It was the middle of the night, and there was a loud thud at the front door. Was someone downstairs? I heard a door slam and squealing tires. Then I got the text. No need to worry—it was the just rug I’d ordered earlier that day.
For better or worse, advances in last-mile delivery have forever changed the retail landscape as well as consumer expectations. Retailers might still be working out the logistics—my Uber drop-off was five hours late, not to mention it was the wrong rug—but the precedent has been set. On-demand is the new normal.
Or is it the old normal? In the early 20th century, milk delivery was commonplace until refrigeration, grocery stores, increased automobile production and suburban sprawl led to its demise. But about 10 years ago, we witnessed what some called a renaissance in milk delivery. Even with all the choices available at the grocery store, some consumers are willing to pay a premium for dairy delivered to their doorstep. Judging by the growing number of milk boxes in my neighborhood, this trend is on the upswing.
It’s hard to get more convenient than customers’ front doors, so c-stores need to be there, too.
You might attribute this shift to nostalgia, but there’s clearly something more at work here since many of the products available for on-demand delivery were never delivered before. If you can’t find a specific power tool at a home improvement store, you can get it delivered quickly from another location. If your prescription is running low, major pharmacies can bring you a refill the next day. If you wake up one morning and realize you’re out of coffee, you can order lattes to be delivered by drone. (OK, I’m kidding about the lattes, but they’re coming.)
At a time when gas can be delivered to your car and mobile stores can drop by your house, yesterday’s Tomorrowland is becoming reality. Interestingly, the visionary comic strip Closer Than We Think, circa 1961, imagined milkmen of the future assisted by robot-propelled, bottle-dispensing cars. Delivery enabled by self-driving vehicles—what a modern-day scenario!
What does all of this mean for convenience stores, where most customers buy products they consume or use within the hour? Clearly, convenience has been redefined. C-stores have long enjoyed the privilege of being the most convenient stop in town, but it’s no longer enough to be just a short drive or walk away. It’s hard to get more convenient than customers’ front doors, so c-stores need to be there, too.
But aside from this challenge, there’s a huge opportunity. By truly embracing delivery, as the author of one of the feature stories recommends on page 38, retailers can provide exceptional customer service, differentiate themselves and build brand loyalty. Much like the milkman of yesteryear—and today.
