Convenience stores have been an American staple for close to 100 years, serving an important function for the average consumer. But with technology changing so rapidly and major retailers like Amazon making moves that threaten the market, will c-stores continue to be relevant to the next generation?

It’s necessary to answer this question because Gen Z (the next generation with purchasing power) constitutes nearly 27% of the entire U.S. population and is on track to be the largest generation of consumers. However, its shopping habits are substantially different from other groups. If convenience stores can’t capture the interest of this generation now, they’ll struggle to stay relevant … and stay in business.

Here are six trends that conveniences stores need to be aware of – and capitalize on – to create loyal shoppers among Gen Z.

1. They are technology natives. Gen Z is the first true digital generation, and its members are accustomed to being able to use mobile phones, apps, and the Internet to do anything they need to do. That means, of course, that a c-store must incorporate technology into its interactions with customers, whether it be apps, mobile ordering, paying via mobile, or some combination of them.
2. They expect diversity in their food. We already know that this is a “foodie” generation – perhaps even more so than others. But Gen Z has wider access to a variety of cuisines from cultures around the world, which makes it incumbent upon convenience stores to offer many different types and flavors of foods.
3. They expect a mobile presence. Beyond a fondness for technology in general, the members of Gen Z are especially attached to their mobile devices. They expect the businesses they frequent to cater to them in the form of a mobile-optimized site, an app, a mobile loyalty program, and/or SMS messaging.
4. They use online reviews to guide choices. More than any other generation, Gen Z makes buying choices based on online reviews. Studies have shown than a one-star increase for a business on Yelp leads to a 5-9% increase in revenue. C-stores need to constantly monitor their online reviews, as well as encourage happy customers to write them.
5. They have an expectation of immediacy. Members of this digital generation are accustomed to being able to access what they want when they want it. Convenience stores, therefore, need to implement ways for Gen Z customers to get items as quickly as possible, including offering NFC Loyalty and mobile payment.
6. They regularly order online. There has never been a time when Gen Z couldn’t place orders for things online. Just a few years ago, two-day shipping was a revelation, and now people can have a reasonable expectation of getting a delivery in less than an hour. A c-store that wants to stay competitive in the marketplace needs to offer store delivery, curbside pickup, or both.

Digital guest engagement programs are the key to making Gen Z (and all generations) feel as valued as possible. They enable c-stores to gather data and use it to deliver promotions, discounts, and messaging that is relevant on an individual level. These programs can include and/or integrate with an app, mobile payment, delivery options, and any number of other digital touchpoints.

Because the promotions are personally meaningful, customers partake in them and visit the c-store location more frequently. And encouraging those habits when Gen Z is young helps create loyalty for life.

Engaging Gen Z customers requires a comprehensive plan. To learn more about attracting this generation to your stores, check out our on-demand webinar, “Does Gen Z Have a Need for Convenience Stores?”

Delivery has become a hot trend throughout most consumer industries. Amazon Prime Now is delivering more food and other essentials to customers across the country, Starbucks is flirting with delivery, McDonald’s is partnering with Uber Eats, and even 7-Eleven has begun beer delivery in some states.

Given these developments, should convenience stores begin offering delivery? And if so, how should they do it?

It’s no secret that consumer demand is driving the push for delivery. In fact, 52% of millennials would buy from c-stores more frequently if delivery options were offered. And as the generations preceding millennials continue to age, they’ll rely more on delivery as well.

The increased competition comes from both inside the industry – with mega-chain 7-Eleven exploring its options – and outside the industry – with behemoth Amazon moving into the traditional c-store space. Convenience stores may be facing an “adapt or die” proposition, and there are a number of issues that should be addressed before delivery is offered.

First, c-stores need to decide whether to build their own delivery infrastructure or rely on third-party delivery companies like Uber Eats and GrubHub. […]

Convenience stores can’t take advantage of every trend that comes along, but when one promises to be a $2 billion opportunity by 2022 and could easily be stocked in c-stores, it’s time to pay attention.

CBD, a non-psychoactive cannabinoid in the cannabis plant, has been garnering considerable attention and consumer spend over the past few years. Increasingly popping up in things like oils, gummies, and vapes, CBD could also represent a significant opportunity for convenience stores.

Is It Legal for Convenience Stores to Sell CBD?

Passage of the 2018 Farm Bill legalized products made from hemp as long as it contains less than .3% THC. The status of CBD, however, is a little murkier.

Some states have outright banned CBD, some allow it, and others consider it to be in legal limbo. But that’s not stopping major chains from jumping on the bandwagon, as both CVS and Walgreens have announced that they’ll be selling products containing CBD in stores across at least eight states.

The legality of selling CBD at a convenience store depends on the location’s state laws, but with CBD products rising in popularity, it’s likely that many of those laws will be changing over the next several years. It would benefit convenience stores to be ready.

Who Would Buy CBD from a Convenience Store?

Not surprisingly, CBD is largely being purchased by the trendsetting millennial generation, which extols its relaxation, sleep, and overall wellness benefits. […]

For some people, the news that both Target and Whole Foods are moving into the grab-and-go segment might feel like a threat. But for savvy c-store owners, it’s something else entirely: an opportunity.

When big players like Target and Whole Foods make a move, it behooves everyone in the food-sales industry to take notice. After all, they wouldn’t be doing so unless it’s likely to be highly profitable. And that certainly looks to be the case, as there’s been a 15% increase in prepared meals and snacks since 2010 and 25% of millennials eat in their cars on a daily basis.

Fortunately, convenience stores are perfectly positioned to take advantage of this opportunity. Nearly half of their customers are already purchasing food or beverage items.

And because c-store customers tend to make multiple visits per month, grab-and-go food is a prime way to increase their spend each time and encourage even more visits.

Convenience stores also have ample opportunity to promote their grab-and-go food options. Simple signage in the store can motivate customers to add food to their purchases, and signage in the forecourt may entice fuel-only customers to pick up a meal or snack. Video ads at the pump can serve the same purpose.

Although getting customers interested in grab-and-go options seems simple enough, getting them to actually make purchases is another matter. A long checkout line will send 74% of shoppers to a competitor, while 41% of them will change their minds about a purchase if the line is too long.

A grab-and-go program needs to deliver both a high ROI and an increase in visits. For maximum effectiveness, special attention should be paid to the “Four P’s” – product, price, place, and promotion.

Each of these four elements plays a crucial role in the success of a grab-and-go program. To highlight their importance, we’ve created an on-demand video containing details and ideas on how to implement your own program.

This free, streaming webinar, “Grab-and-Go: How to Maximize Your Foodservice Options” will take you through the key recommendations we give our c-store clients, as well as help you create an effective grab-and-go segment plan.

Click here to watch this free, on-demand video and learn how adding or improving your own grab-and-go program can boost your bottom line and help you compete with even the biggest industry players.