You’ve heard the joke about the two hikers and a bear, right? Two hikers encounter an angry bear in the forest. One of them opens his backpack, pulls out his running shoes, and begins putting them on as fast as he can. The other watches and says, “You don’t think you’re going to outrun that bear, do you?”
“I don’t have to outrun the bear,” the first hiker replies. “I only have to outrun you.”
How does that apply to you? Well, think of yourself as one of the hikers, the bear is right behind you, and your competition just put on its running shoes. Sound familiar? Convenience store competition is nothing new, but it is changing in ways we’ve never seen before.
Convenience Store Competition
According to NACS, the U.S. convenience store industry has 151,000-plus stores that account for nearly $700 billion in sales. Annual growth in the last five years is at about 3.4%, with all signs pointing toward additional growth in the years ahead. Combine those numbers with lower unemployment, and it paints a pretty picture for retailers in general. It’s a cautionary tale, though. It’s true that your customers will have more money to spend, but they’ll also have more choices as to where to spend it.
Competition from Outside the Industry
An improving job market means your customers not only have more disposable income, they also have an increased need for quick and convenient meal options. As more and more convenience stores are adding upgraded foodservice offerings, your competition now includes the dozens of quick-service restaurants in your neighborhood. Competing in the restaurant industry is a different animal altogether, where food quality, consistency, values, and customer service become even more important.
How to Outrun Your Competition (And the Bear)
Maybe the trick isn’t to run faster, but to run smarter. You can stay ahead of your competition by following these strategies:
Train every day. Before you invest your marketing dollars on the next big promotion, train your staff to deliver exceptional service in all aspects of your business.
Training is the handle, sales is the pump. Train employees to do more than just ring up customers, but also to interact in a way that creates additional sales.
Build customer loyalty. It’s okay — and maybe even imperative — to offer a sweet deal to customers to get them in the door. The key is to capitalize on those visits and wow customers with products and service that they will want to experience again.
Go where your customers are. You know customers are looking for convenience, so offer it. Give your customers more than one reason to be there, by bundling seemingly unrelated products to offer convenience on multiple levels.
