Convenience store retailers asking themselves whether they should invest in self-serve technology are increasingly coming to the conclusion that — assuming they can afford it — the answer is yes.
The reason is obvious: from frictionless checkout to pay at the pump, foodservice kiosks and more, a growing number of consumers in America and around the globe want it, and are coming to expect it, with each passing year.
Self-service technology is, put simply, an idea whose time has clearly come.
With the many different formats available, retailers have the option of choosing what works best for them and their customers. Perhaps self-checkout would help streamline the payment process on busy days, or maybe food ordering kiosks will give customers more time with the menu if there are others in line, as well.
Already, stores offering bean-to-cup coffee offer self-serve technology.
In a recent report titled “Self-Service Market Size & Share Analysis — Growth Trends & Forecasts (2024-2029),” market research firm Mordor Intelligence noted that the self-service market’s size is projected to be $38.22 billion in 2024 and is expected to reach $55.62 billion by 2029. For the same period, its compound annual growth rate should reach 7.79%.
“Self-service technology has been around for ages with ATMs and pay-at-the-pump gas station terminals,” the report pointed out. “In the present world, self-service is woven into the fabric of consumerism and is becoming an essential part of many verticals’ paths to digital transformation.”
Another reason for this shift, Mordor reported, has been a persistent labor shortage that affects several sectors, in particular retailers.
“A number of operators cannot find sufficient staff to cope with the demand because of such a tight labor market. This meant that in order to attract workers, small and medium-sized enterprises had to raise wages. This has resulted in an increase of the trend for kiosks,” the report stated.
Although self-serve tech is growing, c-store retailers must consider, apart from the financial aspect, whether they have the space for it. Limited funds and space would hinder the ability to invest in the technology. Another aspect for retailers to consider is their customer base. Are your customers accustomed to self-serve technology from other stores in the area? Have they mentioned their interest in experiencing the tech?
Before investing, get a feel for your customers, because although many are becoming accustomed to the tech, there are pockets of consumers that prefer not to use it. Ask around and see what types of service they prefer. Don’t wait too long, however. As each year passes, technology evolves, and you don’t want to be left behind.