Can Direct-to-Door Slushees Beat Amazon?
Bloomberg Businessweek|August 31, 2020
Covid pushed convenience stores online. But delivery costs and new rivals could hit profits
James E. Ellis
Can Direct-to-Door Slushees Beat Amazon?

America’s 152,000 convenience stores survived— even thrived—during the Amazon era by being the quickest way to buy things like ice cream and cigarettes. They mostly ignored the web because they could, thanks to their ubiquitous presence on urban street corners and suburban roadways.

The coronavirus is quickly challenging that business model. Since the pandemic hit the U.S. in March, drastically reducing in-store shopping, big players like 7-Eleven, Circle K, and Casey’s General Stores have accelerated the rollout of delivery from thousands of locations via third-party platforms such as DoorDash, Postmates, and Uber Eats.

“What Covid really did is it gave the industry a peek into the future,” says Frank Beard, a retail consultant. Convenience stores were eventually going to face the same challenges from e-commerce specialists that have already crushed department stores and apparel chains. The pandemic sped up that timeline, however, as Americans grew wary of going to public places and spent less time driving because they’re working more from home. “Covid disrupted some of these routines,” Beard says, “and there’s going to be a lot of lingering effects.”

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