ATLANTA -- A new report from The NACS/Coca-Cola Retailing Research Council, "Fast Forward: Emerging Opportunities in Convenience Retail," is designed to help convenience retailers expand market share and become more profitable.
A world of growth and opportunity exists beyond "Bubba," the regular c-store shopper, the report said. Convenience retailers who think past this stereotype, act as change agents and cater to a broader audience will be positioned to capture a greater share of "convenience" business, which is about much more than "quickness" and is no longer confined [image-nocss] to convenience retail outlets.
The report provides insights into store types; shopper types and the values they seek (time, quality, experience and price); priority ranking of these values by shopper type; shopper needs and suggested tactics; as well as calculated financial returns.
C-stores fall into three categories, according to the report, each appealing to different types of shoppers:
Neighborhood Store: Shoppers live close by and shop for fill-ins and specific category purchases. Store is considered an essential part of the community. Commuter Store: Located on heavily trafficked thoroughfares and shopped primarily by blue- and white-collar workers during daily commutes. Fuel, drinks, tobacco are purchased; safety, cleanliness, easy access and fuel prices are key factors. Interstate Store: Positioned on major highway exits and frequented by long-distance travelers, professional drivers and locals. Fuel, meals, snacks, beverages and restrooms are important. Understanding varying types of shoppers enables operators to customize product and service offerings, the report said:
Drop in Daily: The familiar "Bubba;" shops as a daily break from work. Local Loyalist: Thinks of the store as the center of the neighborhood. Overstretched Mom: Shops on way home from work to fill in the gaps. Mobile Professional: Stops in during commute for fresh coffee and competitively priced gas. Highly Hesitant: Visits for snacks; otherwise avoids c-stores. Long Distant Driver: Drives for a living; seeks familiar brands of gasoline and food; desires clean bathrooms. According to the report, shopper needs include:
1. Fundamentals: To attract a broader range of shoppers, provide a safe, clean, hospitable environment. While these fundamentals may seem obvious, they are often ignored. Sample tactics: remove "scary" signs (no loitering, towing warnings); bake fresh goods to produce enticing aromas; create "Charmin-certified" restrooms.
2. Simplicity & Ease: Expand customer base by providing a broader range of goods and services to delight occasional customers and turn them into high-frequency shoppers. Sample tactics: offer bike servicing and repairs; sample prepared foods at the pump; have a full-service fuel island for moms; offer massage chairs for travelers.
3. Time Enrichment: Connect goods and services with social, economic and cultural trends to build a brand that engenders trust, loyalty and a feeling of community. Sample tactics:
Neighborhood Store: Support community causes; feature locally grown produce and work of local artists. Commuter Store: Create product or service guarantee: fresh coffee every 15 minutes, restrooms cleaned every hour, sandwiches to order in five minutes or less; offer charging stations for rechargeable devices. Interstate Store: Offer free dog treats and pet "potty" areas; offer free shipping on selected items. The NACS/Coca-Cola Retailing Research Council conducts studies on issues that help retailers respond to the changing marketplace. The value of these studies rests with the fact that retailers define the objective and the scope of each project and "own" the process through the release of the study and dissemination to the broader retail community, they said.
Members of the Council include:
Cynthia Archer, Sunoco Inc. Hank Armour, National Association of Convenience Stores (NACS). Gary Arthur Jr., Valero. Alain Bouchard, Alimentation Couche-Tard Inc. Joe DePinto, 7-Eleven Inc. Frank Gleeson, Topaz Group. Tony Kenney, Speedway SuperAmerica. Dae U. Kim, NACS. Howard McIntyre, Petro Canada. Darel Pfeiff, Turkey Hill Minit Markets. Jay Ricker, Ricker Oil Co. Inc. Louie Sheetz, Sheetz Inc. Karen Stout, formerly of Longs Drug Stores. Roy Strasburger, Strasburger Enterprises Inc. Sam Susser, Susser Holdings Corp. Martin Todd, Exxon Mobil Corp. Bill Bishop, Willard Bishop. The study is available atwww.ccrrc.org under the NACS/CCRRC section.
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