Convenience store (C-store) operators continued to embrace digital transformation last year, from the forecourt to inside their stores, to keep up with evolving consumer demands.
“We saw a lot of retailers figuring out how to do order ahead and delivery and really mature those systems—new point of sales systems, new modern checkout systems, food ordering kiosks and more,” PDI Technologies vice president of product strategy and partnerships Jeff Hassman said during the NACS “Convenience Trends to Watch for in 2024 webinar.
From digital signage, such as PWM’s cutting-edge SMD LED technology, to proximity marketing beacons to IoT-enabled sensors to facial recognition and more, expect C-stores to keep experimenting with technological advancements over the next 12 months to enhance customer experience.
“I think this type of digital advertising will grow in the coming year. It serves as both a new revenue stream for retailers and an effective way to promote products and services in-store,” wrote Convenience Store News editorial director emeritus Don Longo in his “Crystal-Balling the Coming Year in Convenience.”
C-Store Digital Transformation: From Sprint to a Marathon
The need for C-stores to implement technology at a record pace during the pandemic shows no signs of easing in 2024 with Hassman saying investments in technology, especially in infrastructure, will likely continue in 2024.
He said that the investments are looking to “make it easier for retailers to be able to test new innovations, be able to get them out quickly and decide whether it's working for them or not [without] having to have a big IT project.”
The NACS webinar also said that “retailers are going to be looking into how they can make the store experience more personable and how they are going to be able to do that with technology. The beginning of that process has already begun with personalized pricing.”
For some, the C-store digital acceleration since 2020 is starting to feel like a sprint that has turned into a marathon without slowing down.
This creates its own set of issues as c-store operators take stock of the new technology recently added and its ability to seamlessly (or not!) work together.
Integrating C-Store Technology, a 2024 Trend to Watch
C-Store Dive says that integrating technology will be a focus in “9 Trends That Will Shape the C-Store Industry in 2024.”
The publication said that C-store operators will look toward “unified commerce” or an intentional effort to integrate their various tech software to facilitate a better customer experience.
This effort will cover all C-store technology touch points from the forecourt to inside the store.
“Much of this tech unification harkens back to retailers’ efforts to engage customers during the COVID-19 pandemic, when demand for technologies like mobile ordering and delivery spiked. Almost four years later, retailers have struggled integrating various software and services with one another,” reported C-Store Dive.
Rob Gallo, chief strategy officer for C-store consultants Impact 21, told C-Store Dive that the addition of all the new tech software has made the customer experience disconnected and disjointed.
“For example, customers’ loyalty profiles or payment information doesn’t always travel between apps or platforms, forcing customers to re-enter this info several times. This makes it difficult to send a consistent message to and engage with customers,” said Gallo, who told the publication that filling in these tech gaps in 2024 will be a priority. “Now that we understand the customer journey, let’s map all this stuff out and make sure that we’re serving the customer’s needs during all stages of those journeys.”
CSP Magazine: Look for These Three Tech Trends
CSP Magazine’s Rachel Gignac covered three tech trends that C-store will tap into in 2024.
“The growing role of technology in operations, engaging shoppers with personal experiences, and energy readiness are the top three trends that PDI Technologies predicts will be top of mind for the convenience industry in 2024,” wrote Gignac.
Much like the C-Store Dive prediction, integration is an important aspect of the continuing digital transformation.
“Top retailers, popular brands, and technology innovators will distinguish themselves by prioritizing integration and collaboration,” PDI’s Hassman said. “We all have insightful data on what’s happening in the store, at the pump, or behind the scenes. By working together to connect that data, we can maximize the convenience experience for consumers—which means a big win for the industry.”
Hassman and PDI think these three tech topics will be trending in 2024:
- Technology’s growing role in operational excellence: With evolving labor challenges, forward-looking operators will invest in technologies that integrate easily with their existing systems to reduce complexity and make their processes—and their employees—smarter, faster, and more efficient.
- The need to deliver more valuable consumer experiences: While consumer confidence may improve as inflation levels off, engaging shoppers with the most relevant, compelling, and personal experiences will become table stakes for retailers and CPG brands alike. Product promotions also can have positive long-term results, as revealed in the recent “Tracking Convenience Report” based on data and analysis from PDI and GasBuddy.
- E-mobility and EV readiness: Though the energy transition has begun, there’s still a runway to ensure that the prime real estate c-stores already occupy become a strategic destination beyond fuel for consumers looking to charge their EVs.
Technology Drives C-Store Evolution
Andrew Harper, writing for Jevera software, says that technology is driving c-store evolution in the following four ways in 2024:
- Mobile Payment Systems: This shift towards mobile is enhancing the entire shopping journey, making it smoother, and opening the door to more personalized deals and loyalty rewards.
- AI and Data Analytics: 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.
- Touch-less Experiences: Given today’s health and safety priorities, many C-stores are introducing self-checkout systems. Integrating this technology into c-store technology is an advantage against competitors.
- Cybersecurity Measures: The more C-stores transform digitally, the greater their risk of cyberattacks from bad actors. A robust and agile technological infrastructure is essential for C-stores to navigate unforeseen challenges. SD-WAN technology will be embraced, along with Managed Detection and Response (MDR) services, to help protect C-store – and their customers – sensitive data.
