As younger folks join the consumer market and technology advances in every sector of retail, the c-store industry doesn’t plan to be left behind.
Automation, for instance, is a hot topic buzzing throughout the c-store space. We’ve all heard talk of burgeoning automation in areas including the checkout process, food ordering, training, marketing and even store cleaning. The objectives for integrating automation are, of course, streamlining operations, improving the customer experience and assisting with labor management.
What we’re hearing about now in the c-store space, however, is automation on a larger scale. While autonomous stores may not be widespread, the technology is here and so are the conversations.
Autonomous at DFW
I found an opportunity to visit an autonomous store on a recent trip to Texas. Located in the Dallas-Fort Worth (DFW) airport is a checkout-free store in Terminal C. The concept is simple: scan your credit card at the entrance, pick up the items you want and walk out. A machine is available at the exit for an email address to be entered for a receipt.
I admit that with the amount of information I’ve learned about the technology I thought I would breeze through confidently. And while I understood what I needed to do, I still hesitated at the entrance. Upon exiting, too, I took a moment, as leaving without paying at the end of my shopping trip felt foreign.
I imagine, however, if this was at my local Cleveland airport or a store on my usual driving routes, I would quickly become used to the procedure, as would many others.
Once I entered through the gate it was time to explore. Immediately, I glanced upward and noticed the multitude of cameras that tracked my movements, making the store concept possible. I walked around the entire area.
I noticed different sections for typical c-store fare including candy, gum and mints; snacks; and beverages, as well as space dedicated to souvenirs, travel necessities and a larger wall for health products than I would expect to find at my local c-store, given that this location is inside an airport.
In the end, I purchased a pack of gum and a candy bar. And when I saw my emailed receipt, it was for those products exactly that I was charged, despite my picking up other items and putting them back on the shelf and spending longer times in other areas.
The location was not entirely unmanned. One employee was present to help customers who needed it, and I witnessed him explaining to others how the store worked. It’s possible that should these stores become more common, this type of interaction may not be as necessary.
Still, I can understand how having an employee around to help with age-verified items — if they’re offered — is necessary, along with possible cleanup or other malfunctions.
Raymond Huff, president at HJB Convenience, also noted the importance of staff when considering different autonomous models.
“People drop stuff, they put stuff in the wrong place, they might be the customer at the register that it’s their first time there and they don’t know what they’re doing and they’re holding up the line. You name it. There’re all kinds of issues that come out with this thing. So that’s definitely been our experience,” he said, discussing having an employee present during the lunch hour at Russell’s Xpress.
HJB Convenience operates seven Russell’s Convenience locations in Colorado, Michigan, California and Hawaii. Three of these are Russell’s Xpress, self-serve stores located in high-rise office buildings.
Russell’s Xpress
There’s more than one way to create a frictionless shopping experience.
“I had to create my own tech,” said Huff. The first Russell’s Xpress was launched in 2014.
Customers must be signed up for the Russell’s rewards program, and they’ll enter their phone number to walk in the store.
“And then they can also put their phone number in at the point of sale to get discounts,” said Huff. “… Most of our high-income people surprisingly don’t. They use it for access, but don’t use it for the discounts, which is very interesting.”
When customers are ready to leave, they scan the barcodes on their items at the self-checkout and pay.
Differently from my experience at DFW’s autonomous store, Russell’s Xpress is mostly unmanned.
“We took the chance that people were not in a high-rise office building willing to lose their job over stealing a candy bar,” said Huff.
And so far, Russell’s is seeing success with this model.
Huff made a prediction in 2018 that 30% of the industry would have some type of autonomous checkout by now.
With the many different technologies and approaches to self-checkout and autonomous stores available, we may see the c-store industry slowly begin to launch more of these setups.
Still, Huff noted he believes “cashiers and associates are here to stay in some capacity.”
For the right price, location and customer base, autonomous models may grow. In the meantime, there are plenty of variations to research.
That said, it’s also important to maintain your customer base, as Keelye Gaither explained. Gaither is the brand and marketing director for Key Oil Co., which operates one Key Stop Travel Center and one Key Stop Express.
Not all customers are looking for an autonomous experience.
“I think (the autonomous store) works in certain markets. But I think that you can’t really stray too far from the traditional customer that you have. …” Gaither said. “(You have to be able) to evolve with technology while still keeping and retaining your original customer base.”
