As the foodservice market shifts and technology rapidly evolves, convenience stores must stay ahead of the trends to remain competitive and successful. With advances in food data, Big Data analytics, and predictive intelligence, restaurants are now able to better understand their customer’s habits and preferences to provide outstanding customer service. At the same time, suppliers face continuing challenges with sales prospecting, marketing, and finding new kitchen locations for their expansion. Advancing technology and data insights allow convenience store retailers to become more efficient and adapt to the ever-changing needs of their customers.
Before diving into the available data and analytics strategies, it is important to first understand the advantages and disadvantages of the current trends in the convenience store industry. Evaluating whether a company takes advantage of or is shielded from market or technology trends can be the difference between success and failure.
One of the main advantages of the convenience store industry for owners is the ease of setup. Thanks to franchising and other forms of business practices, opening a convenience store is much more cost-effective than other ventures. Furthermore, store owners can take advantage of their current local base of customers, allowing them to quickly establish a foothold in the market. With the use of Big Data analytics, stores can quickly discern which products are winning among their local demographic.
On the other hand, some of the disadvantages include tight competition from major players like Walmart or the inability to adjust quickly to customer preferences. Walmart, and other big-box stores, have the resources, logistics, and supply chain capabilities to quickly adjust to customer trends, leaving convenience store owners under pressure. Furthermore, while technology is giving convenience store owners a competitive edge, technological advances are constantly changing customers’ buying habits. It can be difficult to keep up with customer needs and stay ahead of the competition.
To stay competitive, convenience store retailers must stay up-to-date with the latest trends and understand how those trends may benefit or be a hindrance to store performance. One of the primary trends in convenience store operations is data-driven decision-making. The ever-growing wave of data available to retailers allows for faster and better decisions, allowing store owners to stay informed about their customers’ preferences and to take action quicker. Additionally, Big Data analytics and AI learn from customer behavior in real time, which can further aid in decision making.
Another prime trend is the increasing use of customer mobility. Technologies like mobile payments, QR codes, and food delivery apps streamline the checkout process, while granting customers a level of convenience not provided in other places. Retailers can also take advantage of the customer mobility trend by offering loyalty programs to drive customer engagement. With greater visibility into customer preference, convenience stores can also offer highly tailored rewards and discounts that incentivize customers to continue to shop in their stores.
The growth of convenience stores since the mid-90s has changed the dynamics of the retail landscape. Now, with data-driven decision-making and customer mobility, convenience stores must stay on top of the latest trends in order to remain competitive. Analyzing the pros and cons of the convenience store industry is essential for long-term success but requires an understanding of the trends influencing the industry. By leveraging data-driven decision making and mobile technologies, convenience store owners can optimize their operations and provide the ultimate customer experience.
