Time. If only we could have more of it. With more dual income families many consumers are strapped for time. Sensing this trend retailers from Amazon to Starbucks to McDonald’s are focusing on store formats that emphasize convenience. The high-tech Amazon Go stores that Amazon spent hundreds of millions of dollars developing are essentially convenience stores. Is this a coincidence? No it is not. Amazon is trying to cash in on this trend too.

Last July Starbucks launched a new store format called Starbucks Now in Beijing, China. This store format has very little seating and is tailored made for customers that want to grab a coffee and go.

The next retailer that is poised to capitalize on the convenience trend is McDonald’s. In July of last year McDonald’s launched its biggest restaurant format change since the drive thru was launched in the 1970s. McDonald’s new restaurant format which opened on Fleet Street in London is called McDonald’s to Go and is takeout only. The décor is minimal, there is no seating and customers use touch screens on a wall to place orders. To keep lines short and focus on speed of service the restaurant only sells a few of McDonald’s signature items.

The trend towards convenience is also seen in the growing availability of self-checkout terminals in retail stores as well as retailer apps that enable customers to scan and pay for items using their mobile phones.

Starbucks Now store format in Beijing, China

McDonald’s to Go location in London, England

Not only are retailers like Starbucks redesigning their stores to target convenience minded shoppers, the traditional convenience store is also changing. When you think about your local convenience store images of Slurpees and hot dogs may come to mind. But many convenience store owners are updating their stores to target consumers with changing tastes.

A recent survey of convenience store operators found that 67% of operators experienced increased sales in better for you categories like fruit, veggies, nuts, health bars and yogurt. Popbox MicroMrkt in Toronto has gotten in on this trend. It sells speciality coffees and teas, fancy prepared salads which are “nutritionist designed”, Immunity Juice and fresh baguettes. Popbox MicroMrkt describes its store as: “a much-needed reinvention of the corner store offering superior alternatives to the usual junk food fare sold as convenience food. It's everything a discerning urban foodie needs in a quick stop to the local market.” “From grass fed dairy, gourmet chocolates, to full boutique cafe service - The best (and most local*) of everything designed to enjoy on the way out the door.”

Chicago’s Foxtrot convenience store chain even offers online delivery so if Foxtrot sells your favourite lunch item or ice cream you can order it from home and have it delivered in under an hour – the ultimate in convenience. Foxtrot also has a loyalty program where customers receive free delivery for one month if they spend $100 with the retailer. Half of Foxtrot’s sales come from online orders. "You know, we sort of view Foxtrot as the future of convenience" says CEO and co-founder Mike LaVitola.

At 7-Eleven, home of the Slurpee, revenues have been driven by the sale of fresh food. The retailer is testing new concepts that offer customers made to order smoothies and tacos, ice cream and yogurt bars, speciality coffees as well as an in-store bakery and sit down space. 7-Eleven has also jumped on the prepared food trend by launching meal kits. Similar to Popbox MicroMrkt 7-Eleven is also in the eCommerce business, customers can order fresh food, drinks and groceries and have them delivered to their home. "It's a huge switch from what we would have historically thought to see in [convenience] stores. It's more than just your salty snacks and a can of soda," said Catherine Lang, from Kantar. "Now I can go in and get a meal on my way home from work. I can also grab private-label wine."

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Seeing the growth of this channel has spurred other retailers to jump into the fray. Last year Target announced plans to open 30 small format Target stores. Kroger has partnered with Walgreens to launch Kroger Express which are micro sections inside of Walgreens stores where customers can shop through a curated selection of Kroger’s grocery items. Dollarama has launched DGX in several cities in the United States which are stores that are about half the size of a typical Dollar General store. "This ability to get in and out really quickly is certainly something that is resonating" said Kroger’s CFO Gary Millerchip. Hy-Vee, Giant and Whole Foods are also experimenting with convenience store formats.

“People simply don't have the time to sit down [and have] a whole meal at night like they used to," said Carl Rick Leadership Development Specialist at Kwik Trip "The more places there are where people can duck in, be out in three minutes with milk, eggs, maybe a sandwich, something to drink—those places are doing very well."

Part of the shift in merchandise strategy is to mitigate the fallout of consumers buying less gas as they purchase more electric or hybrid cars as well as the decline in smoking.

The Next Big Retail Trend: Convenience Stores