SERVICES
Family Express reports that its app-based car wash subscriptions are doing “phenomenally well.”
Driving Store Traffic With Services C-stores are exploring an array of complimentary amenities to attract consumers By Debby Garbato CONVENIENCE STORE GROWTH strategies
have typically revolved around renovating stores and upgrading foodservice. But the COVID-19 pandemic changed that, bringing digital services to the forefront. In addition to addressing safety concerns, mobile ordering, delivery and other app-based digital initiatives proved just how pivotal the combination of convenience and technology is to the young adults frequenting c-stores. Now, convenience channel retailers are exploring additional tech-forward services. They include bitcoin ATMs, electric vehicle (EV) charging stations, digital lottery, and car wash subscriptions. These amenities are not major profit centers. Rather, the emphasis is on using these services to further differentiate c-store brands, drive traffic, and increase dwell times.
looking at things that will be a draw and impact overall margins and revenue,” said Thomas McElroy, principal of the retail and consumer practice at Deloitte Consulting in Charlotte, N.C. “They were hit pretty hard. High-revenue generators like fountain drinks and self-service were often shut down. They’re trying to adjust.”
Electric Vehicle Charging EV charging is the most popular new service. Its future seems certain, with President Biden calling for half of new vehicles to be electric by 2030. This year, EVs will represent about 3.4 percent of new car sales, according to EVAdoption, but the number of charging stations is already rising. In 2018, there were 64,000 in the United States. By 2020, there were roughly 90,000, according to figures from the Alternative Fuels Data Center and consultancy InsideEVs. “Top of line with everyone is EV,” noted Dzwonczyk. “It’s going to happen.”
“For years, c-stores invested in foodservice to get people into stores. Now, they’re looking at the next generation of ‘stuff’ to pull shoppers in,” said Eric Dzwonczyk, a global co-leader of the restaurants, hospitality and leisure practice at AlixPartners in New York. “There’s much convergence of different themes, with formats changing quickly.”
The nation’s largest c-store operator, Irving, Texas-based 7-Eleven Inc., is being aggressive about EVs. By the end of 2022, it will install 500 direct-current, fast-charging EV ports at 250 U.S. and Canada locations. Currently, it has 22 stores that offer EV charging. All of these locations are adjacent to major roads and highways.
The new traffic drivers require little or no labor. They could help c-stores recoup some of the revenue lost during the pandemic. “They’re
“EV is evolving quickly,” said Kevin Kelly, senior vice president of hospitality at Westlake, Ohio-based TravelCenters of America Inc. (TA), which will soon have
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Other retailers are optimistic but proceeding cautiously.
