The NACS Show resumed on Oct. 4 with the continuation of educational sessions put on by industry professionals and experts.
Fuel Retailer Highlights
In a session titled “2023 Fuel Retailers of the Year,” award recipients Sheetz and OnCue were represented by Scott Minton, director of business development for OnCue Marketing, and Brian Renaud, director of retail fuel pricing and analytics for Sheetz.
In the session, both Minton and Renaud discussed current industry trends and challenges that retailers may encounter when it comes to fuel retail.
“The challenge there is really just educating folks,” said Renaud.
Renaud noted that there are a multitude of options available when it comes to fuel, including ethanol-based, low-carbon and alternative diesel, among others. The challenge, he said, is making sure that customers are informed about those options, but not overwhelmed.
One way to accomplish this, he said, is to leverage a mobile app and promote it to customers. This applies to all technology, not just fuel.
Technology, for instance, which is inherently ingrained in the development of a mobile app, can be a major asset when it comes to determining what a retailer’s customer base wants and needs.
Renaud mentioned that technology can be a way to determine the question: “What can we do to satisfy our customers’ needs?”
Renaud also noted that when it comes to fuel, he is “bullish on renewable diesel,” but as long as it can be offered at a lower price point in the future. While leveraging renewable diesel, he also wants to lean into higher-ethanol blends and other alternative options, with 425 Sheetz locations currently offering Unleaded 88 fuel.
OnCue representative Scott Minton shared many of the same beliefs, with more of an emphasis on making OnCue locations a unique retail experience.
OnCue has been increasingly considering alternative fuel at its locations, as it has already upgraded two EV sites and is looking into upgrading more soon.
The chain is also in the permitting process for a hydrogen solution, Minton noted, in addition to blended and Compressed Natural Gas (CNG) offerings.
He also mentioned that using a mobile app is incredibly important for fuel sales. OnCue currently uses the Phillip 66 mobile app for fuel deals and offerings, which integrates into the OnCue app.
Another point of discussion was the future of fuel, and what it may look like going forward as gallon sales continue failing to reach the levels that we saw in 2019, before the COVID-19 pandemic.
“As we move forward, the industry will see fewer gallons, but the best retailers will increase or maintain their gallons,” said Minton. “America is best at innovating when we have to.”
Minton also noted that retailers will continue to innovate, whether than comes in the form of alternative fuel, EV charging or other solutions.
As discussions of innovation and technology continue, one form of technology that has been virtually unavoidable at NACS talks thus far is EV charging.
EV Charging
At a session titled “The Business Case for EV Charging,” speakers Scott Sharabura, vice president, EV charging at Parkland Corp., and Scott Shepard, director for the EV Program at the Research Center for Sustainable Energy (CSE), discussed the current EV market.
Parkland, which operates close to 4,000 locations, has completely built its own EV network. All sites in the network feature fast-chargers that mainly serve roadtrippers and urban areas.
Sharabura noted that Parkland originally started the network through a partnership with Tesla, and then expanded with a model that integrated other EV charging networks. After that, the company began implementing its own sites and chargers, but were still part of other networks. Eventually, Parkland began to build its own network, which is how it remains today.
One important aspect to consider in the EV conversation is location, and where retailers should look when trying to implement EV chargers of their own.
A question to consider, Shepard noted, is: “Where are there going to be people that need services outside of their home?”
Additionally, retailers should consider the proximity of other EV chargers, and note if there is a disparity or an excess of charging stations. To fully take advantage of siting for EV charging stations, Shepard said, operators need to dig through the data and capitalize on the results.
“As long as you are putting in effort to be active in that space, the next step is grabbing that data and crunching it,” he said.
The next thing to consider is what to do once the charging station is implemented. Many customers spend around 30 minutes charging their vehicle, even with a fast-charger. Therefore, both Shepard and Sharabura emphasized that amenities in-stores are extremely important to have for while the customer is charging, with foodservice being the most important.
Retailers have a unique opportunity with EV users to drive in-store sales, and not having a foodservice program or an extensive snack section can lead to retailers missing that opportunity.
The NACS Show will continue through Friday, Oct. 6.