Reinventing Today’s Troubled Convenience Stores

Today’s urban convenience store has become anything but convenient. Plagued by concerns about shoplifting, employee safety, declining customer service and cramped layouts, many of these stores have become a prime example of an almost un-shoppable experience.

While locked-up merchandise and shoplifting are the most covered drivers of this problem, poor store designs may also contribute to today’s urban convenience store problem. But, instead of waiting for a future technology to magically resolve this issue, could a fresh innovative approach to the store’s layout and operations address these challenges and return these spaces to a truly convenient and enjoyable place to shop again?

The Erosion of Convenience

Theft in urban convenience stores has increased 30 percent over the past five years, according to a 2023 report by the National Association of Convenience Stores (NACS), prompting many retailers to implement security measures that have resulted in a poorer experience for their customers, as shown in a recent survey conducted by Flock Safety and Zencity:

• 65 percent of shoppers said they would rather buy an item online than wait for an employee to retrieve it in the store.

• 41 percent of respondents reported that they have abandoned a purchase due to inaccessibility of merchandise.

• 59 percent of consumers believe that security measures, such as locked cases and additional surveillance, make shopping feel unwelcoming.

These statistics underscore the growing difficulty of balancing security with convenience. While loss prevention is a persistent concern, these security measures have not supported the appeal of urban convenience stores – speed and ease.

Case Studies: Learning from the Industry’s Missteps

Sixty-five percent of urban convenience stores reported investing in store renovations to improve the shopping experience, according to the 2023 NACS survey. Retail giants like Amazon Go, Walgreens and CVS have all attempted different solutions, with mixed results:

• Amazon Go revolutionized retail with its cashier-less stores, enabling seamless shopping and reducing theft through advanced AI tracking systems. Despite efficient inventory management and reduced shrinkage, the high operational costs led to the closure of several locations in 2023.

• Walgreens piloted micro-fulfillment stores to address theft and labor shortages, integrating self-service kiosks and AI-driven loss prevention. While automation improved efficiency, their overreliance on locking merchandise hindered customer convenience, causing frustration and lost sales.

• CVS embraced self-checkout technology and mobile app integration, enhancing customer experience and operational efficiency. Digital coupons and scan-and-go features allowed CVS to rival Amazon’s convenience. However, extreme security measures like locked merchandise combined with minimal staffing often left customers frustrated.

Security cannot come at the cost of convenience, and what is truly needed is an innovative design approach that improves efficiency without alienating customers.

The Big Idea: Harmonizing Security & Convenience

Among the challenges that c-stores face today to stay profitable, none are as readily addressable as a store redesign that will enhance security while elevating the customer experience. This starts with thinking about the customer first as retail design stands out when it is crafted for the consumer as opposed to operations.

Secured entrance system. Courtesy of Kenneth Park Architects

The Radial Layout: All About the Eye Contact

A radial layout that places a central hub in the middle of the store would allow clear sightlines, improved navigation and a more welcoming atmosphere without blocking access to products, making the customer experience more personal and the staff’s job easier.

Smarter Security: Controlled Entry Instead of Locked Shelves

Instead of making every shopper feel like a potential shoplifter inside the store, security would be managed at the entrance. Controlled entry gates, similar to subway turnstiles, would allow access via a store app or membership card. The entry-exit circulation occurs in clear view of the staffed center element with a vestibule that is split between entry and exit. If a potential theft is suspected, store staff can contain a person in the outgoing vestibule until authorities arrive – reducing staff confrontations while keeping other shoppers comfortable.

The proposed solution, a central element becomes the focus for the brand experience as well as security measures. Courtesy of Kenneth Park Architects

Elevating the Shopping Experience

Beyond layout changes, small but meaningful improvements can also help transform the shopping experience.

• Improved lighting – Layered lighting creates a welcoming atmosphere and makes products easier to find.

• Clearer signage – Color-coded sections and streamlined digital shelf tags to reduce clutter and confusion.

• Self-checkout integration – AI-powered self-checkouts near the central hub speed up transactions without eliminating human assistance.

The Future of Convenience Stores – Starting Now

Today’s urban convenience stores are undeniably in trouble. By enacting practical, customer-friendly improvements today, we can return to the efficient shopping experiences we all remember with smarter, more intentional designs and improvements.