ATLANTA -- Convenience retailers attending the "Ideas 2 Go" session at the NACS Show 2007 absorbed a rapid-fire rundown of answers to new and long-simmering challenges. They left a well-attended auditorium armed with actionable solutionsor at least some good suggestionsfor trimming credit-card fees, adding new products and services and creating store designs that get consumers passionate about shopping in a c-store.
The hour-long video presentation offered a little bit of everything, from quick fixes and happy accidents to well-planned moments of genius. [image-nocss] It began with a segment about Dallas-based 7-Eleven Inc.'s July 2007 "retail-tainment" project, whereby it worked with the Fox Network to transform 12 stores throughout the country into real-life versions of the Kwik-E-Marts seen in TV's longest-running animated sitcom, The Simpsons.
The 7-Eleven-to-Kwik-E-Mart makeover included changes to store exteriors as well as additions to the product mix, such as the Squishee frozen carbonated beverage (in place of the revered Slurpee) and boxes of Krusty-O's cereal. Company spokespersons said during the video that the project generated tremendous excitement and exposed new customers to 7-Eleven stores.
The video then addressed the issue of rising credit-card fees and, more importantly, what some retailers are doing to curb this most painful expense. Every retailer in the industry, from single-store independents to small chains to large companies such as Valero Energy Corp., which has more than 900 stores, has felt the effects. Guy Oliver, president of Austin, Texas-based MTG Management, which oversees more than 50 stores, explained how he partnered with vendor National Payment Card, Boca Raton, Fla., to develop an alternative payment system that decreases the costs of accepting plastic while fostering customer loyalty.
Ideas 2 Go also addressed the issue of upscale c-stores. Greg Parker, president of 23-store The Parker Cos., gave a tour of his larger-than-life Parker's Urban Market in historic Savannah, Ga. The store provides customers with what Parker called "moments of surprise," such as fresh-cut flowers, chef-prepared gourmet meals, an alfresco dining area, upscale gifts and more than 750 bottles of wine.
"Wine says we're more upscale," Parker said. "But I won't carry anything just to send a message." Translation: Every item the store sells has to carry its weight by producing sales.
Tim Wagner proved that great ideas can come from any retailer, regardless of size or location. Wagner, a single-store operator, explained during the segment how adding a home-delivery service for customers in "a deteriorating neighborhood" of western New York helped diversify his small business.
Wagner's service uses a small fleet of drivers to deliver merchandise directly to customers' doorsteps within 40 miles of the store. Home-delivery customers, he explained, generally fall into one of three categories: seniors who can't or don't want to visit the store; people who benefit from public assistance; and high-tech early adopters, notably area college students, of which there are many. Wagner expects the third group to ramp up considerably as he prepares to launch a new webssite promoting the service.
In 2004, home-delivery accounted for 25% of Wagner's sales. In 2007, the service contributed 33% of sales. He predicts that, once the new Web site comes online, the service will likely account for as much as 45% of his store's sales.
Other retailers explained how adding even small changes that differentiate retailers from the competition can add up to significant positive changes to the sales column. Parker's company, for example, recognized that his stores had "passionate disciples of chewable ice," he said. So his stores went to twoin some cases threechewable ice machines to better suit demand. But the ice isn't used solely for fountain drinks; stores have begun bagging the ice and selling it out of the freezer.
Technology was a recurring theme. Segments on technology included: National Payment Card's Automated Clearing House-based payment system; in-store advertising screens being used to generate revenue by running advertisements for local businesses at the pump, while printing "instant gratification" coupons for in-store merchandise; loyalty-card programs that provide granular data on consumer purchases while increasing transaction sizes; and light-emitting diode gas signs that offer greater visibility from the street.
Finally, with motor fuels playing such a huge part of the business, Ideas 2 Go provided a few ideas for lessening the pain of high prices at the pump. An example: Richard Bell, managing partner of The Market at Jodeco, a single store based just outside of Atlanta, explained how his store offers each cash-paying customer a free 12-oz. coffee or fountain drink in exchange for the "inconvenience" of having to come into the store to prepay.
(Click here to view CSPTV's Store Tour of The Market at Jodeco.)ideas2goMembers 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.