Once upon a time, the Kwik-E-Mart (where a 50c stamp costs 89c and $20 worth of petrol is surprisingly expensive) was a money making machine.
Since 24/7 trading became common for supermarkets, they have found it tougher. Where we would once begrudgingly buy fags, Weeties and milk from 7-Eleven or similar convenience stores, we now go elsewhere.
Australian C-stores take several formats — the 7-Eleven freestander, the servo forecourt, the FoodWorks mini supermarket or the vanishing local milk bar. For a decade, these stores have searched for a new niche.
C-stores have limited assortments and small store layouts making finding and buying easier. They save us time. Recognising that they are losing some sales to C-stores, Tesco (UK) is putting quick shops – emergency fag and milk supplies — just inside the front door of giant supermarkets. No need to walk all the way to the back and wait in an express queue that takes 10 minutes.
Much of American C-store retailing is about impulse and fast fresh food. Wawa, a US forecourt retailer, is a innovator. They sell petrol — plus quality food add ons. The motorist can order a coffee (of which they have 16 types in four sizes) or a ciabatta, focaccia or sandwich from a touch screen attached to the bowser. The food and coffee are made fresh while the tank is being filled, ready and waiting for when the customer goes to pay for fuel. The Wawa food offer has become so successful that it now stands alone in some locations.
In Europe, C-stores are also about food, but tend to be higher quality and price point meal solutions rather than fast food. Some newer Australian FoodWorks stores are riding this trend.
Japanese convenience stores are very high service environments that vary the product offer by time of day.
In some markets, C-stores have become a local concierge, offering a broad range of convenience services. Beyond the current ATMs and mobile phone recharges, they offer box office, dry cleaning drop off and pick up, digital printing of photos and documents, bill payment, pack, post and courier services and online shopping pickup points.
High staff efficiency, short queue times, self-checkout or self-serve and vending machines all speed the sale. New ordering and payment solutions involving mobile phones or the new Wave Visa will speed the transaction.
The increasing numbers of households where everyone is employed, the shrinking size of households and the shift to higher quality fast foods all play into the hands of the new generation C-store.
Convenience stores can really only offer two things. They can save us time or they can save us effort and if the deal is good enough, customers will pay over the odds. Expect them in Australia soon.
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