New and Remodeled Convenience Stores Will Push Grungy Standalones to Brink - PYMNTS.com

With caller brick-and-mortar and integer competition, convenience stores tin nary longer spend outdatedness oregon grunginess.

The fig of convenience stores is rising successful the United States, arsenic the National Association of Convenience Stores (NACS) noted this week successful its 2023 NACS/Nielsen Convenience Industry Store Count report. The 150,000+ locations successful cognition successful the state people a 1.5% summation from past year, a uncovering that is particularly notable, seeing arsenic it comes connected the heels of 4 years of decreases.

Many of these caller stores are much upscale locations that connection much than conscionable gas-station-side snacks and beverages. For instance, Getty Realty announced last week that it invested $44 cardinal into 9 store acquisitions passim 2022. Meanwhile, 7-Eleven is modernizing its stores with omnichannel convenience, gathering retired its on-demand transportation infrastructure with its 7NOW transportation app and 7NOW Gold Pass escaped transportation subscription.

Additionally, convenience stores are present competing with digitally autochthonal players specified as online-only convenience hubs from restaurants and eCommerce brands branching into brick-and-mortar such as Foxtrot Market, which provides a sleek, upscale in-store experience. Consequently, consumers are coming to expect much from their convenience stores — selection, convenience and integer connectivity.

Research from PYMNTS’ caller survey “The Instant Payments Transformation Guide: Grocery, Pharmacy and Convenience Retailers,” created successful collaboration with ACI Worldwide, which drew from a survey of 300 United States and United Kingdom retailers, recovered that 77% of merchants, including convenience retailers, presumption integer rewards and coupons arsenic being cardinal to in-store lawsuit loyalty. Plus, 81% said the aforesaid of entree to mobile apps.

“Modern convenience stores and pharmacies whitethorn find themselves successful much aggravated contention with each different and online services,” the survey notes. “As an influx of independent, mobile-only online pharmacies and convenience services thrust up competition, the savviest convenience stores and pharmacies are driving engagement done features that reward consumers for buying and region friction from transactions.

Indeed, integer upgrades tin spell a agelong way. Last month, Casey’s General Stores, the nation’s third-largest convenience retailer with astir 2,500 stores, touted its rewards app spot connected a telephone with analysts.

“As of Oct. 31, we were astatine 5.8 cardinal rewards members, adding implicit 400,000 members successful the quarter, due to the fact that our squad continues to thrust worth for rewards guests,” CEO Darren Rebelez said. “This has resulted successful our rewards information complaint reaching 37.8% which is simply a 600 ground constituent summation from the anterior year’s 2nd quarter.”

Previously, Casey’s shared with PYMNTS however the manufacture has immoderate catching up to bash erstwhile it comes to loyalty programs comparative to competing sectors.

“The c-store loyalty abstraction is inactive mostly caller successful the industry, and the ones that volition archer you ‘Well, we’ve had it for a while,’ they’re benignant of nascent,” Art Sebastian, Casey’s vice president of omnichannel selling said successful an interview. “Like, hey, there’s coupons and possibly a mates nascent ways to save. So, I deliberation it’s inactive benignant of new. But what I would situation the manufacture to bash is deliberation astir however to … marque definite you’re doing thing antithetic to person your programme basal out.”