Nearly three-quarters of convenience store retailers say they will spend more on technology
and automation this year than they did in 2019. C-store operators are investing to meet current and
future challenges, as the COVID-19 pandemic has sped up implementation of new contactless
technology, home delivery and curbside pickup programs. In this special bonus supplement to
the 2020 Convenience Store News Technology Study, we examine the top challenges
and opportunities driving tech spending in the c-store industry today.
SECTION 1
Tech Spending & The Impact of COVID-19
Change in Technology Budget:
2019 vs. 2018
Last year, nearly a third of c-store retailers increased their tech budgets by 10% or more. That was up
from a quarter that did so the previous year.
Technology Spending Plan for Full-Year 2020
2019 vs. 2018
This year, in a positive sign that c-store retailers are investing
to meet future challenges, nearly three-quarters of respondents
say they will spend more on technology and automation
than they did in 2019 – up from 57% a year ago.
1
Become
EMV compliant at the pump
Becoming EMV compliant at the forecourt was named as the single highest priority, cited by 20% of respondents. Also high on the list of drivers is reducing theft and shrink, increasing customer payment options, and replacing aging POS technology.
Top 10 Opportunities Driving Technology
Investment in the Coming Year
2
Develop greater business intelligence and reporting capabilities
3
Better management of store-level inventory/revenue
4
Reduce theft/shrink
5
Increase customer payment options
6
Replace aging POS technology
9
Improve data security
10
Frictionless/
self-checkout technology
7
Employee training
8
Better management
of store labor expense
Technology Spending Plan for Full-Year 2020
This year, in a positive sign that c-store retailers are investing
to meet future challenges, nearly three-quarters of respondents
say they will spend more on technology and automation
than they did in 2019 – up from 57% a year ago.
Impact of the COVID-19 Pandemic on Technology Development
With the pandemic keeping customers at home, it’s no surprise that more than half of c-store retailers say they have either sped up implementation of new contactless technology, home delivery and curbside pickup programs or expanded existing offerings.
Does Your Company Currently Offer Delivery to Customers?
More than a third of c-store retailers are currently offering home delivery, while another 22% say they plan to offer home delivery in the near future.
How Is Customer Delivery Executed?
56.3%
DoorDash
56.3%
Grubhub
25%
Postmates
18.8%
Uber Eats
6.3%
Own employees
Most c-store retailers execute delivery through third-party services.
The most widely used are DoorDash and Grubhub (about equally).
Less than 7% of retailers handle delivery with their own employees.
Payment Systems
SECTION 2
Inside the store, convenience retailers universally accept payment by debit and credit cards, and three-quarters accept mobile payments from third parties like Apple Pay.
Payment Options Offered In-Store
The COVID-19 pandemic is speeding up innovation around
payment systems as well, as 50% of c-store retailers plan to add
mobile payment via a proprietary app in-store in the coming year,
and 41% plan to add this form of payment at the forecourt.
At the pump, debit and credit cards are also universal, but there is much less of a degree of widespread acceptance among other forms of payment.
Payment Options Offered at the Forecourt
Sales & Marketing Technology
SECTION 3
The most popular forms of promotional/sales technology being used today are social media, consumer-facing websites and mobile apps – all utilized by 60% or more of c-store retailers. For the future, GPS alerts, digital loyalty programs and email marketing are in the plans for 30% or more of retailers.
Involvement in Promotional/Sales Technologies
Half of this year’s respondents offer a loyalty program, the same percentage as a year ago. However, this year, three-quarters report their loyalty program is proprietary, not tied to a major oil brand, compared with just half of respondents a year ago.
Does Your Company Offer a Loyalty Program?
current
Yes
NO
year ago
50%
50.3%
50%
49.7%
Involvement in Promotional/Sales Technologies
The percentage of convenience retailers with a mobile app for consumers is on the rise; increasing to 58%, up from 49% a year ago.
Does Your Company Have a Mobile App Available to Consumers?
YES
NO
57.8%
48.5%
42.2%
51.5%
current
year ago
year ago
Most Cited Mobile
App Features
Among those that offer
a mobile app, the most popular app features
are a store locator, proprietary product coupons, limited-time specials, and fuel prices.
100%
Store Locator
86.7%
Proprietary product coupons
74.3%
Limited-time specials
69.8%
Fuel prices
66.7%
Vendor Coupons
66.7%
Mobile ordering for pickup
63.9%
Customer feedback
51.4%
Mobile payment
46.7%
Mobile ordering for delivery
44.1%
Loyalty program
tie-in
36.2%
Games
20.0%
Community
service
tie-in
Click the icon to reveal the value
EMV Compliance
SECTION 4
Although the deadline for shifting EMV liability at the pump
was pushed back to April 2021, more than half of the c-store
retailers surveyed are still not prepared for the move.
Is Your Company EMV-Compliant?
Inside the store, more than nine out of 10 retailers say they are EMV compliant.
However, just 45% of those
surveyed are currently
compliant at the pump.
AT THE POS AT THE PUMP
91.3%
No, but we have started the process
8.7%
0.0%
Yes
No, and we have not started yet
Do You Expect to Reach Compliance by the New April 2021 Deadline?
Nevertheless, EMV compliance at the forecourt appears to be a cost of business not to be avoided.
Just 15% of retailers do not expect to reach compliance by the new deadline.
No
85%
15%
Yes
Does Your Company Currently Offer Delivery to Customers?
45.2%
42.4%
12.4%
current