The 2023 NACS Show resumed for its third day at the Georgia World Congress Center in Atlanta, Ga. Both retailers and supplier companies flocked to the convention center to share their thoughts, opinions, advice and findings from their experience in the c-store industry.
New C-Store Formats and Design
In a session titled “Designing the Next Generation of Convenience Store Formats,” panelists Bradley Chivington, senior vice president of retail at High’s, and Amy Wood, director of enterprise IT at Friendly Express, discussed labor, self-checkout, foodservice, electric vehicles (EVs), theft and more.
Labor
Labor has been a common theme thus far at the NACS Show, with many retailers facing difficulties in the ever-changing c-store industry.
Changes in legislation regarding minimum wage requirements is certainly a concern for many retailers, including High’s, which loses about $1 million a year due to minimum wage changes, Chivington noted.
Another common theme that retailers have been struggling with is employee retention, as turnover rates continue to give c-store operators problems.
“It’s not just getting employees in the door — it’s getting employees that actually want to work,” said Chivington.
The solution to this problem is anything but simple, however High’s believes that it starts from the management, which has seen steadier employment retention when compared to cashiers and other entry-level workers. One solution that Chivington recommended was doing surveys and roundtable meetings with managers, a practice that High’s has implemented successfully.
With a team that spans from 16-year-olds to senior associates, High’s has observed that the thought process and approach to work across this wide demographic can vary greatly.
Wood has noticed a similar trend at Friendly Express, with manager retention remaining steadier than associate employment retention.
At Friendly Express, the managers are responsible for hiring associates. After the associates are hired by the managers, they are put through a two-day training program that is provided by a Friendly Express partner. The partnership is changing rapidly, however, as it will be scaled down to a mobile format that can be accessible to employees long after their training date. Therefore, employees will be able to access training modules and videos if a problem arises after their original training sessions.
This is one of many examples of unique employment solutions that can make employees feel more comfortable and prepared for what their job may entail.
Self-Checkout
When it comes to self-checkout, Chivington does not see it as an elimination of labor, rather a redistribution.
He noted that it begs the question: “How do we redeploy that labor?” With self-checkout freeing up space for other tasks around the store, Chivington believes that the technology should be used to amplify the store experience not only for customers, but for employees as well.
At Friendly Express, the term self-checkout is not used — rather it is replaced by the term “employee-assisted checkout,” thus reframing the offering not as a solution to labor, but rather as a shift in responsibility for employees.
Foodservice
What seems to be the talk of the NACS Show is foodservice, as c-stores continue to compete more and more with traditional QSRs.
Wood noted that an important aspect to consider is space — not all foodservice programs will work at all locations, for a variety of factors, but chief among them being room in the store. She noted, for example, that Friendly Express offers a full deli at some locations, but not others, due to limitations in the physical space of the store.
Chivington shared similar beliefs, mentioning that foodservice options and site optimization should be based on building size, traffic count, parking spaces and other considerations. He believes that foodservice offerings should be unique and based on the store.
EV Charging
Another increasingly prevalent technology trend discussed at the educational session was EV charging.
At High’s, Chivington reported that the chain currently has one location with EV charging capability.
“(EV users are) a different animal than the fuel consumer,” he mentioned.
With the current High’s EV location, Chivington noted that it is currently being used to “test and learn,” as the chain prepares for the future.
The question, he said, is whether or not an EV charging station is the best use of space in a retailer’s parking lot.
Friendly Express, on the other hand, does not currently offer EV charging at any of its locations. It is something that is being discussed, Wood noted, but it is not something the chain is “urgently pursuing.”
Theft
Both Friendly Express and High’s have experienced theft, just as the majority of retailers across the country have.
Friendly Express recently partnered with Tobacco Tracker, an AI-powered solution that monitors the movement of tobacco products from the backbar to the point-of-sale (POS).
Impulse Purchases
In a subsequent educational session titled “Hot Takes: Impulse Strategies for Modern Convenience Retail,” panelists David Prevost, director of operations for Wawa, Sean Sharpe, category manager of food and hot beverages for Murphy USA and Nate Brazier, president and chief operating officer for Stinker Stores, talked marketing strategies, technology, loyalty and tactics for increasing impulse purchases.
Prevost kicked off the session by stressing the importance of having an effective social media presence, but also noted that it is necessary to deeply understand your audience. On the other hand, he noted that human interaction is something that cannot be forgotten in the age of technology.
“There is no technology out there that can replace the value of human interaction,” said Prevost.
Sharpe mirrored those thoughts, and added that loyalty apps can be a tool for retailers when it comes to understanding and targeting consumers.
Loyalty
When it comes to growing basket size, Sharpe mentioned, loyalty programs and apps can be very beneficial for retailers looking to grow relationships with their customers.
“(Loyalty programs) really need to be relevant to the consumer,” he said.
Wawa, which recently relaunched its its mobile app, has transitioned from giving consumers specialized offers to letting them select the offers themselves. Prevost noted that this new strategy has led to a more engaging and customer-centric approach for the chain.
For Stinker Stores, Brazier believes that the key to this customer-centric approach is personalization.
The goal, he noted, is to answer the question: “How do we take this and make it a personalized experience for all of the customers coming in?”
If you are able to answer that question correctly, Brazier said, it will inevitably lead to increased basket size and stronger customer loyalty.
Driving Impulse Purchases
A key factor in leveraging in-store sales is the idea of impulse purchases. In order to increase the chances of customers impulsively purchasing products, Prevost said, retailers really need to understand their customers.
To do this, operators can create plans and highlight offers based on the data received from past purchase history, which increases the likelihood of customer loyalty. Even simple solutions like moving products to different spots on the shelf, he noted, can make an immediate and drastic change.
Sharpe held similar beliefs, and noted that retailers need to consider how their customers shop and create value through the eyes of the consumer.
Prevost also mentioned that while your digital presence is very important, customers still “shop with their eyes,” so merchandising in-store is just as important as mobile offerings.
When it comes to loyalty at Stinker Stores, Brazier mentioned that the real test of loyalty is frequency, meaning repeat customers. Those customers can then be rewarded based on the frequency of their visits.
Lightning Round
In the following portion of the educational session, the panelists answered “rapid-fire” style questions.
Q: Dollar Stores versus QSRs, which is scarier?
Sharpe: QSRs
Prevost: QSRs
Brazier: Dollar Stores
Q: Kill one: Sweepstakes, punch cards or coupons.
Sharpe: Punch cards
Prevost: Punch cards
Brazier: Sweepstakes
Q: Self-checkout, mobile app or third party app — keep one.
Sharpe: Mobile app
Prevost: Mobile app
Brazier: Mobile app
Which retailer are you most jealous of?
Sharpe: Retailers that are fully integrated in their food business.
Prevost: Mom and Pop shops.
Brazier: TXB
The NACS Show will continue through Friday, Oct. 6.
