When it comes to learning, the power of peers is unequaled. Who better to learn from than the real-world insiders and retailer superstars who are shaping our industry’s future? There’s no other gathering, workshop or school on Earth that can match the three days of educational opportunities found at the NACS Show. Take a look!
A Positive Shift
If the session name (Oh Shift!) didn’t pull you in, then Jennifer Powers’ humor and wit did. Powers’ session, “Oh Shift! How to Change Your Life with 1 Little Letter,” entertainingly coached attendees into shifting challenges into positives.
Powers, a master certified coach, speaker and author of Oh Shift!, coaches individuals toward improved confidence, allowing them to live and work at their full potential. During her session, Powers offered a fresh perspective on shifts that stick.
“Use your words,” Powers said. “Words give you power and control over how you feel and attract positivity in your world. We are so powerful with our words. But we’re not using them enough. And they’re free!”
It’s Cold Out There
Thanks to the exponential growth in non-alcoholic beverages, craft beer and mixed alcoholic drinks, today’s cold vaults look dramatically different from those of 20 years ago.
Attendees took stock of today’s infinite choices, while looking at trends and research that can help them build their own cold vault. Kim Cuellar, Ph.D., category manager for beer and wine at OnCue Marketing LLC, led a panel of speakers who provided much of that data during the session, “Cold Vault: Trends and Takeaways.”
To help retailers design cold vault sales and space in the coming years, Cuellar enlisted Sara Hillstrom of Anheuser-Busch InBev, Brett Gilliam of MillerCoors, Damian Marano of Docklight Brands, Chris Schmidt of Monster Beverage Company and Michael Yager of Coca-Cola.
According to NACS data, 24% of all packaged beverages are sold in c-stores. Non-alcohol, including beer, represents 22% of all inside sales, and there are 1,400 new, non-alcohol beverages introduced each year.
Water leads the non-alcohol segment. According to Cuellar, three-fourths of Americans prefer water, and kids are choosing water over soda and juice, thanks to some “cool new packaging.” Cuellar also expects to see continued growth in plant-based milks. In the alcohol segment, everyone is talking about seltzer. Whether trend or fad, the key to designing the right cold vault, according to the panel, is to strike a balance in what you have to offer.
Culture Change
Every organization has a culture, good or bad. Tips and tools for improving your company culture were the focus of the session, “Culture: Make Your Workplace a Great Place to Work.” Joanne M. Loce, managing partner at Fortify Leadership Group, and Bob Huebner, president and founder of 200Mark Consulting, led the session.
“Workplace culture is central to how things get done in any organization and how people interact with each other,” said Loce. “From recruiting top talent to improving employee satisfaction to serving customers, it’s the backbone of a happy workforce.”
It’s easy to talk about workplace culture, Huebner said, but the first step is understanding your current culture. What do you currently expect of your employees, and what do you accept from them? And chances are you won’t need to change your entire workplace culture. Some aspects might already align with your vision and your workplace goals. For example, your organization may have lower-than-average turnover rates because your employees like the culture, or your employees may carry a sense of pride and enthusiasm for the company and work that is accomplished.
Find those areas that you think might not be serving your business and then determine how you, as a leader, can exemplify that culture shift on a day-to-day basis. Cultures that thrive have leadership support, champions throughout the organization and people who believe in what is trying to be accomplished.
Food Served Fresh … and Safe
Having a series of checks and balances in place even before food hits the shelves is key, according to a panel of food safety experts who led the session, “Food Safety Roundtable: Protecting Public Health and Your Brand.”
“Food safety is not an option. Erring on the side of extreme caution can remove most hurdles and questions associated with ‘what to do and when,’” said Ryan Krebs, director of foodservice at Rutter’s.
Krebs was joined by Kwik Trip Inc. Senior Director of Food Protection Jay Ellingson, Ph.D.; Food Safety Magazine Editorial Director Barbara VanRenterghem; and Cumberland Farms Food Safety Director Jeremy Zenlea.
The four analyzed food safety practices and identified steps all organizations should take to overcome food safety challenges. Attendees broke into roundtable groups to discuss and share collaborative solutions to food safety challenges.
Certain risk factors can jeopardize any operation, including purchasing food from unsafe sources, failing to cook food adequately, using contaminated equipment, having poor personal hygiene and holding food at improper temperatures.
Zenlea said the cornerstones of Cumberland Farms’ food safety system are prediction, prevention and reaction. One of its food safety initiatives includes the use of predictive analytics for significant food safety events.
The Technology of Convenience
Ed Dzadovsky, vice president, North America IT, Circle K Stores Inc., and Gray Taylor, executive director of Conexxus, gave a snapshot of the current state of technology during the education session, “Conexxus Technology Roadmap.”
Top 5 Most Attended Sessions
1. CBD, Hemp, Edibles: What Retailers Need to Know About This New Category
2. Exploring the Store of the Future
3. Culture: Make Your Workplace a Great Place to Work
4. Cannabis, Marijuana, CBD: The Practical and Legal Outlook
5. First to Market: Getting New Product on Your Shelves
The digitized consumer has a sky-high expectation when it comes to convenience. In a world where convenience is king, where does this put convenience stores? “We sell time, we don’t sell Twinkies,” said Taylor. “How can I help my customer to have a friction-free life, not just a friction-free store experience?”
To improve convenience, the industry must rely on technology. He used Alibaba, the multinational conglomerate, as an example of a company that has embraced technology to push ahead of the pack. Their operating theory: Automate all operating decisions. They “datafy” every exchange. They “software” every activity.
If the future of technology is artificial intelligence (AI)—and it is—the focus right now should be collecting data. “We don’t have enough data to make AI worthwhile right now,” Taylor said. “That’s why we need to datafy.”
One of the biggest obstacles to technology is about buy-in. “We need more business experts who understand computer science,” said Taylor. “The next generation of CEOs understands technology because they grew up with it. What keeps them up at night is how do we keep up the pace and out-innovate potential competitors?” Taylor said.
High Times
Today, only a narrow set of hemp-derived cannabidiol (CBD) products can legally be sold by retailers. Nonetheless, many retailers are taking the risk to sell other hemp-derived CBD products and even marijuana-based products. In the session, “Cannabis, Marijuana and CBD: The Practical and Legal Outlook,” a panel of experts discussed the legal ramifications of dabbling in this product category; the FDA’s future approach to foods, dietary supplements and body care products made from cannabis derivatives; and whether employers can maintain drug testing and substance abuse policies.
The risk presents a host of retailer banking, insurance and tax challenges, said Scott Sinder, NACS general counsel and partner at Steptoe & Johnson LLP. Sinder reminded retailers that federal law classifies marijuana as a Schedule 1 drug, the same classification as heroin and LSD.
Because federal restrictions on marijuana use are likely to end eventually, a number of bipartisan bills in Congress present another set of challenges for convenience store employers. The bills address everything from requiring the federal government to recognize state legalization measures to fully legalizing marijuana on the federal level. If and when cannabis products can be sold in retail outlets, how can employers ensure their staff adheres to a substance abuse policy? And how can employers set fair policies regarding medical marijuana use?
“My clients come to me with questions all the time about whether they can test for marijuana or enforce a zero-tolerance substance abuse policy,” said panelist Steve Bernstein, a partner at Fisher Phillips and co-chair of the firm’s labor relations practice group. “It’s far from clear how employers should deal with this on a universal level because every state seems to be treating it differently.” Retailers can be proactive, he said, by monitoring developments and updating policies based on their local jurisdictions.
And the FDA is still deliberating how to regulate CBD in food, beverages and other consumer products. “Because the Federal Food, Drug and Cosmetic Act (FD&C Act) has not yet approved any ingestible products (foods and beverages) containing CBD or any topical products containing CBD for which a health claim is made,” Sinder said, “technically, the sale of these products is not permissible.”
Maximize In-Store Sales
One mistake convenience store operators make is thinking like a convenience store, according to Lonnie McQuirter, director of operations for 36 Lyn Refuel Station in Minneapolis and a panelist at the session, “First to Market: Getting New Product on Your Shelves.”
“If you want to create an experience your consumers are going to remember and make the effort to come back,” McQuirter said, “you must put more effort and thought into what new items you offer, where you place them in your store and how you display them.” Think like a consumer, McQuirter said.
Jared Scheeler, CEO of The Hub Convenience Stores Inc., a set of four stores located in Western North Dakota, offered sage advice for even the smallest retailers. According to Scheeler, some single-store, independent operators “struggle to find the right resources and information” about product merchandising.
Both McQuirter and Scheeler agree that small, independent operators can set themselves apart by carrying specialized products, such as those sourced from local vendors.
Scheeler suggests forming strong relationships with distributors and manufacturers to get good feedback on what’s trending in your marketplace, what new products are on the horizon and what time- or event-based products might sell well at your store. McQuirter suggests connecting with smaller, more localized vendors that can fulfill a particular category need but are doing it in an innovative way.
And, don’t forget to equip your frontline employees with information to help you move the new product in your stores. Scheeler integrates new product education into his extensive employee training program. McQuirter invites employees to sample all of the products so they can form their own opinions about each item.
No Butts About It
Despite sales erosion, cigarettes continue to be the reigning champion of in-store sales for c-stores. In “Evolving Your Tobacco Category,” presenter Don Burke reminded retailers that cigarettes are not down for the count just yet.
“Don’t give up on cigarettes,” said Burke, senior vice president of the data analysis firm Management Science Associates Inc. “They’re still the majority of tobacco sales, even though they’re declining slightly.”
The key to maintaining and even growing your tobacco category, he said, is SKU optimization. The premium cigarette subcategory still accounts for the majority of all cigarettes sold in convenience stores. Two other subcategories retailers should offer in their stores, Burke said, include super premium as well as deep discount cigarettes.
While cigarettes remain a top seller, Burke said convenience stores must diversify their tobacco product offerings, such as chewing tobacco and nicotine gum. “The retailers who carry a larger selection of tobacco products tend to have better sales,” he said.
Knowing what’s trending is important, but when considering new inventory, Burke encourages retailers to do some detective work. Talk to your distributors—they know what products are selling best in your market. Also, secret shop the closest dollar stores in addition to other convenience stores. Retailers should be selling similar if not the exact same products.
Meals on Wheels
Convenience store retailers and companies are using food trucks to serve as test kitchens for new menu items and concepts or to introduce freshly prepared food in a market where people may be hesitant to try convenience store food, according to Shane Flynn, managing director of Aramark Northern Europe and the presenter at the session, “Making Money with Food Trucks.”
Aramark uses food trucks to tap new markets through business events, sports games, festivals and universities. “We have found that it’s a great way to trial products,” Flynn said. “Rather than making a big investment and infrastructure change, it’s an interesting, relatively low-cost way to try new concepts. If your offerings test well, then you can be more confident in moving the concept into your store.”
C-store operators can turn to food trucks during times of peak store traffic, to sustain business during a store refurbishment or to reach new customers. And with integrated marketing and promotions, retailers can ensure the food truck becomes an extension of their store brand as well as a brand that consumers seek out. And despite the small space, “this is still a kitchen,” Flynn said. “You need a good, robust supply chain, a simplified menu and the right controls in place to make this work.”
Limited storage space, maintaining food safety and cross-contamination are common risks associated with operating a food truck. You can avoid some of these pitfalls by making sure your menu is simple. “I can’t stress simplicity enough,” Flynn said, “especially when a food truck business is just starting out.”
Take the Learning Home
Can’t remember everything you saw and heard during the many education sessions you attended at this year’s NACS Show? Was there one education session that was so wonderful that you want your team to benefit from learning it firsthand?
Education sessions (audio and presentation decks) are available for purchase either individually as a single session or as a package of recordings. Visit www.nacsshow.com to order.
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