Between inflation, volatile oil prices, a finicky labor market, and the rise of electronic vehicles, the current economic outlook for C-stores (convenience stores) is a mixed bag.
Recent data from the U.S. Bureau of Economic Analysis shows that consumers have cut their spending on gasoline and other energy goods by more than $10 billion. And 60% of consumers are planning to cut back on discretionary spending overall due to factors like layoffs, rising housing costs, and inflation.
Even as these factors may cut into C-stores’ sales, costs continue to rise. Although we may see some relief in this area in the coming months, the cost of labor has never been higher. And retailers aren’t immune to the effects of inflation, either.
Meanwhile, predictions about the cost of oil range from under $70 to over $100 per barrel over the course of 2023—making revenue difficult to forecast.
What can C-stores do to protect your profit margins in these uncertain circumstances? Advances in technology can both increase revenue and decrease operating costs.
Becoming Shoppers’ Destination of Choice
With the acceleration of digital self-service options during the pandemic, consumers have become increasingly motivated by convenience. But labor shortages and low inventory make it difficult to provide a smooth experience for shoppers. As a result, C-stores’ Net Promoter Scores (NPS) are down an average of 45% year-over-year.
Let’s look at a few front-of-house technologies that can boost your appeal to customers.
How Digital Transformation Reduces Operational Costs
While front-of-house technologies do have the added benefit of reducing labor costs, the greatest overhead costs savings come from back-office digital transformation.
Consider how automating these processes reduces your staff’s manual processes and compensate for labor shortages.
Watch the video to learn more about C-store trends and how MCCi can help with your automation project.
We are a business automation company that accelerates digital transformation and frees you from manual business processes. Read about the services we provide to C-stores or fill out the form below to talk to us today!