Spotlight on C-Stores Trends and Challenges in 2024
Updated: Oct 3, 2023
Have you ever been stepping into a local store for that last-minute necessity or a quick fuel stop? That’s the power and ubiquity of C-stores. These compact yet highly impactful retail spaces, better known as convenience stores, serve as vital nodes in the complex retail landscape. Beyond their compact shelves lies an intricate blend of business acumen and customer service.
The U.S. convenience store scene is buzzing, and here’s a number to prove it: projections are pointing to an incredible $37.7 billion value for 2023. In this article, we’ll provide a comprehensive look at the 2024 trends shaping the convenience market trajectory and the formidable challenges they’re set to encounter.
C-stores and technology-driven transformation
Mobile payment systems
Now, there’s no need to rummage for coins or swiped cards. A simple tap with a phone or smartwatch gets the job done. It’s not just about speed, though. Based on recent findings by Visa, nearly 41% of consumers have shared their plans to transition exclusively to digital payments in the coming two years if they haven’t already gone cashless. This shift towards mobile is enhancing the entire shopping journey, making it smoother, and opening the door to more personalised deals and loyalty rewards.
AI and data analytics
These tools help store owners better grasp what products might fly off the shelves next week or even next month. By analyzing projected demand, artificial intelligence can predict your suppliers’ needs based on past transactions. This valuable knowledge enables businesses to refine their inventory management.
Inventory optimization directly affects the efficiency of inventory management. By keeping only the necessary stock, your cost of goods sold (COGS) diminishes due to reduced storage and holding expenses.
Touch-less experiences
Given today’s health and safety priorities, many C-stores are introducing self-checkout systems. It’s all about getting in, grabbing your needs, and heading out without a hitch. Customers appreciate the flexibility when they walk into a store and discover various accepted payment options, including cryptocurrencies. A store without NFC capabilities denies its patrons the convenience of utilising their digital wallets. Integrating this technology into c-store technology is an advantage against competitors.
Cybersecurity measures
While technology offers comfort, it also brings challenges. As shopping becomes more digital, protecting our data becomes crucial. Becoming a highly adaptive business is paramount to thrive in today’s unpredictable market. A robust and agile technological infrastructure is essential for C-stores to navigate unforeseen challenges. Not just them but retailers across the board should explore SD-WAN technology. Coupling this with Managed Detection and Response (MDR) services ensures continuous monitoring against cyber threats and potential breaches.
Convenience store trends for 2024: top 4 predictions
Shift toward organic and fresh food
The global organic food & beverage sector is anticipated to see a growth trajectory targeting a valuation of USD 361.90 Billion by 2027. Modern consumers are more health-conscious than ever, seeking fresh, organic, and nutritionally balanced products. This push towards health and well-being has necessitated C-stores to diversify their goods’ lines, incorporating a range of wholesome items that cater to various dietary needs and preferences.
Focus on sustainability
Convenience stores embrace eco-friendly practices, incorporating energy-efficient store designs, promoting reusable bags and containers, and sourcing products locally. Furthermore, they increasingly offer sustainable items like biodegradable packaging, solar chargers, and ethically produced merchandise. These initiatives demonstrate their commitment to environmental responsibility and meeting the demands of eco-conscious consumers.
A seamless omnichannel experience
Comfort remains the cornerstone of C-stores. The modern shopper demands a seamless omnichannel experience, expecting a consistent and integrated service, whether they’re shopping in-store, online, or through mobile apps. Regardless of the platform a customer engages with, a unified omnichannel strategy should prevail. The customer experience should be cohesive. Visual elements and messaging should remain consistent, reinforcing the brand’s unique voice uniformly across all touchpoints.
Increase of online ordering and delivery services for C-store products
A recent study by Hathway revealed a growing preference for delivery options from C-stores among U.S. consumers. They found that 49% had ordered from them in the past year, marking a 6% increase from a survey conducted three months earlier.
Convenience store industry challenges
Impact of e-commerce giants and online grocery delivery services
As the convenience store market tries to preserve its relevance and competitiveness in an ever-changing landscape, it faces many obstacles. E-commerce giants and online grocery delivery services pose one of the most critical concerns. Traditional brick-and-mortar c-stores are under solid competition regarding satisfaction and product range as consumers increasingly turn to the ease of online purchasing. Customers may be drawn away from traditional businesses by e-commerce platforms’ wide range of items, doorstep delivery, and cheaper pricing.
Staying competitive
Modern convenience stores must focus on innovation, unique offerings, and exceptional customer service to stay ahead of competitors. Incorporating digital solutions like mobile apps for ordering and loyalty programs can help bridge the gap between online and offline experiences. Moreover, offering exclusive products, limited-time promotions, and personalised recommendations can attract and retain customers.
Security measures
Data Security is crucial for the future of convenience stores. Utilising big data can optimise product offerings and customer engagement. However, storing large amounts of data poses risks, making businesses vulnerable to cybercriminals seeking valuable information like credit card details and personal data.
Alternative retail formats
Micro-markets in workplaces, educational institutions, and public spaces offer a wider selection of snacks and beverages with the convenience of self-checkout. Vending machines, on the other hand, provide quick and automated service, catering to consumers’ immediate needs. To combat these threats, c-stores should explore partnerships with office spaces and educational institutions to establish mini-stores. They can also invest in smart vending machines that offer a similar level of comfort.
Adapting to changing demographics and consumer behaviour
This challenge is of utmost importance for future convenience stores. Millennials and Gen Z, for example, prioritise practicality, sustainability, and healthier choices. The study reveals that 75% of Gen Z buyers base their purchasing choices on aligning products and brands with their core values. The shoppers display heightened environmental awareness, often choosing businesses prioritising sustainable practices. C-stores must adjust their product offerings to cater to these preferences, including more plant-based, organic, and
locally sourced items.
Summary
Meeting growing consumer expectations, particularly by offering healthy, sustainable, and convenient choices, is of utmost importance for the future of convenience stores. By recognizing the latest convenience store business trends and challenges, owners can chart a course toward sustained growth and relevance in the years to come. Implementing innovation and staying attuned to consumer demands will position them for success in the dynamic market. By strategizing for the future and embracing transformative technologies, c-stores secure their position in the market and drive success well into the future.
