Top 10 Strategies for Increasing Convenience Store Sales & Foot Traffic

Updated May 1, 2024

Convenience stores operate in an industry with narrow profit margins – hovering between 2.4% in the UK, compared to flower shops at 20%.^1,2 The challenge for convenience store owners, therefore, is implementing a business plan with strategies that increase convenience retail sales, foot traffic, and profit margins. Find out how to increase convenience store sales with these 10 strategies:

#1 Focus on the Customer Experience

The pandemic taught consumers how to “get in and out” quickly from retail stores – in essence, the DNA of a convenience store. Taking that positioning and optimizing convenience retail store layouts around that philosophy boosts the retail customer experience. Consumers expect to see beverages along the back wall and everyday items closer to the front and cash register.

#2 Deliver Service with a Smile

Convenience stores aren’t exempt from the customer expectation of quality and friendly service. Greeting customers, saying thank you, and delighting customers translates into return visits. Returning customers spend 33% more per order compared to other customers.³

#3 Introduce Expanded Beverage Offerings

Beverages are emerging as the new battleground for customers’ wallets, especially among Gen-Z. Of those born between 1997 and 2012, 62% have tried a new beverage during the past month.⁴ As Smoothie King CEO Wan Kim explains: “Younger people are really into beverages. They are moving away from soda and finding alternatives in other sectors.” The opportunity is ripe for convenience store owners to take a sip from the fast-food playbook by offering coffee syrups, mix-and-match soda fountains, and innovative bottled entries in the energy and lemonade sectors. Beverage stations typically offer higher margins than food.

#4 Offer Healthier Options

A 2018 report by the British Retail Consortium found that UK consumers are increasingly looking for healthier food options, with the sales of fresh fruit and vegetables increasing by 2.4% in 2017, and the sales of chilled ready meals with fewer than 400 calories increasing by 7.6%.⁵ A Mintel report in 2019 found that the sales of meat-free products in the UK increased by 40% between 2014 and 2019, reaching a value of £816 million, demonstrating the staying power of healthier food options at convenience stores.⁶ Customers are searching for Keto-based offerings, low-fat options, high-protein foods, fresh fruit, and healthier to-go options, especially given the recent backlash against “ultra-processed” food.

#5 Initiate Easy Ordering & Payment Options

The trend towards click-and-collect is now an expected feature in every retail environment, including convenience stores. Introducing it now delivers both a competitive advantage and a customer experience benefit for you as a convenience store owner.

#6 Optimise Store Signage

Good signage assists customers in navigating your store. It also works to highlight new items or items that are on sale. With 82% of purchase decisions made in-store, featuring new or high-margin items is a clear win/win.⁶ Signage in convenience stores reinforces the brand name and positioning. Consistency in branding reassures customers that they are in a place they know and trust. Of course, don’t overlook outdoor signage, especially ones that attract night-time drivers.

#7 Explore Omnichannel Shopping

Omnichannel marketing means customers want the same retail sales experience, in-store or on their computer, tablet, or smartphone. They want the ability to start an order on one device and complete it on another, then seamlessly collect their item in-store. As a convenience store owner, it is up to you to provide that service and ensure the experience ties back to your inventory management system.

#8 Introduce a Loyalty Program

Since their debut, customer loyalty cards have appealed to businesses because keeping existing clients is more economical than finding new customers. The data unequivocally supports the merchants. 75% of customers will opt for companies that offer a loyalty program, and repeat customers spend up to 67% more than new customers.⁷ Further, loyalty programs allow convenience store operators to peek into customers’ shopping habits and create personalised offers, coupons, and promotions. Be sure to link your loyalty program to your inventory management system so as to not promote items that are low in stock or out of stock.

#9 Embrace Sustainability Practices

According to a 2019 survey conducted by YouGov for the environmental charity Hubbub, 85% of UK consumers are concerned about the amount of plastic packaging used in food and drink products.⁸ By reducing single-use plastic bags, incentivizing customers to bring their own bags, swapping paper straws for plastic, and selling more local products, you help the environment and earn the trust of your customers.

#10 Host Smart Lockers

Given the ongoing consumer adoption of online shopping and continued package theft challenges across the country, the need for secure, convenient ways to receive packages out-of-home has become more pronounced. Convenience stores, strategically positioned within communities and operating with extended hours, have the ability to fill this need by hosting an Open Locker Network hub at their locations.

Open Locker Network locations, locker hubs where customers can pick up packages from any carrier or local business, carry a halo effect by bringing in more foot traffic and sales for host locations. With most “c-stores” offering long hours, if not 24/7/365 access, customers will appreciate the convenience of picking up their packages on their existing route to work or other everyday destinations. In fact, the metrics for convenience stores are compelling:

• 54% of consumers will likely make additional purchases at a store that enables them to pick up/drop off parcels.⁹
• 40% of consumers have used businesses more regularly because they make collecting and returning parcels easy.¹⁰
• 34% of customers would frequent businesses that provide parcel lockers more often.¹¹
• 40% of customers have regularly visited businesses to collect or return packages.¹²
• 21% of customers would spend £20 or more at stores that offer delivery and returns to their location.¹³

Further, hosting lockers positions you at a competitive advantage and demonstrates your commitment to sustainability. 47% of consumers are worried that deliveries are not sent sustainably.¹⁴ And 77% of organisations saw increased customer loyalty when taking sustainability approaches.¹⁵

If you’re ready to increase sales and foot traffic, it might be time to consider becoming a host in Parcel Pending by Quadient’s Open Locker Network and utilising the idea of halo spend. Our Open Locker Network allows you to gain all the benefits typically associated with installing lockers – without the usual upfront costs.

Ready to speak to a Parcel Pending sales representative? Contact one today!

 

Sources:

(2019). 2019 UK Convenience Market Report. Retrieved from https://www.igd.com/articles/article-viewer/t/2019-uk-convenience-market-report/i/20591

British Florist Association. (n.d.). Industry Insights. Retrieved from https://www.britishfloristassociation.org/trade/industry-insights/

Stratus Unlimited. Why High Visibility Convenience Store Signage is Important to Your Growth. www.stratusunlimited.com. March 30, 2023. https://www.stratusunlimited.com/news/why-high-visibility-convenience-store-signage-is-important-to-your-growth/

Haddon, Heather. The Fast-Food Industry Wants to Be the Fast-Drinks Industry, Too. www.wsj.com. December 20, 2023. https://www.wsj.com/business/hospitality/the-fast-food-industry-wants-to-be-the-fast-drinks-industry-too-1fa6bf4a

British Retail Consortium. (2018). Retail 2018: The Definitive Guide to Retailing in the UK. Retrieved from https://brc.org.uk/media/478786/retail_2018_190418.pdf

Mintel. (2019). Meat-Free Foods UK 2019. Retrieved from https://store.mintel.com/meat-free-foods-uk-august-2019

Beckman, Jeff. Customer Loyalty Stats in 2023: Loyal Customers Spend More!. techreport.com. September 29, 2023. https://techreport.com/statistics/customer-loyalty-stats/

Hubbub. (2019). UK public concerned about plastic waste. Retrieved from https://www.hubbub.org.uk/uk-public-concerned-about-plastic-waste

Parcel Pending by Quadient. Parcel Pandemonium: Managing the Challenges of Growing e-Commerce. www.parcelpending.com. July 12, 2023. https://www.parcelpending.com/en-us/resources/ebook-parcel-pandemonium/

Ibid.

Parcel Pending by Quadient. Become a Host and Unlock the Power of a Global Open Locker Network. www.parcelpending.com. November 30, 2023. https://www.parcelpending.com/en-us/resources/become-a-host-and-unlock-the-power-of-a-global-open-locker-network/

Ibid.

Ibid.

Parcel Pending by Quadient. Sustainable Deliveries and Returns Matter. www.parcelpending.com. September 8, 2023. https://www.parcelpending.com/en-us/resources/sustainable-deliveries-and-returns-matter/

Capgemini Research Institute. (2020). Sustainability in consumer products and retail: The consumer viewpoint. Retrieved from https://www.capgemini.com/wp-content/uploads/2020/07/20-06_9880_Sustainability-in-CPR_Final_Web-1.pdf