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In the 1980s, U.S. convenience stores had a dilemma: embrace pay-at-the-pump or not?
Those in favor argued the self-service technology made life easier for people looking to fill their car with gas and go. Those opposed worried it would prevent customers from entering the store, where they might purchase a bag of Twizzlers or can of Dr Pepper—items with higher margins than fuel.
Jeff Lenard, vice president of strategic industry initiatives at the National Association of Convenience Stores (NACS), described the debate as “extremely contentious.”
Ultimately, the industry remained faithful to the values of ease and efficiency. It adopted the new system, which is ubiquitous today.
As it turns out, the decision also benefited people wanting to dash inside to buy a pack of gum or bottle of mustard, since they no longer had to wait in line behind someone wanting to put $10 on pump No. 3. Now they, too, could grab and go.
“It actually enhanced convenience for everyone,” said Lenard.
Modern disruptions
Throughout their existence, which NACS puts at around a century, convenience stores have had to innovate. They’ve kept their doors open longer than traditional businesses. They’ve stocked an assortment of household goods while maintaining an accessible, hassle-free shopping environment.
In the 1960s, 7-Eleven became the first national retailer to sell coffee in to-go cups, offering people a way to get caffeinated without having to brew it at home or sit down at a restaurant.
Today, however, the industry is up against new shifts in society.
What, for example, is more convenient than ordering snacks and a drink via smartphone from the comfort of your couch, then having someone bring it to your front door? The rise of electric vehicles also presents a problem for stores that depend on customers to stop by for gas—which is about 80% of them. And long known as places to buy cigarettes, hot dogs and lottery tickets, convenience stores don’t exactly have a reputation for being sources of fresh food and family fun. There’s a reason, after all, the Texas-based chain Buc-ee’s brags about having the “cleanest restrooms in America” on its website.
Although convenience stores have seen a rebound in sales and foot traffic following a dip during the Covid-19 pandemic, larger changes in consumer behavior point to a future that’s different from the past. If the industry loses sight of what convenience means in 2023 and beyond, the dip could return and eventually turn into a decline.
Online delivery
During the many months of lockdown following the Covid-19 outbreak, companies delivering everyday essentials from ice cream to toilet paper saw a spike in demand. Activity has cooled since the peak, but the moment provided many consumers with the experience of getting what they want in a matter of minutes—with as little effort as possible.