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In general terms, gentrification is a process in which a poor urban area is transformed into a wealthier, upscale neighborhood that ultimately displaces its original residents and businesses.
In recent years, a similar process has begun to take hold within the convenience and fueling industry.
Here’s what we see happening.
1. The model for C-store modernization has shifted.
Gone are the days when a new owner buys an existing convenience store and basically keeps it the same with a slight remodel.
Today, new C-stores use sophisticated location analytics to validate a site’s potential. Often, new stores are built on property near existing C-stores. The new sites offer all the latest amenities and newest features such as Quick Serve Restaurants (QSR) and breakfast.
The modern offerings change the neighborhood, forcing nearby existing stations to radically upgrade or face extinction. Rising to this challenge can be especially difficult for operations already staring down necessary fueling system infrastructure upgrades.
2. Regional chains are aggressively expanding.
While the term “gentrification” is traditionally reserved for urban communities, the rise of regional chains – and their access to investment capital – is changing the competitive landscape in urban and suburban areas. They are not only constructing new stores on vacant property, but they are also razing and rebuilding stores outside of their traditional territory.
3. Vacancies at longtime brick-and-mortar operations are making prime real estate readily available.
Urban and suburban real estate is going on the market as malls and shopping centers look for new tenants and ways to reinvent themselves. In many cases, these properties are transforming into high-traffic “lifestyle centers” that address their customers’ needs all parts of the day and week and both at work and for leisure.
Stay tuned as we monitor how the trend of gas station and C-store gentrification continues to unfold. For technologies that will modernize the customer experience on the forecourt and in the store, please connect with our Retail Sales Solutions Team.
