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State of the Industry

Future of Convenience Stores

Q3, 2022

Convenience stores no longer just compete with the store down the street. Grocery and general merchandise retailers offer a larger assortment of food and home essentials through convenient delivery and pick-up options. Rapid eCommerce innovation is redefining the whole idea of “convenience”. Shoppers will be increasingly less forgiving of experiences stuck in the dark ages. If convenience stores can make it easier for consumers to achieve their most important lifestyle goals, they would have smartly redefined "Convenience 2.0" to be about more than the need for speed.

This report presents key findings and analysis from a study of 128 convenience retail executives. The study is designed to understand senior fuel & convenience industry executives' outlook and readiness for the future of convenience stores.

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As consumers continue to reshape their expectations,

enterprises must contend with a uniquely challenging landscape.

The consumer technology landscape is forever changing.

From Pinterest to TikTok, WeChat to Instagram, new experiences can rapidly gain consumer adoption and relevance.

Consumer, Technology, Incisiv

From augmented reality to voice, smartwatches to chatbots, consumers are constantly embracing new interaction paradigms.

Commoditized convenience is eroding loyalty and margin.

Consumers expect convenience. If you can't deliver it, they'll go elsewhere - e.g. next day shipping becoming the new standard.

Walmart will reportedly lose USD 1 billion on eCommerce revenue of USD 21 billion this year as it faces challenges in its bid to complete against Amazon – from trouble integrating its DNVB acquisitions to impact on margin from its next-day delivery operations.

Consumers value experiences that are curated to fit their lives better.

They want to engage, be served, and transact at their time, their pace, their place. They have little patience, infinite choice and the freedom to swipe left at the slightest hint of friction.

Consumer, Experience, Incisiv

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