Fueling Up is a new column from C-Store Dive offering a fresh perspective on the top news and trends in the convenience store industry.
Three things in life are certain for convenience store retailers: death, taxes and the disturbingly long line at the Krispy Krunchy Chicken booth during every NACS Show.
But the egregious wait time for fried chicken won’t be the only thing I’ll be watching this week as the industry’s biggest trade show and networking event kicks off Tuesday in Atlanta.
While c-store retailers large and small have seen tremendous growth this year — from evolving their digital capabilities and foodservice offerings to planting their flags in new markets — there are still plenty of questions and uncertainties regarding the future of this industry heading into 2024.
If there’s one place where c-store retailers from around the globe can find the answers to their most burning questions — from how to implement electric vehicle charging stations to which candy bars will drive the most profits — the NACS Show, with its 20,000-plus attendees and education forums, is where it’ll happen.
As I think ahead to my show floor strategy, here’s what I’m curious to learn.
How will loyalty evolve?
Around this time last year, Paytronix reported that the total number of c-store loyalty members dropped 16% from 2019 to 2021. In light of this, one of C-Store Dive’s big predictions at the beginning of 2023 was that digital loyalty would bounce back this year.
With a few months left until 2024, there’s no doubt we were right.
Major c-store players like 7-Eleven, Couche-Tard, GPM Investments, Casey’s General Stores and Kum & Go overhauled their rewards apps and/or entire loyalty programs this year. Some implemented a tiered system within their platforms, while others simply modified their offerings and potential rewards.
And their actions are paying off: Paytronix recently reported that the industry has experienced a 19% increase in loyalty participants so far this year.
With NACS often being the place where retailers and suppliers launch their latest initiatives, I’m curious to see what’s next for c-store loyalty. C-store retailers are pouring more time and technology into their programs — but what new solutions, systems or platforms will they need to continue evolving moving forward?
Why isn’t retail media taking off?
Here’s one trend we whiffed on. After seeing 7-Eleven and Casey’s launch their retail media platforms last year, we figured more of the industry would follow suit. But for whatever reason, the trend hasn’t seemed to catch on.
Maybe the lack of retail media activity ties back to c-stores struggling to recruit and hire top talent to run these platforms. Maybe it’s because retailers, especially smaller ones, don’t have the funds to start a program. Or maybe they simply aren’t interested.
Art Sebastian, Casey’s former vice president of digital experiences, was the mind behind the Iowa retailer’s retail media platform last year. He’ll be presenting at the show alongside analytics experts from 7-Eleven and RaceTrac on how to build one of these programs.
The presence of this session indicates that many operators don’t know where to start with retail media. I’m not giving up hope yet on this trend.
What’s next in labor-focused tech?
Labor challenges — specifically, difficulty hiring and retaining employees — continue to plague the convenience store industry.
While many retailers have dabbled in flexible scheduling, pay raises and career development programs to improve their workforce, others are resorting to automation as a way to make employees’ lives easier. Some of these tools include floor-scrubbing robots, digital category management solutions, AI-assisted food ordering and even ChatGPT.
But c-store employees haven’t fully bought into all of this cutting edge technology yet. As of early this year, only 34% of retail employees said their workplace technology exceeds expectations, according to experience management company Qualtrics.
What new labor-assisting tech will emerge at the show to boost morale and improve operations? That’s something I’ll be watching. With made-to-order foodservice such a hot priority for retailers, how about an in-house robotic chef to streamline meals?
EV charging: threat or opportunity?
Electric vehicle charging has been one of the hottest — and most controversial — trends in the c-store industry over the past few years. While several large retailers like Pilot and Circle K are making progress on big expansion plans for their electrification programs, others have yet to get started. Many remain concerned about the profitability, consumer adoption and infrastructure demands of EV chargers.
There’s no doubt that as federal EV charging funding continues to roll out and consumers become increasingly less reliant on liquid fuels, the pressure to implement these stations at convenience stores will grow.
Observing the industry’s temperature on EV charging as we head into another year of questions and excitement will be one of my priorities at the show.
Are bigger and better stores here to stay?
One of the more surprising trends seen around the c-store space this year has been the industry’s focus on new store formats. Specifically, bigger stores — way bigger — that focus more on food and less on fuel.
Retailers like Casey’s and RaceTrac have gone all-in on the travel center model, while Spinx and QuikTrip have outlined plans to build more spacious stores ideal for foodservice.
Bigger stores means more expensive stores, and retailers like Casey’s have openly discussed how, while larger locations may be pricey, the higher volume they possess can lead to huge results.
As c-store retailers continually look for ways to keep customers engaged for longer periods of time amid the vehicle electrification wave, I’ll be watching for hints of how retailers will continue updating their stores.
What new food trends are emerging?
When I attended my first NACS show back in 2018, the endless samples of fried chicken, hot dogs, frozen beverages, and sweet and salty snacks across the enormous show floor blew my mind. I felt like Vince Vaughn’s character in The Internship when he realizes he can eat all the goodies he wants at Google’s headquarters for free.
Since then, one of my favorite parts of NACS has been seeing the innovative — and sometimes funky — food trends, whether that’s pickle-flavored candy or venison jerky.
With foodservice becoming more of a priority for c-store retailers as the industry aims to compete with quick-service restaurants, I have no doubt food will once again dominate the show floor. So what new items will grab attendees’ attention this time around?
Speaking of jerky… how much of it will I eat at this year’s show?
You don’t want to know.