As consumers become more engaged across physical stores and digital channels, convenience retailers are integrating new technologies into their in-store experiences.
According to a recent report from the National Association of Convenience Stores (NACS), nearly two-thirds of shoppers are members of a retailer's loyalty program.
“Customers are using their mobile phones to navigate the store. They order ahead and come into the store to pick up their order. They may even be ordering food from their device while in the store. The list goes on. Charlie McIlvaine, the association's vice president for research and technology, commented at the NACS Industry Summit.
Many consumers are blending their digital and brick-and-mortar retail lives. The PYMNTS Intelligence study, 2024 Global Digital Shopping Index: U.S. Edition, was produced in collaboration with Visa Acceptance Solutions and is based on a survey of more than 2,400 U.S. consumers. Across retail, he found that 31% of shoppers fall into his Click-and-Mortar™ category. Specifically, approximately 1 in 5 of his stores utilizes digital technology, and 11% are purchasing digitally for in-store pickup.
Convenience stores are increasingly leveraging technology to meet this demand. For example, Casey's General Stores revealed on a call to discuss its latest earnings report that its rewards program has more than 7.7 million members and that the company is driving adoption with targeted promotions. I did.
Similarly, Brian Hannasch, president and CEO of Alimentation Couche-Tard, the owner of Circle K, said in a phone call accompanying the convenience store company's last financial report that members are not members. “People are coming into the store more often and with more expensive baskets,” he said, and the program is growing.
Meanwhile, 7-Eleven, a major convenience store chain, is increasing its use of technology in every aspect of the purchasing process. During the chain's parent company, Seven & i Holdings, Inc.'s final earnings call, 7-Eleven Inc. President Stan Reynolds said the store would continue to expand its 7REWARDS loyalty program, digital programs including mobile and self-checkout, and digital programs such as 7NOW delivery. We are accelerating delivery.” , and our retail media network. ”
He said consumers looking for deals are adopting retailer loyalty programs to get better value, driving enrollment growth, and that program members are more likely than non-members to earn on average. He added that the number of transactions has increased by 20 times, and the number of store visits has increased by 20 times.
“Not only are customers looking for loyalty programs, but the demand for delivery continues to grow,” Reynolds said. “Even in the current economic climate, customers still demand delivery as part of their weekly routine.”
Many, if not most, consumers want the convenience of on-demand food delivery. According to data from a study conducted last year by PYMNTS Intelligence, “Connected Dining: Third-Party Restaurant Aggregators Keep Young and Wealth People Engaged,” 40% of consumers have visited an aggregator at least once in the past six months. I found out that I used it.
By offering on-demand delivery, c-stores can earn additional revenue and open up new opportunities. Providing online ordering and delivery services can attract new customers, increase the frequency of purchases from existing customers, and increase overall sales and revenue.
Additionally, an omnichannel strategy helps convenience stores build stronger customer relationships and foster loyalty. Convenience stores can motivate customers to engage more often and spend more on their brands by offering personalized promotions, recommendations, and offers across different channels.
