Denny Ruben of NRC recent laid out what likely will be an explosive year of mergers and acquisitions in the c-store channel. But there’s much more you need to keep an eye on. Here are just some of the trends and big potential news worth watching.
1. The Fed.
Love the low interest rates? For sure, they have spurred dramatic M&A and allowed smaller and midsize operators to refinance and invest in needed upgrades. Unfortunately, the days of free money may be coming to a close. U.S. Federal Reserve officials are considering dropping their assurance that short-term interest rates will stay near zero for a “considerable time.” In plain speak, this means that if the Fed is more confident about the stability of our economy, there is a reasonable chance it will raise rates by the second half of 2015. Don’t freak out; we’re not talking double-digit interest rates. But take this as a friendly heads up to call your financial institution or explore your best financial vehicles today.
2. The Ubiquity of Uber.
Considering it’s now looking into the Middle East and Southeast Asia, is Uber becoming the new transportation Internet? If so, how can you tap Uber or an imitator to advance your business and simplify your consumers’ time demands?
3. Cheap Gas.
It seems like a distant memory: gasoline prices at more than $4 a gallon, with rampant speculation that $6 wasn’t too far off. Times are much different now: Some folks enjoyed the holiday season with street prices under $2. Global markets remain tumultuous. That means awesome opportunities to maximize margin—but first and foremost, determine your strategy and assess whether hedging and pricing forecasting tools make sense for you for this year and beyond.
4.Hybrids Hurting.
Many global-warming experts and high-tech auto investors are smarting over cheap gas. Why? Because customers are once again lining up to purchase SUVs, pickups and other gas guzzlers. With gas prices below $3 per gallon, hybrids and other smart-tech vehicles are expected to take a hit in 2015.
5. Look into Hiring Apps.
It’s crazy how rapidly smartphones are changing the world. Using everything from stock apps to sophisticated calendars, folks are doing more on the go than ever before. Mobile is also changing how people look for jobs. According to a presentation at workforce management solution provider Kronos’ annual meeting in November, 45% of active job seekers have applied for a position on a mobile device. So if you’re looking to impress your next millennial hire, look to your smartphone as a recruiting tool.
6. Be More Social.
Most retailers treat social media as a back-end strategy. Flip it! Launch exclusives, special promos and even naming contests on your Facebook page. Turn your ordinary Tuesday into Twitter Tuesday, on which you tweet a deal of the day.
7. Mountains of Fountains.
One thing from our CSP-Technomic Consumer Research report (beginning on p. 30) that should blow you away is the fountain opportunity. Boosted by Coke’s Freestyle and other sophisticated fountain designs, this high-margin, high-consumption, high-bundling attraction is something all c-store operators should tap.
8. Vaping Delight.
Two years ago, electronic cigarettes were all the rage. They’re not disappearing, but I wonder whether e-cigs risk becoming commodities, with liquids and other vape accessories emerging as e-nicotine drivers.
9. The Next Generation.
We talk about the next generation of computers, phones, tablets and even products. But what about your business? Who’s your next-generation leader? Expect some major executive turnover in the convenience channel this year and next, with several prominent retirements and the emergence of 30- and 40-something executives.
10. Brand Politics.
Think fair trade, better wages and sustainability. Retail concepts with an ethical base are growing. If you don’t believe me, check out consciouscapitalism.org, whose members include Whole Foods, The Container Store and equity investors Leonard Green & Partners LLC.
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