Introduction: A convenience store's function is no longer just selling goods. Today's convenience stores, driven by consumer needs, offer services such as dining, rest, and parcel collection, turning them into service-oriented convenience stations. They are changing the lifestyles of consumers in surrounding communities.
Speaking of convenience stores, people are familiar with them. Especially in Shanghai, since the modern convenience store model appeared in the 1990s, over 5,000 branded convenience stores have permeated the daily lives of Shanghai residents. More than 20 years have passed, and many people now enter convenience stores not just to buy things, but to eat, drink coffee, pick up packages, top up transit cards, pay utility bills... New demands continuously spawn new functions for convenience stores.
To some extent, the convenience of convenience stores is also an important indicator of 'a better city, a better life.' Now that convenience stores are ubiquitous in cities, could they leverage their location advantages to become 'convenience stations' meeting community needs? Can they connect more with public services and become part of urban infrastructure? Reporters visited small shops to uncover the large urban demands hidden behind them.
Why eat at a convenience store?
Near 8 PM, crowds surge from Century Avenue metro and bus stations, mostly off work, hurrying toward residential areas under the night sky. At a corner convenience store across an intersection, several people walk in simultaneously, including Li Da (pseudonym).
With black-rimmed glasses, a plaid shirt, and a backpack, 27-year-old Li Da is the typical 'Zhangjiang man.' When the reporter approached him, Li Da was sitting by the window, phone in left hand, chopsticks in right, hurriedly swallowing curry pork cutlet rice, with a vegetable salad and iced tea on the table.
Li Da says this is his dinner; he'll buy yogurt afterward to drink at home. For Li Da, who shares an apartment and doesn't cook, he visits convenience stores one or two nights a week, 'sometimes eating in-store, sometimes heating it up and taking it home to eat while gaming.'
Even at 8 or 9 PM, people still flock to buy buns, oden, and boxed meals at convenience stores, including single young people, couples, and small families with children.
According to statistics from the 'Love Convenience' Business School, from 7 to 10 PM, 27 people bought boxed meals at this store, with 9 choosing to dine in.
Ten years ago, labeling a convenience store as a 'restaurant' might have been unacceptable. But now, data from FamilyMart, Lawson, and 7-Eleven show that 60% to 70% of in-store consumers purchase fresh food, and more people are choosing to dine in.
In Japan, where convenience stores are most developed, dining has always been a 'main event.' Few know that when McDonald's entered Japan, its biggest competitor wasn't other food giants but convenience stores on every corner. Their fried chicken pieces are deeply popular, some selling well for 30 years, giving McDonald's, which also features fried chicken, a real headache.
So why do people choose to eat at convenience stores?
Love Convenience found that some people miss meal times due to busy work, and restaurants are closing or about to close, while delivery might be sold out or cold; others are too lazy to decide where to eat or what to eat, and convenience stores offer a quick, simple option, like a bowl of oden on a cold night hitting the spot for many; low prices, clean environments, and bright storefronts also attract people to sit down after paying.
Others enjoy trying new things. 'Regular new product tastings, over 50% annual product turnover...' Executives from leading convenience store chains in Shanghai attribute their food popularity to constant innovation; some brands release new products weekly and use a elimination system to refresh items.
Online lists like 'Top Ten Convenience Store Foods' and 'Hidden Convenience Store Delicacies' also reflect that convenience store dining is becoming mainstream.
Popular seats and casual 'coffee spaces'
Can you also drink coffee and have afternoon tea at convenience stores?
At 2:30 PM, Gao Xin (pseudonym) walked into a convenience store near People's Square. Unlike others, he wasn't there for lunch but brought a Kaisiling cream cake from First Food Hall, ordered a freshly ground coffee, and enjoyed afternoon tea alone.
When asked why he didn't choose a dedicated coffee shop, Gao Xin said he didn't think much; he just saw coffee and seats and naturally walked in.
After visiting several stores in different areas, we found that stores with a certain number of seats increasingly resemble emerging 'coffee spaces.'
Customers include solo individuals resting, pairs or groups of classmates or friends chatting, and parents with children taking a break after school. Purchases aren't limited to coffee; they also buy juice, milk, and water.
Compared to cafes, this space lacks grand discussions, no 'posing' or 'romantic vibes,' and is closer to the street and daily life, more casual.
Affordable prices and decent environments make the limited seats in convenience stores highly sought after.
In one store, from 1:30 to 4:30 PM, the U-shaped arrangement of 12 seats always had at least a third occupied. The longest-sitting customer stayed for an hour and a half, charging their phone and drinking a beverage while waiting.
'When I'm free and see seats, it feels like a place that welcomes me. I can buy something small, sit, relax, and no one bothers me,' said an employee from a hair salon next to the convenience store.
As modern consumption concepts shift, refined and fragmented consumption styles are becoming mainstream, and consumer experience is increasingly important.
Zhang Sheng, general manager of Shanghai Lawson Co., Ltd., believes that as a public space, convenience stores should not only provide a relaxing environment but also be a place that brings pleasant experiences.
Therefore, convenience stores constantly study their main audience—young people. Activities like '1-yuan limited-time tasting' and 'help me bargain' have been well-received by young people. Zhang Sheng says people are enthusiastic not just for the few yuan saved but because it's fun, allows friends to participate together, and offers a strong sense of involvement.
In recent years, convenience stores have also tried creating anime-themed stores for this reason. In an era of experience-first, convenience stores are finding ways to offer personalized experiences. In 2016 alone, 7-Eleven transformed nearly one-tenth of its Shanghai stores into various food-themed stores.
Beyond providing products, market-savvy convenience stores are becoming part of interpreting and leading urban culture.
Do it if there's a need; 'losing out' isn't necessarily a loss
During our field visits, we also found that in some dense areas, convenience stores are 'back-to-back or face-to-face.' Observations showed that with similar locations, sizes, and products, foot traffic can differ greatly.
At two 'back-to-back' stores near Century Avenue, we counted that during peak commuting hours, the difference in foot traffic was up to tenfold.
Many factors contribute to this difference; service attitude is key. But beyond that, extended convenience services also play a significant role.
For example, parcel collection. For many who aren't home during the day and can't receive packages at work, convenience store parcel collection is a 'godsend.' Miss Wang is an 'online shopping enthusiast'; at most, she picks up packages three times a week. During our three-hour observation, over 20 customers came to pick up packages.
Some industry insiders believe parcel collection is a thankless task. On one hand, it takes up staff energy and may affect checkout; on the other, some customers leave packages for days or blame staff for damaged items, which is hard to handle. But some brand operators believe that if customers need it, they should do it. For example, FamilyMart is planning to make parcel collection and sending a new standard service in its stores.
Demand-oriented services earn convenience stores a good reputation
Recently, news that metro ticket offices suspended transit card top-ups upset those who rely on manual service and aren't good with machines.
Convenience stores reacted quickly. Within days, FamilyMart stores in over 50 metro stations partnered with the metro company to provide familiar manual top-up services. To spread the word, stores printed service times in red on black at entrances.
Are these services loss-making? Actually, if you count the total, they're not a 'loss.' For example, after picking up packages, people often don't leave empty-handed; they buy something. Miss Wang says she usually buys a bread for breakfast or a drink.
However, our investigation also found that convenience is sometimes compromised.
For instance, some stores have poor service; some staff are in their own 'rhythm,' not looking up at customers when checking out, taking their time even with queues, and just pointing vaguely when asked about products.
Another example is utility bill payment services, which are a 'godsend' for middle-aged and elderly people not adept at mobile payments, saving them trips and waiting times. But in practice, some stores set specific payment hours, like only two hours in the morning and two in the afternoon.
At a store on Jinxian Road, we saw an elderly man with an electricity bill turned away because it was past service hours. 'Come back at 1 PM; we don't accept it now,' the staff said. The man tried to plead, but to no avail, and left disappointed.
Whether to set your own standards and make customers adapt, or to adjust services based on customer needs, is a question for convenience stores aspiring to become community convenience stations and quality urban infrastructure.
Be a convenience store, but also a convenience station
Speaking of convenience stores, we must mention Japan, the birthplace, and Taiwan, China, where they are highly developed. In Japan and Taiwan, convenience stores are widespread, with one per about 2,000 people. In Shanghai, even with over 5,000 branded stores, it's only about one per 3,000 people.
The scale and reach of convenience stores affect the services they can provide.
In Japan, the advanced convenience store system is hailed as the 'national lifeline.' From delivery, postal, and dry cleaning services to ticketing, exam registration, and banking, to photocopying and faxing, convenience stores cover almost all daily needs. Additionally, due to frequent earthquakes, they also serve as supply depots and rescue centers.
In Taiwan, convenience stores, called 'road signs,' also focus on solving urgent and difficult problems. For example, they offer free restrooms and, in line with the 'no garbage on the ground' policy, provide free garbage disposal for residents who can't match garbage truck schedules.
Can Shanghai learn from these models?
Zhou Yong, a professor at Shanghai Business School and director of the Lianshang.com Retail Research Center, says measures like value-added services, cross-industry cooperation, and open restrooms are worth learning. He notes that Shanghai used to be the 'master' of services in China, but that advantage is less obvious now. With more stores and a trend toward community-oriented convenience stores, we can start from this node to refine services and achieve higher Shanghai standards.
This also requires relevant departments to deeply understand community needs, communicate more with the convenience store industry, and provide more support, guarantees, supervision, and regulation for community services.
Take convenience store dining. Food safety is a major concern; small workshops and 'black workshops' have poor hygiene, troubling citizens. In contrast, convenience store food processing has better hygiene guarantees and traceable ingredients, but regulations limiting business scope and storage times prevent stores from 'stretching their legs.'
Zhou Yong suggests establishing 'light dining' rules to let convenience stores start with 'food' and go deeper into communities, driving community services.
Zhang Sheng also says that if effective cooperation models with relevant departments can be established, convenience stores could become community convenience stations in the future.
'Ordinary merchants might not be professional in bulk transport, causing food to spoil or look bad, but we can ensure quality and quantity during transport. In terms of taste, developing soft rice and healthy side dishes for the elderly is within our capabilities,' Zhang Sheng believes that convenience store meals, whether distributed at community points or through voucher systems encouraging able-bodied elderly to pick up at stores like in Japan, can add operability and convenience to current community home care.
In conversations with many customers, we found people have 'wild ideas' for the future of convenience stores—some envision them as 'mini libraries' for communities. Through mobile apps, they could collect book requests and periodically distribute books to stores, opening a window for those too busy or unable to visit libraries, connecting online and offline.
Some suggest changing umbrella sales to rentals. They say that when caught in sudden rain without checking the forecast, they have to buy an umbrella at a convenience store, which feels wasteful even if stylish. If stores could offer umbrella rental via real-name membership cards, people might be more at ease on rainy street corners.
In fact, people have already silently regarded convenience stores as urban stations connecting social public services, expecting more fresh and convenient services to take root here. The small convenience store is the node closest to people's lives in the vast social network and a projection of the city's appearance.
On Shanghai's path toward becoming a global city, the improvement of people's quality of life and happiness begins at every street corner, and perhaps it is genuinely sprouting in those small convenience stores.
Source: Lianshang Column, Love Convenience
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