Growth opportunities found in Albuquerque's fuel market

As a vibrant and diverse city in the heart of the Southwest, Albuquerque, New Mexico, is more than just a picturesque destination. It’s a growing hub for residents and visitors alike, driving a dynamic fuel and convenience store (c-store) market. Whether it’s locals commuting to work or tourists exploring the cultural richness of Route 66, the demand for fuel and c-store services in Albuquerque is on the rise—and mid-sized retailers are uniquely positioned to benefit from this growth. 

Known for its vibrant culture, rich history, and scenic landscapes, it attracts millions of visitors annually for events like the Albuquerque International Balloon Fiesta and its historic Old Town. Albuquerque’s mix of urban and suburban lifestyles means steady demand for fuel, driven by both commuter traffic and a high volume of road-trippers. 

With its strategic location along key highways and proximity to major tourist attractions, Albuquerque offers consistent opportunities for gas and c-store retailers to cater to both locals and visitors. Understanding how these factors influence market dynamics is essential for retailers looking to optimize performance and grow their business. 

Key trends shaping Albuquerque’s fuel market

The Albuquerque gas and c-store landscape has seen notable shifts in recent years, creating opportunities for mid-sized retailers to gain ground. Here are some of the key trends: 

Increase in total gas stations
Between 2020 and 2022, the number of gas stations in Albuquerque grew from 227 to 261, marking a 15% increase. This growth reflects a competitive market but also highlights expanding opportunities for retailers to establish a stronger presence. 

Growth in gasoline demand
Gasoline sales rose from 31,805,000 gallons/month in 2020 to 33,604,000 gallons/month in 2022, a 6% increase. This uptick suggests a growing demand fueled by increased vehicle use and economic recovery post-pandemic. 

Boom in c-store sales
Convenience store sales experienced an impressive 23% growth, climbing from $22,042,000 to $27,066,000 per month. With customers valuing the convenience of one-stop shopping, there’s significant potential for mid-sized retailers to capitalize on this trend. 

Market share shifts among major brands
The top five c-store and gasoline brands in Albuquerque built or acquired 10 new sites between 2020 and 2022 but were outpaced by smaller players in the market and saw their outlet share drop by 13%. However, overall market share for the top five brands only dropped by 3% in the same period. Suggesting the major players in Albuquerque have the insight needed to plan efficiently and optimize their assets.  

Armed with the right insight, smaller and mid-sized operators in New Mexico can capitalize on opportunities in the market and capture new customers.

Opportunities for mid-sized retailers

While larger players are slowly losing ground, mid-sized retailers have the chance to leverage their agility and local knowledge to gain a competitive edge. Here’s how: 

• Data-driven decisions: By analyzing market trends, mid-sized retailers can identify high-potential locations, optimize pricing strategies, and adjust product offerings to meet evolving consumer needs. 

• Focus on convenience: With convenience store sales surging, enhancing in-store experiences and expanding product selections can attract more customers and boost revenue. 

• Local connection: Mid-sized retailers can differentiate themselves by building strong community ties and tailoring their offerings to local preferences. 

The next step to improving performance

Kalibrate has been a trusted partner to fuel and c-store retailers in Albuquerque for years. Our deep market insights and advanced analytics empower businesses to make informed decisions that drive growth and profitability. Whether it’s identifying the best sites for expansion, optimizing pricing, or improving c-store performance, we provide the tools and expertise to help you stay ahead in a competitive market. 

Albuquerque’s fuel market is changing, and with the right strategy, mid-sized retailers can turn these shifts into opportunities. Are you ready to make smarter decisions and grow your business?