Convenience retailers looking to stay relevant must improve, streamline, and automate in-store operations to elevate the customer experience. This is according to Andrew Blatherwick, Chairman Emeritus and Advisor at RELEX Solutions.
Previously, a convenience store’s main competition was simply another c-store until recently. That’s changed, however, as quick commerce businesses have made aggressive moves into the convenience space, promising delivery of small baskets within as little as 10 minutes.
With competition increasing, the value of levelling digital technologies and automation solutions in retail is rising. According to McKinsey, 30% to 40% of retail tasks related to processes such as merchandise planning or the supply chain can be automated.
Andrew Blatherwick stated: “C-stores face unique challenges due to their small footprint and high cost per square foot. They must balance high availability with the ever-present risk of waste and lack of backroom space to hold safety stock. They also need to ensure that their customers can find exactly what they want and quickly make a purchase.”
Space and inventory management are equally important for c-store staff:
• Stores have a limited number of associates available to handle all essential tasks, such as stocking shelves (including fresh items) and keeping aisles free of clutter, while also checking out customers.
• Store-level planograms, which are difficult to create manually, are highly valuable to guide staff in maximising existing space and optimising replenishment schedules.
• Shipments to replenish existing items, stock new products or support short-term promotions must arrive on an as-needed basis and be ready to go direct-to-shelf.
Blatherwick continued: “C-stores must move toward a technologically advanced, unified system that uses a single source of data to inform decisions about operational tasks, helping them stay competitive in a rapidly changing landscape where there are so many moving parts to supply chain management. They also need a system to automate these decisions – from replenishment orders, to staff scheduling, to space planning – and further streamline store operations to ensure quality customer service.”
Blatherwick concluded: “It’s unlikely that brick-and-mortar convenience stores, five years from now, will be replaced by delivery services. Yet, without striking a careful balance between protecting margins and maximising the shopping experience, c-stores stand to lose in-store customers who would rather pay a bit extra to have their basket come to them, taking a hit to their top and bottom lines.”
RELEX Solutions is a leading provider of cutting-edge retail optimisation software that’s built for the age of Living Retail, where change is the only constant. We help retailers adapt to every future, faster.
Our cloud-native Living Retail Platform delivers AI across all retail functions and at retail scale, eradicating siloes, rigidities and inefficiencies along the way. We offer a fast lane to value that builds from a foundation of radically improved demand forecasting and supply chain optimisation. Our customers leverage this enhanced supply chain visibility into exponential benefits – optimising their space, allocation, workforce, promotion, and markdown strategies, all within our unified platform.
Today, RELEX is a hyper-growth company with 350+ customers who love us – ask any of them for a frank and independent assessment of our team and solutions. RELEX is trusted by leading brands including Pets at Home, M&S Food, Morrisons, One Stop and Booths, and has offices across North America, Europe and the Asia Pacific region.
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