Williams looked at the big picture in sharing what customers expect--and don't expect from convenience stores. Above all, c-store customers [image-nocss] expect single-serve items. And a retailer better have what customers expect. He called out of stocks a $3 trillion annual problem across all retail, and said that if customers experience three out of stocks at a store, they will never come back.
Almost as important to customers are cold beverages, said Williams. "People identify convenience stores with cold drinks," he said. Parker echoed that sentiment, discussing how his stores always have 28-degree beer in his beer caves. Except, he joked, it did confuse one customer who after hearing about 28-degree beer was skeptical, noting, "You can't get colder than ice."
Speaking of beer, Williams said that c-stores cannot be all things to all people, which particularly holds true for beer. With the slew of new microbrews hitting the market every year, retailers need to be very careful in considering what new products they add.
Parker said that single single-serve beers are a great choice for two reasons: one being customer demand and second, single serve is now the second-most popular size after six packs. Also, the category offers more profit. Parker said that the profit in selling only two 24-ounce beers is the same as in selling a 30 pack.
Parker also shared a number of ideas that his stores are successfully executing: Using outdoor advertising: Billboards, bus wraps and other promotions are great for telling your customers your offer, especially in more metropolitan areas. Co-locate energy drinks and water: "Parker's has energy drinks and bottled water in the same cooler door. If you do this, you will grow both categories." Using technology to upsell: Parker's is using two new programs to great success. LIFT gives clerks the tools to effectively upsell customers, and a program with People Matters allows customers to provide immediate feedback on their customer experience. The combination is powerful: It allows Parkers to know who is good at upselling and delivering a great customer experience. "Now we know who to schedule for critical shifts," said Parker.
Williams, who is based in Stratford, Conn., strongly suggested that c-stores avoid trying to be price leaders. "[Customers] expect you to have higher prices. Be who you are. Focus on what you do well."
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.