Strategic merchandising is an essential tool for increasing basket size and share of wallet. Customer time spent in-store at convenience stores isn’t usually long, and retailers must make the most of this time. By optimizing store layout and product placement, retailers can better their chances of higher sales and customer satisfaction.
To learn more about merchandising strategies, CStore Decisions reached out to Andrew Lee, director of merchandising and category management at Parkland USA, a division of Parkland Corp., which operates 1,976 sites in Canada and 670 in the U.S.
{CStore Decisions (CSD)} How does the store layout play a role in your merchandising strategy?
{Andrew Lee (AL)} With guest visits lasting only about two minutes, store layout is critical to driving sales and meeting our financial objectives. A well-thought-out flow drives customer behavior, increases basket size and enhances the overall guest experience. We design layouts to guide customers naturally through key sales-driving categories — like coffee, fresh food and snacks — before reaching checkout. High-impulse categories and displays are strategically placed in high-traffic locations for added exposure, while destination categories like beverages and packaged goods are placed deeper in the store to encourage more browsing.
{CSD} How do you prioritize high-margin vs. high-turnover items?
{AL} It’s a balancing act. We build our sets to maximize profitability without sacrificing guest traffic. High-turnover items are competitively priced to serve as traffic drivers, building guest loyalty and return trips. However, we aggressively feature and promote high-margin categories — like fresh food, candy and dispensed beverages — through secondary displays, suggestive selling at checkout and promotional bundling.
{CSD} How often are product assortments reviewed or refreshed?
{AL} We conduct formal assortment reviews twice a year — typically aligned with our spring/summer and fall/winter resets. In addition, we monitor performance monthly to identify slow movers and use manufacturer insights and trend data to spot emerging opportunities that may warrant mid-cycle adjustments. Staying nimble is key in convenience retail.
{CSD} What data is most helpful in making merchandising decisions?
{AL} Syndicated sales data and point-of-sale sales data are our primary tools — both at the chain and market level — but we also heavily rely on market trends, seasonal projections and margin contribution reports to guide our decisions.
{CSD} How can common merchandising mistakes in c-stores be avoided?
{AL} The biggest mistakes usually stem from overcomplicating sets or not providing clear execution direction to the stores. To avoid this, we ensure our planograms are simple, executable and built with replenishment efficiency in mind. We also train our store teams to maintain full, fresh and front-facing displays daily — because an empty or messy shelf is a missed sales opportunity.
{CSD} What are some key considerations when working with vendors on planograms and promotional displays?
{AL} Collaboration is key. Vendors bring valuable insights, but the final planogram must prioritize our guest experience and operational simplicity over individual brand objectives. We ensure vendors understand our space limitations, guest demographics and category strategies. Displays must be flexible, easy to maintain, and contribute to both sales and margin goals — not just the vendor’s targets.
{CSD} What other tips do you have for c-store retailers on merchandising?
{AL}:
Andrew Lee, director of merchandising and category management, Parkland USA
- Think like your customer. Walk your stores daily and experience them as a guest would.
- Keep it fresh. Rotating displays and introducing newness regularly keeps customers engaged.
- Focus on execution. Even the best plans fail without disciplined execution — stores must be consistently full, fresh and clean.
- Simplify the message. Promotions and displays should feature clear, simple signage. A confused customer rarely buys.
- Celebrate wins. Recognize store teams that excel in merchandising — great execution starts with motivated people.
