Technology/Services

Convenience store category leaders must embrace AI to drive growth

NexChapter founder and CEO Art Sebastian outlines a new framework built on personalization, pace, partnerships and people
Art Sebastian addresses CRU attendees Tuesday in Austin, Texas.
Art Sebastian addresses CRU attendees Tuesday in Austin, Texas. | Jonathan Mouer

Category management in convenience retail is being redefined. It’s no longer just about product, placement, price or promotion—it’s about personalization, pace, partnerships and people.

This comes from Art Sebastian, chairman of CSP’s C-StoreTEC Advisory Board and founder and CEO of NexChapter, at CSP's Convenience Retailing University conference in Austin, Texas, on Tuesday.

Sebastian told a room full of c-store category managers that their role is undergoing a dramatic shift, especially when it comes to responsibilities.

“We’re not just managing categories anymore,” he said. “We’re leading growth.”

Category management once focused on optimizing assortment, Sebastian said. Today, category leadership is about optimizing customer demand.

If the classic four Ps were built for a single shelf world, the new four Ps is built for a connected world, he said.

The classic four Ps—product, placement, price and promotion—were built for a different era of retail, he said. In a connected world shaped increasingly by artificial intelligence (AI) the path to purchase is no longer linear.

Sebastian explained that going forward the first P—personalization—centers on  relevance by segment replacing a one-size-fits-all strategy.

“If you’re a category manager not leveraging your loyalty data in your assortment strategies, you’re underutilizing your most valuable asset,” he said.

The second P—pace—reflects the speed of change in today’s retail environment. TikTok trends can shift in hours, while promotional calendars often move in months—a widening gap, Sebastian said.

“Real time visibility to your business is no longer a luxury,” he said.

The third P—partnerships—underscores deeper collaboration among retailers, brands and technology companies. The fourth P—people—highlights what Sebastian called the industry’s most important transformation.

“The biggest shift I see in our industry isn’t technology—it’s talent,” he said. “The future category manager or leader is part merchant, analyst, technologist and part AI.”

The industry is already moving into an AI-driven evolution, Sebastian said.

AI will not replace convenience leaders, he said, but leaders who ignore AI risk being replaced. 

“Take that as a challenge,” he said, urging category managers to consider how AI fits into nearly every aspect of their roles.

Despite rapid change, Sebastian described the c-store industry as “extremely” resilient.

“It’s been around forever and fortunately continues to grow,” he said, adding that now is the moment to move from category management to true category leadership.

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