Revenue from the fuel and convenience retail industry has steadily increased despite a shrinking number of brick-and-mortar locations. While gas stations and service centers are estimated to reach a whopping $503 billion in revenue in 2024, the increasingly competitive market has forced thousands of merchants to close their doors.
Revenue diversification is a core focus for national gas station chains and independent operators alike. Many gas stations have drastically modified their approach to in-store transactions to meet the needs of modern travelers.
That said, the element of convenience is still massively important in ensuring customer satisfaction in 2024. Data from cloud-based payments provider Aevi shows that consumers are still seeking quick transactions, high-quality products, fair pricing, and supportive experiences with staff members when they hit the pumps and service centers.
In this sense, there have not been major shifts in consumer desires. The means to providing these efficient customer experiences, however, has undergone a digital revolution in recent years. The adoption of new technologies and unique store layouts has become commonplace, with stores that fail to implement innovative systems falling behind locations that are quick to adapt.
Diversified Payment Processing
In 2024, the question “cash or card?” simply will not cut it for the average consumer.
According to data from Statista, the usage of mobile wallets such as AliPay, Venmo, and ApplePay leveraging RFID, GPS tracking, QR codes, barcodes, and near-field communication technologies for payment is increasing across the country.
Credit and debit cards are still important. A recent GasBuddy survey found that 51% of consumers use debit cards, while 37% prefer to swipe their credit cards at fuel stations.
Swiping isn’t the only method of card payment to consider — dip-and-go, chip-and-pin, and contactless technologies are all used by major credit and debit card providers.
When evaluating your next Payment Service Provider (PSP), it would be in your best interest to choose a platform that supports a range of mobile wallets and payment methods.
Electric Vehicle Fuel Stations
The emerging popularity of electric vehicles has accelerated consolidation initiatives for some of the biggest gas station chains in the country.
Shell announced it will shutter over 1,000 retail locations between 2024 and 2025 to focus its resources on expanding services for electric vehicles. According to its Energy Transition Strategy 2024 report, the firm plans to install 70,000 public charging stations by 2025 and around 200,000 by 2030.
With the number of electric vehicles on the road projected to reach 18.7 million in 2030 (an 18x increase from 2018), it makes sense for gas stations and service centers to provide electric charging stations and other EV-friendly accommodations on-site.
Technological Innovation
In a post-COVID world, it’s hard to find industries that haven’t been catapulted into a digitally-integrated world.
Gas station chains like QuikTrip have been reported to be testing cashier-less technology and biometric scanners, while others turn to advanced quality control systems that can execute temperature monitoring, traceability, expiration date management, and food tracking tasks from a single dashboard.
Amid this revolution, quality exchanges with human employees are still highly valued by customers. A survey conducted by Chain Store Age found the majority of participants still appreciated approachable, well-trained staff members who can assist with inquiries and help process transactions.
Nearly all backend operations and frontend customer experiences will soon be augmented by digital systems as new leaps in AI technology, consumer tech, and resource management solutions continue to refine logistics for fuel stations and their teams moving forward.
Evolving Revenue Streams
The term “revenue diversification” sits right alongside “consolidation” atop the fuel and convenience retail industry’s buzzword list. Comprehensive menus for hot foods and specialty beverage offerings and alternative fuel stations (for electric, bio-diesel, and hydrogen-powered vehicles) are just a few ways gas stations are attempting to generate new streams of revenue.
Many have also turned to various partnerships to offer holistic commerce solutions — laundry, banking, and fitness services are some of the most common forms of said partnerships.
Another rising trend is the stark increase in skill gaming terminals and route gaming experiences in gas stations across the United States. Gas stations in Nebraska and Pennsylvania have seen hundreds of terminals pop up in just the past few years, with many store operators deploying the new machines to take advantage of their revenue-generating capabilities.
In addition to cash transactions for gameplay sessions, terminals from industry leaders like INAMAX are helping attract new customers to gas stations across the country, in turn increasing in-store purchase volume.
Maximize your gas station’s revenue potential through the strategic deployment of coin-operated amusement machine (COAM) terminals today! To learn more, please call (770) 449-0400 ext. 700 to connect with an INAMAX team member, or fill out our contact form to learn more.