The Convenience Store of the Future

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The Convenience Store of the Future
Have you been to a convenience store lately? Chances are
you have. Perhaps it was to fill up the car with gas or pick
up some milk or soda on the way home. Or maybe to grab
a quick breakfast or lunch, or even get some cash from the
ATM.
Indeed, the modern convenience store has become a
veritable mini-mall.
We’re used to going to the convenience store/gas station
to get some gas and pick up everyday items. But today we
also bank there, dine there, and in some cases even meet,
read, and relax there. What was once a simple trip to get
some gas or milk has become a multi-brand, multi-function
retailing and entertainment destination.
According to Britt Peterson, partner of the law firm Cole
& Weber, one of the top trends in the convenience store
market is the convenience store as ‘community center.’ He
“To succeed in the foodservice arena, c-stores
must develop a store within a store that includes
proprietary, licensed, or franchised brands.”2
notes that convenience stores are capturing an element of
‘local pride’ to build relationships with their customers.
According to Peterson,
“Budweiser has special edition packs that reflect
local college team pride. Casey’s General Store
chain has a community donation program ...
and there’s BP Connect: c-stores outfitted with
Wi-Fi and full cafes designed to embody ‘your
neighborhood hangout.’”1
On the other side of this localized experience are
convenience stores incorporating other elements to
transcend their own brand. That means the new world
of convenience often requires a branded quick service
restaurant inside the store along with a branded banking
ATM. In fact, according to the recently released report,
“The C-Store of the Future,” by the American Wholesale
Marketers Association:
So, not only will convenience stores have to localize and
adapt to the unique characteristics of their communities,
they will also have to attach themselves to national and
global brands that people from every neighborhood have
come to expect as part of their dining and shopping
experience.
How are convenience stores growing to meet these new
and diverse needs of today’s digital consumer? They have
done it through efficient and innovative use of networks and
communications technologies.
Britt Peterson, Five trends to help retailers compete on convenience, Retail
Customer Experience, May 20, 2010
2
Lisa White, The C-Store of the Future, American Wholesale Marketers Association,
September 1, 2010
1
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In fact, communications and information technologies are
introduction of strong new brands and products. These
now at the core of a convenience store’s ability to gain
new brands are going to be strongly based on the Internet
competitive advantages and deliver a unique customer
culture…”3
experience.
In the future, convenience stores will need to support
Convenience stores have long relied on communications
an ever-increasing array of services—most of them
networks to quickly and reliably clear sales at the pump and
communications-based—and be able to provide them
inside the stores. But now they need similar services for
securely, efficiently, and … of course … conveniently. One
consumers looking for Wi-Fi connectivity for their laptops,
example of this new, technology-based convenience store
tablets, or smart phones. Beyond that, location-based
experience can be found at Smartstore in Manhattan Beach.
services like FourSquare are making the convenience
When customers approach the deli counter:
™
store experience viral. Products (and their packaging) such
“They are greeted by three touch screen monitors
where they can enter an order for a signature or
made-to-order sandwich, salad, or soup. You can
even plan ahead by going to Smartstore’s website,
which includes the full menu.”4
as Doritos “Late Night” are adding enhanced customer
experiences by providing content through augmented reality.
According to entrepreneur Jacob DelHagen, “The market
[for convenience stores] is ideally situated for the
Jacob DelHagen, ArticlesBase, February 9, 2010
Andrew Lyons, Is Smartstore the Future of Convenience Stores?,
ManhattanBeachPatch.com, March 2, 2010
3
4
The Convenience
Store of the Future
Loss Prevention/
Video Surveillance
End-Cap/Register
Digital Signage
Tank Monitoring
Pump-Top Video
THE CONVENIENCE STORE OF THE FUTURE
At-the-Pump POS
PCI Compliant
Architectures
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Indeed, foodservice presents a large opportunity for
convenience stores. According to the national Association
of Convenience Stores, fast-food sales are now 70 percent
of all convenience store offerings, up from 58 percent just
three years ago. ‘On-the-go’ meals are also a rapidly growing
segment of sales—this category is one of the fastest growing
among traditional grocery stores—and companies/brands
such as Chiquita and Ready Pac Foods are stepping in with
new products to fit the unique needs of convenience store
owners, as well.
The key to attracting customers and up-selling new products
lies in building relationships and promoting goods through
technology. Some of this technology is not new, such as
email marketing, but the fact that convenience stores are
utilizing it as a key part of their strategy to reach new and
existing customers certainly is. According to Deirdre Baird,
president and CEO of Pivotal Veracity, “email marketing
breakfast options. Late morning menus will shift to
is experiencing a renaissance as we head into the next
items of interested to stay-at-home parents or retirees;
decade.” And some convenience store retailers such as
mid-afternoon to items more appealing to after-school
Speedway SuperAmerica, Kwik Trip Inc., and Quick Chek
teenagers. Dynamic menu boards will anticipate traffic
Food Stores are using e-mail marketing to compliment in-
and optimize each selling moment for improved margins
store loyalty programs.
on sales and customer service.
5
Here are just a few offerings we see as being standard fare
•In-store shopping assistant – Each store will offer
in the new world of the convenience store:
patrons an in-store shopping assistant via their
mobile devices. If you were to walk down the aisles of
•Guest Wi-Fi for commuter and traveler – As people
become more dependent on their laptops, tablets,
tomorrow’s c-store, you could see something interesting,
and smart phones, every “convenience store of the
take your mobile device, open your store application,
future” will need to have a strong Wi-Fi guest service.
point the camera, and shoot the product. From there,
Consumers will actually seek out convenience stores
product descriptions, reviews, and tips/tricks (if
with Wi-Fi so they can get maps and local information
applicable) will all be available.
at the same time they fill up the car, grab a newspaper,
•Video employee learning centers – Before every shift,
and a morning cup of coffee.
store employees will check in at an interactive video
display area. There they will hear about the day’s
•Digital signage for dynamic and targeted store
promotions – Whether it is outside or inside the store,
promotions and get updates on the store’s activity. They
the modern convenience store will use digital signage to
will be able to text in questions and get answers back
increase foot traffic and move inventory. Menu boards
from management via their cell phones.
will be digital and change based on the time of day
and the targeted demographic. For example, during the
morning hours the boards could highlight commuter
THE CONVENIENCE STORE OF THE FUTURE
E-mail marketing is experiencing a renaissance as we head into the next decade,
Convenience Store News, February 8, 2010
5
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•Multiple networks that are reliable, secure, and
•Automated inventory management – Managing inventory
compliant – All that data running through multiple data
is a headache. It is particularly challenging if you are
streams and networks needs to be secure. Payment
managing multiple stores in multiple locations with
Card Industry (PCI) compliance requires a high level
something as perishable as food—time is literally of the
of security for each transaction and the requirement
essence. In the future, all c-stores will have automated
to guard against threats both wired and wireless.
inventory racks so that management always knows what
Information needs to flow securely and efficiently with
and when to order. Moreover, because future c-stores
built-in redundancy. Self-configuring VPNs and firewalls
will ‘talk’ to each other, managers will be able to quickly
using intelligent routers will make the whole process
and easily shift inventory from one store to another to
(network headache) of becoming and remaining PCI
make sure they optimize supply across stores.
compliant easier.
•Transaction based video to reduce shrinkage and sales
•Easy to use touch screen self-serve check out – Stores
irregularities – Video monitoring for security will be
will be able to expand offerings and speed sales (with
based on activity. For example, video capture would
less error) through the use of self-serve check out now
occur when there is a ‘no sale’ transaction at a register
commonly found in large grocery stores. By increasing
or when certain inventory is accessed. By making video
the check out options and decreasing the number of
capture activity-based, management will not have to
‘order takers,’ c-stores will be able to improve customer
weed through hours of tapes to find out what happened
service without increasing personnel costs.
with inventory or at the cash register. This will not
•Integrated digital training platforms – The customer
experience depends on well-trained employees.
Employers will meet the challenge of high employee
only reduce shrinkage, but also help gather marketing
intelligence on what does and does not appeal to
customers.
turnover with video, mobile training, and education
At Hughes, we’re working with the leading names in the
systems. Information will be delivered to employees
convenience store and retail petroleum industry to use the
in ways that are easy to access including mobile
network as both a brand and business growth tool. There is
smart phones. Many c-stores will have digital training
a reason why we are the largest and longest serving partner
rooms where employees can learn via text, video, and
to the convenience store and retail petroleum market: as the
audio about the latest topics from food preparation
need for new information and communications technologies
to personnel management to the latest regulatory
grows, we’re delivering for our customers networks that are
requirements.
more reliable, higher performing, and more customized to
their growth needs.
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