OAKBROOK TERRACE, Ill. -- It wouldn’t be so bad if it were just toilet paper, but Gatorade? As retailers track the impact of online sales on their bottom lines, they should probably follow what people are reordering using the Amazon Dash replenishment button.
Three of last year’s Top 10 items are big at convenience stores.
In order of rank, these products included Gatorade from PepsiCo, Purchase, N.Y., at No. 5; Kraft Macaroni & Cheese from Kraft Heinz, Chicago, at No. 8; and smartwater from Coca-Cola, Atlanta, at No. 10.
The report, from 1010data, a New York-based big-data research and solutions firm, showed that other convenience-store goods are selling well too, but these were low-turn, household items such as laundry-detergent pods, paper towels and toilet paper.
Seattle-based Amazon started the Dash button about a year ago, using Wi-Fi and an adhesive backing so people can stick them to the wall where they store those items. Dash is an Amazon Prime service that allows members to push a brand-labeled button when they’re running low on certain goods and have that item delivered to their homes in their next order.
Industry observers have long been examining the threat that online retailing poses to convenience stores, tracking everything from volume on key convenience items to the extreme of consumer packaged goods (CPG) companies building direct relationships with consumers to bypass retail altogether.
Since CSP’s first big look into the brick vs. click trend two years ago, three strategies continually emerge as ways to either minimize or counter the threat:
- Work with CPGs. Responsive retailers have been working with CPG companies to become part of the equation, assisting in digital experiments or developing loyalty programs and sharing those membership lists and shopping habits with manufacturers.
- Create unique products. Still other retailers develop unique products and offers—everything from specialty sandwiches to yogurt buffet bars to beer and even tea “growlers”—to enhance the retail experience and merchandise mix.
- Join the ecommerce game. Many retailers are developing mobile apps and investigating ways they can employ vicinity-marketing technologies, texting and other communications options to draw people into their stores.
Convenience stores can still win with their core proposition as convenient places for people to stop and satisfy immediate needs, be it hunger, thirst, smokes or fuel. Focus on strengths. People are still mobile—in their cars and on their phones—and they will shop if retailers stay relevant.
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