NexChapter CEO Advocates for AI and Gamification in Convenience Stores to Boost Revenue

What's Happening?

Art Sebastian, founder and CEO of NexChapter, addressed the CSP Center Store Forum, emphasizing the transformative role of artificial intelligence (AI) in convenience stores. According to Sebastian, nearly 90% of convenience-store retailers are either using or evaluating AI projects, with 87% reporting positive revenue impacts and 94% noting reduced operating costs. He highlighted the shift from static shelves to data-driven merchandising and personalized shopper promotions. Sebastian advised retailers to evolve loyalty programs, expand e-commerce capabilities, and integrate kiosks to streamline checkout experiences. He also suggested in-app gamification to engage loyal customers, leveraging frequent phone usage to enhance brand engagement and drive in-store visits.

Why It's Important?

The integration of AI and gamification in convenience stores represents a significant shift in retail strategy, aiming to enhance customer engagement and operational efficiency. By transforming anonymous shoppers into identifiable customers through loyalty programs and digital payments, retailers can unlock richer insights for personalization and retail media. This approach not only boosts sales but also positions convenience stores as profit centers rather than cost centers. The emphasis on technology-driven solutions reflects broader industry trends towards automation and data utilization, potentially setting new standards for customer experience and revenue generation in the retail sector.

What's Next?

Retailers are expected to continue adopting AI-enabled planograms and real-time digital execution strategies to optimize store layouts and promotions. As more customers become 'identified' through loyalty programs, retailers will have greater opportunities for personalization and targeted marketing. The ongoing shift towards data-driven merchandising and retail media networks may lead to increased investments in technology and analytics, further enhancing the competitive landscape of convenience stores.