Technology/Services

History of Adaptability'

Retailers maintain edge through reinvention; execs at CRC share ways to enhance service

SAN ANTONIO -- The Big Bang theory aside, great things don't usually happen by accident. Proof of this came during the Convenience Retailing Conference general session, "Maximizing the Customer Experience," during which three remarkably different retailers illustrated the pains they undertake to remain relevant—if not essential—in the lives of their customers.

CSP group editor Mitch Morrison moderated the diverse retailer panel, which included representatives from chains Wawa Inc., Wawa, Pa., and Open Pantry Food Marts of Wisconsin, Pleasant Prairie, Wis., as well as a promising [image-nocss] single-store enterprise known as MoCo Market, Madison, Wis.

Wawa's success has come as a result of shrewd decision-making. When the company expanded into the state of Virginia about 10 years ago, it had to make key decisions about how to market to a group of consumers who had little to no exposure to its way of doing business. Should the company change the names of some signature products so customers would find them more familiar? Should it change its iconic coffee blends to adapt to the tastes of locals? Should it rename its famous "hoagie" sandwich under the more popularly known "sub"?

While Wawa had to do a number of things differently to succeed in Virginia, it realized it couldn't change its core focus and message. It couldn't change its culture. "We brought down the personality of who Wawa was," said Lisa Wollan, head of consumer insight for Wawa, which has nearly 570 stores in five mid-Atlantic states. "[We realized that] as long as we were able to bring the culture down, the rest will follow.… There are certain things that make us the brand that we are. Over the 10 years we've been in Virginia, there are a lot more people saying 'hoagies' than before we got there."

Wollan explained that her company certainly has convenience store and gas station competitors, but its primary competition comes from the likes of Dunkin' Donuts, McDonald's and "the local deli down the street," because the company leads with its prepared foods and dispensed beverages. As it evolves further, it keeps in mind a central strategy: delivering products and services frequently and immediately in a manner that is both quick and easy. If something doesn't fit that model, such as lottery tickets, it doesn't become part of Wawa's offering.

"We're really a convenient solution, but there's really no consumer definition for that," she said. "I still don't know exactly what [consumers] call us."

Wawa began life as an iron foundry in 1805. It then evolved into a dairy and eventually embraced the c-store business. Even today, as the company enjoys its reputation as one of the nation's premier foodservice retailers, Wawa has not stopped reinventing, through innovations such as prepaid gift cards and other items that further the Wawa brand. Such an ability to evolve suggests a "history of adaptability," said Wollan.

Open Pantry shares that willingness to embrace change. The company has been busy overhauling its locations to create an in-store atmosphere that attracts "affluent and upper-income customers," said Jim Fiene, the company's senior vice president of sales and operations. It's done so with an upscale environment that includes fireplaces, leather chairs and premium coffee and burritos offerings. The company has had to make some adjustments along the way, such as decreasing shelf space and storage room, while demanding more of its suppliers in terms of smaller, more frequent deliveries.

"We look at ourselves as a boutique offering in the marketplace," said Fiene. "[Customers] don't see us as a convenience store or a gas station.… We want people to say, 'I'm stopping at an Open Pantry that happens to sell BP gasoline'."

Megan Ramey is in a slightly different position than a chain such as Wawa or Open Pantry. Her sole MoCo (short for Modern Convenience) Market matches the progressive, liberal-minded personality of Madison. New to the business and armed with a concept much different than most retailers, Ramey specializes in meeting the convenience needs of Madison's pedestrians and bicyclists, primarily. The store sells good-for-you foods, groceries, craft beers, wines and other convenience items.

"I got into this industry not knowing at the time what I wanted to be," Ramey said during the panel discussion. Because she's relatively new to the business, she said her biggest obstacle to growth has been "communicating the brand." She's done a good job so far by explaining to her socially and environmentally conscious customers that she can help them improve their lifestyles while bettering the community in which they live.

"People say my store reminds them of a store in Italy or Spain, and that's the biggest compliment for me," she said. "I really try to make my business with items or services that are good for the community."

For example, she does not sell tobacco in her stores, a decision made easier by the fact that the city of Madison has enacted a smoking ban. Also, her store has an "eco-design," meaning it was created using sustainable materials such as bamboo, nontoxic paint and recycled furniture.

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