How C-Stores Can Stay Relevant in an Era Defined by Transformation
A hot topic right now is how convenience stores can remain relevant. When Blockbuster fell to the likes of Netflix, financial analysts and media personalities pointed toward the former’s inability to adapt to digital technology as the primary culprit.
While it is true that Blockbuster’s leadership made a critical error by underestimating the digital revolution’s strength that changed their industry forever, the company had another, bigger problem. Blockbuster’s inability to meet customer demand through the appropriate channels rendered the once-mighty video rental store chain irrelevant in the eyes of consumers.
Brand relevancy and customer engagement go hand in hand. This reality is particularly prevalent in the convenience store industry. Stores that can effectively engage their target audiences through strategic offerings and tailored experiences are the same brands that will ultimately retain customers and increase market share.
Here are a few ways convenience stores can adapt to meet the changing needs of their customers in 2024.
Adopting a 24-Hour Food Service Mentality
Convenience stores are historically known to offer items such as snacks, soft drinks, and cigarettes. This perception, however, is changing — a recent white paper from Placer.ai has found that the number of consumers opting to eat meals from convenience stores has increased 3% over the past 5 years. The report indicates that diners are choosing this option over breakfast cafes, coffee shops, bakeries, restaurants, and fast food establishments.
Convenience stores offering affordable and convenient grab-and-go options have surged in popularity. Knowing that these meals are virtually guaranteed to be cheap and quick, customers will stop at all times of the day to take advantage of the efficiency.
As a result, stores need to rethink their approach to food service. Many have begun to expand their menus to include breakfast options for those on their way to work, while others have rolled out expanded grocery sections to attract those who need specific ingredients for cooking. Some have installed full delis and kitchens to serve hot meals late at night.
Convenience store owners can reach more customers by meeting the demand of the 24-hour meal cycle. Pennsylvania-based chain Wawa has made its mark through this strategy, offering meals every hour of the day, along with other customer-friendly benefits such as surcharge-free ATM withdrawals.
Embracing the Digital Age
Unlike Blockbuster, convenience stores have the chance to adapt to the increasing consumer demand for digital experiences — before it’s too late.
Many of these innovations are focused on improving the customer ordering experience through interactive digital signage. Common examples that have popped up across the country include touchscreen menus, mobile apps with rewards programs and online ordering capabilities, and order status screens positioned behind kitchen counters that detail meal preparation progress.
Other digital experiences are designed to engage customers in fun, recreational ways. 7-Eleven, for example, has a strong following on social media, where it has recently enjoyed success after a campaign targeting an adjacent audience helped the brand achieve virality. The #carsof7eleven campaign encouraged owners of supercars and other luxury vehicles to take pictures of automobiles in front of their local 7/11.
Prioritizing Customer Entertainment
Fun innovations aren’t limited to social media—entertainment options such as lottery and skill games have also made waves over the past few years.
While independent retailers primarily comprised the majority of early skill gaming terminal adopters, large chain brands have started to catch on to the revenue-friendly trend. Walmart has rolled out digital lottery vending machines (LVMs) with strategic lighting systems to draw awareness to the new additions and increase customer play volume. In Ohio, supermarket and multi-department store leader Kroger has announced plans to add sports gaming kiosks in 22 of its stores across the state.
Regional brands have taken steps to introduce skill gaming to their customers as well. Shop ‘n Save, a Pittsburgh-based grocery store chain with locally owned and operated stores in the Mid-Atlantic region, has added multiple skill gaming terminals in stores across the same city as their headquarters.
Start Generating More Revenue
Skill games are the number one option for convenience store owners and operators looking to close the revenue gap lost from inflation.
INAMAX terminals generate $5,000 per month in extra revenue for our retail customers on average. We partner with each of our clients to implement a comprehensive route gaming strategy backed by data and INAMAX’s Culture of Support to optimize each store for success. Our team members analyze key performance data and adapt to shifts in consumer behavior to strategically swap out underperforming games for more popular options.
This approach has been proven to increase player engagement, as well as in-store dwell time. With more customers spending longer durations in-store, our partners often see increases in in-store transaction volume in addition to the revenue generated by INAMAX terminals.
If you are interested in how INAMAX can help your store stay ahead of the curve and grow profits, please call us at 770.449.0400 ext. 700, or fill out our contact form to learn more.