More than 500 retailers and suppliers representing rural outposts, suburban intersections and urban centers gathered at CSP’s Convenience Retailing University in February.
They heard tobacco analysts address the challenges of vaping and a potential doubling of the federal excise tax on tobacco products.
They learned the nuances of millennials and emerging consumer segments, most notably the rise of single households.
They participated in dozens of educational tracks covering critical in-store categories, operational challenges, product assortment, employee retention and customer satisfaction.
They absorbed how the c-store channel of just five years ago is fading and how today’s newest concepts are larger, more tech-enriched, food-driven and consumer-engaged.
They received words of inspiration from former U.S. President George W. Bush, were enraptured by effusive author and entrepreneur Ty Bennett, and let loose a bit amid the soulful songs of Luke Wade at CRU After Dark. (See slideshow below.)
And as a group they stood teary-eyed, honoring a beloved retailer whose son was lost in combat.
Our story takes you from the inner sanctums of social drinks, store tours, general sessions, networking one-on-ones and category classrooms. We offer lessons learned, key strategies to help your businesses grow and thoughts to drive your tomorrow.
CONTINUED: Focus on Quality
Focus on Quality
“If it’s between margin and quality, always pick quality,” said one retailer during a roundtable discussion of foodservice. This quest for quality permeated CRU, from specific categories such as elevating foodservice programs to the total store experience. The latter is especially crucial as retailers strive to attract females and retain millennials.
High-Quality Java
What does an espresso program need? Since the rollout of its new program last November, Family Express has enjoyed increased unit growth, sales and gross-profıt dollars, according to Bill Nolan of the Valparaiso, Ind.-based chain.
Here’s what the company prioritized:
- All 62 stores had to have it.
- Starbucks quality.
- Signature drinks.
- Excellent service and support.
- Nothing untested.
CONTINUED: Driving Category Growth
Driving Category Growth
When trying to manage margins, Kelvin Covington, a fuels consultant based in Houston, said grouping people in the offıce who handle fuel supply, sales, pricing and promotions can be critical in breaking down silos and sticking to a predetermined plan.
Emphasizing how retailers’ Web pages make a lasting impression on an increasingly mobile consumer base, Eric Pratt, managing partner of Revenue River Marketing, suggested a multi-pronged approach of a user-friendly website, social-media activity and blog articles. “It’s not about pushing a message out, it’s about ‘pull’ marketing and going where people are online,” Pratt said. “It’s cross-pollination.”
Category Management Strategies
- When to Kill an SKU? “Be quick, but don’t hurry,” said John Zikias, COO of Holmes Oil. Usually it takes about two to three months. In a month, if things aren’t going well, start asking questions. By month three, reassess.
- Margin vs. Traffıc. You can’t have great margins and drive traffıc and sales; rather, your traffıc drivers will likely not be your big-margin items. And if you’re losing margin on an item, don’t automatically raise prices—fınd the margin somewhere else.
- Units or dollars? It doesn’t really matter. Pick one and follow it.
- Analysis Paralysis. Suppliers know consumer data, while retailers know shopper data, and good category management is about the blend of both. Conduct a gap analysis of your data vs. suppliers’ data, and create exception reports to look at the fringes on the high end and the low end. And understand your benchmarks: Is 40 good, or 4,000?
- Golden Number for Size of Operations Team? “Count it not on the store count but the number of tasks that you need to get done,” said Zikias.
- Competitive Threat. Urge suppliers to keep you abreast of new products. If you wait too long to get a product in, consumers may have purchased it already at grocery, drug or mass.
- Foodservice Category Management. Just as category managers do SKU rationalization, foodservice operators should do it for menus: Would scaling back help costs?
“Look at your categories as distinct business units,” advised Ieva Grimm (left), a veteran of Sheetz Inc. and now owner and president of Sigma Development Co., during a category-management panel discussion. Joining her were Frank White, retail operations director for Tri-State Petroleum; John Zikias, COO of Holmes Oil Co.; and Kim James, brand marketing director for Alimentation Couche-Tard.
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