EMA Journal • Fall 2024 • In the Know

How the Market Has Changed During the 2020 lockdown, fuels sales plummeted, leaving many people questioning if they will ever reach pre-pandemic levels again. Over the past four years, people’s lifestyles have become less mobile with the rise of remote and hybrid jobs as well as online shopping. The pandemic provided fuel retailers with a preview of how convenience stores and gas stations will transform in the years to come.

Electric vehicles (EVs) are also responsible for the shifting fuel consumption patterns. President Biden’s Build Back Better agenda aims to advance smart fuel efficiency and emission standards through EVs, with a goal to make half of all new vehicles sold in 2030 zero-emission vehicles.¹

The long-term outlook for global fuel retail is expected to decrease over the next five years. However, this decline can be offset by leveraging nonfuel retail, which is projected to reach $30 billion in 2030.2 A shifting landscape presents new challenges and opportunities, discover how to capitalize on the latest trends to overcome the obstacles and unlock new revenue streams.

The incentives for increasing EV manufacturing and consumption presents an interesting opportunity for c-stores. Forecourts can capitalize on their existing locations to facilitate EV charging. Matt Kapper, CEO of the Coretec Group, emphasizes that to achieve the U.S.’ EV goals, consumers need assurance of the same convenience they have become accustomed to with traditional gas stations.3 So, these locations must go beyond merely investing in EV stations and include best-in-class customer facilities such as seating areas, bathrooms and other on-site services, since charging takes longer than traditional gas fueling. Consumers will compare their experience to modern retail standards, not just other gas stations and c-stores.

C-stores can capitalize on the opportunities beyond fuel provisions by developing a broader convenience proposition. Transforming forecourts into a destination for food shopping, click and collect services, pharmacy purchases, postal services and more will satisfy consumers’ needs for quick, secure and seamless experiences.2 This approach draws them into c-stores whether they are waiting for the car to refuel or charge.

C-stores can enhance the payment experience by offering consumers their preferred payment method. Since consumers have different definitions for convenience across generations and states, accepting digital wallets, cash and cards can drive revenue and profits. Further streamlining can be achieved through enabling online orders and contactless payment solutions.2 Gas stations and c-stores that offer a consistent, convenient experience will retain their customers and encourage repeat visits to their different locations.

Utilizing partnerships can attract more customers. By teaming up with popular quick-service food options like McDonalds, Subway, Starbucks and others, c-stores can increase foot traffic and daily profits.2 Additionally, partnering with a delivery platform can expand their customer base beyond car owners, further boosting profits.

While c-stores focus on innovating their facilities to meet modern retail standards, they must also cover essential basics. With c-store EV implementation underway to comply with recent mandates, ensuring payment security is crucial. Studies have shown that chargebacks tripled since January 2011, highlighting the need for multilayer P2P encryptions, fraud detection and transaction tokenization.⁴ These investments safeguard future growth and enable seamless adaption to evolving customer habits and needs.

By taking advantage of the latest trends, c-stores can safeguard their profitability and position themselves as an integral part in the future of retail.

¹ President Biden Announces Steps to Drive American Leadership Forward on Clean Cars and Trucks (2023), www.whitehouse.gov

⁴ 5 Key Trends Transforming Convenience Stores and Gas Stations (2023), www.aevi.com