Technology/Services

Cheap & Easy or Expensive & Greedy?

How consumers view the convenience-store industry

MIAMI -- Ask consumers to define the "perfect" convenience store, and terms such as "cheap," "easy," "convenient" and "clean" come up. Ask them to describe a typical store and, after acknowledging convenience and speed, the answers are more likely to be some variation on "expensive."

Such are the conclusions drawn by NACS' latest Consumer Fuels Report unveiled during the NACS Leadership Forum held in Miami this past week.

"While we have made great progress as an industry, there are still perceptions out there that we have not made enough progress," said Jeff Lenard, vice president, industry advocacy for NACS.

The results of the survey led a discussion of how loyalty programs and other ways to think about customer loyalty can go a long way to improving those perceptions. "Customers today really expect a Disney experience at a Walmart price with the Amazon inventory," Lenard said. "That's the competition; it's not other convenience stores."

Many of those poor perceptions are driven by emotion rather than rational thinking, Lenard suggested. "People know how little retailers make per gallon; they get that retailers aren't owned by big oil," he said, "but when push comes to shove and you push aside the logic, emotion always wins. When you're looking at $4 gas, it's really important to understand that dynamic."

That may go a long way in explaining why, when NACS asked consumers what word first comes to mind when they think of gasoline retailers, the most prominent responses included "greedy," "money," "price" and "expensive."

Similarly, when asked what word best describes food at convenience stores, the most prominent consumer responses included "expensive" and "junk."

To that end, NACS president & CEO Hank Armour began the final day of the Leadership Forum, operating under the theme "Visions of the Future," underscoring the goals of NACS' Nutrition Campaign.

Outlining current and pending federal regulations, such as menu labeling, and the beliefs of the First Lady's battle against food deserts, Armour said, "Michelle Obama is not our friend."

The nutrition campaign aims to change that.

"This will be a long-term campaign to change the dynamic of how people think about our stores."

The campaign aims to:

  • Provide broad-based advocacy.
  • Get the facts right.
  • Align the industry.
  • Tell the industry's story.
  • Develop the tools retailers need to tell their story.

"Our aim is that by putting together some compelling information, Michelle Obama will see what we really stand for and what we really do."

Kraft CEO Irene Rosenfeld then closed the forum by sharing her vision of the ongoing Kraft realignment and the company's evolving product offer. She also shared her leadership lessons and advice.

The NACS Leadership Forum brings together a broad-based group of convenience retailers and suppliers to provide thought leadership relevant to the industry, strengthen existing relationships and build new business relationships.

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