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The Perishables Ecosystem –Food, Wine, Cannabis & More

conveniencestore

Convenience Stores Pivot to Meet New Consumer Demands

Lara L. Sowinski · August 2020 ·

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The U.S. convenience store sector is comprised of large chains like Circle K and 7-Eleven along with many independently owned retail outlets. Although business from consumers going to-and-from work and school has dropped off considerably, the coronavirus pandemic has spurred more visits from consumers who are trying to avoid large, busy supermarkets that contribute to longer visits, more touch points, and more handling of food. 

Not only does the c-store (convenience store) satisfy the need for a quick stop to pick up food, drink and household items like laundry soap and toilet paper, consumers often take advantage of fueling up their vehicles, too. 

At the same time, in rural areas the c-store serves as an important alternative to driving long distances to a larger retail outlet. 

According to Dafna Gabel, vice president of insight and strategy at PDI, a global provider of ERP, fuel pricing, supply chain logistics, and marketing cloud solutions for the convenience retail and petroleum wholesale industries, c-stores are emphasizing the “convenience” proposition of c-stores to meet new demands in the marketplace.

For starters, c-stores are enhancing their offerings in several ways, including a broader choice of foods; offering foods for specific meals (breakfast, lunch, dinner); and adding more frozen foods, which is a growing segment in c-stores. 

In addition, c-store operators are also responding to the contactless trend, Gabel says.

A recent survey from convenience store industry association NACS finds that of 77 member companies (representing 2,796 stores) polled:

  • 40 percent say they have introduced or increased contactless payment options inside stores, and 62 percent say fewer customers are paying by cash; and 
  • 33 percent of stores have introduced or expanded curbside pickup, 29 percent have increased a drive-thru element to their operations, and 21 percent increased delivery

Despite the challenges associated with the coronavirus pandemic, C-stores have an opportunity to meet consumers’ needs while simultaneously boosting their attractiveness to a growing number of leisure travelers who are hitting the road instead of flying, and are looking for a quick, easy and contactless transaction in a store stocked with an enticing selection of food, beverages and other products.

Filed Under: Food/Beverage Tagged With: conveniencestore, foodsupplychain

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I VOTED (for cannabis)

No matter their political stripe, many Americans are in agreement with efforts to legalize recreational and medical cannabis.

On November 3, voters legalized marijuana for adult use in Arizona, Montana, New Jersey and South Dakota. Initiatives to legalize medical cannabis passed in Mississippi and South Dakota. The rapid expansion of legalized cannabis throughout the U.S. has a direct impact on the supply chain.

Let’s start by considering the food supply chain–a valuable case study with COVID-19 as the backdrop. Early on, Americans experienced food shortages at the retail level. Manufacturers and distributors scrambled to realign networks to supply grocery stores where demand was spiking, while shifting away from restaurants and the hospitality sector where demand was tanking. In a matter of months, online shopping and food delivery to consumers’ homes grew dramatically. As a result, the food supply chain is in the midst of reinventing itself.

The cannabis supply chain faces some similar challenges. Most importantly, there’s an opportunity now to learn and adopt best practices from the food and pharmaceutical supply chains with which it shares key commonalities.

What are the risks to the cannabis supply chain? California’s unprecedented fires this year threatened growers throughout the state. How quickly can infrastructure scale-up to meet demand, and at what cost? Commercial and industrial real estate is currently at a premium with the proliferation of e-commerce. What about transportation, distribution and logistics capabilities, including reverse logistics in the case of product recalls? Facilities, equipment, and skilled workers are in high demand, and as competition for these various assets tightens, what does that mean for the entire perishables sector (food, cannabis, wine, beverages, pharma, etc.) that need them? Collaboration and creativity can provide critical solutions across the board.

On a related note, a small handful of American and European companies are in talks with Rwanda now about exporting cannabis to the country to meet rising pharmaceutical demand. Supply Chain Sparrow has previously identified cannabis exports as a massive opportunity for the U.S., which of course, would require legislative changes at the federal level.

Vote. And keep on voting.

Be Brave. Fly Right. And keep in touch at info@scsparrow.com.

Lara L. Sowinski, Executive Editor

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