As the c-store industry soon looks to ring in the new year, retailers must consider the technology trends and advancements that lie ahead. From artificial intelligence (AI) and automation to frictionless checkout and more, c-store operators are strategizing for their stores.
CStore Decisions checked in with Mike Templeton, VP of digital strategy, NexChapter, to get his take on the trajectory of c-store technology.
CStore Decisions (CSD): What do you think are the major tech trends c-store retailers should watch for going into 2025?
Mike Templeton (MT): As we near in on five years since the onset of the pandemic, technology adoption seems to have settled back into much more sustainable levels of demand. However, technology investments continue to be at the top of leaders’ lists. First, I foresee convenience retailers leaning into loyalty even more heavily. With the uncertainty in the economy and the constant pressure of rising costs, consumers will be looking for value wherever they can. Retailers will likely get more serious about recruiting customers into their digital platforms so they can manage toward increasing customer lifetime value. Second is personalization. The capability is still not widely adopted yet, but a retailer’s ability to understand customer behavior and react with individualized incentives and promotions is what consumers are demanding.
CSD: Are there any specific tech innovations in the c-store channel that you predict will emerge in 2025 and the near future?
MT: Fervor for retail media continues to build in this channel. A retail media network is a retailer advertising platform that allows partners to leverage a retailer’s first-party data to engage customers with targeted advertising. Interest in these networks is influenced by growing businesses at mass merchandise and grocery (stores) that are driving alternative revenue streams and profits for other retailers. Retail media is dependent on digital platforms and the customer data they generate, so previous investments in loyalty, digital experiences and in-store technology may see even greater returns as retailers power up new programs.
CSD: With AI such a hot topic, how can convenience store retailers integrate it into their operations in the year ahead?
MT: Artificial intelligence continues to dominate technology news cycles. Companies in every category will likely continue announcing AI-powered versions of their software. Retailers must dive beyond the headlines to understand what they’re getting (or not). Rather than pursue AI on its own, retailers should spend time talking with existing partners about ways to leverage machine learning and advanced functions within the toolsets they already own.
CSD: How would you advise small to mid-sized chains evaluate their technology strategy going forward?
MT: Regardless of a chain’s size or scale, mobile devices are the way to consumers’ wallets. Whether it’s a mobile app, tap to pay or even finding driving directions — retailers must think mobile-first as they court new customers and work to keep the ones they have. Retailers ought to identify who they are seeking to serve, understand what is most important to that customer group and then prioritize their technology investments accordingly.
CSD: How do you see upcoming technological advances shaping the customer experience in 2025?
MT: As systems become more interconnected and AI helps embolden the human operators of marketing technologies, convenience should be capable of reaching new levels of frictionlessness. These technological advancements, combined with ever-rising consumer expectations, will leave little room for error in the modern customer experience.
