How Will GoPuff Impact C-stores?

Forbes explores how the convenience store industry could face disruption by an online delivery company.

August 22, 2018

PHILADELPIA – The U.S. convenience store industry “is big—as in really big,” wrote Brittain Ladd in Forbes. Most c-stores have parking or easy pedestrian access, 24/7 operations, and at least 500 SKUs of beverages, snacks, candy and tobacco, plus some grocery items, in addition to fresh foodservice.

“The good news is that convenience stores have come to realize the importance of stocking and selling fresh and healthy items in stores to boost sales, and they plan to continue dedicating more sales space to these items. Due to demographic changes and trends towards eating more protein-based foods and snacks, convenience stores will have to transition away from selling many unhealthy snack foods,” Ladd wrote.

However, he also recommended that the industry “can and should be more bold. Convenience stores should assess adding lockers for package delivery and selling more groceries. Convenience stores should also become more focused on creating an in-store and online digital presence.”

One such company is GoPuff, which “created an online version of the convenience store that is focused on impulse shopping. GoPuff is the convenience store on wheels,” Ladd said. “The company has tapped into the realization that customers have a busy life and any company (think Amazon) that can reduce a customer's costs and complexity creates loyalty.”

Despite being a young company, GoPuff “can and will disrupt the convenience store industry by redefining the meaning of convenience. GoPuff doesn’t need stores or gas pumps. GoPuff just needs to create an experience that simplifies the busy lives of its customers—and this is something GoPuff does very well.”

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