From the start of the COVID-19 pandemic, as regulations changed, shopping trends evolved with them, affecting supply chains and c-stores’ overall operations.
“There were a lot of limitations on purchases that consumers could make,” said Keith Daniels, partner at Carl Marks Advisors, which provides financial and operational advisory services. “That was being felt in convenience stores, as well.”
He pointed to the recent meat shortage as an example.
“What caused a lot of supply chain issues was just consumer demand,” said Daniels. “It was a combination of consumer demand on certain products that escalated, but also the plants for the vendors shutting down. That caused the supply chain disruptions, and to be able to find drivers that deliver a product, as well, was a bit of a challenge there.”
Ryan Arnold, vice president of marketing for Rockford, Ill.-based Road Ranger, which operates 40 locations across the Midwest and Texas, said the chain felt some of these effects.
“Tightness in distribution and complete inability to secure product are certainly topics that have come up much more often the past four months than ever before,” he said.
But there have been bright spots, as well, with many suppliers quick to bring solutions for their c-store partners and customers.
“Certain partners have been unable to meet needs, and other emerging partners have risen to the occasion with creativity and ingenuity, helping us to fill gaps and securing a seat at the table they otherwise wouldn’t have had longer-term,” he said.
He credited Road Ranger’s category managers for finding non-traditional suppliers to meet new demands like cleaning
and sanitation products, which helped the chain offset other sales losses.
Road Ranger CEO Marko Zaro noted that in-demand products may vary by store location; it’s not a one-size-fits all approach, especially for a company that crosses state lines.
“We cover a wide geography, near the most northern borders of our country down to the most southern,” he said. “Broadly, patterns and trends have been witnessed everywhere; however, different communities’ differing positions in the cycle of the pandemic have caused us to have to continue to think locally and really operate each store on a store-by-store basis.”
In some cases, Road Ranger has worked to fulfill the ‘grocery store’ need, Zaro said, especially when it had products in-stock that grocery stores didn’t.
“Of course, we’re selling more of the types of things people need when at home,” he said.
Meanwhile, Cerria Humphrey, supply chain analyst for Temple, Texas-based CEFCO Convenience Stores, which operates more than 200 locations in six states, said the chain has seen minimal disruption.
“Over the course of the past few months, we have seen very little disruptions within our supply chain,” she said. “We have been fortunate to have continued growth in partnerships as we expand.”
The chain recently opened a new store in Nolanville, Texas, — its second ground-up build in 2020 — with several more in the works.
New Opportunities
Overall, Humphrey said CEFCO’s biggest focus has been on the safety of its customers and employees.
“Our largest opportunity right now is to practice the recommendations: wearing PPE, social distancing and being aware of the symptoms,” she said.
Humphrey also recognizes an opportunity for the c-store industry to “come together, learn and develop with the changes in retail.”
“As with all areas of retail, I do believe there are changes that have begun and more to come, specifically in cleaning processes, food handling and packaging,” she said.
COVID-19 has also proved a catalyst for technology adoption, from app-based payment and ordering to third-party delivery.
“The consumer is becoming much more receptive to that technology and utilizing it,” said Daniels.
And c-stores have been quick to adapt, including Road Ranger. Zaro said he sees third-party delivery as “a new, relevant sales channel” for the chain.
While he expects to see long-term, even permanent effects on the industry, from increased cleaning to tech usage and beyond, Daniels believes we’re past the peak of supply chain disruption.
“The worst of it is behind us — with the caveat that, should the COVID-19 spread continue to increase and force us to shut down again, that would put us back behind the curve again,” he said. “But for the most part, so many things continued to remain open, and things should be getting back in stock. I don’t see a reason why that would not continue.”
Going forward, Zaro hopes customers will remember the essential role that Road Ranger and the convenience industry have played during the pandemic.
“Our customers look to us for more than they did before,” he said. “We are working exhaustingly not to let them down, and it is our hope and objective they recognize that and keep looking to us in these ways permanently.”