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Insights and Expertise

To deliver or not deliver:

Help small convenience stores decide

sources without requiring additional hiring, maximiz-
ing revenue during slow periods.

Perhaps most valuable is the community connection
that small stores foster. While national chains invest
millions in marketing, customers already know and
trust small convenience stories near home. This rela-
tionship translates to loyalty that big box retailers can
only dream of achieving, often resulting in larger aver-
age orders and higher retention rates.
When delivery becomes a costly distraction

Location challenges can quickly undermine delivery
economics. Stores primarily serving highway travelers
or in sparse residential areas face a fundamental obsta-
cle: too much driving time between deliveries. When
drivers spend more time on the road than making de-
By Elie Y. Katz liveries, the math rarely works in a store's favor.
National Retail Solutions (NRS)
Age-restricted products introduce compliance compli-
n today's on-demand economy, the pressure for cations that can overwhelm a small operation. Stores
small convenience stores to add delivery service has heavily dependent on tobacco, alcohol or vape sales
never been greater. But before you urge such busi- must navigate complex ID verification requirements
I nesses in your portfolio to join the delivery revolu- that add time, liability and operational complexity to
tion, it's crucial to help them determine whether this strat- each transaction.
egy will strengthen their business or stretch it too thin.
Staff capacity represents another critical consideration.
This decision could mean the difference between thriving If a retailer's team struggles to manage in-store opera-
and surviving in an increasingly competitive market. tions, adding delivery responsibilities risks deteriorat-
When delivery becomes your secret weapon ing the customer experience on both fronts. The result
can be a lose-lose situation where neither in-store nor
The neighborhood advantage can't be overstated. Small delivery customers receive adequate attention.
stores located in dense residential areas enjoy a natural
competitive edge. When their customers are concen- Margin structure often determines whether delivery
trated within a one- to two-mile radius, their drivers makes financial sense. The convenience industry's
make more deliveries per hour, dramatically improv- notoriously thin margins leave little room for experi-
ing profitability. This proximity creates a virtuous mentation. Delivery requires financial cushioning that
cycle where efficiency leads to faster service, which at- many small stores don't have, especially when factor-
tracts more local customers. ing in additional insurance, fuel costs and potential
technology investments.
Product selection plays a pivotal role in delivery suc-
cess. Stores carrying higher-margin items that travel Also, physical limitations create practical barriers for
well—specialty beverages, packaged snacks and house- many stores. Without adequate parking, storage space
hold essentials—generate healthier delivery economics. or dedicated staging areas, even modest delivery vol-
These products maintain quality during transport and ume can create operational bottlenecks that frustrate
justify the convenience premium customers expect to customers and staff alike.
pay. Making the smart choice

Staffing flexibility offers a significant advantage, too. Successful store owners make data-driven decisions
Predictably quiet periods when stores see minimal foot rather than blindly following industry trends. En-
traffic become perfect opportunities to redeploy exist- courage your small convenience store merchants to
ing staff for delivery runs. This approach leverages re-
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