How Can We Finally Break the Convenience Industry’s Data Silos?

The convenience retail market has always been prone to rapid shifts, driven by short-term factors such as pandemic-related lockdowns and long-term factors such as the growing focus on personalized consumer experiences. However, we’ve never witnessed the accelerated rate of change like we have during the past 18 months.

An industry that was already adjusting to technology disruption and widespread industry consolidation has suddenly become even more competitive. And even though increased competition can help drive changes that benefit some convenience retailers, it’s important to think about ways to benefit the industry as a whole. That starts with addressing some of the core issue of data silos and the legacy IT systems that have been roadblocks to digital transformation.

When you consider some of the recent consumer behavioral changes brought on by the COVID-19 pandemic, it’s easy to see why some retailers were able to thrive while others fell even further behind. These changes included more delivery and pick-up options (to offset the loss of in-store visits), advancements in frictionless digital experiences, and an emphasis on alternative ways to differentiate your stores when fuel sales are disrupted. On top of those changes, C-stores have also had to deal with more sophisticated cyberattacks that threaten to shut down businesses and disrupt global supply chains.

Technology as a disruptor and a solution

Technology itself has traditionally been the biggest convenience industry disruptor-willing adopters have typically gained clear competitive advantages, and much smaller businesses have been able to out-maneuver large competitors by making smart technology investments. However, industry growth has been limited by a relative lack of uniform IT infrastructure and solutions.

That heterogeneity isn’t surprising when you can find global retail chains coexisting in the same area as single-store family-run businesses. Moreover, the rapid pace of mergers and acquisitions has only exacerbated the IT cost, complexity, and security issues that have been lingering for years.

Even though it’s clear that digital transformation is a clear driver of business success, the barriers can be daunting. They often include:

• Lack of strategic thinking: It’s easy to get caught up in administrative details rather than broadening your perspective to invest where the industry is moving. For instance, instead of dismissing EV charging stations as a profit risk, consider how you could attract new customers who might visit your store during longer EV charging sessions. Modernizing your technology could help support new food service options, guest Wi-Fi featuring in-store promotions, and loyalty incentives that help you grow revenue.
• Limited time and resources: The cost of employee training in an industry with high turnover rates can quickly cut into your profits. You can retain employees by simplifying their lives with integrated solutions that automate tasks and boost productivity-from the counter to the back office. Increased efficiency also gives you more time to focus on your customers.
• A reliance on legacy technology: As the competitive landscape has widened, you’re not just competing with other C-stores but also with QSRs, grocery stores, and big-box discounters. Factor in the need to keep up with a growing list of regulations (EV policies, EU Green Deal, GDPR, and more) and you simply can’t rely on “gut feelings” or manual processes. Legacy IT systems can’t solve these issues. Instead, you need modern technologies that help you become and remain compliant in the most efficient manner possible.
• Not enough insight: Being able to collect data, analyze it, and turn it actionable insights helps you understand exactly what consumers want-when and where they want it. As a result, you can personalize offerings so shoppers benefit from your combined digital and in-store (omnichannel) experience.

A catalyst for integration and innovation

The good news is that the convenience industry has continued to progress despite these barriers and the lack of comprehensive platforms that bridge the gap between legacy IT systems and meaningful innovation. To be clear, the days of relying on intuition and educated guesses are long gone. If anything, the pandemic has proven how quickly technology can reshape the entire industry-changes that previously would have taken years happened in just a few months.

Imagine the power of an open technology platform aligned with convenience retailers’ greatest challenges and objectives-delivering integrated solutions for areas such as ERP, logistics, pricing, loyalty programs, data insights, network consolidation, and cybersecurity. A reliable platform could accelerate innovation, streamline supply chains, and help C-stores adjust faster to new business opportunities and evolving consumer behaviors.

Being able to modernize your business with automation and flexible offerings built on an agile, cloud-based platform could help you reduce friction and overcome data silos. And it could also free you to worry less about complex manual tasks and technical barriers to instead focus on delivering the type of experience today’s consumers are longing for.

Discover your opportunities for convenience retail innovation at www.pdisoftware.com/spark.