After several years of store closings, high e-commerce growth, and the launch of countless emerging brands, most retail experts agree — we are undergoing a massive shift in consumer behavior.
Twenty years ago, Jeff Bezos envisioned a world where Amazon would not only sell books about kayaks, but kayaks themselves. People laughed and few were convinced that ideas like this were viable.
You probably know how this story ended. Today, you can in fact buy a kayak from Amazon — and it will ship to your house for free within two days.
The explosive growth of Amazon is really just the start. Today’s shoppers have more options than ever before. Services like Uber Eats, Blue Apron, Instacart, and Harry’s are bringing convenience to consumer doorsteps. These channels have created a shopper base that expects personalized experiences, convenient shopping trips, and direct relationships with brands.
And make no mistake, these new channels are threatening the performance of traditional large format retail. Average weekly grocery trips are down, shopper loyalty to supermarkets has hit all time lows, and overall retail store locations continue to decline. These trends are causing many to question the long term viability of traditional brick and mortar retail.
At Koupon Media, we don’t believe physical retail is going away, it’s just changing. As more things like home goods and groceries are bought online, stores are getting smaller and focusing on fresh food, immediate consumption, and on-the-go needs.
In the face of this shift, convenience stores are well positioned to thrive. As one of the only physical retail categories expected to grow in coming years, the $250 billion c-store industry and its focus on immediate consumption provides a glimpse into the future of brick and mortar retail. And with CPGs accounting for 78% of in-store c-store sales, many leading brands are shifting traditional marketing spend in grocery towards higher growth categories like c-store.
While the c-store industry has a head start, retailers like Walmart, Target, Tom Thumb, and Sam’s Club are taking notice and opening their own versions of small format stores.
To compete in the future, c-store retailers and CPG brands must work together. That’s why we created the Koupon Network. We connect the world’s largest CPG brands with over 40,000 convenience store locations to launch digital promotions that grow sales.
When you join the Koupon Network, you’re joining the next generation of retail. Are you in the network? Share this blog on LinkedIn with #InTheNetwork.
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