The convenience-store industry is growing, with $859.8 billion in total convenience-industry sales in 2023, Art Sebastian said Aug. 7 atCSP’s Outlook Leadership event in Rancho Palos Verdes, California, citing the National Association of Convenience Store’s (NACS) State of the Industry 2024 Report.
Sebastian is chairman of the C-StoreTEC Advisory Board and CEO of growth-advisory firm Nexchapter LLC.
Each day, a store sees almost 1,500 transactions, and the average basket has increased 3.7% to $7.80, according to the report. But the c-store industry faces pressures, from inflation, labor challenges, competition around foodservice, credit card fees and more, Sebastian said.
C-store’s customer base is also changing. Gen Z consumers are more likely to shop convenience stores, he said.
“They’re more likely to add more items to their transaction,” Sebastian said of Gen Z. “They’re responding well to foodservice enhancements, and actually, eating at a gas station is pretty cool. And then half of them are trying delivery from convenience stores. This generation is different than the ones we’ve typically served. They’re digital natives.”
They’re also constantly on their devices, and want things immediately, he said.
“They’re different,” Sebastian said. “And my question to us in this room is, ‘Are we ready to serve these customers?’.”
The growth of technology spending has surpassed retail sales growth, he said. Retailers are investing in areas including customer experiences, employee experiences, store experience, corporate systems, merchandising systems and information technology.
With all of the technology options, c-stores are asking themselves, “Where do we spend the investment?”, Sebastian said.
CSP’s upcoming event, C-StoreTEC, aims to help educate retailers about this. “C-StoreTEC is focused on helping guide this industry in the technology space,” he said.
The full-year platform includes an advisory board, for which Sebastian is the chairman, a digital content series and a conference from Oct. 28 to 30 in Schaumburg, Illinois. Visit cstoretec.com for more information.
Retail Media Networks
A related topic is retail media networks, which are becoming more common as marketers navigate challenges like consumers having more ad choices, increased privacy regulations, cookie deprecation and more.
“Retail media is advertising operated by retailers who act as media channels by publishing ads on their assets or third-party publishers,” said Sebastian. “It also includes media content powered by the retailer’s first-party customer data.”
Retail media spend is growing, and retailers like 7-Eleven, Irving, Texas, and Casey’s, Ankeny, Iowa, and Wawa, Wawa, Pennsylvania, have already joined the game.
Retailers can learn more about this at CSP’s upcoming Retail Media Network Forum. The event will be held Oct. 27 and 28 in Schaumburg, preceding the C-StoreTEC event. Visit cspretailmedianetworks.com for more information.
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