Chief Operating Officer at PDI Technologies.
Today, the U.S. convenience store industry alone conducts about 160 million transactions per day, which equates to just under half of the U.S. population dropping in to buy something.
It’s no coincidence that c-stores are so ingrained in our everyday lives: They’re resilient and successful at evolving quickly with changing consumer trends and behaviors. For example, the biggest convenience retailer in the world, 7-Eleven, began in a local icehouse in 1927. (Disclosure: 7-Eleven is a customer of my company.)
As the current COO of a company that provides convenience retail and petroleum solutions, and having spent two decades in leading technology organizations that help businesses keep up with the ever-evolving needs of consumers, I’ve witnessed how technology innovation has profoundly transformed entire industries—including the convenience space.
Today, as we see a rise in electric vehicle (EV) adoption, I think convenience stores are the ideal spot to leverage this latest evolution in transportation.
Yes, we’re talking about evolution rather than revolution because the surge of EV usage won’t happen overnight. However, I suggest operators in the convenience industry start thinking about what new opportunities EVs will present and how they can innovate to make sure they remain the destination of choice for on-the-go consumers driving EVs or any type of vehicle.
Even though the prospect of EVs has been on the horizon for years, interest in EVs has grown rapidly in the past few years. With both organizations and governments actively advocating for broader EV adoption, this upward trajectory will likely continue to accelerate. While the pace may feel overwhelming for anyone who has to make strategic investment decisions today, there’s historical precedent for thinking about the upcoming energy transition as an opportunity to introduce a new offering for customers and a chance to learn as the trend evolves.
Evolve from a pit stop to a destination.
The global c-store experience today provides on-the-go consumers with fast access to snacks, clean bathrooms and gas pumps. Filling up a tank with gasoline takes around five minutes, just enough time to visit the retail store for a quick impulse purchase—my company found that roughly 50% of c-store visits are under five minutes.
Compare that to an EV charge-up, which can take up to 30 minutes. What can c-stores offer a customer who has a half hour to kill? Convenience. Instead of serving as a pit stop on a road trip, c-stores can become more of a destination point by offering tangible, valuable convenience and all the amenities, goods and services a captive audience needs.
By going beyond traditional convenience store offerings and evolving the in-store experience to meet the changing interests of consumers, c-store operators can continue to be a destination point for charging, fuel, shopping, food service and more.
Those who prioritize higher quality in food service offerings and customer experience by offering clean bathrooms, comfortable seating areas, workspaces and guest Wi-Fi can be best positioned to retain their loyal on-the-go customers even as the type of vehicle they drive may change.
In order to attract repeat customers and spread awareness about new offerings, operators can also consider improving their digital experience. (Disclosure: My company provides digital solutions, as do others in the industry.) This could involve enhancing mobile ordering capabilities and implementing or enhancing loyalty programs so repeat customers are rewarded for their loyalty. Or they could focus on more effective target marketing by leveraging insights driven by real-time data.
By creating an environment that combines convenience with comfort and connectivity, operators can establish their stores as destination points for a wider array of customers.
Balance the needs of EV and fuel-powered consumers.
Even though EV adoption is on the rise, recent forecasts tell us that internal combustion engine (ICE) vehicles won’t be going away anytime soon. This means convenience store operators will need to accommodate both EV and traditional fuel customers for at least the foreseeable future.
As a result, operators will need to consider everything from location selection and amenities to the size and layout of the site itself.
One consideration in implementing EV charging stations is how much electrical supply you’ll need to power a charging station in a specific area. While standard fueling doesn’t typically increase electricity use and costs, an EV charging site requires a much larger electrical supply, especially for level three chargers. Accordingly, operators also need to consider the space that’s available for chargers and sufficient power sources, as well as grid capacity and permit requirements.
For some convenience storefronts, having limited available physical space for EV chargers may be a hurdle for broader installation. Convenience retailers can get ahead of this challenge by planning for flexibility and considering how they might optimize parking lot formations under several phases of EV adoption.
And with any emerging technology, there is no substitute for real-world experimentation—perhaps consider installing a handful of charging stations that allow for gradual expansion as the EV market expands, which can help offset the initial investment.
Stay up-to-date on the latest trends, emerging technologies, updated regulations and other factors as the industry continues to evolve. And even those who hold off on major capital investments should at least have a plan or strategy in place in case the consumer market shifts faster than expected. By doing so, retail owners and operators can stay ahead of the curve to provide the best experience for their customers.
Adapting is key.
When driving around a neighborhood—or even a different city—it’s hard not to pass a convenience store. There’s a reason convenience stores are everywhere. They often seem to occupy the most desirable retail locations no matter what part of the country you live in.
As we enter another defining point for our culture and the industry, one thing is certain: Convenience stores can adapt to meet the evolving needs of their customers. With the right strategies and a good understanding of changing consumer demand, convenience stores across the country can turn the growth in EV usage into a strategic business opportunity—just like they have for so many other trends in the last century.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
The post originally appeared on following source : Source link
