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Convenience Stores Discover The Micromarket

Maybe you thought that we, our industry, had micromarkets all to ourselves. Wrong! That era has ended. If you don't believe me, you should read two recent stories posted at the Convenience Store Decisions site. Both are well-written and worth your time to get a glimpse of what the future might hold for us competitively. First, on Jan. 10, was titled “ Is A Micro Mart Concept Right for Your Business? ” You'll find references to Amazon Go stores, Russell's Express and Lunchbox. The second, on Jan. 21, was...

January 29, 2020 | Paul Schlossberg

Maybe you thought that we, our industry, had micromarkets all to ourselves. Wrong! That era has ended. If you don't believe me, you should read two recent stories posted at the Convenience Store Decisions site. Both are well-written and worth your time to get a glimpse of what the future might hold for us competitively.

First, on Jan. 10, was titled "Is A Micro Mart Concept Right for Your Business?" You'll find references to Amazon Go stores, Russell's Express and Lunchbox.

The second, on Jan. 21, was headlined "What is a Micro Mart?" It briefly describes some of the differences between c-stores and micromarkets. This quote says it all for me: "Today, more convenience store retailers are considering adding micro marts to their store portfolio in specific areas." That's not the best news for folks in our business.

Allow me to "translate" the quoted sentence in the paragraph above. "Here come the convenience stores. They will become players in the micromarket business."

We've been warning you, and warning is the right word, that others retail brands will be looking at micromarkets as an opportunity. It's a rapidly growing business for us. Maybe "they" can compete as new entrants in this service and gain success -- profitable incremental sales growth.

My posting here, on Jan. 9, 2020, "Are You Ready For New Competition For Your Micromarkets? Here They Come!" addresses what competitive challenges might be on the horizon.

Here is one excerpt for you: "…think about what the future might be like if convenience store brands look at our micromarkets successes and see an opportunity. The technology exists and can be adapted for their existing retail stores or in (new) micromarket deployments."

The sky is NOT falling! We are NOT about to fall off a cliff. We have a huge advantage. We were the first competitor in the game of micromarkets. That obligates us to be focused on one thing. We should NOT be thinking about "defending" our business.

It's time to go on the "OFFENSE." We must adapt, improve and refine what we are doing with micromarkets. The words for the day are "invest, innovate or die." That was the title of my presentation at ACE (Atlantic Coast Exposition) in 2013. The words are not mine. It was the headline of an article shared with me many years ago. That article is long gone from my files. But that headline remains fresh in my mind.

The great country singer Loretta Lynn said: "You either have to be first, best or different." We were first. We will have to work harder than ever to be the best as tough new competitors come to challenge our micromarket business.

Do you want to sell more stuff? It's time to invest and innovate in our micromarket business.

PAUL SCHLOSSBERG

Paul Schlossberg is president of D/FW Consulting, working with clients to merchandise and market products in impulse-intense selling environments, such as vending, onsite foodservice and convenience stores. Based in the Austin, TX, area, he can be reached by emailing to Paul@DFWConsulting.net, calling him at (972) 877-2972. The company is online at www.DFWConsulting.net