By Dawn Desai, SVP & GM of International Solutions at PDI
What does the word “convenience” mean to you? For individuals, professionals, and cultures around the world, convenience can mean different things. With nuances that differ based on background, language, and geography, it is important for retail leaders to understand these differences and use these insights to create new opportunities for business operations and practices at a global scale.
We are at an interesting moment in time to be having this conversation. Well beyond the creative work arounds of the early pandemic, it’s safe to say that consumer behaviour has changed significantly. What’s particularly unique to the convenience retail space is that its popularity continues to pique. Every day, consumers are impacted by countless challenges – including inflationary pressures, the daily time crunch, and reduced spending power. As such, consumers worldwide are making more conscious purchasing decisions. Naturally, with this more selective point of view, their standards are rising, requiring the convenience industry to continue to adapt.
Following the consumer
In the United States, there has always been a strong takeaway culture, more so than other regions (i.e., Europe). With the onset of the pandemic and the necessity for quicker solutions, convenience stores were able to thrive as more and more consumers desired a one-stop shop for their necessities: petrol, snacks, milk, alcohol, and more.
For convenience store operators, the steady uptick of business uncovered the opportunity to capitalise on increased access to customer data. By partnering with a solutions provider to effectively collect, consolidate and analyse the data, convenience retailers can see what specifically is changing in their customer’s behaviour, and from there make informed decisions on inventory, loyalty, and more.
For example, our recent market trends report showed that foodservice is undergoing great change. Contrary to the continued wellness trend, consumers are reverting to comfort food – extra-large sodas, loaded hot dogs, indulgent candies – which aligns with the stress level of today’s shopper.
Assessing trends from a global perspective
Across the world, shopping habits and experiences look different – ranging from customer service preferences to their willingness to accept technology – and catalysts vary, causing sentiment around convenience to shift. Looking at broader cultural shifts is a key way to understand these sentiment shifts.
For example, consider the rate of tech adoption. Cultures who are more trusting of newer technology, both from a consumer and business owner perspective, will have different needs and preferences. In the EU, electric vehicle adoption is an explicit indicator – ahead of the U.S. in widespread adoption, this trend behooves convenience store operators to prepare for how much more time consumers will spend at their sites while they charge up. By positioning their retail locations as destinations rather than the old-school pitstop, operators can increase dwell time, frequency, and more. Opportunities to attract the charging public include offering higher quality foods and both healthy and indulgent options to attract a wider range of consumers. Clean and comfortable waiting areas and workspaces with public Wi-Fi and power can also attract business. For cultures that are less tech-forward, retailers should focus on services, operations, and more convenient, on-the-go options for those looking for a quicker stop.
So, what constitutes convenience in different parts of the world?
Now that we understand that there are differences in consumer shopping preferences globally that require convenience retailers to approach each region with that in mind, it’s time to dissect what some of the stark differences are around the world.
Where I reside in the UK, during COVID we weren’t allowed to leave our homes besides short shopping trips (emphasis on the short). With this, people migrated to either online shopping or using their local convenience store as a one-stop shop. Convenience stores had to expand dramatically: out with the basics and in with new kinds of groceries and essentials to meet shopper needs. Now more than ever, convenience stores are acting as destinations. Personally, I no longer go to the convenience store just to fuel my car and grab a coffee, instead using that stop to also pick up some weekly grocery staples and snacks (a more time-efficient option when compared to larger supermarkets).
From a user experience standpoint, another key difference is that some areas, like China, require petrol stations to fuel a customer’s car, while other regions allow for self-service. These rules vary state by state in the U.S., for example, and in some cases, the service model aligns with how the economy and job markets are functioning. Countries who have employees filling up fuel tanks for customers may be trying to strengthen the labour market by providing more job opportunities.
Speaking of self-service, it used to be commonplace for an employee to be standing behind the counter at a store, and that person would also retrieve your items for you. We shifted toward a new model, still having an employee to conduct the transactional portion of the visit while shoppers retrieve their own items around the store. Now, it’s more often we find ourselves picking up our own items and checking ourselves out, in some cases utilising technology to help speed up the process. This shift, I expect, will continue, and convenience retailers who haven’t already done so will need to implement smart technology to adapt to this new behaviour, so that employees can spend less energy on time-consuming tasks and more on back-end operations.
Consumer behaviour drives technology adoption
At the end of the day, cultural nuances are interesting to observe – and while there are significant differences from nation to nation, there is one commonality: Technology continues to endure as an emerging influence with changes happening as new tech is unveiled.
To be successful, convenience retailers must prioritise the impact that the right technology tools can provide by keeping up with the continual changes in consumer expectations and needs. It all comes down to understanding when digital tools are needed, which are the right fit, and how to implement – because there is no one-size-fits-all approach.
Convenience is not a singular entity. It is a modern hub for consumers engaging with media, completing digital payments, shopping for goods, waiting for their car to charge or fuel up, or checking their loyalty apps – it is a network of interactions that we at PDI Technologies are helping to trailblaze.
If you’re interested in learning more, visit https://pditechnologies.com/.
