Most people have heard of virtual reality — the immersive experience users can undergo in which they feel like they are in a completely new setting. Less commonly known, augmented reality (AR) overlays virtual elements onto someone’s real environment.
For instance, the AR game that rose to popularity for a short period of time, Pokémon Go, had users scrambling around town hunting for fictional Pokémon creatures through an app on their phone. If someone were standing in the parking lot of a convenience store, let’s say, their phone might show Squirtle, a Pokémon character that resembles a light-blue turtle, located a few feet away next to a gas pump.
This type of technology isn’t new, and it’s not necessarily new to c-stores, but the opportunities it can bring about for the c-store industry have yet to be fully realized.
In 2024, the global market for AR in retail was valued at $19.9 billion, and it’s projected to reach $64.4 billion by 2030, according to Research and Markets’ “Augmented Reality in Retail — Global Strategic Business Report.”
For Customers
I recently spoke with Daniel Burrus, CEO of Burrus Research and futurist, on the use cases of AR in the convenience retail sector. Burrus has researched different types of technology available now that can help transform retail operations, and anyone can access a report detailing his findings on his website. AR is one such tool, and he has determined a myriad of methods in which it can be deployed.
Users can access AR through a pair of specific glasses or through an app on their smartphone. As most customers will have a smartphone with them when they enter a store, this is a great way for c-stores to provide access to AR features.
For instance, retailers may choose to offer customers a map of the store through AR.
“If I’m coming in for a specific thing, it’d be great to just hold (my phone) up and have it say, ‘There it is.’ And I walk right over to that aisle and bingo, there it is,” said Burrus.
Additionally, AR can tell a customer whether a store has a specific item they want.
“All I have to do is tell (the AR app) what I’m looking for, hold (the phone) up there, and it’ll say yes or no,” Burrus said.
AR has the potential to cut out the work on the part of the customer. These types of use cases can also be beneficial for those with dietary restrictions.
“What do we want for a customer? Make it easy. Make it very easy. Let’s say that I am vegan. I don’t eat dairy, I don’t eat meat and there’s a lot of meat products in convenience stores, but I’m looking for a healthy snack that fits my diet. … Well, I can have my conditions in that app so that when I come in, I can say I’m looking for a snack that fits my dietary needs. There’s one right there. Okay, let me go over. Oh, there’s one over in aisle four, too,” Burrus listed as a hypothetical.
The point is, AR not only creates efficiency for the customer, but it can help a customer find products that they may have missed otherwise. And it can help increase loyalty, as well, from customers who now know a store carries what they need.
Further, AR can help a customer discover more information about a product. A customer can point their phone at an item and learn its nutritional contents.
For Employees
The technology can also be used to benefit employees.
For example, if a store owner decided to purchase a set of AR glasses, an employee could wear them, look at the shelves, and the glasses could provide inventory information for an item. AR via a smartphone, however, can also impact inventory management.
Walmart is one chain that has deployed AR in its stores, particularly for inventory. Although not available in its c-stores, the potential for the tech in smaller-format stores is high.
Like Burrus, Walmart sees a lot of possibility for AR in areas such as this and navigation.
“One piece of AR technology we’re particularly proud of is VizPick, a system that allows our stores to predict inventory trends and deliver the quantity it predicts a store will need when it needs it,” said Amanda Cantu, corporate affairs, end-to-end store communications, Walmart. “With VizPick, our stores have been able to optimize their inventory management processes, and associates are able to move products to the sales floor more efficiently.”
Beyond inventory, AR can be used to recognize customers and offer personalized promotions. For instance, if a rewards customer were to enter the store, AR glasses could pick up on this and provide information on the customer to the employee.
“This could allow the employee to say, ‘I know when you usually come in, you’re buying gas, but you usually get a couple of things. Are you interested in those today? We do have a special,’” Burrus gave as an example.
The glasses could also be used to train an employee.
“Let’s say you’re in charge of replacing stock and inventory. It can give you instructions as a new employee of what you should do,” Burrus elaborated.
This can also be done without the glasses, with employees instead using the chain’s AR app. They can point it toward things and learn what they need to do.
The Technology
Beyond the use cases, it’s important for c-store retailers to know the accessibility of AR and what they need to do to make it work for them. One of the initial concerns many operators have with implementing new technology is the cost. Is AR expensive?
According to Burrus, it doesn’t have to be.
“There are a lot of companies, including Ray Ban, that that are coming out with versions of (AR glasses),” he said.
And retailers don’t necessarily have to invest in the latest tech. They can purchase older versions at a more cost-effective price. And still, they can choose to forgo the glasses and use smartphones.
“You already own a smartphone. Your customers already own a smartphone. Your employees already own a smartphone. So the beauty of using a smartphone with AR is you don’t have to buy anything. You don’t have to get hardware. You already have the hardware. You just need to think, ‘How am I going to use it?’” Burrus said.
To use AR with a smartphone, an AR app must be downloaded. Luckily, this can tie into a loyalty app, should a retailer already offer one. As far as software goes, a smaller chain might be able to investigate licensing it from a larger chain. Artificial intelligence can be used to create the software, or a tech worker could be hired to create it.
Burrus encouraged c-store retailers to find the existing technology they can innovate with at low risk.
“Everybody is really busy, and you can busy yourself out of business today. … If the world is changing, and you’re not, I’m worried about you,” Burrus said.
As with any new technology, there is bound to be a learning curve. Cantu acknowledged as much with Walmart’s AR tech adoption.
Burrus recognized many chains might want to wait to see how the bigger businesses fare with the tech first, but, he pointed out, “You can wait-and-see yourself out of business, too, today.”
