The Green Sheet Online Edition
November 10, 2025 • 25:11:01
To deliver or not deliver: Help small convenience stores decide
In today's on-demand economy, the pressure for small convenience stores to add delivery service has never been greater. But before you urge such businesses in your portfolio to join the delivery revolution, it's crucial to help them determine whether this strategy will strengthen their business or stretch it too thin.
This decision could mean the difference between thriving and surviving in an increasingly competitive market.
When delivery becomes your secret weapon
The neighborhood advantage can't be overstated. Small stores located in dense residential areas enjoy a natural competitive edge. When their customers are concentrated within a one- to two-mile radius, their drivers make more deliveries per hour, dramatically improving profitability. This proximity creates a virtuous cycle where efficiency leads to faster service, which attracts more local customers.
Product selection plays a pivotal role in delivery success. Stores carrying higher-margin items that travel well—specialty beverages, packaged snacks and household essentials—generate healthier delivery economics. These products maintain quality during transport and justify the convenience premium customers expect to pay.
Staffing flexibility offers a significant advantage, too. Predictably quiet periods when stores see minimal foot traffic become perfect opportunities to redeploy existing staff for delivery runs. This approach leverages resources without requiring additional hiring, maximizing 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 relationship translates to loyalty that big box retailers can only dream of achieving, often resulting in larger average 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 obstacle: too much driving time between deliveries. When drivers spend more time on the road than making deliveries, the math rarely works in a store's favor.
Age-restricted products introduce compliance complications that can overwhelm a small operation. Stores heavily dependent on tobacco, alcohol or vape sales must navigate complex ID verification requirements that add time, liability and operational complexity to each transaction.
Staff capacity represents another critical consideration. If a retailer's team struggles to manage in-store operations, adding delivery responsibilities risks deteriorating the customer experience on both fronts. The result can be a lose-lose situation where neither in-store nor delivery customers receive adequate attention.
Margin structure often determines whether delivery makes financial sense. The convenience industry's notoriously thin margins leave little room for experimentation. Delivery requires financial cushioning that many small stores don't have, especially when factoring in additional insurance, fuel costs and potential technology investments.
Also, physical limitations create practical barriers for many stores. Without adequate parking, storage space or dedicated staging areas, even modest delivery volume can create operational bottlenecks that frustrate customers and staff alike.
Making the smart choice
Successful store owners make data-driven decisions rather than blindly following industry trends. Encourage your small convenience store merchants to start by surveying their customers to gauge genuine demand for delivery. Their enthusiasm (or lack thereof) will provide valuable insight into potential adoption rates.
They should also test the waters with limited delivery hours during their slowest in-store periods. This approach will allow them to evaluate operational impact with minimal risk to their core business.
Another option is partnership opportunities with existing delivery platforms that serve their area. These collaborations can provide immediate infrastructure without requiring significant upfront investment, though they typically claim a percentage of each transaction.
Most importantly, store owners should trust their instincts about their specific business circumstances. The right choice for the convenience store across town might be entirely wrong for one of your merchants, depending on their customer base, location, product mix and operational capacity.
The delivery decision isn't about following trends; it's about making a strategic choice that aligns with a store's unique position in the market. By helping small convenience store operators carefully weigh these factors, you'll enable them to make informed decisions to strengthen their competitive advantage rather than undermine it. 
Elie Y. Katz is founder, president and CEO at National Retail Solutions (NRS), https://nrsplus.com. Contact him by phone at 201-715-5179 or by email at ekatz@nrsplus.com.
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