the one keeping those stores competitive," says Owen. Owen explains that the modern distributor is becoming an innovation partner, giving independent retailers the tools to differentiate themselves. The most visible example is in foodservice, where distributors are helping small stores compete against larger chains.

• An appetite for innovation: "You might think foodservice is driven by the big chains, but independents are using it to differentiate themselves. The distribution centers I’ve been in have chefs and trial areas. They’re doing real experimentation." It captures how far the distributor relationship has evolved from basic replenishment to hands-on innovation support.

• Razor-thin reality: But that strategic partnership rests on a foundation of immense operational intricacy. Distributors manage a vast array of products, from snacks and drinks to highly regulated tobacco items. Even Owen, a veteran of global trade, was surprised by the business's difficulty. "It’s certainly more complicated than I expected it to be. There are so many moving parts, and the margins are really small. You have to make it work through exceptional service or volume."

That level of service requires a precision Owen agrees is best described as "orchestration." A well-oiled machine, he explains, means having real-time order tracking, optimizing truck routes for efficiency, and managing cold-chain requirements for refrigerated goods. The orchestration also extends to product discovery, with distributors often hosting trade fairs that connect retailers with suppliers—an essential service for small operators who lack the resources to do it themselves.

Perfecting daily execution, however, is only half the battle. The most competitive operations also watch for trends that could disrupt or streamline the distribution chain. For Owen, this means helping members navigate significant challenges, from the persistent shortage of commercial truck drivers to new technologies.

• Tech incoming: He points to a strategic imperative in identifying early signals in areas like AI, which he sees as a key tool for future efficiency. "AI has the opportunity to streamline the distribution chain and make distributors more efficient," Owen explains. "We may see applications in five or seven years that we aren’t even looking at yet."

Owen says his mission is to maintain the relevance of these distributors. He describes the CDA’s primary role as providing the intelligence its members need to stay agile. By tracking product trends, monitoring legislation, and analyzing market forces, the association delivers a level of strategic foresight that independent operators depend on to compete.

"I consider ourselves the eyes and ears of the industry," Owen concludes. "We try to stay on top of those things, whether it's a trend or a threat, early enough and provide either education or action to minimize the threats and to maximize the opportunities for the companies."