The four trends shaking up liquor retail and four bold recommendations

As we reach the height of peak holiday season, most retailers are hard at work preparing for 2024. And the big question on everyone’s mind is how to battle declining sales growth. 

The outlook for next year is uncertain.  

While retail spending has slowed, with predictions of subdued sales until late calendar 2024, it’s not yet falling off a cliff. The latest ABS/MST Marquee data also reveals that liquor retail is holding up well compared to other categories, with liquor sales rising 2.2% in September. 

But as retail spending starts to lose share of wallet to non-retail spending – like travel, dining out, housing and health - retailers are urgently looking at how to boost sales growth. 

To secure a profitable future for your liquor retail business, you’ll want to understand the latest trends transforming our industry.  

Here’s the outlook for liquor retail, plus the four steps to take to remain relevant: 

---

1. Digital-first world order 

A compelling in-store experience that is harmonised with a digital offering can be leveraged for competitive advantage.  

Global online alcohol sales are back at pre-pandemic levels, with growth of 15.2% expected between 2022 to 2030. That is creating new online shopping habits and changing expectations of the in-store experience.   

As more customer journeys begin on mobile apps or online, and consumers increasingly demand digital convenience within stores, the ability to convert fleeting transactions into enduring relationships will rely heavily on unified experiences across all channels.   

Recommendation #1: Deliver a unified customer experience 

Liquor retailers will need to make shopping a fast, easy and compelling omnichannel experience with personalised products, prices and promotions pre, during and post their purchases, plus fast and frictionless on-demand delivery options.   

---

2. Changing consumer behaviours 

Liquor stores that deliver a unified and memorable CX are best positioned for long-term growth and loyalty.  

Changing consumer preferences and rising expectations for convenience are creating new growth opportunities.   

Conscious consumption is driving sales of local and sustainable alcohol brands. An increased focus on balanced lifestyles has fuelled the no- and low-alcoholic drinks category, with global sales topping $11bn in 2022 and growth accelerating. There’s explosive growth in ready-to-drink (RTD) and canned cocktails, and a continuing rise in premiumisation and viral craft cocktails.  

Recommendation #2: Adapt products to meet consumer expectations 

Liquor retailers need to create a distinctive omnichannel customer experience by developing a strong brand, offering tailored convenience, expanding the breadth of their product offerings (or moving into specialist categories) and generating new revenue streams.   

---

3. Economic headwinds 

High inflation, increased costs, supply chain disruptions and changing workforce roles are creating financial pressures.  

The liquor retail sector has changed significantly over the past decade. Independent retailers are increasingly joining banner groups, and brick-and-mortar retailers face formidable competition from new entrants, such as on-demand delivery providers and online-only retailers.  

With increasing costs, pressure on consumer spending and the cost of doing business on the rise, there’s likely to be more consolidation and business failures. The climate crisis is also putting pressure on retailers to create a sustainable future for their businesses and the planet.  

Recommendation #3: Embrace complexity to build new capabilities 

Resilient companies invest during tough times, and evolving new businesses takes a long time. Those that don’t invest in their customer experience will get left behind.  

---

4. Rise of services businesses 

Services are a tremendous growth opportunity for retailers – and a way to start building ecosystems that satisfy more consumer needs.  

Retailers can achieve up to 20 to 30% additional growth by expanding into services businesses and developing ecosystems that attract and retain loyal customers. Technology is blurring industry lines and allowing different operators – including retailers – to move into services such as healthcare, finances, travel and entertainment. 

Retail media networks are emerging as one example in liquor retail. A retail media network is a retailer’s advertising platform where they can sell ad space across all their digital assets, such as their website, apps, social channels and in-store digital screens. 

The most significant benefit of a retail media network for retailers is that they can monetise their valuable first-party data by selling and delivering relevant ads to customers – resulting in a better customer experience, stronger supplier partnerships and a new, high-margin revenue stream.   

By offering suppliers the opportunity to promote their products through their store networks and digital assets, it enables supply partners to reach the right audience - people interested in purchasing alcohol and legally entitled to do so – and boosts their sales at the point of purchase.  

Recommendation #4: Monetise your customer data by selling advertising 

With the alcohol industry’s advertising spend expected to reach $6bn in 2023, liquor retailers are launching retail media subsidiaries to capitalise on the advertising revenue opportunity and drive additional new growth for their business.  

---

Are you experiencing technology challenges that prevent you from exploit these trends and opportunities? 

Our partnerships with retailers delivering disruptive, world-first experiences give us a deep understanding of changing consumer needs and technology trends. Get in touch if you’re looking for help to develop a unified customer journey. 

---

Want to deliver every customer a personalised, fast and seamless experience? 

Get our ebook to find out how to revamp the liquor retail CX.  

How self-service software underpins growth in convenience stores

If queues lengthen and sales slow when your teams are busy making coffee or rolling ice creams, then you’ll be wondering how self-serve technologies can help your convenience business. Kelly Brown explains why many self-serve offerings aren’t suited to c-store formats and describes disruptive new self-serve software that makes it simple to create a fast and memorable experience.

Fuel and convenience stores that become destination stores are best positioned for long-term growth and customer loyalty.  

They know that a customer experience centred on convenience is fundamental to success. And they’re urgently modernising the checkout experience so that consumers can transact on their own terms.  

But as c-stores build a reputation for speed and simplicity, they often struggle to maintain that convenience for customers.   

During peak hours, sales can be lost when customers see long queues and decide not to make purchases. It’s difficult to ensure that there are enough people in the store to handle the peaks without wasting resources during the troughs. And the strain of labour shortages continues to impact all retailers.  

The fix for many retailers is self-serve kiosks. They’re a practical solution for large stores and supermarkets, helping to deliver shorter queues, faster service times and reduced costs. 

However, most self-service kiosks aren’t suitable for a c-store format and don’t provide the services customers seek.  

The high up-front cost of a kiosk is a key barrier to adoption. The large pedestals take up valuable floor space, reducing stock and advertising opportunities, and extending the payback period.  

Theft is a serious concern, particularly for small stores with few staff.  

Many consumers don’t like self-checkouts and want to engage with a store member during a purchase. In addition, some transactions can’t be completed without help - such as age-restricted products - which limits the streamlined experience self-checkout promises.   

So how are c-stores innovating to increase convenience in their stores? 

Disruptive new self-serve software is fast becoming a c-store staple.  

Convenience stores are taking advantage of new self-serve software applications that can be deployed on any terminal or touchscreen display.  

For example, one client is rolling out a touchscreen self-service solution in over 50 stores to provide a simple way for customers to purchase items, order food and make payments.   

Positioned on store counters next to POS terminals, the solution includes a second monitor so that store staff can easily view each customer’s progress, assist and serve when required.  

Customers scan in barcoded items they want to purchase and use the interactive touchscreen to select non-barcoded products from a menu of made-to-order fresh and hot food.   

Developed by application developer Hoodoo, the software takes advantage of Infinity APIs to expose product, pricing and inventory data in real-time and easily add new capabilities. It’s lightning-fast, with an intuitive, easy-to-navigate interface and runs on any hardware device. 

This simple yet sophisticated approach offers six significant benefits for c-stores:  

1. Speed up service: reduce queues and make it easier for customers to transact in less time to boost customer satisfaction and drive profits 

2. Redeploy your staff: free up your people for more high-value tasks such as preparing food and engaging with customers. This reduces pressure on them and lifts productivity, creating efficiencies and higher profitability. Some large c-stores will be able to cut their headcount to further reduce costs 

3. Give customers choice: present all the available options and specials to each customer, step-by-step, and put them in control of their in-store experience 

4. Increase order accuracy: integrate orders with your POS, customer and inventory systems to eliminate the possibility of errors or miscommunication  

5. Boost upselling: make it easy for customers to add-on items to grow basket size and increase sales 

6. Differentiate your CX: provide a modern, intuitive digital experience in stores to amplify your brand and create more memorable experiences. 

Ordering and pickup options are next 

The surge in self-service goes beyond self-serve purchases – consumers want new options for ordering and order pick-up as well.    

Mobile ordering boosts sales and profits by letting customers place and pay for their order in advance using a mobile app. When they reach the store, all they need to do is pick up the order and go. Some fuel retailer apps let customers order items while they fill up, and an attendant delivers them to their vehicles. 

Self-checkout options are extending to online ordering platforms. Convenience stores are drawing online shoppers into their physical stores by offering omnichannel services such as click-and-collect.  

And home delivery has the potential to further enhance the customer service. Home delivery apps let c-stores drive sales and engage with new customers, while continuing to encourage their local communities to shop in store. 

This blog was originally published August 2022 and updated on 13 November 2023. 

---

Consumers now expect digital convenience from c-stores 

How quickly will you adopt self-serve solutions to differentiate your brand and deliver what customers want?  

If you’d like help to provide a streamlined and fast customer experience, get in touch. We’d love to help you deploy a self-serve solution to shorten queues, reduce wait times and help your team become more efficient. 

---

For more on how to deliver every c-store customer a personalised, fast and seamless experience, download our new ebook:  

The downturn begins: Craig Woolford on how convenience retail can battle declining sales growth

There’s been regular debate about this year’s retail sales slowdown – when is the tipping point, how long will it last and how far will it drop? MST Marquee analyst Craig Woolford recently shared the outlook for convenience retail, plus three opportunities to exploit and three challenges to anticipate. 

---

Last month I attended ACAPMA’s excellent 2023 Asia Pacific Fuel Industry (APFI) Forum event in Brisbane. With attendees spanning fuel retailers and suppliers from across our region, it sparked lively discussions on the trends changing mobility and convenience retail. 

One of the highlights was a keynote from Craig Woolford of MST Marquee on the outlook for convenience retail in Australia. It included valuable insights for fuel and c-store operators across our region. 

---

Retail spending has slowed, but is not falling off a cliff 

Craig began by sharing the latest MST Marquee/ABS data showing how overall retail sales growth is slowing. While there was growth of 3% year on year for the three months to July 2023, interest rate increases have triggered a drop in consumer sentiment and spending slowdown. 

Craig predicts the trough in retail sales to arrive late calendar 2023. And while income tax cuts make him more positive for fiscal 2025, he predicts sales will be subdued until late calendar 2024, making it a lean 18 months for retailers. 

The data showed divergence between the major retail categories. Dining out is holding up well, alongside sales growth in supermarket, liquor, pharmacy and beauty, but volumes are generally weak. 

Retail spending is also starting to lose share of wallet to non-retail spending. Craig explained that this is the ‘normalisation’ path for consumers as we gradually revert to pre-Covid spending behaviours. Travel and dining out are winning our share of spend, along with ‘needs’ like housing and health.  

While there are several drivers for the slowdown this year, Craig described three key swing factors - drags from fading price inflation and higher interest rates, and a boost from consumer drawdowns on household savings. 

---

Opportunities in convenience retail  

Craig explained that convenience retailers can look to boost sales growth in three key areas:   

1. Exploit growth in dining out 

The trend towards dining out highlights a consumer now looking for convenience, not just experience. Consumer preferences long-term have moved from in-home dining towards dining out, with employment growth, excess savings and inbound tourism all supporting this trend. 

There’s an opportunity for convenience retailers to capture share in dining out, with cafes and fresh food customised to sites and regions. 

2. Drive up basket size through an expanded range  

The major supermarket chains generate good sales productivity through convenient store locations and a favourable basket mix, with average basket size around AU$45-50. Craig urged attendees to think about what could drive a 15-20% higher basket spend for their business. 

Successful retailers are building basket size through range extension. We’re seeing this with our own fuel and convenience retail clients, with many focussed on expanding their c-store offerings (combined with the potential of EV charging in fuel retail). 

3. Tap growth in online food retail by offering fulfilment 

Online retail accounts for around 7% of the entire food industry, spanning supermarkets, convenience, restaurants and takeaways. Craig described how it will continue to grow in high single digits, but the cost of fulfilment remains a barrier to a viable online food offering.  

C-store retailers can play a role by developing new business models that take advantage of convenient locations to become home delivery hubs. 

---

Challenges to anticipate  

Craig closed his keynote by sharing three challenges likely to test the mettle of convenience retailers:  

• Declining tobacco sales: Tobacco sales are falling 10-15% and the fall is faster in some convenience channels, with tobacconists winning share. The tobacco industry is grappling with illicit tobacco and vaping, but with “limited government action” to address the problems.  

• Rising wage costs: The 5.75% increase in retail award rates and 0.5% superannuation levy rise have made wage cost growth a problem into 2024 and beyond, with rates likely to rise by more than 4% in fiscal 2025. Craig said the Australian Fair Work Commission tends to take a balanced approach but noted that wage rate growth is currently less than inflation and could result in wage rate growth ahead of inflation in fiscal 2025. 

• Rising occupancy costs: JLL Research has said that the forecast pipeline of new floor space will be just 37% of the 10-year historical average, with construction costs and high interest rates limiting new projects. That means floor space growth will be tight and could drive up rents. 

---

Are you looking for new ways to drive c-store revenue and profitability? 

Our partnerships with fuel and convenience retailers delivering disruptive, world-first experiences give us a deep understanding of changing consumer needs and technology trends. Get in touch if you’re looking for help to reduce costs, boost productivity and improve margins. 

---

For more on how to deliver every c-store customer a personalised, fast and seamless experience, download our new ebook:  

Modernising liquor retail: 8 essential capabilities for a unified CX

In a recent blog, I talked about why liquor retailers are overhauling their business models to provide convenience, speed and value throughout the end-to-end shopping journey. That is driving a massive shift in how they plan, build and deliver their omnichannel customer experience.   

In this blog, we’ll look at how to create the omnichannel experiences that are best for customers and most profitable for you. 

Many liquor retailers aren’t equipped to create the shopping journeys now expected by digitally savvy consumers. They have siloed backend systems that are inefficient and costly to maintain and have bolted on digital solutions that don’t easily integrate.  

They struggle to meet customer demands for a joined-up retail experience that doesn’t stop when they enter a store.   

And they face powerful new competition from delivery and online retailers working hard to prevent people from going into stores in the first place!  

If you’re looking for new ways to extend your online experience into stores for unified retail, here are the eight pivotal capabilities you need for a modern customer experience: 

---

1. Digital convenience in stores 

The POS used to be the epicentre of the store technology experience. But today consumers expect unlimited access to information and functionality to inform their purchasing decisions, and demand digital experiences inside the store.  

Retailers are putting customers in charge of their in-store experience by integrating digital services, such as the ability to look up loyalty points, explore product information and add items to digital wishlists in stores. Shoppable screens provide ‘endless aisle’ capabilities that let customers browse and order from the entire inventory. 

---

2. Stores that amplify the digital experience 

Retailers are using the unparalleled knowledge of their store staff to boost digital sales and service by giving in-store teams the tools to connect with shoppers digitally.  Live chat enables customer service or in-store teams to solve user queries, and store teams are using social media to share educational content.  

Some retailers are going one step further and making use of live chat and virtual appointments to offer ecommerce customers the ability to speak with a store team member in real time. By giving customers product recommendations and helping them build personalised baskets, retailers are achieving high levels of conversions while increasing customer loyalty. 

---

 3. Localised pricing and promotions 

Retailers are making better decisions about store product assortments, by matching breadth and depth to demand, trends and local demographics. A unified view of inventory gives them total control over their stock to improve efficiency, reduce overall stock, create more satisfied customers and boost the bottom line. 

 And by customising products, prices and promotions nationally, regionally and even by individual sites, retailers are increasing conversions and maximising profits.  

---

4. Endless aisle for anywhere, anytime orders 

With a ‘buy anywhere, fulfil anywhere’ strategy and centralised unified commerce platform, retailers can give customers and staff real-time visibility of inventory, order and customer data across the business. That means customers can see the availability of products in their local stores, order via mobile apps or online for click-and-collect and, where regulations permit, order any product and get it delivered to their preferred address.  

---

5. Flexible omnichannel fulfilment 

Consumers now make purchasing decisions based on shipping costs and timings. And they want the right level of visibility, communication and tracking, no matter the fulfilment solution.  

Retailers are prioritising capabilities that help them to launch and scale omnichannel experiences faster by improving store fulfilment efficiency and enhancing the store pick-up experience. They’ve created hybrid stores that support the rise in online sales while meeting customers’ expectations for fast pick-up and delivery. They’re introducing ship-from-store capabilities that not only enable ecommerce orders to be shipped from stores, but stores can also ship orders placed in other stores. And with a unified view of inventory for endless aisle across all stores and DCs, they can quickly see where inventory is located and the fastest route to fulfil orders.  

---

6. Unified employee experiences 

A great customer experience hinges on a great employee experience. After years of underinvestment and continuing worker shortages, many retailers are playing catch-up by making employee efficiency and enablement a top priority. They’re giving their in-store teams access to relevant customer intelligence - such as loyalty rewards, wishlists and sales histories – to equip them to add more value to their customer interactions.  

Some are using AI technology to provide personalised upselling recommendations during click-and-collect pickups. And localised pricing gives their teams up-to-date, competitive pricing and empowers them to make better, on-the-spot decisions.  

---

7. Self-service to fuel growth 

In tandem with the new digital experiences inside stores, retailers are modernising their checkout experience so that customers can transact on their terms. They’re putting customers in control with fast and flexible self-guided assistance, mobile point of sale and contactless payments wherever the customer is in the store, and at events, trade shows and pop-up stores.   

While self-serve kiosks are practical solutions for large stores and supermarkets, liquor and convenience retailers are taking advantage of new self-service apps that can be deployed on any touchscreen terminal, making it simple to create fast and memorable experiences. Positioned on store counters next to POS terminals, these solutions remove the risk of theft or sales to underage customers by ensuring that store staff can quickly and easily verify IDs, audit to avoid losses and assist when required.  

---

8. Unified channels strengthen personalisation 

With more buying journeys beginning online, and store visits become more predetermined, customer expectations for a frictionless ‘one brand’ experience are rising. However, many retailers have channel silos that mean any interaction or activity that the customer had with them online is not available to the customer or staff within the store.  

Retailers are delivering personalised experiences by using AI and intelligence across online and offline channels to deliver timely and relevant communications, recommendations, offers and loyalty rewards across in-store and digital touchpoints, including the point of sale, mobile app, web, email and social. Some are extending these personalised recommendations into other communications with customers, such as e-receipts and shipping notifications. 

---

If you’d like help to create distinctive and frictionless customer experiences across all physical and digital channels, get in touch. We’d love to help you develop a unified customer journey. 

---

Want to deliver every customer a personalised, fast and seamless experience? 

Get our ebook to find out how to revamp the liquor retail CX. 

How a unified commerce platform solves retail inventory problems

---

From endless aisle and click-and-collect to self-serve and returns anywhere, customers expect a seamless and unified experience. But if you can only access rudimentary sales and inventory positions, you’re prevented from offering the ‘buy anywhere, fulfil anywhere’ services that are best for customers and most profitable for you.

Managing inventory is one of the most challenging processes for retailers – no matter their size. It’s also the largest cost. It’s a balancing act to strike the right stock levels and adjust those levels as your business changes. Understocks lead to missed sales and dissatisfied customers, and overstocks tie up your capital and result in markdowns that can hurt your margins.

Some retailers struggle with the fundamentals of inventory control, such as stock taking, demand forecasting, planning and receipting.

And in a world where online and offline channels are blending into a single brand experience, customers expect access to products wherever and whenever they want.

---

Unify your inventory

To provide the purchasing and fulfilment options you need for frictionless experiences that delight customers and reduce costs, you first need to get tight control of your inventory.   

A unified commerce platform gives you a single, accurate and up-to-date view of inventory so you can be sure that you have the right product at the right place at the right time. 

With unified inventory management across all locations, you can make better decisions about what stock to order and how to make it available in your physical, mobile, online stores and call centres.  

You can react to trends quickly, and forecast demand based on historical data, sales forecasts and seasonal variations. And with the platform’s open architecture and APIs, you’re free to add new features, channels, apps and services that will increase customer satisfaction and benefit your business in many ways: 

• Increase sales with ‘endless aisle’ capabilities that let you sell products stocked in any location and have them delivered direct or collected by the customer

• Reduce inventory costs by moving stock to the right location when it’s needed and cutting your overall stock requirements

• Lower fulfilment costs by delivering direct to the customer using store-to-door, warehouse-to-door, click-and-collect, kerbside pickup or optimised sourcing

• Reduce overselling or underselling with real-time inventory updates that remove the issues of selling unavailable stock or having more stock than listed online

• Turn locations on and off for endless aisle fulfilment based on the stock mix and quantities or surges in online shopping

• Offer more purchasing and fulfilment options to customers so they can locate items in-store, buy online, collect in-store, reserve online, receive the same day or at a time and location of their choice

• Optimise your product range by matching stock to each store’s location, community and demographics while still giving access to your complete range via endless aisle

• Extend your range across more sales channels such as marketplaces, in-store kiosks, shoppable screens, pop-up stores, concessions and mobile devices.

---

Retailers reaping inventory benefits with the Infinity unified commerce platform:

GAS optimises inventory for improved profitability

GAS completed a lightning-fast nationwide Infinity point of sale implementation. Site owners now have the tools to manage inventory and run more profitable businesses.

Night ‘n Day gets tight control of inventory

By simplifying inventory management with Infinity, convenience grocery retailer Night ‘n Day cut costs, freed up time and increased net profit to around $12,000 per store each year.

This post was orginally published January 2020 and updated on 18 July 2023

---

If you’re struggling with inventory accuracy and are looking at how to build a foundation for frictionless customer experiences, talk to us about how to start with a single view of inventory.

---

For more on how a move to a unified commerce strategy gives you the flexibility and agility you need to keep in step with consumers’ changing needs, download our new ebook. 

From fuel stations to destination hubs: Klaas Mantel on the EV charging opportunity

“New mobility retail will be good for most [fuel retailers] . . . but the skill set for success will change and if you are going to play the EV game you need to get serious and invest for the future.” A leading McKinsey advisor challenges fuel retailers to shift from a ‘glass half empty’ to ‘glass half full’ mindset when crafting their electric vehicle (EV) strategy. 

---

I recently had the pleasure of attending a keynote presentation by Klaas Mantel from McKinsey during the ReFuel Forum APAC event in Bangkok. Klaas spoke about the future of mobility retail, and how to successfully play in the charging infrastructure business. 

It was a thought-provoking talk during an excellent event which boasted many stellar speakers and attendees. So what made Klaas’ views stand out? Here are the three things that most resonated with delegates and what they could mean for your fuel retail business: 

1

Does your fuel retail business have a ‘glass half empty’ or ‘glass half full’ mindset? 

Klaas suggested that many fuel retailers take a ‘glass half empty’ view of the emerging opportunity in EV charging. It’s not surprising. 

Only 15% of EV charging is currently done ‘on the go’, and EV penetration is driving down footfall at retail stations. It’s an immense undertaking to transform the standard business model, and there’s formidable competition from new operators, including home delivery platforms like Uber Eats and Doordash who are redefining our perception of convenience. 

However, Klaas firmly takes a ‘glass half full’ view, emphasising the opportunity to drive growth with expanded grocery offers combined with the potential value of EV charging. 

He shared that today only 2% of grocery sales are via forecourts – giving our industry a massive opportunity to capture share from other retail channels, such as traditional (62%), modern (31%) and convenience (5%) grocery retail. 

While traditional fuel sales are declining, this will be offset by gains in EVs and non-fuel retail (eg convenience, car wash, hospo, etc.). McKinsey predicts that the non-fuel retail value pool will grow 3% pa to US$40 billion, up from US$24 billion in 2019. The EV charging pool is estimated to rise from negligible to US$15 billion by 2030.  

And forecourts are uniquely positioned to develop new business models to become home delivery hubs. 

---

2

There are three key areas for ensuring success  

Klaas explained that ‘new mobility retailers’ with both recharge and non-fuel destination offerings will have the best chance of future success.   

The successful new mobility retailers will be characterised by three things: 

• Multiple non-fuel retail destination offers synergistic with EV to provide an exceptional customer experience during longer stays 

• Superior cash generation per location enabled by a real estate management mindset  

• No longer reliant on liquid fuel income ensures resilience to future decline of the fuel value pool. 

That means developing a compelling CX and investing in the right locations with the right offering, with Klaas adding: “That may mean acknowledging that EV won’t work on some sites, it will mean investing in convenience retail, charger access and building a customer experience that is safe, welcoming and appropriate.” 

---

3

How will you successfully play in the charging infrastructure business? 

Klaas acknowledged that this new world of mobility retail is not for everyone. Convenience players are actively acquiring fuel retail assets, and the integrated majors have concentrated their footprints while focusing on organic growth in priority markets.  

And unlike ICE (internal combustion engine) vehicles, EVs have multiple options to ‘refuel’ and won’t be primarily recharging at public stations. 

However, forecourt retailers are well positioned to win Klaas says, and here’s why: 

• Knowledge of the mobility customer across B2C, B2B and B2B2C 

• Already know and run a network business 

• Able to drive energy transition, including hybrid offers (fuel, bio, EV, H2) 

• Benefit from EV charging being an incremental business (and thus incremental investment) to existing network 

• Access to capital.

---

Klaas closed by urging delegates to take the glass half full approach and act now to capture a fair share of ‘electron sales’ and remain competitive.  

Here are three questions he encouraged fuel retailers to consider as you evolve your business model to meet changing usage patterns: 

• Can you capture share of grocery sales from other retail channels? 

• What is the value pool outlook in your region, and what share can you capture? 

• Can you develop new business models? 

Is EV charging a priority for your retail business? Or do you have other priorities? I’d love to hear. Please send your thoughts to kelly.brown@triquestra.com. 

---

Want help to build your EV charging experience? 

If you’re looking for help to develop a differentiating experience for your EV charging customers, get in touch. We’d love to help you create a winning offering that will leapfrog your business and create new value.  

---

For more on how to deliver every c-store customer a personalised, fast and seamless experience, download our new ebook:  

Delivering a unified CX: liquor retail's new priority

The ecommerce boom and ever-increasing consumer demands for more digital and personalised services are rapidly changing the business of liquor retail. Kelly Brown explains why liquor retailers are overhauling how they plan, build and deliver their CX, and shares three steps to take to remain relevant.

---

Customers now expect retailers to offer convenience, speed and value throughout the end-to-end shopping journey. They are more discerning and impatient, and don’t care that it can be hard to deliver – they only care about a great experience.  

That is driving a massive shift in how liquor retailers plan, build and deliver their customer experience.   

The retailers making the first move know that a compelling bricks-and-mortar presence blended with an improved digital offering can be leveraged for competitive advantage.  

And that means seamlessly integrating all backend systems and channels to deliver experiences that align with customer expectations.  

However, it’s complicated. 

While liquor retail has always been challenging – fast service is non-negotiable, staff require specialised knowledge and transaction volumes are highly variable – this requires a fundamental transformation of the standard business model. 

Liquor retail has been a laggard in creating new digital experiences and investing in technology to improve front- and back-end operations. Many liquor retailers have legacy solutions that are no longer fit for purpose and have bolted on solutions for the digital space that don’t easily integrate.  

And they struggle to support their customers’ current omnichannel demands, let alone the personalised ‘phygital’ shopping journeys now expected by post-pandemic, digitally savvy consumers.  

---

So what steps can you take to differentiate your liquor retail business? 

Here’s a three-pronged strategy that will help create the distinctive omnichannel experiences customers now expect: 

1. Pivot into retail media services 

To remain relevant and competitive in the future, you’ll need to venture beyond traditional retailing and enter new service categories with a higher level of profitability. 

Retail media networks are emerging as one example in retail. Liquor retailers are monetising their existing data and channels by introducing state-of-the-art digital screens closer to the point of purchase, creating a raft of opportunities for alcohol brands to advertise. 

With the demise of revenue from third-party cookies, retail media helps alcohol brands reach the right audience - people who want to purchase alcohol and are legally entitled to do so - and drive higher conversions that increase sales. And as online alcohol sales grow – 15.2% growth is expected between 2022 to 2030 - so will advertising revenues for retailers. 

---

2. Deliver a unified customer experience 

Focus on the end-to-end needs of your customers and revamp the customer journey to expand your relationship beyond quick visits to stock up on beverages. 

That means making purchasing online and in stores seamless and convenient through endless aisle, digital payments and ‘buy anywhere, fulfil anywhere’ services coupled with fast and flexible delivery options. 

Take advantage of the shift in preference for neighbourhood shopping, with local product ranges tailored to each location and community, supported by bespoke promotional programmes. 

And you’ll need to create true omnichannel experiences that seamlessly integrate physical and digital channels to create personalised customer communications, offers, experiences and rewards across in-store and digital touchpoints. 

---

3. Embrace complexity to build new capabilities 

To revamp your business and aggressively embrace innovation and new technologies, you’ll need to develop new expertise and capabilities. That will introduce more complexity into your organisation, with sales channels becoming less physical and more digital.  

You’ll want a retail platform that connects your physical and digital channels to let you deliver customer experiences that provide the convenience, speed and variety customers demand. Embrace agile working to innovate and get products to market faster. And by using APIs, you can create an ecosystem of partnerships to deploy new apps, services, channels and devices.  

---

Want help to differentiate your liquor business? 

If you want to create distinctive and frictionless customer experiences across all physical and digital channels, get in touch. We’d love to help you develop a unified customer journey. 

---

For more on how to deliver every customer a personalised, fast and seamless experience, download our new ebook:  

Four capabilities to look for in a fuel retail technology partner

As more customer journeys begin on mobile apps or online, and consumers increasingly demand digital convenience within the c-store, the ability to convert fleeting transactions into enduring relationships will rely heavily on unified experiences across channels.

---

Today every fuel and convenience retailer is looking at how to deliver seamless and personalised experiences at the forecourt, in the c-store and out-and-about on mobile apps.  

That is introducing more complexity into the business, with sales channels becoming less physical and more digital. 

To connect physical and digital channels and create the hybrid omnichannel experiences consumers now expect, fuel retailers are investing in unified commerce technology. 

They know that working with the right people and the right technologies will make the ideation and running of experiments through to planning, design, implementation and roll-out of their customer experience a whole lot easier.  

---

If you’re evaluating new point of sale and retail systems, here are the four important requirements for a fuel technology provider: 

---

1. Expertise across retail, not just fuel and convenience 

You’ll want a mature retail platform that supports fuel and convenience, rather than a narrow, fuel-specific site system. 

A partner with experience in highly competitive retail industries like fashion retail will have expertise in disrupting the customer experience, with APIs and a retail ecosystem few can match. 

They’ll bring best practice ideas and capabilities from other retail sectors - not just fuel & convenience retail – and have POS omnichannel expertise distilled into all the essential modules you need to deliver seamless and differentiating experiences in every channel. 

And with all the core fuel features you need out-of-the-box - plus localised functionality and the ability to customise – you’ll achieve a faster return on investment. 

---

2. Real-world customer experience 

A strong track record and referenceable customer base means less risk. 

You’ll want a partner with recent and proven success in fuel and convenience retail, with a track record of complex, large-scale deployments across multiple stores, multiple formats and multiple geographies.    

They’ll need to understand your fast-paced, data-intensive environment where any level of downtime is unacceptable, and have people who can help you plan and implement your projects, so that they deliver now and well into the future. 

Their experience in the fuel sector will give them a deep understanding of the trends changing mobility and convenience, and bring you the best of consumer, retail and CX applications and technologies. 

---

3. Broad product capability and innovation mindset 

Choose a partner that can give you a holistic portfolio and expansive retail ecosystem 

Offering a unified customer experience means unifying all the backend systems that run POS, inventory, ordering, customers and loyalty, pricing and promotions, analytics and fulfilment. You don’t want to be tied to a point player that can only provide segments. 

When you choose a partner with a mature platform, they can focus on delivering innovation because the critical functionality you need already exists. 

An open architecture and APIs will let you cultivate a modern retail and CX ecosystem that reduces risk and increases flexibility.  

And with agile methodologies plus experience working with agile retailers, they’ll have the ability to move to fast and change direction as opportunities develop, competitors act and customer needs evolve. 

---

4. Local and committed to your success 

A local partner means you can have more influence on the product roadmap and expect faster turnaround. 

Fuel retailers are developing a customer-centric mindset and building new skills and capabilities to compete with new competitors. They recognise the risk that comes with global vendors that have a narrow focus on fuels or an indirect model of engagement and support. 

A local business means you can enjoy direct engagement with on-the-ground people focussed on your needs, and not distracted by offshore business activity. With direct access to second and third level support and simple processes, you’ll enjoy leaner, faster support services. 

Biggest isn’t always best. A mid-sized company will have fewer layers of bureaucracy, giving them more agility and responsiveness.  

It also means that you’ll be an important customer of influence to your partner - they will value your business and work hard for it. 

---

Want help to innovate and scale new services, faster? 

Our product and people are supporting award-winning fuel retailers delivering disruptive, world-first customer experiences that build loyalty and grow sales. If you’re experiencing technology challenges that prevent you from unifying your physical and digital channels, get in touch. We’d love to help you digitise your business to create the unified experiences your customers now expect. 

---

For more on how to deliver every c-store customer a personalised, fast and seamless experience, download our new ebook:  

Fuel retail: How to capture the EV charging opportunity

As the electric vehicle (EV) market rapidly expands, retailers are evolving their business models and offerings to meet changing usage patterns. Kelly Brown describes how fuel retailers can become preferred destinations for EV charging by developing a compelling CX and investing in the right locations with the right offering.

With predictions for an explosion in EV adoption over the next three decades, some see EV charging as a threat to fuel companies. However, it could be a massive opportunity for fuel retailers to add a new, stable revenue stream. 

By building on their existing infrastructure in prime locations, access to capital and customer knowledge, they can diversify and future-proof their business. Many see an EV charging network as an essential element for growth by keeping a strong stream of customers at fuel forecourts and convenience stores. It’s also critical for achieving their goals of net zero emissions. 

With EV charging now on the cusp of becoming more profitable than conventional fuels, an overwhelming majority of retailers (95%) are either already offering or planning to offer EV services: 

• Ampol plans to have 120 sites in operation by end of this year 

• Z Energy is installing EV chargers across more than 40% of its network by 2025 

• bp will increase its network of EV charging points to 70,000 by 2030, including 1,000 chargers in the UK, Australia and New Zealand 

• Shell will install 50,000 EV charging points by 2025 

• Total will increase its EV charging network in Europe to 150,000 charging points by 2025, up from 18,000 today.  

---

However, the move to EV charging is a major business disruption and risk.  

Fuel retailers face formidable competition from other entrants, including OEMs, power companies and pure-play charge point operators (CPOs).  

Any large-scale investment in EV charging points must not only earn back the capital expenditures invested, but also operate profitably. With the large electricity demands from fast chargers and extremely high power prices, many EV charging businesses still operate at a loss. 

Despite these hurdles, the future is clear. Without significant changes to their business models, at least a quarter of service stations worldwide are at risk of closure by 2035. 

So what are the key factors for success? 

To become a preferred destination for EV charging, retailers are exploring three areas: 

Offer on-the-go charging    

While EV drivers can charge at home or at work, these charging stations are likely to be slow, low voltage points. On-the-go stations use higher power, DC charging points that let EVs fully charge their batteries in under an hour.  

With their existing infrastructure in prime locations and established fuel retail operations, fuel retailers can fill in a gap in the EV charging infrastructure and capture a convenience premium. 

It’s already a massive opportunity for fuel retailers – 29% of current EV drivers already charge their EVs at service stations, and a further 21% would like to if the option was available. 

However, it will require significant investments to develop an attractive, competitive and profitable EV offering. With recharging taking far longer than refuelling, operators need to adjust their station formats to provide expanded services and facilities. And ideal EV charging locations won’t necessarily correspond with the best fuel locations. 

Capture commercial fleets 

EV charging for large business-to-business fleets is a growing opportunity as governments and businesses move to decarbonise their vehicles. Electric vehicles are already being deployed en masse in short-haul transport, last-mile logistics and commercial business fleets. 

While likely to become highly competitive, fuel retailers can secure first-mover advantage with an end-to-end offer, combining “on-the-go” and “at-depot” charging.  

Create a compelling CX 

Innovative fuel retailers are investing early to learn about customer needs and experiment with new propositions and formats.  

They’re creating a compelling mix of convenience, speed, reliability and affordability: 

•  Mobile apps will cement customer loyalty and increase return visits 

• Reliability is a focus: drivers with a low battery charge will prioritise sites where chargers consistently work properly 

• Provide clean and safe locations, with expanded seating and decent restrooms  

• Remove the frustration of waiting for a charger by offering reservations 

• More time spent charging will give more dwell time, so provide customers with more reasons to visit and generate additional revenue by offering barista-made coffee, fresh food options and other premium services such as high-end car washes 

• Apply analytics to develop cluster- or even site-specific offers tailored for local buying opportunities and using transaction histories to customise product bundles, pricing and promotion to increase sell-through without compromising margin.

---

Want help to differentiate your EV charging offering? 

If you’re looking for help to innovate to serve customers, not vehicles, get in touch. We’d love to help you develop the distinctive and frictionless c-store experiences consumers now expect. 

---

For more on how to deliver every c-store customer a personalised, fast and seamless experience, download our new ebook: