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Business
04 November 2024

Convenience Stores Transform To Meet New Consumer Demands

Major chains like 7-Eleven and Rutter's embrace redesigns to become more food-focused and customer-friendly

Convenience stores are undergoing significant transformations as they adapt to consumer preferences and market dynamics. Major chains like 7-Eleven and Rutter’s have recently announced plans to redesign their stores, focusing on becoming more food-centric and customer-oriented. 7-Eleven kicked off its new initiative by opening its first store under the new prototype in Allen, Texas, marking the beginning of what it refers to as its "new standard" design. This prototype emphasizes larger spaces with more food options and will serve as the model for hundreds of additional locations planned for the years ahead.

7-Eleven's move isn't happening in isolation. Rutter’s has also begun constructing new stores, with its latest Washington, D.C., store being developed as part of its 13,500-square-foot design aimed at enriching the customer experience. With fresh interiors and enhanced offerings, Rutter's is setting the stage for its expansion.

These developments reflect a shift where convenience stores aren't merely about fast transactions but are increasingly viewed as destinations for quality food and services. Both 7-Eleven and Rutter’s are not just building new stores; they are also redesigning existing outlets to meet changing customer expectations. For example, Love’s Travel Stops has embarked on transforming its Virginia locations by incorporating open kitchens as focal points, showcasing their commitment to food-centric experiences.

Experts in the industry stress the importance of adapting store layouts and product offerings based on detailed data analysis. It’s all about knowing your customer base and adjusting to their needs. Mike Lawshe, founder of Paragon Solutions, highlights the necessity for constant evolution within the convenience sector. He notes, "It's important for c-stores to be constantly updating their brand. After renovations, everything must align with the company's core identity." This sentiment rings true as operators look to stay relevant amid changing consumer trends.

The concept of responding to customer feedback is becoming increasingly important. For 7-Eleven, this meant taking insights from their earlier "evolution" stores and incorporating those lessons when designing the new standard stores. Customers expressed desires for more spacious convenience spaces, enhanced food programs, and innovative digital interfaces. Consequently, 7-Eleven anticipates these modernized stores to outperform their predecessors significantly, with predictions stating they will exceed revenue expectations by 30% after four years.

But they’re not the only ones reimaging the c-store experience. Other retailers like Wawa and Yatco are also underway with their redesigns. This trend highlights the reality of consumer demand for quality, variety, and convenience, making it clear: if c-stores want to stay competitive, they have to evolve.

Rusty Lantern Market is another example of how convenience chains are embracing innovation. When they revamped their Topsham, Maine store, they focused heavily on foodservice enhancements, investing more than 1,600 square feet for retail space dedicated to food offerings. The remodeled store introduced modern features, including touchless bathroom fixtures, open spaces, and warmer lighting, all aimed at creating a welcoming atmosphere for their customers. It’s no surprise then, as Lawshe notes, the store's revamped approach led to substantial increases in sales.

Many operators, especially smaller chains, are also joining the movement. Rusty Lantern's approach serves as proof of how even smaller players can seriously upgrade their customer experience without having the deep pockets of larger chains. Its forward-thinking offers insight—reinventing the c-store experience can yield significant dividends when executed correctly.

So, what does it take for these convenience stores to successfully pivot? According to industry players, the first step is to engage with customers through various channels to gain insights about their preferences and shopping habits. This information can include surveys, or even customer seminars, aimed at gathering feedback. Getting the facts straight can help drive intelligent shopping experiences.

C-store operators are challenged to deliver these services sustainably and efficiently, considering the realities of space constraints. Lawshe suggests it’s not just about meeting consumer demand but also ensuring the physical infrastructure aligns with these ambitions. "Taking on too much without the right setup can lead to wasted resources. So, before making drastic changes, operators should understand their limitations." Keeping this balance is key to maintaining return on investment and operational efficiency.

Experts advocate for sustainability within the redesign process. They recommend thoughtful assessments of location-specific needs, customer demographics, and how existing stores are functioning. Seth Maddox from King Retail Solutions emphasizes this point, advising operators to undertake thorough evaluations of their current issues and discover opportunities for growth. By identifying areas for improvement and following data-driven recommendations, convenience store operators can navigate the complex terrain of redesigning their space.

One practical approach is to pilot new concepts at select locations. Rather than rolling out changes across the board, Maddox suggests testing redesigns at stores performing poorly or those chosen as flagship locations. This strategy allows operators to refine and tailor their designs before full implementation.

Looking forward, the c-store business model seems poised for substantial evolution. The focus on convenience is shifting—away from the old notions of merely grabbing snacks and beverages toward creating meaningful dining experiences and customer interactions. This transformation is driven by fierce competition, where customers increasingly seek high-quality food offerings alongside traditional convenience metrics.

Operators across the convenience spectrum are clearly recognizing these dynamics. By thoughtfully engaging with their customer base, investing wisely, and executing their restaurant-style visions, they are reimagining what it means to be convenient. The story of the convenience store isn't just about convenience anymore; it's about elevation—for both the establishments and the experiences they provide.

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