CRACKING THE C-STORE CODE
Cracking the C-Store Code: What We Learned About Retail Media Networks for Convenience Stores
I had the opportunity to attend one of the most eye-opening conferences I’ve been to in a while. Thank you to Art Sebastian for putting together a stellar event and to our partners at Vroom, especially John Nelson and Sean Asnes, for the invite and collaboration.
Convenience Retail is Its Own Universe
Imagine if a dollar store and a restaurant had a kid. That’s what convenience stores feel like to me. And when it comes to retail media, that unique setup requires an equally unique approach. Selling ads against hot dogs on rollers, brewed coffee, and fresh pizza is a far cry from the traditional center-store CPG environment.
The shopper mission in convenience is individual, immediate and often indulgent. Campaigns need to be built around that mindset, which is very different from the typical grocery planning cycle.
RMNs in C-Stores Are Complex and Full of Opportunity
Launching and managing a retail media network in this space requires more touchpoints than traditional grocery. C-store assets include pump screens, in-store digital signage, menu boards, ordering kiosks, checkout screens, mobile apps, loyalty platforms, and last-mile delivery services. Managing even one campaign often involves multiple teams and partners. Scaling across retailers makes it even more complex. Creating retail media networks for convenience stores can be frustrating, but it also represents a huge opportunity. Retailers who can organize their assets and make it easier for brands to activate will have an edge.
It Feels Like Grocery in the Late 2010s
Right now, ecommerce in convenience is sitting somewhere between 0 and 5 percent. That’s very reminiscent of grocery’s digital footprint before COVID. Back then, digital wasn’t a priority. Then the pandemic hit and digital became a differentiator. Today, digital accounts for over 20 percent of grocery sales in big box stores and no brand questions its importance.
Will convenience stores see that same curve? That’s unclear. The consumption patterns are more impulsive and focused on now, not later. But the infrastructure is getting built, and the long-term potential is undeniable.
Standout Moments from the Conference
- GoPuff retail media is winning with limited-time offer assortments, unique experiences and sampling campaigns that deliver measurable results.
- 7-Eleven is the biggest player in the space. They shared that they launched their media network with offsite media first and continue to expand into in-store digital formats and more.
- EG America is going through a digital transformation now that will set them up for larger retail media efforts soon – relaunching its app, integrating with Uber Eats and DoorDash, and layering in personalized offers.
- CPG Panel Highlights
Shopper missions in convenience are different and require a new mindset for traditional grocery RMN leaders.
Brands like Tyson supply both sides of the house and are exploring how to market both restaurant and retail products within c-stores.
I-ROAS is now considered a critical KPI for performance measurement in this space, but it’s difficult to get across so many touchpoints.
And we all agreed an I-ROAS in Cstore shouldn’t be held against the same measurements from Amazon or Big Box. While they both are called the same KPI, it’s apples and oranges underneath.
Why DIGITS Showed Up
We came to learn, connect, and test the waters. Our goals were clear:
- Understand what’s currently possible with c-store RMNs and how brands activate.
- Explore partnership opportunities with Vroom to bring new retailer programs to market.
- Assess whether our agency model is built to support this category or if we need to evolve.
- Build meaningful relationships with leaders in loyalty, mobile, and more.
The Bottom Line
C-store RMNs are messy, nuanced, and incredibly interesting. There are challenges everywhere, but for those who remember grocery in 2018 and 2019, this feels like the beginning of something big. At DIGITS, we’re asking the right questions and building the right partnerships to help retailers and brands grow in this space.
Want to explore what’s next in convenience retail media? We’re ready to dive in.
Dave Glaza, Founder & CEO of DIGITS, remains committed to bringing digital capabilities to physical stores!
LinkedIn: https://www.linkedin.com/in/
