Welcome to our Koupon News Update series, where we share news and trends that are shaping the convenience store industry! In this week's Koupon News Update, learn about c-store sales in the first half of 2018, Uber's new take on convenience, and HEB's new alcohol delivery service.
C-Store Retailer Trends
C-Store Sales Up Over the First Six Months of 2018
- Convenience store retailers also cited positive revenue growth over the first six months of 2018. Expanded healthy snack and drink options are expected to fuel strong summer sales growth, according to a survey of U.S. convenience store owners by NACS, the trade association that represents the convenience retailing industry.
- More than three in four (79%) convenience retailers said in-store sales increased over the first six months of 2018 compared to the same time last year, and more than half (56%) said their fuel sales increased compared to last year.
- Insight: 2018 will be a significant year in c-store sales.
Paytronix Research Reveals One to One Win-Back Campaigns Drive the Most Traffic
- Paytronix Systems, Inc., an innovator in mobile loyalty and online ordering applications, mobile payment, and digital communication tools, today released a Data Insights research brief that identifies 80 to 90 days as the key average window for winning back lapsed guests.
- “Be careful to only implement a win-back campaign after you’ve taken the time to separate truly lapsed guests, or you’ll be discounting loyal customers who already plan to return,” said Lee Barnes, head of Paytronix Data Insights. “This new brief explains how to separate out truly lapsed guests and identify the window where it’s most effective to engage with them—along with proven strategies to win the customer back.”
- Insight: Paytronix is cracking the code on how to win back customers.
Uber partners with Cargo to help drivers make money by selling stuff to riders
- Uber has teamed up with Cargo, a startup that makes it easy for rideshare drivers to sell goods to their passengers. Cargo works by giving drivers free boxes, filled with goods like gum, phone chargers and snacks, to sell to passengers from the center of the car console.
- Starting today, Uber drivers in San Francisco and Los Angeles can pick up Cargo boxes at one of Uber’s driver support locations, called Greenlight Hubs. While this is an exclusive business partnership, Cargo will continue to let drivers sell its goods even if they don’t drive for Uber.
- Insight: Uber and Cargo have partnered up to deliver convenience goods on the go.
Walmart and Microsoft team up to fight Amazon
- Under a five-year deal announced Tuesday, Walmart will boost its use of Microsoft's cloud services and work with the tech firm on artificial intelligence and machine learning projects. Walmart has been pushing aggressively to transform its digital operations in order to compete with online rivals.
- Walmart will also get access to artificial intelligence technology that could reduce energy consumption in its stores and machine learning expertise that would improve its delivery systems.
- Insight: Walmart understands the threat of Amazon and is partnering with Microsoft to improve ecommerce capabilities.
H-E-B Begins Beer and Wine Deliveries
- Grocer H-E-B will begin offering beer and wine delivery in Texas through a new partnership with Favor, an Austin, Texas-based on-demand delivery company.
- “The combination of H-E-B and Favor continues to be a win for Texans,” said Jag Bath, Favor CEO and H-E-B chief digital officer. “Delivering almost anything in under an hour is what Favor is built on, and now with H-E-B, we are excited to add the new category of beer and wine delivery to Favor’s on-demand platform.”
- This new service is the latest in a series of announcements, strategic investments in technology and partnerships that H-E-B has forged to enhance its digital offerings in Texas, the company said. In addition to acquiring Favor in February 2018, they include H-E-B to You Delivery and Curbside pickup, which is available in more than 100 locations and is on track to reach 200 locations in 2018.
- Insight: HEB is reaping the benefits of the Favor acquisition by improving delivery services.
Albertsons Launches Instacart-Powered Virtual Store
- O Organics Market is the brainchild of retailer Albertsons and online grocery delivery service Instacart. The initiative aims to showcase Albertsons organic and natural private brands, make it easier for customers to find and purchase organic products and drive brand growth.
- “With nearly 3,800 items from O Organics, Open Nature, and other organic and natural brands, O Organics Market is another important step in our strategy to deliver customers what they want, when they want it,” said Shane Sampson, chief marketing and merchandising officer at Albertsons, in a statement. “With such a broad selection of organic and natural products, customers will be able to order exclusive items like Open Nature Sockeye Salmon and O Organics Mission Figs to more commonplace products like Dave’s Killer Bread and Annie’s Organic Fruit Snacks.”
- Insight: Albertsons is leveraging delivery technology, virtual reality, and ecommerce for the new O Organics Market.