Technology: The Future of Convenience Retail
How AI, contactless payments and loyalty programs are shaping the c-store industry.
Technology can help convenience retailers adapt to the rapid changes in the industry. It can also help solve problems, but it isn’t a solution by itself.
“The shift in technology is now driven by customer needs rather than store needs. Customers expect technology to support their way of doing things,” said Gray Taylor, executive director of Conexxus,” in the Convenience Matter podcast, “Technology Is Essential—Here’s Why.”
Conexxus brings together convenience and fuel retailing stakeholders to create standards that benefit the c-store industry. The goal of these standards and specifications—from API development to loyalty to digital payments to device integration specifications—is reduce the cost of IT ownership and enhance the competitiveness of the entire industry.
Artificial Intelligence is a valuable tool, although some applications are more accessible to larger organizations.
Moving forward, large language models (LLM) will also have a significant impact, as they can leverage deep learning and vast amounts of data to improve business processes. Conexxus recently developed an LLM for its industry data dictionary.
“We’re defining all the data that flows within the store and outside of the store. We’re up to about 800 definitions with code samples, implementation guides—if you printed it all out, it’d be a stack of paper the size of Duke Street, where NACS is headquartered,” said Taylor, adding, “Internal LLMs are like it’s your own internal ChatGPTs.”
Practical Applications for Smaller Operators
Contactless payments and loyalty programs are a sweet spot for smaller operators.
“To me, the big thing is how do we plan mobile payments and mobile loyalty, because from a consumer standpoint, there are a lot of solutions and the point-of-sale companies are supporting them through our Conexxus loyalty standards,” said Taylor.
Contactless payments, for example, solved a problem on the fuel island by removing “moving parts as far as card readers. It’s far more reliable—that’s tech for good,” said Taylor.
Loyalty is also now more attainable for even single-store operators. “Lonnie McQuirter of 36 Lyn in Minneapolis has a loyalty program and he’s one of thousands of small operators who have their own loyalty program,” said Taylor.
Future Focus
To remain competitive, Taylor suggested that retailers say current with new technological tools and innovations. One way to do that is by attending industry events like the Conexxus Annual Conference and others that focus specifically on solutions for advancing Fuel & Convenience retail.
Hear more from Taylor and the what the future holds for technology and the fast-paced fuel & c-store environment on Convenience Matters.
