In the immensely competitive convenience store industry, staying ahead of current trends is critical to success. Operators should be frequenting point-of-sale (POS) to analyze what their customers are purchasing, and how their stores compare to the competition. Beyond this, research and analysis of convenience store data should be conducted to identify key trends that can be leveraged. To help convenience store operators stay in-the-know, this article will outline the top 10 considerations regarding trends in the industry.
The initial step for any convenience store operator must be optimizing and understanding store layouts and customer flow. Even with the influx of cashierless stores, customer behavior remains the same: customers still enter the store and browse. It is the job of convenience store operators to understand this behavior and recommend adjustments to store operations, such as changing shelf placements or introducing product samplings, that can increase sales.
It is clear that convenience store customers are searching for a quick, convenient experience. To capitalize on this, stores should consider introducing vending machines, either through suppliers or their own inventory. By expanding their offerings, stores can meet customer expectations such as having access to healthier food options or a wider range of products. In addition, this approach offers convenience stores the opportunity to capitalize on an additional stream of revenue, as suppliers will pay a fee for every vending machine.
As convenience store operators become more resourceful, they should also consider offering services to customers. This can include such services as parcel collection/delivery, and even access to rentable shared-workspace facilities. In a modern convenience store, provision of public services like mobile charging stations should also be considered to ensure customers have access to the services they need in one place.
Data-driven decision making is also becoming increasingly important in the convenience store industry. With the emergence of powerful data analytics tools, operators can gain invaluable insights into customer shopping behaviour in order to optimize store operations and enhance marketing campaigns. By simply tracking customer transactions and loyalty program activity, convenience stores can gain a better understanding of customer spending patterns which allows them to tailor their product and pricing strategy accordingly.
Beyond this, analyzing customer demographics and analyzing customer reviews can reveal unexpected insights that can help convenience stores better serve their customers. There is also a shift towards rewarding customers for repeat purchases, as loyalty programs are becoming increasingly popular and often influence customer behavior.
Competition is an integral part of the convenience store industry. As the margin on convenience store items is so small, it is important for operators to understand their competition and set prices accordingly. It is also imperative that convenience stores build a strong digital presence, as modern customers will regularly compare prices and products online before they make their purchase decisions. As such, convenience stores should be present on digital platforms such as social media, in order to increase visibility and outreach.
In light of the current health crisis, hygiene and social distancing are now of utmost importance to customers. Stores should consider introducing features such as cashless payment methods, contactless delivery or drive-thru services to ensure customers can shop safely. If applicable, operators can also consider introducing food delivery services.
Finally, convenience store operations must also factor in the growing awareness of eco-friendly initiatives, such as reducing plastic waste, transitioning to biodegradable paper/cardboards and offering reusable containers/totes. As convenience stores are often located in residential areas, they can also consider transitioning to plastic-free outer packaging in order to appeal to customers who are seeking to live waste-free lifestyles.
Convenience stores are part of a fast-paced industry and operators must stay ahead of the curve to experience success. To aid this, operators should consider optimizing store layouts, introducing vending machines, and offering services and rewards to customers. In addition to this, the use of data analytics, a strong digital presence and an eco-friendly agenda, will aid convenience stores in being mindful of customer needs and ensure a smooth transition to a post-COVID world.
