4 Ways to Increase Gas & Convenience Store Revenue

Brandi Smith, Marketing Director

U.S. convenience stores, compared with other retail channels, have shown relative strength and sales growth in recent years. Being built on the premise of speed, and being modelled to deliver on specific consumer needs that competing channels don’t yet meet, has ended up with record sales in 2018. According to the National Association of Convenience Stores (NACS), an all-time 16 year high was reported with a sales surge of 8.9% to $654.3 billion. Of this growth, there was only a 1.7% increase from in-store sales. Small increases in in-store revenue growth can be attributed to a number of factors.

There is the evolution of quick-service restaurants (QSRs) with new menu ideas and remodelling of their stores to appeal to younger audiences. In addition, consumer shopping trips have been on a steady decline, competing channels are beginning to diversify and e-commerce continues to explode.

E-commerce is a rapidly growing market showing little signs of slowing. In fact, quite the opposite with predictions indicating that it will be a $3 trillion market by 2021. Let’s be honest, I don’t think this is a surprise to any of us. We have all taken advantage of our Amazon Prime membership to expedite the shipping of our goodies because it’s free. Or how about enjoying the convenience of shopping in your PJ’s while watching a Netflix show or two? Like most, I say, “heck why not?”

This comes at a tremendous blow to brick and mortar retailers and the amount of foot traffic coming into their stores however. Those that seek to remain competitive look at ways to leverage this trend and take a more forward-thinking approach to get ahead, drive strong traffic to store locations and drive a whole new profit center. Let me explain how.

How Gas & Convenience Retailers Can Tap into the E-Commerce Explosion

ShipperBee has launched an innovative, first-of-its-kind end-to-end delivery system designed to move parcels, from this exploding market in a more efficient way – all while driving a whole new customer segment, ShipperBee drivers, to gas and convenience locations across North America.

Our drivers aren’t couriers or haulers. They’re regular, everyday people – ranging from commuters, stay-at-home parents, students, retirees – who already drive by their local gas and convenience stores. Certified, background checked and rated drivers use our Hive Transfer Mailboxes (Hives) as pick-up and drop-off points for parcels, like a baton in a relay.

4 Ways Hives Increase Gas and Convenience Store Revenue

Our goal for Hive Hosts is to increase traffic to stores by directing drivers to store locations to move parcels. More traffic means higher potential for new revenue from new customers and loyalty members. Here are four ways that our Hives increase revenue:

1. It’s a new, passive profit center

ShipperBee makes hosting Hives effortless. We install the boxes across your locations and pay you every time a parcel passes through it. No monthly fees, no other ongoing costs. What this means is that these parcels create a whole new revenue stream for your store locations and represent nothing but pure profit.

2. More Fuel Sales

ShipperBee is different from delivery giants. Our drivers aren’t professional couriers visiting dozens of drop boxes a day. They’re not hitting every gas station across the region. They’re regular, everyday people – ranging from commuters, stay-at-home parents, students, retirees – who already drive by your store during their daily activities. When it’s time to fill up, they’ll go to the most convenient pump and wait until their next parcel pit stop to refuel: yours! More cars at the pump generate higher revenue for the 80% of convenience stores who sell fuel. Our drivers are primed to become regular customers.

3. More Convenience Store Revenue

The morning and evening commutes are peak times for convenience store sales, and also happen to be when most ShipperBee drivers stop at the Hive. They’re off the clock and are a captive audience that’s perfect for “Grab & Go” items like beverages, snacks or prepared foods for breakfast, lunch and dinner. The Hive Transfer Mailbox gives them the perfect reason to choose your store over a competitors’.

4. New Promotional Advertising Space

The Hives offer four prime advertising spaces. Place high impact offers for our drivers to see and take action on. Invite them to join your loyalty program, take advantage of special in-store offers or a place call to action to make an impulse purchase. Whatever your latest campaign and promotion is, our drivers will be exposed to it every time they visit your Hives.

Ready to increase your gas and convenience store revenue?

Download our 4 Effortless Ways to Increase Gas and Convenience Revenue eBook or contact us today to tap into our network and a whole new audience segment as a Hive Host. It’s an effortless, investment free way to get more vehicles to the pump and more customers to the convenience store counter.

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