Convenience stores have drastically changed since my childhood where a 7-11 was on the same block as my apartment building. No longer are these simply a stop for scratch tickets, a Slurpee and a selection of overly-processed snacks.

The thing to consider is how c-store merchandising approaches have evolved and will continue to do so. More importantly, what can be learned form other retail categories.

Because as the c-store customer evolves, so does the purpose and assortment of the store itself.

Many Parts. Limited Space

C-stores occupy a unique space where grocery stores, quick serve restaurants (QSR) and general merchandise converge.

But, there is the added variable where a c-store is also part of a gas station. Generally speaking, filling up the tank is the primary reason for the visit. The question becomes how to get more spend from said customer when they visit.

Further, the c-store has limited square footage compared to a location that is solely a QSR or grocery store. As such, the assortment of products has to be tight and focused. Of course, there is some flexibility here if we’re talking about a 7-11 location in Manhattan or a Kwik Trip location in rural Wisconsin.

So, herein lies the challenge. The location has to have some element of a grocery store without a large number of aisles. There has to be offerings competitive to a QSR but without extensive seating. Finally, the general merchandise part of the business has to be tightly curated.

The Same Lessons Apply

Even with these characteristics, the same keys to merchandising still apply. And, it’s quite easy to fall into the same traps like another retailer would.

Such traps include:

1. Thinking that more supply equals more demand. The truth is that more products in store doesn’t equal more purchases.
2. Not having visual merchandising standards. Even convenience items need to arranged in such a way to entice the customer to buy.
3. Not incorporating customer feedback into product assortment decisions.
4. Category managers/buyers are not proactively comp shopping to find new, unique products.

All the above are applicable to other retail categories like apparel, accessories, hard goods and so on.

Good merchandising is good merchandising. Although it might be manifested differently in a Sheetz location versus a clothing store.

The Food Is (Maybe) Good

Remember that 7-11 I mentioned earlier? The one on the same block as my building?

Well, if I had enough spare change, I would go there to get a pile of nachos and top it off with their “hot cheese product.” On the days where I was lucky to have some dollar bills in hand, I grabbed a convenience store burger — it was prepared by popping it into the microwave.

The food side of the business is far more mature today.

On the one hand, c-stores can offer their own line of private label snacks or prepared food options. You can go next level with this like Buc-ee’s and get hot, chopped brisket at the Texas Round Up station.

Another option is to partner with a food provider that can fit (figuratively + literally) into the c-store space.

Here in Canada, Petro Canada locations are a place to get fresh burgers, fries and a root beer with A&W fixtures built into newer locations. You can get Tim Horton’s coffee at several Esso locations. Head down to San Antonio later this year to find a Whataburger inside of a Love’s travel center. Fun fact, Whataburger will be the 20th restaurant partner for Love’s.

Alternatively, c-stores are also unique wholesale opportunities for CPG brands. Consider that Jones Soda Company is set to introduce a line of craft sodas into over 2000 Circle K locations this year. This is first such step into the convenience world for the brand in its 30 year history.

There is excellent whitespace for c-store retailers and brands to partner and develop products for their target customer. Fiesta Jones from the Jones Soda Company is an example a product line that was developed based on feedback from c-stores.

Re-Training The Customer

For c-stores, the assortment provides an opportunity to re-train customers as to what to expect from their in store experience.

As a comparison, consider how Shoppers Drug Mart locations evolved here in Canada. At one time, these were simply a pharmacy-only destination. You went to get the prescription filled, buy items relevant to your affliction and then leave. The rest of the retail experience was sorely lacking; much like your run of the mill CVS or Walgreens.

Over time, Shoppers Drug Mart locations became a destination because you can get items that you wouldn’t normally expect. Eventually, these items became part of the routine purchase behavior — think cosmetics, books, cold drinks, snacks, greeting cards, groceries and so on.

C-stores can follow a similar path.

If the product assortment is executed correctly, it becomes a valuable part of the overall strategy to build loyalty. Combining that with a clean, organized space plus enthusiastic staff, it will round out the entire experience.

This will motivate customers to spend time browsing the assortment and spend dollars to purchase from it.

On top of that, there are excellent opportunities to layer on technology such as self-checkout, as seen at Love’s, or introduce branded merchandise, as seen at Wawa.

Of course, these have to be brought in judiciously, to meet the needs of the customer.