The most extraordinary structure is only as strong as its weakest link. The same principle applies in business. The higher up the leadership chain a weakness exists, the more likely the organization is to crumble.
Convenience stores’ weaknesses at any level are magnified because we are such a people business. Enter any store, and you will immediately know if the staff is well trained by the cleanliness of the store, the appearance of employees and their overall demeanor.
Managing people in a retail environment is not an easy task. Managers and storeowners must develop a well-trained and hardworking team, maintain a healthy and safe work environment, manage differing personalities, keep a cohesive schedule and so much more.
That’s why the companies succeeding in the market these days are controlled by innovators who aren’t afraid to take risks but also understand the limitations of the people they have. These leaders will not sit back and hope the team improves; they will step up and invest in the processes needed to help the team succeed. This is just one of the growing trends we are seeing in c-stores, and competing at a high level is necessary. As we advance into 2024, here are some other areas to watch to grow your business:
Getting Customers into the Store. While every fuel customer is valued, they are not necessarily convenience store customers. When you have customers on your lot, the goal becomes getting them from the forecourt to the food counter. Food is a great draw, but it’s one of several essential factors.
The standard principles apply, even in this weakened economy. You’ve got to have clean, well-lit stores. Your people have to offer excellent service, and you’ve got to have brand recognition that people trust.
In today’s age, rewards programs are vital to a comprehensive brand offering. In addition to capturing consumer data, loyalty solutions allow retailers to customize customer rewards based on previous purchases and incentivize them for repeat business. This creates a win-win scenario where retailers get more business and customers are rewarded for their loyalty. Offers like reduced fuel pricing, complimentary beverages and foodservice items and overall basket discounts are examples of successful reward offerings.
Rewards programs also enhance the customer experience, establishing brand loyalty and opening communication channels to engage customers directly. A carefully crafted rewards program presents an opportunity to drive targeted customer behavior, getting them to visit more often and increase their purchases, ultimately driving a return on investment for the brand.
The Hiring of Employees. Many stores have been unable to find and keep a full staff since the beginning of the pandemic, leaving challenging operations to fall on fewer shoulders. Retail stores had to adjust business hours or department offerings simply because there were insufficient workers.
Most companies relegate the responsibility of hiring new employees to store managers, who need more human resources training. They are often encouraged to overlook imperfections in potential new hires to attract more bodies into the stores.
Top-quartile chains are much better at hiring, but not everyone operates at that level.
A centralized human resources office should play a vital role in hiring. Recruiting, training, and hiring are team sports. Instead of treating hiring as an HR function exclusively, the most successful companies view employee selection as a leadership function supported by corporate HR. Everyone has a role, and under this framing, hiring
managers communicate and make hiring decisions swiftly, while HR supplies talent and
facilitates the process.
Everyone, from the top down, needs to be in the habit of generating talent through networking and referrals. Since there are never enough qualified candidates, savvy leaders have realized they can’t engage in the old way of hiring that involves keeping a job open until the right person shows up.
Influential leaders have made accurate hiring a strategic imperative. They require managers to engage in a new way of hiring — actively cultivating talent and then waiting for the right job to become available. So, if you see a great employee at a restaurant, ask them what their goals are and if they have plans for the future. Try to recruit them with a leadership plan. Employees appreciated being recognized for their hard work. Your next great leader may be working at the store across the street.
Elevate Your Training. Because of the overwhelming need for frontline talent and a lack of candidates, many c-store employees receive little or no training. As a result, their on-the-job training comes from other untrained employees who care little about your corporate culture aspirations and have probably never considered what value, if any, they are bringing to your team.
All new employees should undergo a probationary training process of at least two weeks before they are ready to be alone in a store. This gives the manager time to evaluate a potential employee before asking him or her to formally join the team. It also gives the employee time to determine if this is a job they want to keep. At the point of acceptance, the trainee feels like they have passed a milestone, and being formally accepted into the team comes with a sense of accomplishment.
Confidence makes responsibility possible, and responsibility must be earned, not given, because responsibility earned improves character and peer respect.
Drive Customers with Retail Promotions. For many c-store chains, promotions are always driven by suppliers and centered on new products, which is excellent for c-stores but can be limiting in new opportunities when you’re trying to create excitement on a daily level.
No one knows your customers like you do, so work with suppliers, including your loyalty provider, to develop effective and timely promotions. These promotions are more targeted and can be strategically deployed to boost traffic during slow periods, increase customer spending or even win back lost customers. Promos should be designed to influence buying behavior and introduce an element of fun for your loyalty members with one-off interactions that create urgency and drive sales.
This is especially true in these current economic times. In a weakened economy, the trade-off between convenience and price swings away from c-stores, making it imperative that c-store operators ramp up the value side of the equation.
The good and bad news about the economy and fuel prices is that in an economy pushing people to be more price-conscious, c-stores are a little vulnerable. However, when gas prices are high, c-stores are more convenient than the local grocery store, which helps drive in-store traffic. While c-stores can’t outprice their grocery competitors by a significant margin, price points are less of a concern for customers who feel welcome and whose needs are met by what the store offers.
Elie Y. Katz is the CEO and president of National Retail Solutions (NRS).