Reinventing today’s troubled convenience store

by Paolo Bertolotti / KPA

Today’s urban convenience store has become anything but convenient. Plagued by persistent shoplifting, employee safety concerns, declining customer service, and cramped layouts, these stores have turned into a rather un-shoppable experience.

The premise is simple: there must be a way to improve today’s convenience stores without waiting for futuristic, next-gen technology to save the day. What can we do with the resources and technologies we have today, applied with a fresh and innovative approach?

There is a counter-intuitive store layout that addresses all the aforementioned challenges. It not only minimizes the inconveniences but, most importantly, prioritizes the customer journey and experience. By rethinking the layout and operations, we can transform urban convenience stores into truly convenient and enjoyable places to shop.

Like many who live in New York City, I frequently find myself in a convenience store to pick up ordinary essentials on the way to work or on the way home. The convenience of it all is that I can do it quickly and know exactly what I will buy, hardly impacting my commute. It beats ordering toothpaste and aspirin from Amazon and it gives me a reassuring (albeit false) sense of helping my community by spending my money locally¹.

Unfortunately, it has gone off the rails rather spectacularly, not exactly sure when and how it started, but with my toothpaste and aspirin now locked behind an acrylic barrier, and no way to get to it unless I push for an attendant to come to unlock it, I’m not really feeling the convenience of it any more. Overall, the experience is that I’m inconveniencing them, while the store itself seems to be uttering under its breath that I should be ordering things online.

There is a lot to unpack there. The theft increase, which has been ruthlessly hyped by the media², has garnered a lot of the blame in the urban c-store’s downfall. But that’s not the only culprit at play, in fact, it might very well be the straw that broke the camel’s back. I would also put the blame on the un-user-friendly experience of the store layout, the visual chaos of confusing sales tags, the difficulty in finding what you are looking for and typically bad lighting, to name the most obvious.

I had put up with those shortcomings in the past because I could still get in and get out rather quickly, now that the ‘quickly’ part has been removed, it all falls apart. So, let’s not throw out the baby with the bathwater, let’s take this opportunity to reset something that doesn’t really work anymore. Sure, there are compromises to be made, but the objective is still the same, create a successful convenience store experience, …as the name implies.

The Erosion of Convenience

Industry Trends and Data

The traditional convenience store model is under pressure due to multiple converging factors—rising theft, shifting consumer behaviors, and increased competition from e-commerce. According to a 2023 report by the National Association of Convenience Stores (NACS)³, theft in urban convenience stores has increased by 30% over the past five years, prompting many retailers to implement radical security measures. Although shoplifting is an unacceptably large percentage of overall shrinkage, see [fig. 1], it is still significantly less than the ‘internal’ shrinkage of Employee theft and Administrative errors combined. All to say, shoplifting isn’t the only culprit here, its just the most visible. As a result of its high profile, urban convenience stores reacted with extreme measures to curb the escalating shoplifting and decided that locking up all the merchandise was better than having it stolen. Unfortunately, this is precisely why we find ourselves in this quandary, because that solution broke the convenience store. The impact has been quickly felt by the consumer; a survey conducted by Retail Insights⁴ found that:

65% of shoppers said they would rather buy a locked-up item online than wait for an employee to retrieve it.
41% of respondents reported that they have abandoned a purchase due to inaccessibility of merchandise.
59% of consumers believe that security measures, such as locked cases and additional surveillance, make shopping feel unwelcoming.

These statistics illustrate the growing tension between security and convenience. While loss prevention is a legitimate concern, excessive security measures have driven customers away, effectively making brick-and-mortar shopping more of a hassle than a convenience.

Consumer Behavior and Expectations

As the name implies, a convenience store is about… convenience. However, as the shopping experience becomes more frustrating, consumers are increasingly opting for alternatives such as online retailers and app-based delivery services.

A study conducted by the Urban Retail Institute⁵ highlights the shifting consumer mindset:

The average time a consumer is willing to spend in a convenience store has dropped from 4.5 minutes in 2015 to 2.8 minutes in 2023.
72% of surveyed shoppers expressed frustration over the difficulty of finding products quickly due to poor store layouts and excessive promotional clutter.
48% of respondents said they actively avoid stores where common items are locked behind security barriers.

This data underscores a critical issue: as convenience stores become harder to navigate and less efficient, they risk losing relevance altogether. The very essence of their appeal—speed and ease—has been eroded.

The typical urban c-store today

Urban convenience stores, led by higher rent and smaller space availability, are typically a more compact layout with a focus on essential items and quick purchases. In contrast, suburban stores often have more space, allowing for a wider variety of products and larger aisles (i.e. better shopping experience). Let’s not forget that a major attribute of an urban c-store is the fast-paced lifestyle of its customer, who is not going to their car after leaving the store but more likely to catch a bus or train.

As mentioned earlier, urban convenience stores are not really a place for spa-like existential moments, but rather a place where you can purchase aspirin and toothpaste (and m&m’s) and get out quick. Even before things were locked up, that was really what they offered, and they did their job well in a spreadsheet sort of way.

But something the traditional urban convenience store never really conquered was dealing with the competition from online shopping. Most added a focus on ready-to-eat meals and local specialty items, which helped differentiate against online shopping.

According to a survey by the National Association of Convenience Stores (NACS), 65% of urban convenience stores reported investing in store renovations and upgrades to improve the shopping experience. However, with very few exceptions, the opportunity to reinvent the in-store experience was never really pushed beyond product offerings and varied digital solutions.

Before jumping to a solution, let’s take a quick look at some experiments by major brands that yielded innovative outcomes.

Case Studies: Looking for answers

Amazon Go’s groundbreaking concept initially received praise for their efficiency, especially in high-traffic urban areas. Shoppers appreciated the ability to walk in, grab items, and leave without interacting with a cashier or dealing with self-checkout frustration. The stores also boasted low theft rates—a key concern for traditional retailers. Unlike conventional stores where shoplifters can evade detection, Amazon Go’s system tracks every item picked up or put back, making it nearly impossible to steal without being charged.

Additionally, Amazon Go’s data-driven approach to inventory management ensured that shelves were stocked with high-demand products while minimizing waste. The AI-driven theft prevention model eliminated the need for locked cases, as the system inherently deterred theft without creating customer friction.

Despite its technological innovations Amazon announced, in 2023, the closure of several Amazon Go locations in major cities like New York and San Francisco. While some stores remained operational, the closures indicated that the model was not as financially viable as anticipated. One of the biggest takeaways from Amazon Go’s struggles is that while technology can solve security issues without sacrificing convenience, it comes at a price that not all retailers can afford.

Walgreens: Micro-Fulfillment

One of Walgreens’ more promising innovations has been the integration of digital-first shopping experiences in urban locations. In response to high theft rates and labor shortages, the company has piloted micro-fulfillment stores, where customers primarily shop via self-service kiosks or mobile apps, with products retrieved by store staff. These locations are smaller and more efficient, relying on automation to quickly fulfill orders while maintaining a secure but accessible shopping environment.

Additionally, Walgreens has made strides in AI-driven loss prevention, testing smart camera technology that detects suspicious behavior in real time rather than relying on locked merchandise. Unlike traditional security measures, this approach does not inconvenience paying customers while still helping to reduce shrinkage.

Unfortunately, some of Walgreens’ more aggressive security measures have backfired spectacularly. In high-theft urban areas, Walgreens experimented with stores where nearly all products were locked behind plexiglass cases, requiring employee assistance for even basic items like toothpaste and aspirin. This change led to frustrated customers, longer wait times, and lost sales, as many shoppers opted to purchase essentials online rather than deal with the hassle of waiting for store staff.

Walgreen’s wave of store closures in major cities such as San Francisco, Chicago, and New York cited theft as a primary reason, however, many industry analysts pointed out that poor urban store layouts, inconsistent staffing, and declining foot traffic also played significant roles. Rather than rethinking their in-store experience, Walgreens’ approach often pushed away loyal customers by making shopping more difficult instead of more convenient.

CVS: Expansion of Self-Checkout

As a direct competitor to Walgreens, CVS has also experimented with various innovations in its urban stores to combat theft, improve efficiency, and adapt to changing consumer behaviors.

One of CVS’s most successful innovations has been the aggressive expansion of self-checkout technology. Unlike Walgreens, which still relies heavily on staffed checkout lanes, CVS has embraced self-service kiosks in nearly all urban locations. This move has helped reduce labor costs while improving checkout speed, making the shopping experience more seamless for customers who don’t require employee assistance.

Additionally, CVS has integrated its mobile app with in-store experiences, allowing customers to use digital coupons, scan-and-go shopping, and personalized discounts. This strategy has not only improved customer engagement but has also allowed CVS to compete with Amazon’s ease of shopping by offering digital convenience within a brick-and-mortar setting.

However, CVS has also made missteps in its theft-prevention strategies, particularly by locking up high-theft products to an extreme degree. In several high-theft urban locations, CVS stores have placed everyday essentials—including deodorant, baby formula, and even bottled water—behind locked cases, requiring customer assistance for nearly every purchase.

To compound their struggle, many CVS stores operate with minimal staff, making it difficult for customers to get assistance, especially in locations where locked merchandise requires employee intervention. The combination of locked products and a lack of available staff has led to increasing frustration, ultimately discouraging customers from shopping in-store.

The Big Idea

Among all the challenges that a c-store faces to stay profitable, including operational costs, inventory management and marketing, none are as easily solved as elevating customer experience. It’s the one thing that cannot be resolved with a spreadsheet alone. A loyal customer is inevitably won over for by a positive experience, that is both physical as well as value driven. I will walk an extra block or two out of my way for a better customer experience any day, including during a cold rainy November in Manhattan.

It’s all about eye contact.

There are elements of design that speak to us instantly because they are designed for the consumer as opposed to operations. It’s a bit like how modern urbanism has evolved to design cities for people as opposed to cars, it seems silly even having to say it.

A central operational focus is the key to customer engagement, not only for security purposes but for support and assistance. It makes the customer experience more personal, putting a face to the store immediately upon entering and conversely makes the store clerk’s job easier by monitoring customer activity across the store by simply looking in any direction. The central focus works only if the shelving does not block direct lines of sight or create hidden areas from inside the central element, and the only way to achieve that is by aligning the shelving radially around it.

So here is where the operational side of the brand will say “that’s a huge hit on merchandising quantity”. Factually they are correct, but by how much? And is that difference critical? And more importantly, is the value-add of the customer experience greater than the reduced SKU count? Let’s not forget how this conversation started in the first place; that today’s urban convenience store is no longer convenient.

If we look at the numbers carefully, we can see the actual difference in reduced linear feet of shelving is relatively low:

unit measure	60' wide	50' wide	25' wide
gross sq ft	4,630	3,960	2,000
sales sq ft	3,460	2,950	1,475
linear feet of shelving	491	477	239
linear feet of shelving per sq. ft.	0.142	0.162	.0162

unit measure	60' wide	50' wide	25' wide
gross sq ft	4,630	3,960	2,000
sales sq ft	3,460	2,950	1,475
linear feet of shelving	483	471	195
linear feet of shelving per sq. ft.	0.140	.0.160	.0132

unit measure	60' wide	50' wide	25' wide
gross sq ft	4,630	3,960	2,000
sales sq ft	3,460	2,950	1,475
linear feet of shelving	419	351	187
linear feet of shelving per sq. ft.	0.121	0.119	0.127

Notice how the shelving efficiency (linear feet of shelving / Square Feet of sales) difference between both the 60’ and 50’ wide of the Typical and the Radial layout is almost negligible. This number alone does not highlight the significant open areas and almost complete unobstructed sight lines of the Radial layout.

The Fan layout is clearly not as efficient as the Radial, and the Radial is also not as efficient when applied to a narrower storefront such as the 25’ wide.

So, after reviewing the numbers, we can state that the Radial layout, when in a minimum of 50’ storefront width, is clearly the optimal layout.

Controlling entry and exit

The Radial solution alone does not completely eradicate shoplifting. However, instead of locking the shelves, lets control both the entry and the exit. The premise is that if everyone is to be treated like a shoplifter, do it outside on the street, keep inside a pleasant consumer shopping experience.

Quick secured entry passageways (not unlike subway entrance) that open with a phone app or store card creates accountability for who enters and helps shop data collection.

Shoplifting will never be 100% eradicated, but in those cases where theft is clearly being carried out, store staff or the security guard can contain a person in the vestibule with electromagnetic locks as they try to leave the store. As it turns out, there is a law in New York City that allows that, it has been used reluctantly by staff because of the dangerous confrontation that it creates. However, if the thief is held in the outgoing vestibule, then exposure to staff is removed while police can make their way to the store.

The entry exit circulation all happens in clear view of the staffed center element. Using a vestibule that is split between entry and exit allows to fine-tune security.

In such a case, the in-going vestibule could also work as the exit.

Details matter

Lighting has always been a sore spot in urban c-stores, the approach is like big box stores with warehouse type illumination. There is something off-putting about the placement of the fixtures, as if it did not matter what is in the space, just evenly distributed lighting. Instead create a layered lighting solution with a combination of ambient and accent lighting, especially highlighting the merchandise.

One popular solution is to implement commercially available led strips on the underside of all the shelves. Besides highlighting that bottle of aspirin or tube of toothpaste in a purposeful way, it would also get rid of those warehouse type shadows cast by the shelves. Needless to say, this only works if there are no lockable acrylic boxes around the product. Once the product is well lit, you can lower the ambient lighting from warehouse levels to boutique store levels.

Another sore spot that does not contribute to a positive shopping experience is the visual chaos of price tags, especially when they are for a sale item. They work when there are a couple per gondola, but when almost literally every item has one it just becomes visual noise and they all become invisible to the shopper. There have been some positive advancements in digital shelf tags that offer a potential solution to the noise and propel product management into the next century.

It is essential to have clear signage and a logical flow. In the Radial layout it would be easy to color code the floor to identify different sections and they would all meet at the center element, so when asking for directions there is no need to say “isle 4”, it would just be “that isle” as pointed to by the clerk.

AI powered self-checkout technology is quickly evolving and is the perfect complement to a convenience store experience. In the Radial store layout proposed, there is always a store clerk in the center that can ring up a purchase, but a shopper can also check themselves out with couple of self-checkout kiosks located in the same center element.

Conclusion

The urban convenience store, once the epitome of effortless shopping, is undeniably in trouble—but not beyond repair. The fix isn’t rocket science; it’s a smarter, more intentional redesign. While future tech like Amazon Go might one day redefine convenience, there’s no need to wait. Practical, customer-friendly improvements can be made right now. A store that promises convenience should deliver just that.

By reimagining the layout and operations today, we can create the ultimate corner shop that saves time, keeps routines intact, and makes city life a bit easier.

The urban convenience store deserves nothing less.

References

[1] Although studies estimate that only 13-30% of every dollar spent at a national chain stays within the local economy.

[2] popular.info / Lies, damn lies, and shoplifting statistics

[3] National Association of Convenience Stores (NACS), 2023 Crime & Loss Prevention Survey

[4] Retail Insights, Retail Crime is Changing How Americans Shop — Here’s How Technology Can Help

[5] Urban Retail Institute, Growing shopping malls and behavior of urban shoppers

Legal Disclaimer

This white paper is intended for informational and conceptual purposes only. The ideas, designs, and theories presented herein are the original work of the author and Kenneth Park Architects, and are protected under applicable intellectual property laws.

Unauthorized reproduction, distribution, or use of any portion of this document without explicit written consent from the author or Kenneth Park Architects is strictly prohibited.