The convenience store industry has adapted to many disruptive changes these past few years, ranging from creating new experiential stores for customers, meeting the EMV compliance deadline in October, and most recently, the COVID-19 pandemic.
As c-store retailers look beyond this year’s challenges and prepare for what’s up next, there’s a fury of possibilities that come to mind.
As with any retail sector, convenience stores need to adapt to consumers’ evolving needs and prioritize their strategies to appeal to these new preferences. Additionally, while traditional gasoline and diesel fuels still dominate, the rise of alternatives like electrical and hydrogen-powered cars are gaining traction.
How will the shift in fuel alternatives affect the role of convenience stores? And what can c-store retailers do to stay ahead of these trends?
Here are a few ways advancements in technology and fuel will drive the industry forward.
New Opportunities with Fuel Alternatives
According to Edison Electric Institute, the number of electrical vehicles (EVs) on the road is projected to reach 18.7 million in 2030, up from 1 million at the end of 2018. To support this growth, about 9.6 million charge ports will be required, representing a significant investment in EV-charging infrastructure.
With the growing popularity of EVs, more and more consumers will need a convenient location to charge their cars. As it takes longer to electrically charge a car than a traditional gas fuel-up, c-store retailers have a unique opportunity here to lure consumers into their stores while their car is parked at the charging station.
Furthermore, hydrogen-powered cars and biofuels are said to become the renewable energy sources of the future. If that’s the case, hydrogen fuel cells will need to build an infrastructure that would also serve as a way for c-stores to tap into clean energy and cut its carbon footprint.
As a result, these new business models mean that the store of the future will evolve into creating engaging experiences that can withstand even fundamental changes like new fuel types.
For example, c-store retailers can expand food offerings, offer full-service in-store coffee shops or provide new forms of entertainment like breweries and kid play areas that can keep shoppers occupied while their car charges. By adapting to the changes fuel alternatives will bring, c-store retailers can future-proof their current store and infrastructure, winning customer loyalty and generating additional revenue.