TECHNOLOGY
Enterprise + POS + Digital + Payment Systems + Business Intelligence
Beyond the Basics
Tech spending plans include more than just replacements and required upgrades By Don Longo
T
he advancement of technology has given retailers and customers unlimited opportunity to meaningfully connect, engage and communicate with one another, according to a recent report on “Convenience in 2030,” sponsored by the Australasian Association of Convenience Stores (AACS). However, the report also notes that the increasing rate of technology development is making the future extremely difficult to predict. “Given advancements (especially in mobile), the possible future will continue to be consistently in flux,” the report states. There are clear indications — even beyond the planned 12-percent increase in technology spending over last year — that investments in systems and technology are an important strategy for convenience store operators of all sizes, according to the findings of the exclusive
Spending on Technology/Automation
2016
91.4% 8.6 $1,568,000 $285,000
YEAR AGO
CURRENT
DOES YOUR COMPANY OFFER A LOYALTY PROGRAM? Yes
42.7%
No
38.8%
57.3%
61.2%
DESCRIPTION OF LOYALTY PROGRAM
2015
93.6% 6.4 $1,453,300 $280,000
Use of loyalty programs is pretty much flat, with about 60 percent of retailers having one.
Point/reward-based
There was a slight decrease in the percentage of retailers who said they spent on technology last year. However, the average spent per company rose to $1.57 million, up from $1.45 million in 2015. Spent Did not spend Average spent per company Median spent per company
Loyalty Programs
6.1%
Both
22.8%
27.0%
2014
96% 4.0 $1,876,380 $325,500
Credit card/payment option
66.9%
5.9%
71.3%
Source: Convenience Store News Market Research, 2017
TYPE OF LOYALTY PROGRAM Proprietary
Technology Investments: Headquarters vs. Store Level Investment spending between store and headquarters remained about the same as in previous years, with approximately 70 percent of spending directed toward store systems. Headquarters technology Store-level technology
2016
2015
2014
30.8% 69.2
31.2% 68.9
36.8% 63.2
Source: Convenience Store News Market Research, 2017
134 Convenience Store News | OCTOBER 2017 | WWW.CSNEWS.COM
Tied to a major oil brand
22.4%
24.8% 26.9%
48.3%
Source: Convenience Store News Market Research, 2017
34.9%
Both
42.8%