CHICAGO -- With the collective brain power of the attendees at NACS’ 2016 State of the Industry Summit in Chicago, insights and prognostications ran deep into convenience-store operations and beyond. Here are some of the more inspiring revelations collected by CSP editors.
Political Prognostication
Economic indicators—and the sentiment of NACS State of the Industry Summit attendees—suggest that Hillary Clinton will be elected president of the United States in 2016. While 52% of the retailers surveyed said they support none of the major presidential candidates, 74% expect Hillary to win.
Smartt Idea
You don’t have to be a mega-chain to produce innovation. Kevin Smartt, CEO of Austin, Texas-based Kwik Chek Food Stores Inc., is unveiling a new store this summer. The 6,100-square-foot Kwik Café & Market will feature beer and wine served by the glass and a prepared-foodservice program that will fill about half the store.
A Long Sprint
Sprint Food Stores' new 11,000-square-foot Metro Market store design in Augusta, Ga., is aiming for the high end with a diverse and ample craft-beer set, touch-screen ordering and a variety of foodservice offers, including hot dogs, prepared sandwiches, hot and cold dispensed beverages and a gourmet-to-go section.
A Kick in the Gas
In 2015, gasoline consumption made a comeback. "In 2007, many analysts believed [gas consumption] had peaked. We would never sell that much gas again. Not true—we're catching up," said RaceTrac Petroleum president Billy Milam.
Wage Engaged?
When asked how they are addressing increasing turnover in this environment of improving unemployment, only 15% of attendees at the SOI Summit said they were raising wages. Instead, the majority said they were focusing on employee retention efforts.
On the Other Hand
Jeff Wrobel, CMO of Kwik Trip, has a different way of thinking about the cost of increasing wages: Yes, it costs money to pay people more, but it also costs money to invest and train new staff members if turnover rates are high.
Costs Are Rising, Too
Rising direct-store operating expenses—from wages (up 7.4%) to health insurance (up 12.5%), among others—are threatening to undo many of the economic gains that c-store retailers have made over the past year unless they are gotten under control, per Milam of RaceTrac.
CVS Pharmacy y mas
A CVS drug store in Miami that has fully bilingual signage and employees. It's a test for now, but odds are such a concept will do exceptionally well.
Cool Quotes
- “We are absolutely kicking butts and taking names in [foodservice].” —Billy Milam, president of RaceTrac Petroleum Inc.
- “Watch the QSRs closely, because we are both going after the same customer.” —Andy Jones, president and CEO of Sprint Food Stores
- “Wear the briefs. Walk a day in your user’s shoes. Be the customer.” —David Schonthal, clinical assistant professor of innovation and entrepreneurship for the Kellogg School of Management at Northwestern University, on advice he gave to a designer of adult diapers who didn’t know how it felt to wear them to the gym or the movies. The same words of wisdom can be applied to the c-store.
- "Millennials are 27% of the U.S. population but account for 41% of shopping trips. They are the snacking generation. Salty snacks are a great opportunity to capture these millennial grazers." —Jones of Sprint Food Stores
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