Convenience stores (or corner shops) are generally 2,400 square feet of lighters, umbrellas, deodorant, bread, milk, WD-40, band-aids, snacks, beer, and cigarettes. They tend to be open later, have shorter lines, and are easy to get in an out of.
The behavioral and actual economics of C-stores are interesting. They hold smaller inventories at higher per unit costs from wholesalers, yet those higher prices and lackluster shopper experiences don’t deter consumers. Accounting for about 35% of all retail outlets, America’s 150,000+ C-stores have managed to thrive amid the e-commerce boom, which made Amazon almost every store brand’s number one competitor.
According to Bloomberg, that AMZN threat is being eliminated by partnering with gig economy players. “Since the pandemic hit the U.S. in March, drastically reducing in-store shopping, big players like 7-Eleven, Circle K, and Casey’s General Stores have accelerated the rollout of delivery from thousands of locations via third-party platforms such as DoorDash, Postmates, and Uber Eats.” (For any of my strategy wonks, btw, this is a great example of what strategy is.)
What’s clear about both the pandemic and growth of e-commerce is that consumer expectations have shifted away from browsing and toward grab and go.
One key metric I fastidiously watch for one of my retail clients is the “easy to shop” attitudinal part of the brand tracker. Interpreting it is layered though as with many surveys, the single question doesn’t get into whether respondents are thinking of “ease” as way-finding and signage, customer service, fast check-outs and returns, parking…
In a recent interview with Vox, Nancy Green, the head of Old Navy explained how the company temporarily, and at significant cost, retooled its brick-and-mortar stores as distribution centers to fulfill online orders. They rapidly scaled curbside pickup and reconfigured the store floors to put returns and exchange counters in a separate place from the checkout cash wraps, with signage that helped shoppers easily navigate so they could get in and out and not have to stand in lines. It’s a smart, simple move that I’m sure the sales associates really appreciate — as a return always comes with a story, a fumble for a receipt, and an explanation of what the shopper is entitled to.
Back in 2018 (which I know feels like a lifetime ago), Sun Branding Solutions noted that seven in ten shoppers said convenience was more important to them than it was five years prior. And more recently, Deloitte research indicated that, “While perception of convenience can range from “saves me time” to “meets all my needs in one place,” what many people are looking for is something that simplifies life while delivering a positive experience. People want to “outsource” the work of getting products. Instead of focusing on the act of purchasing products, they want to focus on the act of using them. That’s what appears to really matter.”
We recently checked the pulse of 2,000 Americans to learn how they were feeling going into the holidays this year and 47% told us they will spend more with a retailer that clearly prioritizes the health and safety of store workers. And most said they are not willing to risk shopping with retailers they believe have questionable safety practices.
This had me thinking that much like the C-store economics, customers are more than willing to pay a premium for ease. When you think abandoning an online cart over a $5.99 shipping fee but handing over a fistful of extra singles for a soda and some shampoo at a shop down the road, you’re reminded that we’re not particularly good at evaluating our budgets in real time. But we are very good at analyzing the path of least resistance and personal safety in a snap.
Safety has become synonymous with convenience thanks to Covid-19. But in looking at both data and enduring human behavior, I think this is one of those shifts that will endure long past our return to normal with vaccinated populations and humming economies.
The days of shoppertainment and showrooming may be in the rear view mirror — investing in things like in-store media networks and high tech fitting rooms may be line items in a fools budget. Instead of architecting Escher-like footprints designed to keep shoppers browsing, store layouts now need to be built for efficiency, turning shoppers into buyers.
Brand favorability will depend on those “easy to shop” metrics, and loyalty will need to be built through other channels, with different RTBs and marketing CTAs. Our research did confirm that retailers continue to set the agenda when it comes to things like holidays — the in-store music changing, the lights, the window displays, the Starbucks red cups all signal to shoppers that something’s changed. But setting the agenda has more to do with how these brands are offering ease, convenience, expediency, connecting across channels, anticipating needs, and predicting preferences.
The equation needn’t be: spending more time with the brand = more love. I think for retailers more love should be seen through the lens of more transactions. I go to my bodega 3–4x more frequently than I do the fancy Wegmans round the corner. Wegmans would score much higher on a brand affinity survey if I took one. I don’t love my bodega at all but they get the overwhelming share of my wallet because there’s less people, choice enough, and I’ve never stood in a line.
