Data: The Five 'C's' Driving Convenience Stores In 2015

A look at trends from preliminary data from the 2015 NACS State of the Industry Summit May 27, 2015

Follow “the five C’s” in 2015.

That was the advice of Kevin Smartt, CEO of Kwik Chek Food Stores Inc., Bonham, Texas, as he presented category performance data at the NACS State of the Industry Summit. In short:

Create. Design the environment, theater, “the message you want your consumer to see, feel and think about you as a retailer,” through elements such as point-of-sale signage and store design, Smartt said.

Choices. Whether it is measured by the number of fountain heads or a balance of healthful and indulgent snack options, choice should be a part of your go-to-market strategy.

Customize. C-stores should consider “The Chipotle Effect,” which refers to the burrito chain’s customization-centric menu. Restaurants have jumped on the model: Wendy’s, which is introducing a build-your-own burger offer; and new pizza concepts that borrow the Chipotle assembly-line production model. “If the top QSR chains decide to put their foot on the gas, look out,” warned Smartt.

Craft. Most obvious in the beer segment, the growth of craft, local and small-batch items defied the recent economic downturn and continues to outshine mass-market offerings. “It seems to be thriving in an environment where income and resources are polarized,” said Smartt.

Convenience. In a channel in which nearly 84% of food and beverage items are consumed within one hour of their purchase, making it easy for the customer is key.

Considering the performance of the major in-store categories in 2014, it’s clear that retailers have many opportunities to apply the five C’s in 2015.

“Take those five C’s back, take them to your team, ask yourself: Are you creating the environment?" Smartt said. "Are you giving [customers] the choices? What about customization—is it now? Is it on the road map?”

Click the links below to see how the major c-store categories performed in 2014.