Ideas to Grow On

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LAS VEGAS -- Reducing costs, increasing sales and focusing on employees and customers: These are three key goals on every retailers checklist, and there are several ways to make them happen.

That was the lesson from the 2005 selection of Ideas 2 Go, the National Association of Convenience Stores roundup of industry best practices, presented at the Thursday general session at NACS Show 2005.

This years focus differed from those prior by highlighting the ideas themselves as opposed to particular retail operations; this provided [image-nocss] an opportunity to not only look into each of those three goals more in depth, but also allow several retailers to weigh in.

In the effort to cut costs, retailers have tackled every area of convenience operations. Ricker Oil, Anderson, Ind., established its own distribution center to provide its 30 locations with a limited selection of heavily used products, from paper to janitorial supplies. The result, president Jay Ricker says, is each store is able to buy cheaper.

Manleys Mighty Mart, a 21-store retailer in Binghamton, N.Y., implemented cash discounts to reward customers who opt to pay with paper and convince plastic payers to switch payment methods. As a side benefit, inside store sales have increased because cash customers have to pay inside.

To encourage greater use the proprietary Shell card, which carries no transaction fee for the retailer, Tooley Oil Co., Sacramento, Calif., enlisted greeters to visit customers at the pump to boost enrollment. The retailer has also moved to in-house auditing to keep a closer check on vendors and shrink, which has shrunken 28% as a result of the effort.

Increasing sales often requires an investment in technology, services and benefits to motivate customers and employees. Foskels Food N Fuel, a one-store operator in Marion, Iowa, spent less than $100 on a simple makeover of its location, moving foodservice to the forefront and sprucing up the dining area with a fresh coat of paint. As soon as customers enter, they see the importance of foodservice to Foskels, and have rewarded the retailer with doubled category sales.

Unlike for some retailers, labor is not a top expense for Bobby and Steves Auto World, a six-store chain based in Minneapolis"it is the companys No. 1 asset. The company hires for enthusiastic attitude, and is driven to help its employees reach their potential. When you have that mentality, its easy to translate it into great customer service, says operations manager Jared Sheeler. This mentality has pushed turnover to only 12%.

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