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4 reasons why AI is accelerating mobility retail transformation

  • Posted on June 17, 2024
  • Estimated reading time 5 minutes
Four trends in mobility retail

The mobility retail sector is on the move – propelled by the converging forces of AI transformation, fast-evolving customer expectations, and the pressure to meet sustainability commitments. The appetite for reinvention extends across convenience and fuel retail outlets, travel centers, and truck stops and more – all of which are seeking to become multifunctional hubs that meet customers at their points of need, with the right range of products and services.

Increasingly, geography informs the definition of mobility retail. Not so long ago, a truck stop was a truck stop. And a c-store a c-store. But now QuikTrip, Wawa, and their peers offer truck stops. Meanwhile, Love's, Pilot and their peers are extending their experience to become more like a c-store too.

Location not only defines the physical format but amenities, product mix, and even fuel, as mobility retail spaces adapt to the multi-energy ecosystem, incorporating alternative fuels and charging solutions to meet the needs of a diverse customer base.

In this blog post, I explore four key trends that are redefining the parameters of the mobility retail landscape, creating a more connected, sustainable, and responsive sector.

1. Convenience is a balancing act
In mobility retail, the richness of a customer’s experience comes down to delivering on the promise of convenience. But convenience is a balance – between automation and “good friction”, where the human store associate still has a key role to play in elevating the customer experience.

Mobile payments and self-service options can streamline shopping and create efficient, yet personalized experiences. Retailers' locations can shift between fully autonomous or semi-autonomous operation, with certain hours manned and others unmanned, depending on the location and business model. This automation-centric approach delivers reduced waiting periods, and can still provide tailored shopping experiences, by employing sophisticated data and analytics.

However, it’s important to acknowledge that simplifying the retail experience isn’t about eliminating or automating as many processes as possible. Rather, mobility and convenience retailers can balance frictionless interactions with an approach that enables responsive human interactions where needed – targeting moments that matter and providing advice, support, or other necessary customer interactions.

2. Driving contextual commerce forward
Mobility retail is steadily moving towards a cohesive approach that integrates physical and digital channels. Retailers want to deliver consistency but also meet the customer in their specific moment of need, whether at a travel center, through an app, or in the travel aisles of a convenience store.

Contextual commerce is at the forefront of this revolution, integrating purchase moments into the fabric of daily activities and surroundings, providing a seamless transition between digital convenience and physical shopping. This concept redefines customer-retailer interactions and ongoing relationships, promoting loyalty and driving sales through personalized, context-driven engagements.

Central to this transformation is an intelligent AI-powered digital platform that enables personalized interactions and efficient e-commerce fulfillment. This enables swift, straightforward, and customized experiences, which cater to the customer's context, such as location and personal preferences, without presenting friction between different channels.

3. Unlocking new revenue streams
Evolving dining preferences, the potential to increase returns from available real estate and electrification are just some of the opportunities that mobility and convenience retailers are seeking to capitalize on to drive growth. This is particularly timely in the age of electrification, where recharging obliges travelers to spend more time in mobility retail locations.

By creating appealing environments that encourage longer dwell times, retailers can further amplify their revenue potential. This can be achieved by elevating dining and entertainment options, but also by turning mobility retail destinations into multi-functional hubs, offering order and parcel collection, pharmacy services and more.

Integrating fresh, healthy dining options that balance convenience with quality, is another opportunity. As mentioned above, customers are increasingly seeking to combine recharging stop-offs with refueling themselves – and are seeking menus that include fresh fruits, salads and ready-to-eat meals that cater for the health-conscious consumer.

Finally, by deploying EV charging infrastructure, retailers can unlock more diverse revenue opportunities from new channels – for example, by developing partnerships with manufacturers and advertising networks.

4. Mobility’s modernization journey
As I discussed above, the transformation driven by the shift towards electrification requires investment in infrastructure for vehicle charging right now. But soon it will also demand hydrogen refueling and alternative fuels while aligning with sustainability goals and regulatory requirements. By embracing a multi-energy state of mind, mobility retailers can differentiate themselves in the market and drive increased customer engagement.

But energy evolution is far from the only disruption affecting the mobility retail segment. Rapid consolidation is taking place across the sector, characterized by strategic acquisitions, mergers, and a notable shift in generational leadership, particularly within family-owned operations. These trends reshape the competitive landscape and mirror more profound shifts in market demands, customer expectations, and societal values.

The movement towards more extensive, more integrated networks of convenience and mobility retail outlets signifies a strategic push to enhance scale, geographic reach, and revenue diversification. This reflects an industry-wide imperative to adapt and innovate in response to evolving customer preferences for convenience, quality, and variety. This trend underscores a broader point – mobility retail is continually changing and evolving. It’s always on the move.

Accelerate retail growth in the mobility retail sector
Avanade can help you keep pace with the speed of change and stay ahead of competitors in the AI era. Talk to me or my colleagues today about the opportunities you’re looking to capture, and we’ll explain how we can help your organization shift gears and accelerate your journey to generate growth.

Find out how, as the Microsoft partner trusted by 94% of top retailers, we help accelerate retail digital transformation in an AI-first world.

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