In this episode of “At Your Convenience,” CSP Editor Chuck Ulie talks with Deb Bowman, category manager at Rhodes convenience stores, from CSP’sCenter Store Forum on Sept. 9 in Lombard, Illinois.
Rhodes, based in Cape Girardeau, Missouri, is operated by PAJCO Inc.
On this podcast, Bowman talks about some of the most fun and challenging parts of her job—and how she doesn’t see an end in sight to the avalanche of flavor innovations. She also shares how Rhodes has expanded its meat snack section in response to the growing GLP-1 trend.
“At Your Convenience” brings industry experts and analysts together with CSP editors to discuss the latest in c-store news and trends. From mergers and acquisitions to foodservice and technology, the podcast delivers the story straight to listeners in short-format episodes, perfect for the morning commute or a quick break at the office.
Listen to their conversation above, or read the transcript here, which has been edited for length and clarity:
Chuck Ulie: Can you talk a little bit about what you do in your role as a category manager? You told me a little earlier today you do more than just center store.
Deb Bowman: I have all categories with our company. I authorize all products that come into our stores. I also purchase all the merchandising, gondola shelving and cigarette fixtures. I help when we have a new store build. I help coordinate all the vendors to get the store set. Resets, planograms, contracts.
Ulie: And how many stores in the Rhodes chain?
Bowman: We have 33 locations.
Ulie: Can you tell me specifically the center store, a little detail on what you do in that area?
Bowman: I meet with all the vendors, decide what products come in and out, decide on the planograms, do promotions, collaborate with our vendors to try to get as many promotions as we can get to have that value for our customers and to increase our sales too.
Ulie: Is there any big promotion that really worked well—or one that fell short of your expectations?
Bowman: Our biggest promotion wasn’t really about center store, but we did a big promotion this summer on our fountain drinks. We gave away a side-by-side. So we did these scratch-off tickets where customers could win a chance to get in the drawing for the side-by-side.
Ulie: What is a side-by-side?
Bowman: It’s like an all-terrain vehicle. You’ll see them like a Polaris, that type of item.
Ulie: And you’ve been doing this for, you told me, some time.
Bowman: Forty-one years I’ve been with the company. Been doing this role for about eight.
Ulie: What are some of the most fun parts of the category manager job?
Bowman: Probably I get to see all the innovation, and I get to see all the new stuff that comes in.
Ulie: Before the public sees it?
Bowman: Yes.
Ulie: What would be one example of that?
Bowman: Some of the candy.
Ulie: They’re always innovating with candy, aren’t they?
Bowman: Always. It’s, you know, who doesn’t like candy? I was able to go to the sweets and snacks show earlier this year. I got to see all different kinds of snacks and candy. Lots of candy.
Ulie: There’s always something new, isn’t it? Like I just saw peanut butter and jelly M&Ms.
Bowman: Yes. Even Jack Link’s has a peanut butter and jelly. They actually have a bag that has both flavors, so if you pick one it might be the peanut butter one and the other one is the jelly, so not sure how I feel about that.
Ulie: They’re always innovating, aren’t they? You have to have something new.
Bowman: Yeah. In years past, you didn’t see all this innovation with all the different flavors, so it’s kind of interesting to see how they incorporate all that into something you wouldn’t even think about.
Ulie: Do you ever see an end in sight to the avalanche of flavor innovations and all that?
Bowman: I don’t think so. I think it’s going to continue on. You’re always needing to pique people’s interest, so I think that’s how they do it with all the different flavors. I think one thing that’s really interesting is all the co-branding that’s going on now with like Reese’s Peanut Butter Cup and Oreo. And then we see the Oreos with the peanut butter cup filling. You see that a lot now. Jack Link’s and Doritos, Jack Link’s and Mr. Beast Feastables candy.
Ulie: Do these products fly off the shelves? Is there an interest?
Bowman: Some do and some don’t. Reese’s, I think just about anything Reese’s Peanut Butter Cup does, it’s probably going to do well, but Kit Kat, they do a lot of different flavors. Some of those do well, some don’t. I think you always have to keep trying, and hopefully you don’t overstock on them just in case they don’t sell well.
Ulie: Can you talk a little bit about some of the most challenging parts of the job?
Bowman: I think we’re all concerned about the tariffs; cost increases just come left and right. Those are top of mind, but I think there are some, when we talk about innovation, it’s finding room for everything. There’s only X amount of space and you still have to have your workhorses in there, the Peanut M&Ms, the Snickers that do well and always have done well, so you have to keep those in, but you have to make room for the innovation, too.
Ulie: Any strategies or tips you can share? Is it trial by error? I’m guessing certain things are locked. Like this amount of Snickers, this amount of M&Ms, these are staying here. And then you have the room you can play with.
Bowman: Typically we would pull the sales, the scan data, for that category and pick and choose which items just aren’t selling and pull them out, put some new stuff in and just monitor it. If it’s not selling, then you have to pull it out and put something new in.
Ulie: And how often would that rotation be? How long would you give something?
Bowman: I think at least a quarter you would need to devote to it. If you bring in a shipper of something new, sometimes it does fly out of the store in a week’s time. And if it doesn’t, then you need to maybe work with the vendor to get somehow, maybe you can join together and reduce the retail on it and get it out because it doesn’t do us any good or them any good just sitting there.
Ulie: Any other challenges?
Bowman: With the economy the way it is today, you need to find a way to bring in products that the customer feels is a value, but still maintain your margins. It’s kind of a balancing act now to not just cut all your prices, but to still be able to get your margin where the customer feels like it’s a value. So whether it’s promoting, offering a food item with maybe a beverage item to create a combo.
Ulie: The customer is always looking for a deal. The c-store is obviously looking to make money. So you’re walking a thin tightrope. And sometimes you will make them feel they’re getting a deal by making it a combo.
Bowman: Yes. So usually we get some support from the vendor to help make that a value deal.
Ulie: What trends that you’re seeing? We did mention obviously the flavors, but anything that you see now or anything coming down the road?
Bowman: We’ve talked a lot about it at this conference here, but the GLP-1.
Ulie: The weight-loss medicine.
Bowman: Yes. Finding items that the people that are on those drugs, the protein or low-carbohydrate, low-sugar items. So, we’ve expanded our meat snack section to help with that. We’ve brought in bigger open-air coolers so we can put in more of those meat snacks that have to be kept refrigerated, offering salads and yogurts and stuff.
Ulie: So, you’ve been doing a lot. Along with this comes signage?
Bowman: That’s probably an area that we haven’t done a real good job of is just dedicating, “Hey, this is for the GLP-1.” But that’s on the radar to do that.
Ulie: Any trends that have faded?
Bowman: It’s not necessarily a trend, but I’ve been with the company a long time, and back in the ’80s and ’90s we had probably 20 feet of space for carton cigarettes and now all that has to be behind the counter—and we all know cigarette sales are declining year after year. So, we’ve created more space. We have a whole beef jerky wall now. [You see] how the space is allocated differently now than what it was years ago.
Ulie: It evolves with what people want. Was there anything else in that area?
Bowman: I think just the notion that c-stores aren’t just gas stations anymore. They are so much more. We’re focused on foodservice and our fountain and beverage areas, and how to compete against those QSRs. I think the notion that people just come to convenience stores for their beer and cigarettes and lottery tickets, that’s long gone. And we’re just that place that they can stop and get anything, even healthier options than what they used to be able to.
Ulie: Yeah, the c-store has evolved and is evolving. And we mentioned earlier today, real quick, you said you came with the building. You used to work at a gas station 40 years ago?
Bowman: Yes. So back in the early ’80s, I was working for the business, and it was just a little gas pumper, and Rhodes came in and bought that business and they offered me the manager job of that store. So, I always tell people I came with the building.
Ulie: That’s funny. What town was that in?
Bowman: In Ste. Genevieve, Missouri.
Ulie: Which is where you grew up?
Bowman: Yes. About 60 miles south of St. Louis.
Ulie: Anything else that we haven’t discussed that you wanted to mention?
Bowman: We talked about trends. I think there’s a section of products, the THC items, that we’re all kind of keeping our eyes on. I think for us, we’re waiting on regulations.
Ulie: Is it legal in Missouri?
Bowman: It is.
Ulie: There’s gray area, right?
Bowman: It’s a very gray area.
Ulie: It depends on each specific product probably.
Bowman: Yes.
Ulie: It gets complicated.
Bowman: Yeah, mostly in the drinks. A lot of the beer companies are bringing in these items. They’re just THC beverages. So, we’re just waiting. I think we’re waiting to see if there’s going to be some legislation and regulation from the FDA coming.
Ulie: That’s more clear-cut?
Bowman: Yeah.
Ulie: So, right now, Rhodes does not carry anything?
Bowman: We’re not.
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