Retailers Seek Proactive & Balanced Approach to Technology Investments
AUSTIN, Texas — The evolving landscape of fuel sales, growing electric vehicle (EV) use and the dwindling tobacco market, among other changes, may all affect the ways retailers invest in newer technology, according to the Convenience Technology Vision Group’s (CTVG) latest "Vision Report."
The report is based off of CTVG's March 22 quarterly virtual meeting which featured a presentation by Tim Tang, director of business technologists at Hughes. Tang provided an overall look into the future of technology in retail and the convenience sector before CTVG members engaged in a discussion to share their experiences and perspectives.
[Read more: Convenience Think Tank Finds AI Is 'All About Data Integrity']
During the group chat, the conversation examined the future and current state of convenience retailing and determined the fight for customers will lie in personalization, community engagement, data analytics and in taking a long-term, proactive and balanced approach with technology.
CTVG members highlighted the evolving landscape of fuel sales, foreseeing significant shifts with the growth of EV charging. Moreover, the diminishing demand for traditional products like fuel and tobacco led to considerations about the transformative impact on customer preferences, underscoring the need for innovative products and services, with members citing Buc-ee's as a prime example of a retailer that generates foot traffic without emphasizing fuel pricing.
"When I think about the future of the convenience stores, I'm thinking primarily about what are those technologies? What are those initiatives? What are those business models that are going to be able to drive that fuel to retail conversion," said Tang. "If we acknowledge...there is fuel demand destruction...tobacco demand destruction as well, then how do we increase that conversion from fuel to retail?"
Concerns about data accuracy from location services prompted a broader conversation on effectively harnessing and interpreting data. Some members highlighted the importance of not blindly trusting AI-driven solutions, emphasizing the need for data vigilance, while others expressed a mix of continued curiosity, experimentation, and optimism about the potential of AI across various business functions.
[Read more: New Report: Retailers Take Cautious Approach to Exploring AI Opportunities]
Those concerns combined with a focus on competition with adjacent channels led to a deeper discussion on loyalty programs with integrated payment, illustrating the impact of incentivized engagement on consumer loyalty.
The full "Vision Report" is available here.
Operating under the Vision Group Network, CTVG brings together invited leaders for quarterly virtual meetings to discuss technology issues impacting the convenience channel. The group addresses trends, challenges and solutions in artificial intelligence, computer vision, alternative payments, robotics, IoT, blockchain, cybersecurity, data analysis, EVs, food technology, frictionless checkout, digital experiences and workforce management.