The Convenience Store Industry has been forced to change and innovate greatly in the last year and a half. The pandemic has driven c-stores to redefine “convenience” by adopting new technology and rethinking how best to serve their customer set.
A study of c-store shoppers conducted by the Omnicomgroup determined some important factors that dramatically affected the industry during the pandemic. It also shows that shoppers typical of convenience stores are inherently different from shoppers of other retail channels.
Convenience store shoppers were hit especially hard.
over 40% of convenience store shoppers were on government assistance of some kind, up from 25% pre-COVID. 10% of these shoppers were unemployed in September of 2020, and that number slightly increased in March of 2021.
Travel and commuting habits changed radically, impacting foot traffic.
15% of c-store shoppers stopped going to work during COVID, a massive reduction in trip frequency as 90% of US convenience store shoppers typically drive for their commute.
School scheduling and working from home disrupted schedules and habits.
…over half of all c-store shoppers with children did not anticipate their kids being back in school full-time in the fall, and that appears to be having a significant impact on this shopper’s ability to plan their own return to work/commuting.
What’s Next?
Contactless Shopping
To reduce the risk of transmission during Covid the trend toward self-checkout was pushed forward at a much quicker rate than before. For even modestly sized stores, this trend has become impossible to ignore, not only to make customers feel safe but also for efficiency.
Employees have been harder to find and filling gaps in scheduling for those who are sick or at home tending to a family member who might be sick, has presented greater motivation to adopt new contactless shopping technology. With a shortage of workers and the need to offer higher pay to new hires, contactless shopping is definitely part of the future of successful c-store businesses.
Electric Cars
Many c-stores are located in fuel stations and catering to their need to recharge and relax while doing it, can help drive sales. While only accounting for a small percentage of cars on the road currently, electric vehicles will grow significantly over the coming years. In Norway nearly 85% of cars are electric and Morgan Stanley estimates that charging stations will help drive retail sales for c-stores in the US by 10-20%. With Biden setting out a goal of having EVs represent 50% of car sales by 2030, this could change the way convenience stores cater to these customers.
Food Trends
Consumers have trended toward more wholesome snacks and pickup meals in recent years. Healthy snack bars and fresh fruit and produce are more of a priority for c-stores and that trend should continue. Food manufacturers have already gotten on board. Placing fresh and healthy food near the register along with other grab-and-go food will help to drive sales.
Delivery
Delivery has not traditionally been part of the convenience store ecosystem, but adversity drives innovation.
Many consumers were restricted by lockdown limitations and fear so many chose delivery and were willing to pay significantly extra for it. Mobile delivery services helped fuel this trend. It was initially thought that the demand for delivery would diminish this fall but demand remains high due to a rebound in Covid, and this could actually drive a new normal.
One indication of how important this trend might be comes from 7-Eleven and their new nationwide partnership with Minibar Delivery.
The program has started off in approximately 600 stores across 3 states: Florida, Texas and Virginia. Customers can order from 7-Eleven’s wine and beer offerings and have it delivered in 30-60 minutes.
While the convenience store industry has faced some extreme challenges in the last year and a half, its ability to adopt and adapt new technology and new thinking makes the future look much brighter. Store owners will have to continue to be creative and be willing to test new strategies to spur growth into the future.
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