Retail Merchandiser Nov~Dec 2016

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EDITOR’S LETTER

Show Your Team Spirit

The holiday shopping season is rapidly approaching. There’s a chill in the air, holiday decorations are already going up and retailers are preparing for the influx of shoppers. But here in Chicago, where RM is based, people are only thinking of the Chicago Cubs winning the World Series for the first time in 108 years.

Even days after the final game, fans are clad in blue Cubbies gear, and the excitement is palpable everywhere you go.

Luckily for sports merchandise retailers and licensors, the Chicago Cubs’ win means a significant boost in apparel, accessories and other Cubs gear.

Slice Intelligence, an e-commerce research firm, analyzed receipts from online purchases from a national panel of 4.4 million people from April 1 to Oct. 21 and found that retailers sold five times more Cubs merchandise this season than that of the average MLB team.

According to Fanatics – the market leader in officially licensed sports merchandise – Cubs gear sold $30 million online within the first 24 hours of clinching the World Series. In addition, Cubs gear reached record-setting numbers with $70 million in retail sales within the first 24 hours after they were heading to the World Series.

Retailers wanted to cash in on the craze, so many stores upped their prices, knowing fans would pay almost anything – and they definitely did. After all, when fans are paying more than $3,000 for a ticket to the game, paying $30 for a t-shirt or nearly $40 for a cap likely seems cheap.

Licensed sports products and memorabilia are always in high demand, no matter the season or sport. Fans want to show their support for their favorite team, athlete or university, which is a prevalent theme throughout this issue of RM. Read on to get a sneak peek of the new at-track NASCAR shop from Fanatics in “The Look.” Fans can shop more than 5,000 products at these Trackside Superstores. In addition, two prestigious universities with voracious fans – from students to alumni alike – discuss their

EDITORIAL -------------------------------------------------------------------EDITORIAL DIRECTOR John Krukowski jkrukowski@khmginc.com (312) 676-1125 EDITOR-IN-CHIEF stephanie.crets@retail-merchandiser.com

EDITORS Staci Davidson, Alan Dorich, Jim Harris, Bianca Herron, Janice Hoppe, Tim O’Connor, Chris Petersen, Eric Slack

Licensed sports products and memorabilia are always in high demand. Fans want to show their support for their favorite team, athlete or university.

licensing efforts. Michigan State University wants to give students, staff and alumni the opportunity to show their school spirit year-round, while The Ohio State University engages its wide breadth of fans through a plethora of licensed products.

But there’s more to this issue than sports. Several exciting retailers are featured, including Foot Locker, Steve Jackson Games, Market Basket and Luminex Home Décor and Fragrance. Plus, don’t miss the cover story on BrandSource – a company that helps independent retailers remain competitive in today’s evolving market. Aside from the fascinating company profiles, you’ll see all the upcoming tradeshows to mark on your calendar.

From the Winter Fancy Food Show to the Consumer Electronics Show, there’s something for someone in every industry.

Don’t forget to follow us on Facebook, Twitter and LinkedIn for additional news and live coverage of tradeshows. Enjoy this issue of RM, then get started on your holiday shopping!

DESIGN ----------------------------------------------------------------------ART DIRECTOR Erin Hein ehein@khmginc.com (312) 676-1136 DESIGNERS Joshua Beaudry, Jonathan Lyzun, Vida Soriano PRODUCTION ---------------------------------------------------------------PRODUCTION TEAM LEAD Michelle DeCeault mdeceault@khmginc.com (312) 676-1178 SALES ------------------------------------------------------------------------PROJECT COORDINATOR Tony Pelonzi tony.pelonzi@retail-merchandiser.com (978) 299-9815 PROJECT COORDINATOR rocky.pisa@retail-merchandiser.com

Rocky Pisa (978) 299-9810

PROJECT COORDINATOR jay.purcell@retail-merchandiser.com

Jay Purcell (978) 299-9873

EDITORIAL RESEARCH -----------------------------------------------------PRESIDENT Joy Francesconi joy.francesconi@retail-merchandiser.com (978) 299-9870 VP EDITORIAL RESEARCH amy.ingoldsby@retail-merchandiser.com

Amy Ingoldsby (978) 299-9862

EDITORIAL RESEARCHER jessica.basile@retail-merchandiser.com

Jessica Basile (978) 299-9882

EDITORIAL RESEARCHER michelle.fontaine@retail-merchandiser.com EDITORIAL RESEARCHER judy.kushner@retail-merchandiser.com

Michelle Fontaine (978) 299-9875 Judy Kushner (978) 299-9866

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@RMmagazine Knighthouse Publishing 100 Cummings Center, Suite 250C Beverly, MA 01915

Stephanie Crets Editor-in-Chief

November/December Volume 56, No. 6 is published by Knighthouse Publishing, 79 W. Monroe, Suite 400, Chicago, IL, 60603. POST MASTER: Send address changes to Retail Merchandiser 79 W. Monroe, Suite 400, Chicago, IL, 60603. CANADA POST: Return undeliverable Canadian addresses to Knighthouse Publishing, 7496 Bath Road #2, Mississauga, ON L4T 1L3.

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Stephanie Crets (312) 676-1264

RETAIL-MERCHANDISER.COM

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November/December 2016

| CONTENTS

COVER STORY

22 BrandSource and its independent retail members work together to improve operations and provide better choices to consumers.

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UPFRONT 16 STEVE JACKSON

GAMES Steve Jackson Games focuses on expansions and licensed products for the Munchkin card game series while it revives tried-and-true fan favorites.

19 FOOT LOCKER

Foot Locker stores are designed to engage consumers in finding shoes that make their statement and to help shoe brands tell their stories with in-store sections that appeal to consumer lifestyles.

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CONTENTS

6 6 CES PREVIEW

CES brings companies, consumers and innovators to Las Vegas for a global event of consumer technology and networking opportunities.

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HALLOWEEN & PARTY EXPO PREVIEW Halloween & Party Expo will bring retailers of all kinds to New Orleans for the industry’s most comprehensive buying event for Halloween party supplies and products.

8 RETAIL’S BIG SHOW

PREVIEW More than 33,000 industry leaders will convene in New York City for the 106th-annual Retail’s BIG Show from the National Retail Federation.

9 WINTER FANCY FOOD

SHOW PREVIEW Join 33,000 industry professionals as they explore the latest products and innovations in specialty foods at the Winter Fancy Food Show.

New & Notable

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Fanatics brings authentic, highquality NASCAR merchandise to speedways with an at-track shopping experience.

12 IN THE KNOW

When it comes to purchasing decisions, millennials know exactly what they want.

14 BY THE NUMBERS

Take a look at the state of retail, etail and m-commerce.

SOLUTION PROVIDER DIRECTORY 83 eTail West Preview

Featuring Beat Bugs, NFLPA and SLTS.

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10 THE LOOK

eTail West is the main event for e-commerce and multi-channel retail innovators.

84 Solution Provider Directory

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REPORTS

Sports & Licensing 26 SPORTS LICENSING &

TAILGATE SHOW PREVIEW Check out the latest fan and sports gear at the Sports Licensing & Tailgate Show.

28 Michigan State University

Michigan State University’s licensing efforts give its students, staff and alumni the opportunity to show their support for the school year-round.

33 The Ohio State University

The Ohio State University licenses products that help alumni show their loyalty to the university.

Retail 38 Market Basket Market Basket stands out from the crowd in east Texas and Louisiana by providing the selection and customer service that its shoppers are looking for.

46 TOPS Friendly Markets TOPS Friendly Markets has served the Northeast for generations with supermarkets centered around customer service.

54 Kid to Kid From the store sales floor to the behind-thescenes technology, Kid to Kid is different from the typcal resale segment and can adapt quickly to whatever the market conditions may bring.

56 LiDestri LiDestri creates strategic partnerships and leads the industry with innovations in products, processing and packaging.

26 58 Luminex Home Décor and Fragrance

Candle-lite and PartyLite merge under the Luminex Home Décor and Fragrance name to bring unique products to a broader audience.

62 Big Saver Foods

70 Smoker Friendly Smoker Friendly creates a welcoming environment for customers while planning to grow its liquor locations and growler stations.

74 Super King Markets

Big Saver Foods tailors its products and the store environment to its diverse customer base in all 14 California locations.

Super King Markets provides next-level service by staying abreast of its customers’ demands and hiring knowledgeable personnel to help guide them through the shopping experience.

66 Cooke’s Food Store

76 KLN Family Brands

Cooke’s Food Store’s decades of success all stem from the company’s ability to understand its customers and give them what they want.

KLN Family Brands manufactures and supplies pet food, confections and candy to retailers across the United States.

68 KARS Petro

80 Empire Petroleum

KARS Petro Distributors continues to innovate to help its customers stay competitive.

Empire Petroleum develops programs to boost sales for independent gas station operators.

Distributors

Partners

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CES PREVIEW

Where Business Gets Done CES brings companies, consumers and innovators from all over the world to Las Vegas for a global event of consumer technology and networking opportunities.

The Consumer Electronic Show (CES), taking place Jan. 5 to 8, 2017, in Las Vegas, is the world’s gathering place for all who thrive on the business of consumer technologies.

CES reaches across markets, spans the globe and helps thousands of consumer technology businesses grow and thrive each year.

It has served as the proving ground for innovators and breakthrough technologies for more than 50 years. It has become the global stage where next-generation innovations are introduced.

As the largest hands-on event of its kind, CES features all aspects of the industry. Owned and produced by the Consumer Technology Association (CTA), it attracts the world’s business leaders and pioneering thinkers. CES 2016 was a record-breaking year. Total attendance reached 177,393 people gathered from around the world to experience technology innovation spanning 2.47 million net square feet of exhibit space.

And next year will likely exceed that.

No other event gives companies this depth of exposure and reach, because there’s no other event experience like CES. It’s where business gets done: on the show floor, in and around the various conference program, in impromptu connections and in planned meetings and special events.

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CES is the proving-ground for next-generation innovators and breakthrough technology, such as 3-D printing.

In one of the main events at CES, Nissan Chairman and CEO Carlos Ghosn will deliver a keynote address on opening day of the show. He will discuss a major technological breakthrough in the realization of a zero-emission, zero-fatality world for everyone, and unveil a vision of the world made better by the latest automotive technology innovations.

“Carlos Ghosn is a major figure in the advancement of the global automotive industry,” says Gary Shapiro, president and CEO of CTA. “By championing innovation, Mr. Ghosn expanded Nissan into new international markets and committed Nissan to a future where technology innovation improves the lives of everyone, not just the few. We cannot wait to hear how Nissan will continue to revolutionize our automotive experience and our future.”

CES will also host the Sports Business Innovation Showcase, presented

by Turner Sports. A full slate of panels will discuss innovations that are driving

the continued evolution of the sports industry. The day of events will culminate with TNT’s “Inside the NBA” studio team – host Ernie Johnson and analysts Charles Barkley, Kenny Smith and Shaquille O’Neal – by providing pregame, halftime and postgame coverage surrounding the night’s doubleheader live from CES. In addition to several exciting keynote speeches and sessions, new to the exhibit hall this year is the Sleep Tech Marketplace, presented by the National Sleep Foundation.

“From sleep trackers and silent alarms, to bedroom lighting, white noise and even smart beds, sleep technologies are helping us take control of our nighttime routines and rejuvenate efficiently,” Shapiro says. “We look forward to experiencing these groundbreaking innovations at CES 2017.” O For more information about CES, visit www.ces.tech.

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HALLOWEEN & PARTY EXPO

Costumes Encouraged Halloween & Party Expo will bring retailers of all kinds to New Orleans for the industry’s most comprehensive buying event for Halloween and party supplies and products.

Halloween & Party Expo is the comprehensive buying event for Halloween, party and celebration in North America. Next year’s show takes place at the Ernest B. Morial Convention Center in New Orleans Jan. 14 to 17.

Known for its diverse range of categories, the event showcases new, unique and trending products to fill merchandising needs from costumes and accessories to novelties, props, unique gifts and seasonal décor.

Each year, hundreds of new products are launched at the show in anticipation for the Halloween selling season. Buyers attend from all over North America, as well as from more than 50 countries around the world. Types of buyers include Halloween retailers, goodwill retailers, costume stores, party stores, big-box retailers, gift stores, chain stores, specialty retailers, online retailers, and souvenir and resort retailers.

“We pride ourselves on being a comprehensive resource for the Halloween and Party industries,” said Mike Carlucci, Senior Vice President of Specialty Shows. “Our buyers are looking for a one stop Halloween experience and di-

Halloween & Party Expo is the comprehensive resource for the Halloween and parties industries, offering new and unique products.

versity of the products we have this year will allow them to find new and unique products that will help set them apart from their competition.”

New to the 2017 show is the Haunted Trends Runway & Lounge. In addition to fashion shows showcasing the latest and greatest in the world of costumes and accessories, the stage will also be home to makeup application demonstrations, product features and a variety of other fun and experiential programming.

Back in its second year is the Brewing Boos & Booze Costume Ball. This event will bring the industry together for a night of music, networking and celebration of all things Halloween and party – complete with a local New Orleans flair.

The Independent Retailer Conference will return to Halloween & Party Expo with an expanded four-day experience.

Dedicated entirely to the unique lifestyle and responsibilities of independent store owners, the Independent Retailer Conference aims to support both online

and offline retailers in gaining expert news, education and support through a variety of educational sessions from top retail thought leaders and experts – all with the core focus of helping you run your retail business more successfully. Presenters include Cathy Wagner, RETAILMaven; Spencer McCluskey, Square; Genna Gold, Yelp; and Brian Gibbs, Refund Retriever.

Halloween & Party Expo also has a new partnership and co-location of events with Party Club of America (PCA), the party and Halloween industry’s largest and most innovative buying group for independently owned party, costume and Halloween retailers. Beginning in 2017, Party Club of America will hold its annual event in conjunction with Halloween & Party Expo, further aligning the industry and providing a singular platform for both retailers and suppliers. O For more information, visit halloweenpartyexpo.com.

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RETAIL’S BIG SHOW PREVIEW “Attendees will walk away inspired, exhilarated and proud of their industry.”

The enormous 235,000-square-foot expo hall will play host to technologies, retail solutions and networking opportunities.

Biggest in Retail More than 33,000 industry leaders will convene in New York City for the 106th-annual Retail’s BIG Show.

Retail’s BIG Show, the retail industry’s premier event by the National Retail Federation, will take place Jan. 15 to 17, 2017, at the Jacob K. Javits Convention Center in New York City.

This three-day show will see more than 33,000 attendees from 94 countries and more than 500 exhibitors.

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The show offers unparalleled education in more than 100 sessions from 300 industry-leading speakers, along with an enormous, 235,000-square foot expo hall full of technologies and solutions.

After more than a century - 106 years to be exact - Retail’s BIG Show is still the only place where you can see and experience all things retail.

Retail’s BIG Show is a celebration of retail in every format. Attendees will walk away inspired, exhilarated and proud of their industry. They can take part listening to series of speakers and attend breakout sessions, networking events and walk the exhibit floor showcasing cutting-edge retail technology.

Hear from the industry’s revolutionary and intriguing leaders who are shattering the status quo and driving innovation and achieving success. The conference also brings together hundreds of talented young people in a student program to learn about retail careers.

The most exciting session at next year’s show will be one of the keynotes with Virgin Group founder Richard Branson. Starting as a retailer in the early 1970s with a mail-order record business that evolved into Virgin Record Stores, Branson has built a business empire. At the show, Branson will address “Undying Brand Engagement in an Age of Continuous Disruption and Reinvention” on the second day of the conference.

The Virgin Group is a leading international investment organization that has grown successful businesses in sectors including mobile telephone, travel and transportation, financial services, leisure and entertainment, and health and wellness. Virgin has created more than 400 branded companies worldwide and employs more than 60,000 people, in 50-plus countries, with global branded revenues of $24 billion.

“We are thrilled to welcome Sir Richard as our keynote speaker for Retail’s BIG Show,” NRF CEO and President Matthew Shay said. “He is an inspiring entrepreneur who is passionate about technology, social change and growing the business sector. His leadership as an entrepreneur and investor in the business world will give our members a fresh perspective on how to continue growing their companies both large or small.” O For more information about Retail’s BIG Show, visit nrfbigshow.nrf.com.

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WINTER FANCY FOOD SHOW

Eat, Drink and Discover

Join 33,000 industry professionals as they explore the latest products in specialty foods at the Winter Fancy Food Show.

The Specialty Food Association is the engine behind the Winter Fancy Food Show, taking place Jan. 22 to 24, 2017, at the Moscone Center in San Francisco. The show, established in 1954, is now the largest marketplace devoted exclusively to specialty foods and beverages in North America.

More than 1,400 specialty food companies from around the world will present the latest chocolate, cheese, olive oil, baked goods, jams, salsas, tea and other products to an expected attendance of 33,000 industry professionals. California boasts the largest state presence with more than 339 food companies in attendance, followed by New York, Washington and New Jersey, while more than 25 countries will also be represented.

Meet up and-coming specialty food stars at the earliest stage and explore their products before they hit the marketplace in Incubator Alley. The “New Brands on the Shelf ” pavilion will feature up-and-coming specialty

food producers who are Specialty Food Association Member Candidates. They will showcase dozens of niche and artisanal products.

The Specialty Food Association is also presenting 10 workshops and business-building seminars at the Winter Fancy Food Show to help startups, established manufacturers and buyers at all levels of expertise succeed in the ever-changing marketplace.

Two award shows will also celebrate the best of the industry. The Leadership Awards will celebrate the outstanding modern contributions of association members in business leadership, citizenship and vision. The 44th sofi Awards will present the 28 Winners for the Specialty Food Association’s awards for outstanding specialty foods and beverages of the year. The 2016 contest set records, with 3,200 entries across 28 categories, and 2017 will most likely exceed that.

At the end of the show, exhibitors will continue their long tradition of giving back by donating thousands of pounds of meat, cheese, produce, confections and snacks to the Specialty Food Foundation, which will in turn donate the products to Feed the Hungry, the Winter Fancy Food Show’s longtime charity of choice.

The Specialty Food Association, a not-for-profit trade association for food artisans, importers and entrepreneurs, owns and produces the show. Today, the Association consists of 3,400-plus member companies worldwide. The Fancy Food Show has helped launch such brands as Popchips, Honest Tea, Ben & Jerry’s, Stonewall Kitchen, Walker’s Shortbread, Tate’s Bake Shop, ZICO Coconut Water and Vermont Creamery. O For more information about the Specialty Food Association, visit specialtyfoodfoundation.org. For information about the Winter Fancy Food Show, visit specialtyfood.com/shows-events/ winter-fancy-food-show.

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THE LOOK

Fanatics brings authentic, high-quality NASCAR merchandise to the Kansas Speedway in a 60,000-square-foot, at-track shop.

Reasons to Race Fans that visit the NASCAR speedways will not only get to experience an exhilarating race, but now they can conveniently shop a wide range of high-quality NASCAR merchandise.

Thanks to Fanatics, the market leader for officially licensed sports merchandise, NASCAR fans can shop the largest selection of at-track products in the Fanatics Trackside Superstore, including an expanded selection of women’s and kids’ items.

“A merchandise center will provide a more personal, organized, comfortable and convenient shopping environment for our fans,” said Steve Phelps, NASCAR executive vice president and chief marketing officer.

Every at-track shop features 60 to 100 checkout stations for simplified purchasing.

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The at-track shop also will feature an area for fans to meet their favorite drivers, along with an interactive customization center where customers can create their very own personalized NASCAR gear. This new one-stop shop offers fans a real reason to race to the speedways.

“We have taken the time to listen to what the fans, teams, drivers and NASCAR were asking for and look forward to using our market-leading scale, technology and production capabilities to deliver an improved and entertaining shopping experience for years to come,” said Ross Tannenbaum, president of Fanatics Authentic.

The most popular items purchased by fans include apparel, headware and novelty items.

Launched in Aug. 2015, the Trackside Superstore features a ‘walk-in’ shopping experience.

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Fans have more than 5,000 unique items to choose from in the superstores, including a major expansion to the women’s and kids’ sections.

The New Era Headware Shop at the Chicagoland Speedway offers a selection of more than 10,000 hats, along with a more functional way to browse, try on and interact with the merchandise.

The superstore features separate stores for specific teams, such as the Richard Childress Racing (RCR) team shop at Darlington Speedway.

Driver Chase Elliott merchandise sales have increased with each race weekend in 2016.

The stores sell merchandise for more than 70 active drivers, including Ryan Newman.

Driver Dale Earnhardt Jr. merchandise is the No. 1 seller among racing fans.

The at-track superstore sees up to 3,600 transactions per hour. Thanks the numerous stations, checkout takes less than four minutes.

Drivers David Ragan (left) and Matt DiBenedetto (right) meet fans and sign autographs inside the superstore at the Kansas Speedway.

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MILLENNIAL CONSUMERS

In-the-Know

Generation When it comes to purchasing decisions, millennials know exactly what they want.

BY KEVIN CUNDIFF, VICE PRESIDENT OF RETAIL FOR FORTEGRA

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MILLENNIAL CONSUMERS

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Millennials: they truly are the in-the-know generation.

They do their research to educate themselves on their potential purchases — and by the time they actually get to making that purchase, they know exactly what they want.

And, many times, they’re making those purchases online instead of heading to a brick-and-mortar location to chat it out with the sales associate. Even if they’re not purchasing online, they’re doing research online beforehand.

According to CMO.com, 72 percent of millennials research their options online before going to a store to make a purchase.

So, when a salesperson encounters a millennial who has done their digging beforehand, what should they do? Here are a few ideas:

Come Equipped with Data The practice of researching items online, and then purchasing them instore is known as “webrooming,” and it influences the entire sales process. Hypothetical examples of how a product worked for someone else are no longer enough. Today’s informed customer values proof.

On-the-spot proof can be tough, but if you come equipped with data that tells a story – including supporting numbers and facts – you can build credibility and trust, even with the inthe-know customer.

Listen to Them Although it might seem like it sometimes, having an educated customer isn’t a bad thing. Communicating with

the customer to learn more about what they know can actually help you make a sale. Listen and tie their education back to something you know they want and that you have available. You might even lead them to something they didn’t realize they needed!

No Nonsense We’ve all done it (or at least thought about doing it). You find yourself backed into a corner, your typical sales pitch isn’t working, and you’re crashing and burning. So you try to change the subject – or worse – make something up. Customers who have done their research know their stuff and can spot something phoney a mile away. A frantic sales pitch will cause more harm than good. If the facts aren’t with you, try playing to their ego. Acknowledge the effort your customer has made and find out what you can do to ensure his or her purchasing decision is as informed as possible – even if it means pulling in outside resources.

Whether you’re selling tablets or furniture warranties, being aware of how to interact with and ultimately sell to millennials who know how to do their research – no matter how challenging they might be – will continue to become an increasingly important part of how you do business. O Kevin Cundiff is Vice President of Retail for Fortegra Financial Corp., a Tiptree Financial Inc. company (NASDAQ: TIPT). Fortegra and its subsidiaries comprise a single-source insurance services provider that offers a range of consumer protection options, including warranty solutions, credit insurance and specialty underwriting programs. Delivering multifaceted coverage with an unmatched service experience for both partners and their customers, Fortegra solves immediate, everyday needs, empowering consumers to worry less and experience more.

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BY THE NUMBERS

By the Numbers DirectBuy takes a look at the state of retail, etail and m-commerce to see where the industry might be headed and what could drive it forward. BY MIKE BORNHORST, CEO OF DIRECTBUY Delivering an omnichannel approach allows retailers to track consumers’ interactions no matter how they are shopping.

Based on eMarketer’s latest forecast, total retail sales in North America reached $5.254 trillion in 2015, including $4.785 trillion in sales in the United States alone. The same report predicts that U.S. retail sales will approach $5 trillion in value this year.

So, where is the industry headed and what should retailers be focused on in the coming years? There is no shortage of data points out there pointing to the 14

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state of retail today, but rounded up below are what stand out as the most meaningful insights that will continue to drive the industry forward.

Subscription Takeover Online subscription retail services are undoubtedly here to stay, and they are responsible for the creation of many new e-commerce brands, as well as entirely new offerings from some of the world’s most recognized retailers. A recent report from Hitwise, a division of Connexity, found that visits to the sites of online subscription retailers topped 21.4 million in January 2016, compared with 722,000 visits in January 2013.

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BY THE NUMBERS Perhaps most interesting about the successful offerings in this category is that service is always at the forefront – not necessarily product. To be considered consistently valuable to a consumer, these brands must create a culture of earning business month after month since the products being offered can often be found on store shelves anywhere.

Instead of massive advertising budgets, these brands invest and allocate the majority of resources to service.

Subscription retail services are creating an increasingly demanded approach to retail, and traditional brands must take note and deploy efforts that spark the same level of commitment and sustained value in their day-to-day shoppers.

Mobile is Multiplying In the past, mobile was predominantly utilized to research product reviews, compare pricing and discover coupons and offers. Today, that couldn’t be further from the truth, with more than 82 percent of the 1.91 billion smartphone users utilizing mobile devices to shop.

In 2015, consumers spent more time inside mobile applications than watching television, according to a report from Flurry. Additionally, research has also found that nearly a quarter of consumers said they have between six and 10 retail apps on their smartphone as of April 2016, up three percentage points from October 2015. As mobile shopping app usage continues to grow in an exponential fashion, we can expect to see more and more retailers innovate through the development and evolvement of mobile apps.

Today’s consumers expect retailers to offer mobile apps that make shopping on a smartphone even easier than in a

store or online. With that said, shoppers want any and all touchpoints to be consistent no matter the chosen channel.

Delivering a robust and unified omnichannel approach allows retailers to track consumers’ interactions regardless of whether they are purchasing via a brickand-mortar store, desktop or mobile device. When done right, the collected data allows for endless personalization opportunities, creating the relevant, one-to-one communications shoppers are seeking. And with all signs pointing to consumers spending more when shopping on mobile devices, this trend that will play one of the largest roles in customer retention and increased ROI.

Customer Experience is Key It’s been reported that it takes 12 positive experiences to make up for one poor and unresolved one, and that a customer is four times more likely to defect to a competitor if the problem is related to service rather than price or product. But some retailers simply fail to understand the sheer importance of customer service, when the reality is a retailer’s actions so often equate to consumers’ overall brand sentiment. And it’s widely known that consumers promote neg-

ative brand experiences far more than positive ones.

These metrics are a testament to the impact an inspired team of customer service representatives can have on the customer experience. The service level, processes and technology they implement are critical for retailers to continually improve the customer experience while reaping the associated monetary benefits.

The key to meaningful customer experiences is achieving the proper balance between customer service and value. It’s no secret that retailers like Nordstrom, who commit significant focus and resources to customer service, can demand a higher price since shoppers feel they are receiving value in return that extends beyond the tangible items they are purchasing. Analyzing target audiences is critical to implementing the proper methods, as some groups’ value will be solely based on the price a retailer offers.

Once the appropriate balance is achieved, it is integral to have a perfected service recovery process in place.

Issues are guaranteed to arise through the customer’s journey, but retailers must anticipate what these issues are likely to be so they can be prepared to fix them immediately. Sometimes the most satisfied customers are those who have been won over after a problem was handled efficiently and effectively. O Mike Bornhorst is the CEO of DirectBuy, where for over three years he has been transforming the savings club’s member experience to enhance lifestyles through savings, selection and service. As a trusted and decisive leader, Bornhorst’s years of executive leadership have centered around the establishment of sustainable growth opportunities and operational excellence.

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Upfront

Phil Reed, CEO www.sjgames.com Austin, Texas

STEVE JACKSON GAMES

For the Fans

Steve Jackson Games focuses on expansions and licensed products for the Munchkin card game series while it revives tried-and-true fan favorites. BY STEPHANIE CRETS

Steve Jackson Games believes it has created a Munchkin game for just about every type of fan.

If you have a warped sense of humor and enjoy tabletop and card games, odds are you’ll enjoy the slate of games offered by Steve Jackson Games. The company has roughly 20 games and more than 100 titles in its current catalog.

That can change every year as some games go out of print, while new ones are created and old ones are brought back.

But its classic game series is Munchkin.

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“Part of the reason Munchkins has been so successful for us is embracing that sense of humor and running off on crazy tangents and having lots of fun with it,” CEO Phil Reed says. “The silliness and the cartooning style really excite the fans.”

Steve Jackson Games keeps the excitement brewing by constantly announcing new cards or expansions for the Munchkin series, such as Mars Attacks, Judge Dredd and zombie and holiday-themed expansions. “We try to turn the game around to shock and surprise the players,” Reed notes.

Along with that surprise, Munchkin never loses its sense of humor and ability to poke fun at anything and everything. “It can be a broad parody of everything out there,” Reed says.

“Anything you can poke fun at, we’ve found ways to translate it into a game and have a good time.” For example, Steve Jackson Games just released an expansion called Grimm Tidings, a Walgreen’s exclusive that pokes fun at classic fairytales, while Amazon has an exclusive called Munchkin Oz Guest Artist Edition, parodying Wizard of Oz. “There’s a Munchkin game for almost everyone,” he continues. “Even new people have a good time playing it be-

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Upfront

STEVE JACKSON GAMES

cause you have a handful of silly cards, which keeps people engaged, playing the game and as brutal and aggressive as other players.”

Munchkin fans can look forward to a revamped version of their favorite card game. Usually, it requires three to six players, but Steve Jackson Games plans to release a two-player experience next summer. “Just like Munchkin is designed as a parody for fantasy role-playing games, the collectable card game is a parody of card games,” Reed says. “It’s designed by two talented game designers, Eric Lang and Kevin Wilson, who have a lot of experience.

“It’s, at its core, a very strong game engine, but then it pokes fun at collectable card games. It’s gone from an idea to something that’s looking phenomenal and I can’t wait to watch players get it next summer.”

Game Revivals Munchkin has been so successful that it can sometimes deter Steve Jackson Games from focusing on some of its other titles. Reed says this is a hard challenge to reconcile, considering a lesser-known title might generate only a fraction of the profits of a new Munchkin title. Therefore, the company must decide if it should continue spending its efforts on a game that might not be as successful. “We’re trying to balance that by making new games but keeping the Munchkin audience happy,” he notes.

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Steve Jackson Games is reviving interest in a title originally published in 1986: the GURPS roleplaying game. The game has been continuously in print since its publication date, but now the company is developing a new GURPS game.

It ran a successful Kickstarter program for the new game, raising $176,450 of its $100,000 goal with 1,587 backers. “It allowed that audience to show us and tell us, ‘Yes, we really want this,’” Reed adds. “We’re definitely going to look at Kickstarter as a way to support older titles that have an audience.”

Another game revival is Car Wars, first published in 1981. It was Steve Jackson Games’ first big hit, and the company has spent the last few years building a new edition that will streamline gameplay, along with redesigning the plastic models that players use in the game. Car Wars’ new edition is set to come out next summer, and Steve Jackson Games already has 40 supplementary releases prepared for it. With a game like Car Wars, players need regular releases for models so they can continue to expand their game.

“It’s easy to devote all your attention to the game with getting it out there, and then not having the support in place,” Reed explains.

“You can have a really big launch with a game but then interest wanes when the player can’t get anything else for it. So we have the first year of releases done, and expan we’ll hit new expansions for the game every month. I’m most excited about this game

because it’s one I played in junior high and high school. Now I’m working on a new edition and building a catalog for it, which is a treat.”

Next year is the 40th anniversary of Ogre, which was Steve Jackson’s first game. To celebrate this milestone, the company is prepared to do a big push with new products, including new plastic mini figures, and a Kickstarter project for the fans. “Fans have wanted it for a long time,” Reed says.

More than Games Steve Jackson Games’ partners at Surge Licensing have helped grow the brand even further. Surge positioned the company with companies such as Funko, Boom Comics and We Love Fine to bring Munchkin to life. Now, fans can purchase Munchkin toys, comic books, coloring books and apparel to celebrate their favorite card game even more.

“I’m proud of how much we’ve grown the Munchkin sales and reach over the last six years,” Reed says. “You could find us at comic book and game stores, but now you can walk into Walgreens or Target and find Munchkin games.

The one time when I really understood what we’d done was when I was getting an eye exam. I started explaining my job, and the doctor said, ‘Oh, we love Munchkin!’ My eye doctor is a player.

It has a lot more reach and more hands than even a year ago.” O

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Upfront

Dick Johnson, CEO www.footlocker.com New York

FOOT LOCKER

SNEAKER STORY Foot Locker stores are designed to engage consumers in finding shoes by telling the brand’s story and fitting into a lifestyle. BY TIM O’CONNOR Dick Johnson enjoys standing at the top of the escalator at the entrance to Foot Locker’s new flagship store on 34th Street in New York City. From that vantage point, he can soak in the comments from shoppers as they walk around the 10,000-square-foot retail space and marvel at how the modern design tells the story of each brand’s shoes.

“You can tell they love the space,” the CEO of Foot Locker stresses. “You see it with the amount of product they are buying.”

Customer engagement was a core tenet of the company even before Johnson arrived at Foot Locker. In 1997, Johnson was working for catalog athletic footwear company Eastbay when Foot Locker –

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then known as Woolworth’s – purchased the Wisconsin-based company.

Foot Locker has changed dramatically in the nearly 20 years since, Johnson says.

After being absorbed into the company, Johnson at first stuck with the catalog side of the business and had little interaction with the brick-and-mortar stores.

That changed in 2007 when he took over the European operations, which were firmly rooted in physical locations.

As CEO, Johnson now is responsible for all of Foot Locker’s nearly 3,400 stores. The company operates locations in North America and 19 countries in Western Europe, Australia and New Zealand.

It also franchises stores in the Middle East and South Korea. In addition to the Foot Locker name, the company’s brands include Champs Sports, Footaction, Lady Foot Locker, SIX:02, Kid’s Foot Locker, Runners Point, Sidestep, and Eastbay.

Europe is one of Foot Locker’s strategic growth pillars. The company purchased Runners Point Group in 2013, giving it control over 212 stores in Germany, Holland, Switzerland and Austria and expanding its footprint in Europe to over 850 stores. Johnson sees opportunities to expand the Foot Locker and Kid’s Foot Locker brands throughout Europe.

In addition to its physical retail locations, Foot Locker sells shoes through its brands’ websites. Foot Locker has always been forward-thinking when it comes to online. The Eastbay acquisition prepared the company’s infrastructure for e-commerce and the first Foot Locker websites appeared in the early 2000s.

The move to online shopping has forced some retailers to close brick-andmortar stores, but Foot Locker believes each shopping avenue has value for its customers. “The channel is irrelevant,” Johnson says. “We want to have a great connectivity with our consumer wherever they choose to interact.”

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“ Foot Locker aims to play up the intersection of sport and culture to attract customers.

long been seen as the expert on athletic shoes. The referee jerseys worn by sales associates – in use since the brand launched in 1974 – are an integral part of the company’s athletic culture and give it a sense of authority when it comes to sneakers.

Beginning in 2009, Foot Locker began conceptualizing its stores to create an even stronger environment for the consumer based around the shoe brands it sells.

Consumers embraced those changes because they see the company’s passion for sneakers and its willingness to cater to different customer groups, Johnson says.

“Each of our banners stand for something different, [and] the consumers who shop there have different buying habits and different buying occasions,” he explains.

Foot Locker is perceived as the allaround sneaker store, while Champs has

Bucking a Trend

By creating retail environments that connect to consumers, Foot Locker has fought off the declines experienced by other mall retailers. Real-estate research firm Green Street Advisors released a report last spring that determined department stores needed to close about 800 stores across the country to return to the same sales per square foot productivity they had in 2006.

The potential loss of a fifth of the country’s mall anchor store space has concerned the industry – especially since major retailers like Sears and Macy’s have already dropped locations.

However, CEO Dick Johnson says traffic at Foot Locker stores is actually up and credits that success to the company’s ability to excite consumers. “We make people happy,” he says. “They leave our stores with a bag, they have a fresh pair of kicks that they get to wear at school and show it off.”

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It’s all designed to be complementary to the business of selling sneakers.

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a more high school athlete bent. Meanwhile, SIX:02, one of the company’s newer concepts, is designed as a premium women’s retail destination where fashionable athletic wear is given equal presence to the shoes.

The company’s engagement with its customers begins outside the store with focus groups, social media contact and even home visits. Those personal interactions lend some of the best insights. Johnson says Foot Locker can better grasp what motivates its customers when it sees what posters they have on their bedroom walls and hear what music they listen to. “It’s that one-on-one relationship with them that allows you – a year later, 18 months later – to circle back to them and see if the same influencers are impacting their life, if the same artist is impacting their life, who are they following on their twitter account,” he explains.

The intersection of sport and culture has never been closer than it is today, so understanding consumers beyond their buying habits enables Foot Locker to create content that reaches customers in a way that is relevant to them.

That impacts everything from how Foot Locker markets itself to how it designs its stores.

The company’s brick-and-mortar stores still feature plenty of shoes, but it also understands that people no longer want an overwhelming shopping experience. Customers buy into a lifestyle and Foot Locker’s stores are a critical component in helping its shoe brands tell their stories.

Walls are no longer stacked floor to ceiling with sneakers on display. Instead, locations have in-store sections that appeal to those lifestyles, such as House of Hoops, a basketball-focused concept that pairs premium court sneakers with t-shirts and other athletic wear.

The key is to find appropriate apparel and accessories that set the tone and connect to the shoes. After all, most consumers don’t drop $200 on a new pair of Jordans and then buy a $5 T-shirt. “It’s all designed to be complementary to the business of selling sneakers,” Johnson says.

Upfront

decision. Sometimes, they’ll pick out two finalists, slip one shoe on the left foot and its competitor on the right, then Tweet out of photo and ask their followers to decide. Johnson says stores must be participants in those interactions, and sales associations are trained to engage with customers on that level. “We want to be part of the conversation with our consumers,” he says.

The company has been rolling out these storytelling concepts to its stores for several years, but its new flagship store in Manhattan is the culmination of those ideals.

In August, Foot Locker celebrated the reopening of its location in New York’s Herald Square following a massive redesign that granted individual spaces to several brands, including Nike, adidas, Under Armour and Puma. “It is a combination of brand space which really allows the great stories our vendor partners have to tell to come alive under one roof,” Johnson says.

Foot Locker worked with shoemakers to create the in-store concepts and develop the cross-category product offerings. “The build-out and connectivity with the brands and their co-investment with us in the flagship spaces has really created an environment that fits our core consumer,” Johnson adds. O

Telling Stories Buying decisions also involve a lot more voices today.

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COVER STORY

Team Effort BrandSource and its independent retail members work together to improve operations and provide better choices to consumers. BY ERIC SLACK

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John White, CMO www.brandsource.com Tustin, Calif.

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hat started as a buying group in 1969 has become so much more for a diverse array of retailers.

Today, BrandSource is more of a member services organization that serves retailers of many stripes and helps level the playing field so they can compete.

BrandSource’s roots extend back to a 1969 discussion among a group of appliance and electronics retailers, who saw the opportunity to get better pricing and terms by pooling their orders together.

Those southern California retailers teamed up to form Associated Volume Buyers (AVB).

“Our founders got together because they saw they could get better deals from manufacturers by working together,” Chief Marketing Officer John White says. “Now we are a member-owned organization that works on behalf of our members with manufacturers, vendors and suppliers to get better prices, while also helping members to do better business and generate more business in their stores.”

The organization has grown to northern California, the Northwest and around the country, creating 17 different regions and locally managing regional operations to target the products each region sells.

In 1994, the group became the first appliance and electronics buying group to sign a national mattress manufacturer, Simmons. This began the group’s entry into furniture.

A lot of consumers are up for grabs, and attracting customers is some-thing we focus on.

”

AVB then began to move in directions that recognized that buying was but one part of the sales process. It started to focus on helping members buy better and sell better, becoming a national marketing group in the process. At the turn of the century, AVB created a national brand name – BrandSource – and gave its members a national identity. It began providing national television, radio, print and Yellow Pages advertising, and it remains the only national group that continues to build its brand to get more customers into member stores.

BrandSource also became the first national group to provide all of its members with an online web page and entered the e-commerce business in 2000.

This helped members begin to reap the rewards of online sales.

The BrandSource family includes the appliance

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BRANDSOURCE and electronics division, and its ProSource specialty custom consumer electronics division. The ProSource division represents more than 500 specialty retailers and custom integrators and boasts annual retail sales of more than $4 billion, making it the largest specialty and consumer electronics merchandising group in the country. A freestanding mattress chain of stores called SleepSource, Furniture Advantage, and the BrandSource rent-to-own division called TRIB are also parts of BrandSource. It is a 100-percent member-owned merchandising group with more than $16 billion in annual retail sales, more than 4,500 independent dealers/members located throughout the United States and Canada, and close to 3,000 branded stores in the United States.

“We are the largest group in North America from volume and membership standpoints,” White says. “Our divisions specialize in areas of business within each vertical to better serve each retailer. We do a little of everything for retailers to help them reduce costs and improve their operations.”

Competing on Strength BrandSource can negotiate strong programs with manufacturers to keep independent retailer members relevant and competitive in the consumer marketplace. Its retailers have

built strong reputations for providing consumers with exceptional customer service experiences and acting as local experts for appliances, consumer electronics or home furnishings.

The organization is able to combine the purchases of all member stores through its $14 billion buying power, allowing the company to provide the best value every day.

Its store network includes neighborhood appliance stores, appliance and electronics stores, furniture and mattress stores, floor covering stores and custom electronics specialists. The company remains focused on continuing to grow its membership and brand identity.

“From a membership growth standpoint, in the last few years we’ve grown a lot in home furnishings,” White says.

“There is a big opportunity for growth there because a lot of home furnishing retailers are not parts of groups like ours. Home appliance and consumer electronics retailers tend to be part of buying groups. Although we’ve seen member growth in those areas, most of our growth has come in home furnishings.”

Always Adapting Understanding that the retail world and consumer demographics have changed drastically since its inception,

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BrandSource has placed a great deal of emphasis on responding to modern challenges. For example, independent retailers today face the tough task of attracting millennial consumers and transitioning from traditional brick-andmortar operations to more use of technology.

“A lot of consumers are up for grabs, and attracting customers is something we focus on more today,” White says. “It is less about the deal from manufacturers and more about how we can help members to best utilize resources such as digital marketing, websites and traditional media.”

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In the digital space, BrandSource is engaged in a number of initiatives. There are many more outlets for advertising today, so BrandSource has built a marketing group that manages those efforts on behalf of retailers.

“That offers retailers significant savings vs. using traditional advertising agencies or doing it themselves,” White says. “It consolidates their efforts across a single representative, point of contact and price schedule across the entire footprint of advertising and helping them with design and analytics. We have put all of that together in a single source

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that works on behalf of our members to get a good return on investment.”

These efforts extend beyond advertising in online settings and include in-store components. BrandSource’s marketing initiatives include digital instore signage that replicates vendor and dealer content that may be put out on the web. That information, also known as AVB TV, is streamed inside the stores based on what a member sells.

Other initiatives have been focused on financial benefits such as the BrandSource credit card partnership with Citi as well as providing members with wholesale financing for inventory through BrandSource’s captive member-owned financing company.

“We’ve seen volume growth there, as it is a widely adopted member service,” White says. “Additionally, our bulk buying services are aggregating member purchases to improve their price positions in the market. With more goods coming from overseas and the need to purchase containers, we can aggregate retailers together, consolidate the buy, and have products shipped

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over and split the shipment here once it arrives. That bulk-buy/cross-dock system improves pricing compared with what they had in the past.”

Out in Front Over the next year, BrandSource will continue to look for ways it can improve. It plans to roll out a retail manager system designed to aggregate all information for a business owner around price. “That will help them keep up with price changes in what they pay for goods, because a lot of things impact prices for retailers and consumers,” White says. “The system will provide information on the best prices on a daily basis. It is a sophisticated system that takes the guesswork out of pricing for the retailer. We will also continue with the consolidation of marketing and advertising services into our internal marketing group.”

BrandSource wants to do everything it can to help members stay strong and operate profitably in the future. The organization is committed to helping its independent retailer members compete successfully so they can transition into their next generation of ownership and beyond. “There are many complexities in the channels where we operate, and resources like our consolidated marketing group and retail manager system will make it easier for our members to do business,” White says. “Our goal is to make every touch in our verticals the gold standard for the industry.” O November/December 2016

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SPORTS LICENSING & TAILGATE SHOW PREVIEW 27 | MICHIGAN STATE UNIVERSITY 28 | OHIO STATE UNIVERSITY 32 |

Sports & Licensing “Our students and fans have a vested interest in the university, are passionate about it and want to continue supporting it year-round.”

– Samantha Steve, Director of Licensing, MSU

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From Players to Fans

Check out the latest fan gear at Sports Licensing and Tailgate Show. BY NIKKI PUCKETT, EMERALD EXPOSITIONS, LICENSING GROUP The 11th annual Sports Licensing and Tailgate Show takes place Jan. 17-19, 2017, at the Las Vegas Convention Center.

This will be the largest show to date with nearly 400 exhibiting licensees, offering the latest fan gear to expand the product offerings of retailers.

More than 100 exhibitors are new to the show this year. First time exhibitors include: adidas Group, AES Optics, Alta Gracia, BlenderBottle Company, Canyon Outback Leather, Capri Designs, Escapada Living, Eye Ojo Corp., FanBags Cornhole, Fandemics, Game Time Bling by Dreamtime Creations, Hillflint, Infinity Product Group, JoFit, LaDiva Sport, League Collegiate Outfitters, Little King Manufacturing, Mojo, My College Threads, Neil Enterprises, Old World Christmas, Picture Frame Factory, Pro Standard, Refried Tees, S. Preston Art + Designs, Sorority Shop, Spirit Gear Central, Uscape Apparel, Wear Ovation and Woolly Threads.

The License To Buy Show Specials Program will be back again in 2017. This exclusive rebate program gives buyers money back on orders they are already placing at the show. Last year there were

54 participating exhibitors and the show gave back $55,000 in rebates to buyers. License to Buy is a favorite among buyers and exhibitors.

NFL Players, Inc. will be sponsoring the Opening Night Party again. The party takes place on Tuesday night, Jan. 17 in the Sports Lounge on the show floor. For the first time this year, NFLPI will present the Sideline Skills Zone – an all new activation that will give show attendees the opportunity to go headto-head in passing competitions against some of the top NFL players. Show attendees will be able to experience first-hand the powerful connections NFL players can make with fans, consumers and business prospects. Along with participating in the Sideline Skills Zone, NFL players will also be hanging out with various NFLPA partners in their booths.

Other new highlights include the Industry Keynote & Breakfast held on Tuesday morning and the New Product Zone. The New Product Zone lets buyers explore exhibitors’ latest products before they even enter the show floor.

The Tailgate Zone will be returning again this year. This special exhibit area is home to 25-plus companies with all of the non-licensed merchandise your customers need for tailgating – coolers, chairs, tents, games and more. O Qualified buyers can register for just $60 prior to Dec. 10. Visit www.SportsTailgateShow.com for more information or to register.

New Licensing Deal for The Northwest

The Northwest Company, a leader in the home textile industry and the No. 1 throw manufacturer in the United States, today announced a multi-year agreement with the University of Texas and 289c Apparel. This partnership gives The Northwest Company the rights to exclusively manufacture and distribute University of Texas Longhorn products, including blankets, throws, bedding, bath and beach products, as well as accessories.

“At The Northwest, we believe there is enormous potential for brand building in the collegiate market through exclusive partnerships that will enhance, promote and protect brand identity,” stated Ross Auerbach, president of The Northwest Company. “UT is known for having a strong, tight knit community and tremendous amount of school spirit, which is something worth bringing continuity to. As we’ve been a partner with UT for more than 20 years, we are very happy about expanding this important key relationship.”

“The Northwest Company has proven to be successful in their partnerships with the professional leagues and we are certain that they will be able to effectively capture the spirit of the Texas Longhorns in the same light,” said Bill Priakos, president of 289c Apparel. “We’re excited to have a partner in bringing the UT brand to the next level from both a quality and wide distribution position with these products.”

The Northwest Company will offer a variety of University of Texas products beginning Sept. 2016. The products will be available and sold in leading and independent retailers nationwide and online at The Northwest.com.

For further information on the University of Texas, please visit www.utexas.edu. To learn more about Northwest’s product offerings, please visit www.TheNorthwest.com.

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MSU stresses that each purchase of licensed products goes toward helping MSU students.

MICHIGAN STATE UNIVERSITY

Spreading Spartan Pride Michigan State University’s licensing allows students, staff and alumni to show support year-round while financially supporting student programs and scholarships. BY JIM HARRIS

T Samantha Stevens, director of licensing www.licensing.msu.edu East Lansing, Mich.

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he Michigan State University Spartan is more than just a representation of the school’s nationally known athletic programs. The Spartan is a symbol of the pride that students, staff and alumni take in the university – a pride that extends well beyond football and basketball seasons.

“Our students and fans have a vested interest in the university, are passionate about it and want to continue supporting it not just during a season, but yearround,” Director of Licensing Samantha Stevens says.

Established in the mid-1980s as a way to protect the university’s image by making sure the Spartan brand and related marks and logos were being used properly, MSU’s licensing program has evolved into a way for the public institution of higher learning to

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tell its story beyond the East Lansing, Mich., campus.

“We see licensing as an opportunity to showcase our brand outside of the university setting,” she adds. “The more we can grow the brand in the retail space, the more recognition the university receives.”

Profits from the sale of licensed products directly support MSU student scholarships and student programming. “Whether it’s a $3 keychain or a $1,000 Spartan necklace, each purchase is going toward helping MSU students,” Stevens says.

‘Cradle to Grave’ As one of the top 10 universities in the United States in terms of enrollment and with more than 500,000 living alumni, MSU has a large potential audience

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Michigan State University for licensed products. “We have people who support the university from the cradle to the grave,” Stevens says, noting that MSU’s brand extends from baby clothes to funeral urns.

MSU’s biggest licensing category is apparel, which, in sales terms, typically makes up 70 to 75 percent of the total licensing business. Apparel items include men’s t-shirts and fleece, which combined are the top sellers in the category, as well as youth and women’s t-shirts and other clothing.

The university’s non-apparel categories include housewares, gifts, novelties and sports equipment, among other things.

Although shoppers are most likely to find MSU licensed products within the state of Michigan, the university also has a major presence online with national retailers such as Fanatics, Kohl’s and Amazon. “These are retailers where fans all over the country can have access to a robust array of Spartan products that fit the needs of every fan,” Stevens notes.

The university’s longest-lived licensing partners include Nike, MSU’s sideline partner and exclusive licensee of performance apparel and replica jerseys. “Being associated with one of the largest, most recognizable brands in the world lends legitimacy to the Spartan brand,” she adds.

Another of the university’s veteran partners is Knights Apparel, a division of HanesBrands Inc. Knights Apparel is

MSU’s exclusive licensee to the mass distribution channel, which includes retailers such as Walmart, Target and Costco.

The Northwest Company, which sells collegiate bedding, room décor and blankets, is one of MSU’s top-five non-apparel vendors. It distributes to key retailers such as Bed, Bath & Beyond; Kohl’s; Walmart and Meijer. Northwest increased its wholesale shipments of MSU product 278 percent in July to August of this year compared to the same period in 2015, reinforcing growth of the MSU brand.

A Strategic Approach MSU maintains its relationships with existing licensing partners and builds new partnerships by taking a business development approach to licensing. “For us, relationships are absolutely everything,” Stevens says, noting that the university’s business development department regularly fundraises and hosts events. “We believe that in order to grow your business, you have to go out and build those relationships.”

The licensing department frequently travels to licensee and retailer sites and regularly hosts retail summits. “We bring in our top licensees, retailers and other partners to talk about business and the unique things MSU does and what our school is all about,” Stevens says.

MSU in January will host a retail appreciation event at the Sports Licensing and Tailgate Show in Las Vegas in January. This is the first time the college has hosted such an event at the Tailgate Show. “Most of our top retailers and licensees will be there, so we’re taking our show on the road and developing business in a place we know everyone will be,” she adds.

The university also takes a strategic approach to its licensing and marketing efforts. MSU is aided in this effort by its licensing agency, The Collegiate Licensing Co. (CLC), which it started working with in July 2015. CLC is provid30

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Michigan State University

ing MSU with data about consumer behavior and trends that the university is using to improve its market presence.

“We’ve already seen a significant increase in shelf space since partnering with CLC,” Stevens says.

The university is also partnering with CLC on marketing campaigns such as College Colors Day, which encouraged

students, faculty, staff, alumni and fans to wear their school’s colors in advance of a national event in early September.

MSU is also participating in CLC’s Holiday Cheer campaign, which highlights products during the holiday season.

Other ongoing marketing efforts include its “State Your Loyalty” program – www.stateyourloyalty.com, which educates consumers about how to identify officially licensed MSU products; “Stripe the Stadium,” which encourages football fans to wear MSU’s colors of green and white in certain sections of the stadium during games; and the “College Vault” program, which capitalizes on MSU’s long history by licensing products with vintage logos and marks.

MSU continues to seek opportunities to build its G-III Sports by Carl Banks licensing program. “We are strategically managing G-III Sports by Carl Banks is the leading our brand and looking for Sports Licensed Fashion Apparel Brand in College and Pro Sports. As a Michigan State best-in-class partners who alum and Super Bowl winner, Carl’s vision of are interested in invest- creating a true lifestyle brand can be seen on ing with MSU, wheth- campuses across the United States. Carl’s er through exclusives or latest success is the partnership with Tonight longer-term agreements,” Show Host Jimmy Fallon to create the Hands High brand.

Stevens says. O

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Sports & Tailgating

THE OHIO STATE UNIVERSITY

Campus Pride

Ohio State licenses products that help alums show their loyalty to the university. BY ALAN DORICH

T

he ways products are licensed for colleges have changed over the past 30 years, Rick Van Brimmer says. “Back into the ‘80s, the people standing at your tailgate were probably wearing a sweatshirt [with the college logo] under their regular jacket [or] a t-shirt when it was warmer,” he recalls.

Now when people go to a tailgate party, the college’s logos can be seen on nearly everything, including tents, tables, grills, food products, and even paper towels and plates. “Now that passion and loyalty [to a school] is reflected in all the products that are there,” he says.

Van Brimmer is an assistant vice president for business advancement, affinity and trademark management for The Ohio State University, which has licensed products with its name since 1974. Located in Columbus, Ohio, the college opened its main campus 144 years ago and was recently ranked 16th among the nation’s best public universities by U.S. News & World Report.

The licensing program, Van Brimmer says, began when a part-time paralegal in Ohio State’s contract office began registering its marks. “That was a woman named Anne Chasser, who is one of the legends of the industry and my boss for several years before I took over,” he recalls.

The university’s licensing program began with t-shirts and sweatshirts that were sold out of its bookstore. “It moved out of that one closet in the bedroom into drapes, bed coverings and sport products,” Van Brimmer says.

Ohio State also has licensed products for patios, rec rooms, basements and garages, including storage items and bar supplies. “It’s evolved as people have embraced following teams and their loyalty to the school,” he says, but notes that the items keep the school front and center.

All OSU licensed products keep the school front and center in their design.

This is part of the philosophy that Chasser instilled in the program from the beginning, Van Brimmer says. “It was never overshadowed by any other interest,” he says. “We’ve always taken a ‘university first’ point of view.”

That latest products Ohio State has licensed include storage items for the patio, as well as a Bluetooth speaker in the shape of a football helmet. “The licenses are just following what you’re seeing in a Bose store,” he says. “People use those to show their allegiance to their teams.”

Although Ohio State listens to every proposal, it does not license products that it would have trepidations about, Van Brimmer says. For example, “We don’t license alcohol and we don’t license firearms,” he says.

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Rick Van Brimmer, assistant vice president for business advancement, affinity and trademark management trademarklicensing.osu.edu Columbus, Ohio

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The Ohio State University Product Partners Ohio State’s licensing partners include Nike Inc., which is “one of our two licensees,” Van Brimmer says, noting that the school recently extended its agreement with the famed footwear company. “We extended the license and our sideline agreements an additional 15 years.

“What was most exciting about that deal was that we included the rest of the university,” he continues. “We got products for our students, discounts and merchandise for our club sports team, and scholarships and internships.”

When a need for product arises at the university, its president can utilize its “product allowance” with Nike to fill that need. “It was truly a unique way of looking at the relationship with one of your primary sideline partners,” Van Brimmer says.

Ohio State’s longtime partners also include headwear retailer Lids. “We’re in the third contract year with them,” Van Brimmer says, noting that Lids operates the university’s official team shop on its campus.

“They also own and operate fan shops in the community that we are now connected with,” he says. “They are the official retailer of Ohio State.”

Ohio State also is in its third year of partnership with sportswear company J. America LLC, Van Brimmer adds.

“Both Nike and J. America have exclusives with our apparel for licensed products,” he explains, noting that J. America will guarantee Ohio State a minimum of $85 million in royalties over the next decade.

Ready to Help Ohio State maintains long-term relationships with its licensees through strong communication, Van Brimmer says. “That’s the key,” he says. “Our approach has been that we want to hear from them, engage with them and know them by name.”

It can be difficult to do that with a list of 400 licensees and a staff of only four, but Van Brimmer’s team regularly pulls it off. “That’s why we attend the [industry] shows and why we become involved in our professional associations,” he says.

“You’d be surprised how rare we’re here [in the office].

“We are out there, talking to them,” Van Brimmer says, noting that this puts his team in a position where they are open to understanding how the licensees do business and how the university can help.

The desire to help is so essential that it plays a part in the recruiting process, he notes. “We look for people with a customer-service bent,” Van Brimmer says. “They know they’re here to help somebody else. I don’t think they would last very long here if their attitude was, ‘I don’t have time for you today.’”

His current staff exemplifies that, including Assistant Director of Trademark and Licensing Karen Dertinger. “They understand that part of a licensor’s role is not to find ev34

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The Ohio State University erything and exploit it,” Van Brimmer says. “It’s to help the licensee, whether it’s a database issue or an approval issue or understanding our brand limits.”

Planning Ahead Ohio State will continue to look for strategic partnerships and marketing initiatives that can help drive its business as it matures, Van Brimmer says. However, “There are less licensees in our business than there have been in a while, [due to] consolidation,” he says.

But less is better, Van Brimmer says, since it allows the university and its licensees to be more in strategic alignment. “As our business evolves and matures, we Marketing Results Ltd. talk about that a lot,” he Marketing Results Ltd. is a manufacturer/ says. licensee of Ohio State retail products “It’s not, ‘Let’s print up based out of Columbus, Ohio. From our a bunch of stuff and see “homegating” items to our new home décor if it sells,’” he continues. line, MRL provides Buckeye fans everything “It’s about asking our they need as they cheer on the Scarlet and Gray. Our current family of licensed retail licensees, ‘What do you product partners includes the NFL, collegiate see coming and how can organizations, Coca-Cola and Kodak. we help?’”

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Ohio State also is in the process of developing a new fiveto 10-year plan, Van Brimmer says. “We’re looking at the way we’re doing business right now, and watching how business changes,” he says, noting that the university has done this over the last 30 years.

The process involves looking at the way Ohio State does business and how the industry has changed, Van Brimmer says. “We pull those things out after a few years and say, ‘Here’s our five- to 10-year plan from 10 years ago,’” he says.

“We’re surprised how many of those things that we did,” he explains. “We’re going to continue to adhere to good business practices.” O

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MARKET BASKET 38 | TOPS FRIENDLY MARKETS 46 | KID TO KID 54 | LIDESTRI 56 | LUMINEX HOME DECOR & FRAGRANCE 58 | BIG SAVER FOODS 62 | COOKE’S FOOD STORE 66 | KARS PETRO 68 | SMOKER FRIENDLY 70 | SUPER KING MARKETS 74 | KLN FAMILY BRANDS 76 | EMPIRE PETROLEUM PARTNERS 80

Retail

“We are a conventional supermarket that prides itself on being the friendliest in town, providing fast service and making sure people don’t have to wait in long lines.” – Skylar Thompson November/December 2016

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Retail

MARKET BASKET

Selling Service

Market Basket stands out from the crowd in east Texas and Louisiana by providing the selection and customer service that its shoppers are looking for. BY ERIC SLACK

With slow and steady growth and prudent location selection, Market Basket is good at managing risks.

S Skylar Thompson, president www.marketbasketfoods.com Nederland, Texas

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ince opening its first location in 1961, Market Basket has focused on providing an extraordinary food shopping experience to its customers. Today, Market Basket remains a privately owned grocer serving the east Texas and Louisiana region with 34 full-service supermarkets.

“Service is what we hang our hat on, and that helps us compete against bigger chains by offering a community oriented and family atmosphere,” President Skylar Thompson says.

Currently, Market Basket employs more than

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2,000 supermarket associates. Market Basket supermarkets aim to provide exceptional value on grocery foods while providing innovative supermarket solutions and a full assortment of grocery products. Its offerings include fresh produce, quality meats, bakery goods and floral arrangements, as well as pharmacy services in select grocery store locations.

“We are a conventional supermarket that prides itself on being the friendliest in town, providing fast service and making sure people don’t have to wait long in lines,” Thompson says.

To make sure it is providing the products and expe-

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rience that consumers in the east Texas and Louisiana markets desire, Market Basket regularly reviews sales data and makes sure its layout can offer something unique in the market. For example, Thompson says shoppers in Louisiana tend to be more interested in local products than the east Texas shoppers.

“We are always looking at what is selling and gaining traction, and we are always evaluating based on movement and customer requests,” Thompson says. “Community involvement is also important, as we are always researching our markets and engaging our managers to gauge what is important to the community and get consumer feedback on how we should be involved. We have an annual budget for charitable giving and sponsorships so we can continue to support worthy causes, and we try to be involved with local events and get people to taste our products and have a presence in front of them.”

For example, this summer Market Basket announced that its new 2016-2017 Fundraiser Coupon Books were available at no cost to schools, churches and other charitable and non-profit clubs and organizations to assist in their fundraising efforts. The coupon books were available on a first come, first served basis while supplies lasted. The coupon books contained a Market Basket $5.00 off coupon with an 40

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We are always looking at what is selling and gaining traction, and we are always evaluating.

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additional purchase plus 30 manufacturer coupons with a value of 50 cents to $1.00, and all coupons are valid at any Market Basket food store in Texas and Louisiana. The coupon books sell for only $5.00 and the value of each book is in excess of $20. The coupon dates are from August 1, 2016 through July 31, 2017.

“This is Market Basket’s way of being able to help virtually any non-profit organization in the communities we serve,” Thompson says. “In addition to being a great opportunity for fundraising, the coupon books offer a tremendous value to the customers.”

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Tailored to Fit Of the company’s 34 stores, 32 are branded as Market Basket. It also operates a Cash Saver branded location and a Mercado de Familia branded location.

The company’s stores average around 30,000 square feet, ranging in size from 12,000 to 54,000 square feet.

“We have wide variety of sizes to our locations because of our acquisitions over the years,” Thompson says. “We’ve been investing capital into remodels and expansions as well as ground-up replacements stores. Our investments have included upgrading equipment, maintaining variety in the center of the store while making sure refrigerated categories can expand. Additionally, we’ve been converting to more efficient lighting and LEDs, as well as a new décor package and investing into newer more environmentally friendly refrigerated systems.”

The company converted stores to the Cash Saver and Mercado de Familia formats to better serve the local consumers around the stores. For the Cash Saver format, the company was looking to better serve price-focused customers.

The company may convert other locations to that banner as it moves forward.

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The Mercado de Familia conversion was done to cater to the Hispanic population. The store had already moved in that direction in terms of its product selection, and the banner change helped to set the store apart in a region where

Southwest Beverage Company Southwest Beverage Company is a third generation beverage distributor, established in 1954 by B.A. Marriner and currently led by his grandson Ben Marriner who has been in the business since 1982. We have grown significantly over the years and currently employ over 200 people, 44 of whom have been part of the Southwest Beverage family for more than 15 years.

Zummo Meat Company Zummo Meat Company has a proud heritage and a bright future. Zummo’s has been owned and managed by the southeast Texas family since 1908. Frank, Greg and Mark Zummo’s commitment to great products has produced exceptional recipes, and a loyal customer base. Their products are distributed in grocery stores throughout 40 states and these Sausage and Boudain products continue to be recognized for their high quality and great taste.

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“

In addition to being a great opportunity for fundraising, the coupon books offer a tremendous value.

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the Hispanic population is expanding. “Our area isn’t seeing the Hispanic population grow as much as other areas of Texas, but it is a format we could bring to other locations in the next few years,” Thompson says.

Thinking Ahead

Always striving to stay on top of industry developments, Market Basket is aware of the consumer move toward healthier eating. Thompson says his region of the country is a little behind that curve compared to other metro areas, but it is now seeing more requests for organic and natural products.

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“As a result, we have put in a nutritional tag program that has more information for customers, and we have a dietitian writing monthly article for our website and ads with healthy eating tips,” Thompson says.

Additionally, the company is exploring online ordering and e-commerce to help accommodate consumers’ busy lives. It has phased in its Market Basket Smokehouse online platform for ordering boudin and sausage.

Market Basket Smokehouse offers award-winning smoked sausage and boudin, as the company has nearly 30 years of experience in serving southeast Texas and southwest Louisiana the best homemade sausage and boudin.

Its unique processes and recipes have made Market Basket a favorite of sausage and boudin lovers from all over. The company has several locations in select Market Basket food stores throughout southeast Texas and southwest Louisiana, and customers can now order an array of Market Basket Smokehouse boudin and sausage products online for home delivery. Eventually, the company plans take that online system further into other items.

“People want more convenience and options that make the shopping experience quicker,” Thompson explains. “We are also doing more bundled purchases and quick and easy meals, because we are seeing a lot of popularity with our breakfast and lunch meals that customers can pick up at our locations.”

Ultimately, Market Basket strives to stand out by providing an exceptional food shopping experience to valued customers with the highest standards of freshness, cleanliness, convenience, quality, variety and service. It seeks to foster a teamwork environment for company associates and vendor partners that builds honesty, integrity, productivity and creativity. It wants to help associates to maximizing

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their potential and individual contributions to the company’s success while improving and enhancing the quality of life in the communities it serves. And it will always pursue growth, expansion and positive change that will produce more jobs and promotions while constantly pushing the

boundaries of excellence and working with passion to be the best of the best.

Going forward, Market Basket is emphasizing slow and steady growth. In the past, the company having gone through periods of acquiring stores in more distant or unfamiliar markets, so right now it is focusing more on careful single store acquisitions and investments in remodels.

Through controlled growth and prudent selection of locations, the operation can manage risk.

Hussmann Corporation “We know we have challenges like deflation Hussmann Corporation is an innovative leader in providing products and services in pricing, competitive that enable excellence in the food retail pressure and continuing industry. Grounded in a history of industryto pursue online ordering changing refrigerated merchandisers and and curbside pickup with refrigeration systems, today Hussmann third-party partners,” provides a broad array of solutions involving store design, merchandising, Thompson says. “But we in-store foodservice, refrigeration, shopper will continue to empha- engagement, equipment maintenance, size perishables and focus energy optimization, and food safety. These on doing a great job of areas of expertise address the critical needs taking care of and creat- of food retailers to increase sales, reduce costs, and increase shopper loyalty. ing loyal customers.” O

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Retail

TOPS FRIENDLY MARKETS

Local Favorite

TOPS Friendly Markets has served the Northeast for generations with supermarkets centered on customer service. BY CHRIS PETERSEN

TOPS is dedicated to always improving its high level of customer service, while better keeping promises it makes to customers.

F Frank Curci, president/CEO www.topsmarkets.com Williamsville, N.H.

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or generations, TOPS Friendly Markets has been the local favorite throughout upstate New York and the surrounding area, and chairman and CEO Frank Curci says the company is committed to holding onto that position for many years to come. “As a New York stateowned and operated company, our vision is to be your friendly neighborhood store that has what you want while saving you time and money,” Curci says.

Keeping the promises it makes to its customers each and every day is paramount for TOPS and crucial for its continued success, and that has been the status quo for the company ever since before the first

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modern TOPS supermarket opened in 1962 in Niagara Falls, N.Y. The company’s roots date back even further, to the early 1920s when Ferrante Castellani moved his family to Niagara Falls from a small village in Italy. In Niagara Falls, Castellani opened his first grocery store, and his sons Armand and Alfred soon opened two more under the same name of Great Bear Market.

By the 1950s, Armand Castellani met Thomas Buscaglia, owner of an equipment company, and they formed a joint venture known as Niagara Frontier Services. It was under this joint venture that the partners joined forces with a number of indepen-

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“

Our associates truly believe in the business and are committed to satisfying our customers’ needs.

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dent grocery store owners to take advantage of the rise of the supermarket. They opened the first TOPS location in 1962, measuring 25,000 square feet and offering a modern grocery shopping experience unlike anything the region had ever seen before. The company continued to grow throughout the 1970s and 1980s, growing across western New York as well as Pennsylvania. In 1991, TOPS was purchased by a major food retail conglomerate based in the Netherlands, and TOPS continued to grow through acquisition. In 2007 TOPS Markets was sold to Morgan Stanley Private Equity, but by the fall of that same year, Curci, led the Sahlen’s deal that returned “Sahlen’s is proud to congratulate Frank TOPS Markets Curci, associates and partners on their back to local op- ongoing successes in the ever changing eration.

Today, Grocery industry. Sahlen’s continues to enjoy an ongoing 55 year relationship with TOPS owns and Tops Friendly Markets and expects success operates more in their expansion and growth beyond the than 172 full-ser- Western and Central New York and Pennvice supermarkets sylvania markets. Consumers continue to with five addi- find a great brand retailer with Tops Friendly Markets with a strong commitment to local tional franchises food growers and manufacturers. We wish under the Tops them success in the coming years and look banner in New forward to creative store upgrades and York, northern marketing for their customers.” - Mark S. P e n n s y l v a n i a , Battistoni, V.P. Sales/Marketing western Vermont and north central C&S Wholesale Grocers Massachusetts.

As TOPS con- For nearly 100 years, C&S Wholesale Grocers tinues to cement has been providing the Products, Value, itself as the lo- Knowledge & Services to help grocery cal leader in the retailers succeed and grow. Today, we continue our legacy of providing premier Northeast, Curci service to our retailer partners, with daily says the company deliveries to thousands of grocery stores also continues to across the country, and a full offering of look for ways to retail support services for our customers to improve its ser- choose from.

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vice and better keep its promises to its customers. No matter what the future holds for TOPS, he says, customers can always count on finding the best deals on the products they want at convenient locations and with the friendliest service around. Fulfilling those promises is only possible because of the hard-working people who serve those customers. “We have a strong, dedicated team of associates who are intent on delivering quality customer service day in and day out,” Curci says. “Our associates truly believe in the business and are committed to listening to and satisfying our customers’ needs.”

Competitive Offerings What sets TOPS supermarkets apart from the rest of the competition in the Northeast is the company’s belief in offering customers practically everything they need under one roof, rather than competing based solely on price. “We are a promotionally oriented company vs. [everyday low price] like our competitors,” Curci says. “We also offer a wide variety of national brands as well as our own private label brands for our customers to choose from. We differentiate ourselves from our competitors because our store sizes vary based on the markets we are in and the need of 50

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that market – from rural and suburban to urban. Our emphasis is on having in-store services like an in store bakery, real butchers, fresh-cut fruit in our produce area and more.”

Curci also says TOPS thrives by being able to respond to the latest trends in the supermarket sector. “We believe in being proactive versus reactive when it comes to trends in the marketplace and making sure that our management team is out in our stores and staying in contact with the business so they can see first-hand any challenges we may face,” he says.

For example, shoppers are looking for more fresh options as a healthier alternative to processed foods, and so TOPS has reacted by increasing the variety of fresh-cut fruit and vegetables in its pro-

Acosta Acosta and its clients are proud partners of Tops Friendly Markets. By using a truly integrated sales and marketing approach, Acosta builds strong customer relationships at headquarters, delivers brand objectives in-store and markets to consumers throughout the entire decision-making process. We provide the strategic shopperbased insight, extensive reach, and thought leadership required to move products off shelves and into consumer hands.

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Technology allows us to better serve our customers, both externally and internally.

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duce section as well as offering a selection of ready-to-eat freshly prepared meals such as rotisserie chicken.

Another side to this trend is that shoppers are becoming more selective about the products they buy and the ingredients that go into them. Curci says one quarter of all consumers seek out products that contain only ingredients they recognize. TOPS has responded to this by redesigning its line of private-label products to include simpler ingredients while maintaining the same affordable price point. The company also has increased the number of certified organic products it carries by 50 percent over the last two years, and

Curci says TOPS plans to continue growing that segment of its product mix. “We’re also updating our price tags to easily identify these items,” he says.

Embracing Technology Old-fashioned customer service has been critical for TOPS’ sustained success, but Curci says the company has not been afraid to embrace the future, as well. “Technology allows us to better serve our customers, both externally and internally,” he says. “If we are doing it right, any changes, upgrades or the introduction of new technology should be positioning us to provide our customers value, improve our efficiency, and reduce our expense.”

One of the company’s most successful technological initiatives of late has been its webpage, where customers can place orders, refill prescriptions, create shopping lists and manage their TOPS BonusPlus rewards card accounts. “We have seen exceptional shopper engagement growth,” Curci says. “Over the past five years, the number of shoppers registered on TopsMarkets.com has increased by more than 400 percent, and average weekly visits to the website have increased 177 percent. The TopsMarkets.com page views exceed 34 million annually.”

Curci adds that technology also has improved the company’s efforts in loss prevention and inventory management by providing a centralized source of up-to-the-minute data.

“Technology provides the stores and category teams the historic data required to support future promotions and ensure the correct amount of product is available to meet the customer demand,” he says.

People Focused Technology also plays a large role in helping TOPS cope with one of its greatest challenges in recent years – finding and re52

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taining high-quality employees. “We’ve always been fortunate to have a fairly large applicant pool at most of our locations,” Curci says. “But within the last year we implemented a new applicant tracking system that modernized the application process for potential hires and gave us a better way to manage the applicants we have in our pool; this system has greatly

increased our applicant pool, allowing us to find more great associates who will provide excellent service to our customers.

For some of our harder to fill positions that require specific skills, we’ll utilize some targeted advertising and recruiting, but good technology certainly helps the process.”

Recruiting and retaining high-quality people is especially crucial for TOPS, as Curci explains, because it’s through its people that TOPS is able to provide customers with the best possible shopping experience. “Employee retention is a priority,” Curci says. “We have many employees, both in the stores and the warehouse, who have been with us for decades and that shows us that this is more than just a job for them-it’s a career. Our own president and COO, John Persons, started with TOPS as a cart boy and we’ve been his sole employer ever since, so that tells you something right there.”

As TOPS looks into the future, Curci says the philosophy that has defined the company’s success for generations will continue to be the same, and that is why he believes the future looks bright. “It is essential to meet the needs of the customer and always stay ahead of the trends,” he says.

“If you work hard, stay ahead of the competition and truly believe in what you’re trying to accomplish, you can make great strides.” O

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Retail

KID TO KID

Clearly Different

From the store sales floor to the behind-the-scenes technology, Kid to Kid is different from the typical resale store. BY CHRIS PETERSEN

With more than 100 franchised locations across the country, Kid to Kid says its success is in part thanks to its ability to adapt quickly to the market.

A

Shauna Sloan, owner www.basecampfranchising. com/kid-to-kid Salt Lake City

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ny parent will tell you that one of the most challenging things about kids growing up is keeping up with their wardrobes.

When you consider how quickly a child can grow out of his or her entire closet, the prospect of having to buy all-new clothes every few months can be a daunting one, especially from a family budget perspective.

Although resale shops can provide a respite from high-priced new clothing, shopping at many of them can be confusing and time-consuming as parents sift through a selection that isn’t always great.

That’s why Kid to Kid stands out in the children’s re-

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sale segment, owner Shauna Sloan says, because Kid to Kid offers families a shopping experience above and beyond the typical resale environment.

Kid to Kid is one of two resale franchises operated

by Basecamp Franchising, a Salt Lake City-based company founded by Brent and Shauna Sloan. The inspiration for Kid to Kid came from a very simple place. “We had a lot of little kids,” Sloan says.

As Shauna Sloan worked to raise four kids while living in Ohio, she frequently took advantage of thrift stores and resale shops to help keep the family’s budget in check. However, Sloan says, she found the shopping experience in those types of retailers

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Kid to Kid left a lot to be desired and got her husband on board to consider a better type of resale shopping experience. With a slew of ideas as to how they could improve upon the children’s resale model, Brent and Shauna opened their first store in Utah in 1992. Today, Kid to Kid has more than 100 franchised locations across the country, and Sloan says the company’s success lies in its ability to stand out in a crowded marketplace and adapt quickly to whatever the market conditions bring.

Better Options The difference between Kid to Kid and other children’s resale concepts is apparent as soon as a customer walks into one of its stores, according to Sloan. Whereas typical resale stores cut corners on presentation, Kid to Kid stores are almost indistinguishable from a retailer that specializes in brand-new children’s clothing.

“We’re so different from your typical resale store,” Sloan says. “We invest in high-quality fixturing, bright colors and clean displays, and light the stores like a specialty boutique.”

All of this adds up to create a shopping environment where customers can feel comfortable and confident that the items they find there are of the highest possible quality. Sloan says the company also ensures that it has a better selection of clothing by paying cash to customers for their items and adhering to rigorous quality standards.

From outward appearances, Kid to Kid is different from other children’s resale concepts, but there’s a lot going on behind the scenes that sets it apart, as well. Sloan says the company’s commitment to creating the most advanced resale process in the industry is another significant advantage it has over its competitors. “It really comes down to our technology,” she says.

Kid to Kid utilizes a sophisticated buying program, characterized by the first-ever software platform designed specifically for the resale industry. Through this system, buyers at Kid to Kid locations can enter in items they purchase from customers and find the fairest market price for each item based on a system-wide database. Through this system, Kid to Kid has a complete picture of every item in its stores, and it is able to pay cash to customers who are turning in clothes, making the process very attractive for customers who want to sell clothing their kids have outgrown. Sloan says this ensures Kid to Kid features a wider and more complete selection of items than a typical resale store, and those items are better organized to make the shopping experience easier for customers. “That’s really the big difference,” she says.

ers overestimated the demand in 2016, resulting in a glut of product in the marketplace. As a result, Kid to Kid adjusted its prices in order to remain competitive with retailers having clearance sales.

“One result of this market glut of product is that we’re paying customers a little bit less for their items than in previous years because we have to charge a little bit less,” Sloan says. Despite these challenges, however, Sloan says Kid to Kid’s technological edge gives it immediate flexibility in pricing and payment, helping individual franchise owners maintain gross margins of nearly 70 percent on their goods.

A trend that Sloan sees working in the company’s favor in the near future is the rising popularity of children’s resale clothing both online and in stores. Through a combination of economic and cultural factors, families are becoming less brand-conscious and more budget-minded, and resale shops fit those trends perfectly. Sloan says Kid to Kid is experiencing same-store sales growth almost across the board, and the company is actively looking for franchisees to help the company continue to grow. With the advantages Kid to Kid has in the resale industry and the rising popularity of resale in general, Sloan says the company could see another 100 to 200 locations open up within the next several years. O

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Retail

LIDESTRI

Collaborative Innovators

LiDestri creates strategic partnerships and leads the industry with innovations in products, processing and packaging. BY STEPHANIE CRETS

F Stefani LiDestri, co-president www.lidestrifood anddrink.com Fairport, N.Y.

John LiDestri, co-president

or more than 40 years, LiDestri has combined innovation and collaboration to become the premier private-label and contract manufacturer of food, beverages and spirits. From pasta sauce and salsa to packing and processing innovations, LiDestri has been and continues to be a pioneer in the industry. And with the recent transition of presidency from Giovanni LiDestri to his children, co-presidents Stefani LiDestri and John LiDestri, the company is poised to break more ground in food and beverage processing and packaging.

In just the past eight months, the company launched a High-Pressure Processing (HPP) tolling station and increased its capacity to process cold fill aseptic beverages; both in response to ever-growing demand from a more health-conscious consumer base. LiDestri also brought to market ‘Living Jar,’ a more sustainable and shatterproof sauce package that instantly began winning prestigious awards. And new products are rolling out of its Innovation Center like clockwork.

“Creating a shift as we have in the last six years has been a lot for the organization to digest, and it’s pivoting mostly due to our diversification efforts,” Stefani LiDestri says. “My father really started to recognize the commoditization of the sauce market meant we would have to get outside of our comfort zone and tap into other products, processing and packaging. It’s really about our strategic initiatives of diversification to remain relevant and to become true innovators.”

Innovation Center Part of LiDestri’s effort to get out of its comfort zone involved opening an Innovation Center in 2014.

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There, the company’s research and development team, along with 20 certified tasters, come up with new, unique, innovative products. Thanks to this “trial by fire,” as Stefani LiDestri describes it, the Innovation Center allowed LiDestri to create strategic partnerships with other innovative companies, such as Newman’s Own and Wegmans Food Markets.

“We’ve really gotten to a completely different place than we were six years ago,” Stefani LiDestri explains. “The transition is exciting because of all the trend-setting we’re looking to lead our industry towards – not only in packaging innovation, but also through efforts in sustainability. We’re setting the pace for the industry in really trying to establish standards that we can share beyond ourselves and make an impact across the industry at the manufacturing and retail level.”

Product innovation is something LiDestri has always prided itself on. It’s currently in the process of revamping its salsa to make it even hotter by manufacturing it with ghost peppers and scorpion peppers. Both peppers are growing in popularity in the salsa market, so LiDestri plans to capitalize on that trend.

The company has also helped its partner Newman’s Own develop a new line of organic pasta sauces called Common Good. The partners worked side-by-side in the Innovation Center kitchens to develop the recipes, cooking their way through a mountain of spices and gallons of extra-virgin olive oil. After a few months of collaboration, they had a product ready for market.

Always focusing on health and sustainability, LiDestri is excited about another upcoming product: an apple cider vinegar sipping drink. Stefani LiDestri first came across this concoction shortly after having her

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LiDestri daughter. Her herbalist suggested she try it to clear her lymph nodes since nothing else was relieving her swollen ankles. “After two days of drinking this, my ankles were normal again – it was crazy,” she says. “All of a sudden, everyone started talking about this product. Good Girl Moonshine is this underground community of gals who are drinking concoctions of apple cider vinegar. It’s really healthy, and I love the flavor.”

Apple cider vinegar can help to remove body toxins, boost immunity and improve digestion. When developing this product, the company made efforts to keep the underground Good Girl Moonshine vibe rather than making it more commercial looking. But the product – releasing in a few months – will be a refreshing, easy-to-drink functional beverage, ideal for the health-conscious consumer.

“My family is from Cuba and Sicily, and I’m so envious of how healthy everyone seems in Europe,” Stefani LiDestri says. “They’re eating fresher products than in the United States. We’re heading in a direction as an industry to put these types of products out in front of the consumer and allowing them to make good choices where the cost isn’t astronomical.”

Process and Packaging The Innovation Center also allowed LiDestri to cook up new ways of packaging and processing its products, such as the Living Jar and HPP. The Living Jar benefits retailers and consumers because it’s shatterproof, lightweight and in a safer, greener package than a typical glass jar. The company brought this jar to market on behalf of its partner Wegmans Food Markets to provide a package that appeals to environmentally conscious consumers without sacrificing the shelf life of the product.

The jar has won both the 2016 Diamond Award for packaging innovation and 2016 Ameristar Award for excellence in food packaging from the Institute of Packaging Professionals. “This package is a category-changer because we decided to really focus on what consumers are looking for in pasta sauce containers,” Stefani LiDestri adds.

But LiDestri couldn’t provide certain kinds of fresh products without the help of HPP. HPP makes it possible to remove chemical preservatives from product formulas and achieve the same shelf lives for a range of products, including juices, deli meats, wet salads, seafood, hummus, guacamole and cold soups, through high water pressure. “This process not only produces tastier products because we’re not cooking the flavor out of things, but they’re actually going to be healthier because we’re not heating the nutrients out of it,” Stefani LiDestri explains.

From product innovation to processing and packaging innovation, LiDestri is ready to take the industry by storm.

“I’m going to take the teachings of my father with long-term partnerships and continue with collaboration, but increase the level of communication, along with thought leadership through educating consumers and the industry,” Stefani

LiDestri says. “We’ve been innovators and creative thinkers from every aspect, and all about breaking down barriers. I think it would be great to share that for the good of the whole. We want to make an impact where it counts and will help retailers, co-packers and manufacturers do better for the good of everyone here in the United States.” O

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Retail

Luminex wants to integrate Candle-lite and PartyLite while maintaining the best aspects of both cultures.

LUMINEX HOME DÉCOR AND FRAGRANCE CO.

Under One Banner

Candle-lite and PartyLite merge under the Luminex Home Décor and Fragrance name to bring unique products to a broader audience. BY STEPHANIE CRETS

U Calvin Johnston, CEO www.luminexhdf.com Cincinnati

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nderstanding consumers’ needs and developing products that appeal to them is the focus of Luminex Home Décor and Fragrance Co. The company is well positioned to provide high-quality home fragrance and home décor products from its one-million-square-foot manufacturing and distribution facility, along with providing a high level of service to its customers.

Luminex HDF is a new company, representing the unification of two organizations with long-standing histories in the industry: Candle-lite Company and PartyLite. Candle-lite, which celebrated its 175th

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anniversary last year, is America’s oldest candle manufacturer and reaches more consumers through mass-market retailers than any other manufacturer.

PartyLite, on the other hand, is a direct-to-consumer sales company with more than 45,000 sales consultants in 19 countries. Where pricing is concerned, Candle-lite competes primarily in the value segment, while PartyLite is tailored to the premium market.

What brought these two companies together was the vision set out by the executive team and private equity partners of both businesses. Candle-lite was acquired by the Centre Lane Partners back in Jan-

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uary 2014, while the Carlyle Group acquired PartyLite in October 2015.

What they recognized was a great opportunity to create operational synergies and gain significant benefits from bringing these two companies together, with the merger of Candle-lite and PartyLite under the umbrella of Luminex HDF, completed in May 2016.

“One of the primary benefits in bringing these two home fragrances leaders together was the fact they are quite complementary to each other in the way they reach consumers,” CEO Calvin Johnston says. “While we are able to create tremendous synergies in leveraging a shared service model on the back-end through integrating finance, IT, manufacturing, distribution and product development, we can now engage and appeal to a broader consumer base then before. Not only do we now reach more consumers through very different channels of distribution, we can do it on a global scale.

“Candle-lite has been primarily a North American retail-focused business while Partylite’s largest market is in Europe,” he continues. “Going forward, we will be able to leverage our infrastructure to expand both businesses into new markets. Through the integration of the companies, we can redeploy capital and operating budgets into product development, operational efficiencies and people to help us grow.”

Company Integration Thanks to the merger, Luminex HDF is able to make significant investments in its main manufacturing and distribution center. The company is investing more than $15 million in integration capabilities alone, which include overall process improvement, equipment automation and new IT systems.

“In any merger, you’re bringing together distinct organizations that have operated independently and the key is getting them to work together – quickly,” Johnston explains. “Because we’ve

created a shared service model, people are working together across the business units from product development, forecasting and planning, manufacturing, finance and more. The challenge comes when you’re melding those companies together through processes and new reporting relationships while creating the right balance so you can still maintain the distinct nature of each company.”

Both Candle-lite and PartyLite have long-standing cultures embedded within each company. A challenge for Luminex HDF’s executive team is to create a common bond under this new company umbrella while not taking away the unique strengths of each company. “That is a balancing act we work at every day to achieve,” Johnston says. “While we’re still in our infancy in terms of working together, a key, central question is: How do we keep the best of both cultures but bind people together under Luminex?”

While most employees have a long tenure and were at first apprehensive of the merger, they quickly embraced the idea of working together. Johnston says he expected it to take at least a year to bridge the two companies, but that has already been accomplished in the first five months. “It came down to how quickly people supported the strategy, understood what was asked of them and made tremendous sacrifices with workload and commitments to bringing the organizations together,” he says.

“That speaks highly of the people we have, the quality of their work in the way they’ve handled the changes and how quickly they’ve come together.”

New Products Merging the two companies also meant keeping a unique and distinctive brand and product portfolio for both Candle-lite and PartyLite. This is likely to help strengthen the financial health and performance of the company by extending the reach of the company to even more consumers.

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I really believe Luminex can be the world’s leading home decor and fragrance company.

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Candle-lite recently introduced a new line of Scent Bursts and Scent Sticks available at food and drug retailers and Walmart. These natural paper-based products are infused with essential oils and other pure fragrances, are easy to use and environmentally friendly. Scent Sticks can fragrance any room for 30-plus days with continual use. Scent Bursts, a fragranced paper alternative to wax melts, lasts two-times longer and offers an immediate fragrance experience with no mess – unlike melted wax.

“The initial consumer take on the new products has been really strong,” Johnston notes. “For Candle-lite, it’s about launching the brand into new product categories. For Party60

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Lite, it’s about creating both new products and a new party concept that’s fun and interactive that guests can enjoy.”

With PartyLite, the company recently launched a new line of threewick candles with a more fashionable design and higher-quality fragrance.

Additionally, PartyLite has launched a new party concept called Find Your Signature. Guests at a party are able to mix and match fragrances – whether a fresh, fruit, floral, gourmand or exotic fragrance – in a fun, interactive way to find their own personal signature fragrance to enhance their home.

Since launching this concept, PartyLite has seen a significant growth in the number of people hosting and attending the Find Your Signature parties.

This in turn is leading to more guests wanting to either host their own party or to become PartyLite consultants.

“I really believe Luminex can be the world’s leading home décor and

fragrance company,” Johnston says. “I think we’re creating a strong foundation and platform that we can build upon. We have tremendous support from our shareholders who share that passion and vision of creating a leading company on a global basis. The home décor and fragrance industry has gone through consolidation over the last few years. Once we complete the integration of the companies over the next few months, we will look at new opportunities to leverage our operating base and consider acquisitions and expansion into new markets. Our future is really bright in terms of what we achieve under Luminex.

“What we’ve done is extremely unique,” he continues. “We’re breaking new ground on how to operate these two distinctly different businesses in a way that has not been done before. It’s quite exciting for the company and our employees.” O November/December 2016

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BIG SAVER FOODS

Authentic Experience

Big Saver Foods tailors products and the store environment to its customers in all of its 14 California locations, while employees get to know the clientele well. BY STEPHANIE CRETS

Jose Huerta, vice president of marketing, procurement and strategy www.bigsaverfoods.com Vernon, Calif.

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atering to the communities it serves is Big Saver Foods’ focus. With only 14 locations in California, the company can easily tailor its stores and products to customers. “We can really custom-tailor the stores because we’re small,” Vice President of Marketing, Procurement and Strategy Jose Huerta says. “If we had 300 stores, we couldn’t do that, and it’s an advantage of being small.”

For example, its Santa Ana store is in a predominately Mexican-American neighborhood, so the store merchandises it in a way that appeals to those residents.

On the other hand, its Rosemead store is in a neigh-

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borhood with a largely Asian-American population, so that store carries a different selection of products.

Another advantage of being a smaller, neighborhood store is that Big Saver Foods’ employees can really get to know the clientele. They learn customers’ names, can recommend products to them more easily and even offer tips or recipe recommendations on how to cook something. This, in turn, creates a family atmosphere throughout all of Big Saver Foods’ stores.

“We feel like these things help attract customers and promote loyalty,” Huerta says. “We’re also a little bit antiquated. We see the best way to bring in

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Big Saver Foods

We can change strategies and move quickly. If we see trends, we can make a quick change.

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customers is through aggressive weekly flyers. As soon as we do something crazy on our front page, we see an immediate change in customer count.”

Big Saver Foods is looking forward to a mobile marketing push and also promotes its brand through community events such as health fairs. “But our best vehicle is the weekly flyer with aggressive pricing with the right items,” Huerta adds.

Turn on a Dime Big Saver Foods is always looking for new locations, but it wants to remain a small operation overall. The company

likes being able to access any of its stores easily for any necessary supervision. “We want to keep this close-knit family with the employees and being in the stores and talking to customers to see what they want,” Huerta says. “We’re always looking for sites that are good and make sense, but we don’t have an appetite to grow just to grow.”

In addition, its corporate office is just east of downtown Los Angeles near the city’s produce market, which allows members of the company to talk to growers regularly and find out what items are doing better than others so it can stock stores accordingly. Big Saver Foods is always on the pulse of trends in the industry and regularly speaks to vendor partners so it can be ready when a product is available or suddenly growing in popularity.

“We can change strategies and move quickly,” Huerta says. “If we see trends, we can make a quick change. Nestlé USA By tomorrow, we could As the world’s leading nutrition, health and be doing something dif- wellness company, Nestlé is the worldwide ferent. There’s not a lot leader in product categories such as soluble of red tape to go through coffee, infant nutrition, bottled water, like large companies. condensed and evaporated milk, ice cream, chocolate malt drinks, culinary and pet care.

We can turn on a dime.

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Big Saver Foods

When you’re dealing with fresh departments, the commodities are volatile; they can change tomorrow. A crop could get rained out. Or if suddenly a couple loads of avocados become available, we can grab them and put them in all of our stores. Bigger stores can’t make that global change.”

Being a smaller company has its disadvantages, of course.

Big Saver Foods faces the increasing costs of operations.

California has passed a couple of minimum wage increases, which Huerta says puts a strain on operations and compresses its net profit. And it’s not just the state issuing new regulations; some counties or cities might have different minimum wage requirements, so the company might have to manage completely different policies and rules from one store to the next, even if it’s only a few miles away.

“They’ve introduced mandatory sick pay, which is a great benefit, but it adds more costs,” Huerta explains. “We already had a rich vacation policy but now we also have to pay sick days. In an industry like ours, where you’re making pennies if you’re lucky, any change of operations can set your system off. But we’ve been successful at managing these programs through good morale in the stores. Plus, now there are several independent stores like us. That slice of pie is getting smaller so we really have to fight to maintain our share.”

From Scratch While Big Saver Foods customizes its selection to specific neighborhoods, it is also working on reinvesting in some of its older stores and upgrading them to better fit their communities. It is remodeling many of its stores and adding LED lighting to better display products for a fresher look.

This also helps the company become more efficient overall – LED lighting not only makes the products look better, but it’s also making the facilities more environmentally friendly and saving on utility costs.

The made-from-scratch bakeries are also a staple of Big Saver Foods, but not all locations have had them. That is why the company is also putting new bakeries into more stores so they will be able to create custom-baked goods fit for each 64

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Now there are several stores like us. That slice of pie is getting smaller so we really have to fight to maintain our share. neighborhood. Additional equipment Big Saver Foods has added includes new self-service meat cases, refrigerated island cases for produce and new refrigerated cases for other products. The new refrigeration systems make the products look better, but like the LED lighting, they are also more efficient.

“Anyone can sell a box of cereal, but for us we will strengthen our fresh

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and made-from-scratch departments,” Huerta says. “For us, the produce, meat and bakeries are the signature departments, where big retailers will have a hard time competing with. After we finish remodeling older stores, I hope we reach a point where we’re so confident with the success of our new direction that we can aggressively pursue some growth.” O November/December 2016

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Retail

To remain innovative, Cooke’s strives to constantly evolve and create new draws for all types of customers.

COOKE’S FOOD STORE

Built on Tradition

Cooke’s Food Store’s decades of success all stem from the company’s ability to understand its customers and give them what they want.

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Dan Cooke, owner www.cookeshome towngrocer.com Cleveland, Tenn.

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t Cooke’s Food Store in Cleveland, Tenn., the family focused organization strives to provide the highest level of service to its customers and their families every day. The company says it takes delight in meeting its customers’ grocery needs, and its staff is empowered to provide personal assistance at any of its fresh product counters.

“Cooke’s Food Store is a fourth-generation, family owned, full-service traditional grocery store operated in Cleveland, Tenn., since 1936,” owner Dan Cooke says. “Our company is a grocer that is committed to our community. We try to be an involved community citizen and be a part of what makes our area a great place to live.”

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Ample Offerings A focus on empowering associates to take care of the business drives Cooke’s Food Store’s success. The store has an extensive deli and bakery department, butcher station with full-time butcher, fresh produce, full-service pharmacy with drive-thru, full-service floral department, and an indoor and outdoor dining area with Wi-Fi. Cooke’s also carries a large selection of natural, organic and gluten-free items.

“From an innovation standpoint, Cooke’s tries to constantly evolve and develop new and exciting draws for customers of all ages,” Cooke says. “We want to provide our customers with what they want when they want it and to be their best alternative for their meals. We try to be as innovative as possible to

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keep shoppers’ experiences ever interesting, but at the end of the day it’s the service provided by our team members that drives our success.”

Indeed, the company tries to make sure its meat and seafood counter can please families and meet their requirements. From ocean-fresh seafood to quality meat products, its knowledgeable butcher and staff can help customers create quality meals. Its produce department brings customers the freshest, most delicious fruits and vegetables for any time of the year at affordable prices, including seasonal varieties.

Cooke’s Food Store says its deli and bakery take the hassle out of lunchtime. Its sliced deli meats and cheeses are great for sandwiches, and it has daily lunch and dinner specials as well as rotisserie chicken for quick and easy meals. Beyond that, its bakery provides fresh-baked treats for customers on the go, from hot rolls and breads to cookies, cakes and muffins. Another standout element at the store is its high-quality line of sushi items made with time-tested techniques, one-of-kind recipes and the highest-quality seafood.

Then there is the pharmacy. Cooke’s pharmacy provides professionalism, innovative care and a community-forward atmosphere. A full-service pharmacy, Cooke’s offers a convenient drive-thru window and compounding services while striving to ensure that customers get their medicine on time and receive the friendliest service in town. Cooke’s works to provide the best prescription prices around, can offer automatic refills, has Biofreeze and free blood pressure testing, and offers a number of vaccinations and cholesterol screenings.

Supporting these services are professional, knowledgeable pharmacists on duty to answer questions and take care of customer needs.

Always Changing As Cooke’s Food Store looks to improve its services and offerings, it works hard to

stay on top of the changing needs of its customers. The company is aware of the big trends and changes taking place in its market, and it is doing its best to adapt.

“Other than government regulations, the biggest change is the way people choose to shop,” Cooke says. “The whole buying experience is changing.

Are customers shopping for right now or the whole week? Are they shopping in order to prepare themselves or do they want prepared foods? Are they shopping for entertainment or online to pick up? Our job is to provide the customer with the product they want in the way they want it.”

Cooke’s Food Store feels the most important internal investment areas to focus on are connected to talent. By investing in people and training, the company can make sure that it has a team full of committed associates who are trained to be the best they can be at their jobs.

As it has always done, Cooke’s Food Store will also continue to make sure it is building and maintaining the strongest possible vendor relationships. The company considers its vendors as its partners in its business, which is why it tries to build relationships that can provide benefits in the best interest of all parties.

In the end, from meat, seafood, fresh produce and flowers to baked goods and the pharmacy, Cooke’s Food Store can literally meet all of any family’s grocery needs. Having built a lasting legacy over the past 80 years, the company is excited about the opportunity to continue to serve its community for many more years to come.

The company knows it will face challenges, but it has established its priorities and will work on achieving its goals in the years ahead. Ultimately, it all comes down Cooke’s ability to continue to put customers and community at the top of the totem pole.

“Our job is to evolve and continue to try and provide our customers with what they want in the way they want it,” Cooke says. O November/December 2016

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Retail

KARS PETRO DISTRIBUTORS LLC

Gaining an Edge

KARS Petro Distributors innovates to help its customers stay competitive while delivering the highest-quality petroleum products to more than 250 gas stations.

KARS Petro is dedicated to being its customers’ No. 1 wholesaler and distributor.

KARS Petro Distributors LLC www.karspetro.com Rockledge, Fla.

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aj Shah moved to the United States 32 years ago to pursue the American Dream and 27 years later his company, KARS Petro Distributors LLC, is one of Florida’s premier gasoline wholesalers and distributors.

“We at KARS Petro Distributors strive to deliver

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top-quality petroleum products and customer service,” the company says.

Shah spent his first five years in the country working as a gas station attendant to gain retail experience. He saved enough money to purchase his first gas station in Coca, Fla., in 1989, and the company

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now owns more than 100 gas stations throughout Florida. KARS Petro was founded in 2007 and says it has grown exponentially “due to the hard work and outstanding customer service by the KARS Petro Team.”

KARS Petro markets fuel for BP, Chevron/Texaco, Citgo, Exxon/Mobil, Marathon, Shell, Sunoco and Valero.

The company distributes to more than 250 gas stations. “Here at KARS Petro, we uphold each brand’s image requirements and we make every effort to exceed the oil companies’ expectations,” the company says.

Branding Goals KARS Petro is a Florida limited liability company that provides logistic and fuel distribution support to stations in Florida, Alabama and Georgia. In addition to selling and distributing all the major oil brands’ petroleum products it also sells and distributes unbranded petroleum products.

The company also provides access to the best incentive and branding packages. KARS Petro assists its customers in terms of operations and business development, such as construction of new facilities and remodeling of previously built facilities, finance options for gas station acquisitions and convenience store and vendor set-ups. KARS Petro is reportedly in the middle of three facility developments.

Management Systems KARS Petro leveraged its technology group, BonaFide Management Inc., to improve the accounting and management of gasoline retail stores. The company developed an integrated enterprise solution, E-store accounting and security system to manage the key activities of a location.

BonaFide Management’s platform, E-Store Accounting & Security Systems, will help retailers manage their bookkeeping and accounting, inventory, business intelligence and reporting, and

KARS CARES

KARS CARES Program is an outlet for KARS Petro to give back to the community. The company donated almost 100 toys this past Christmas to the Brevard County Sheriff’s Office in Florida. “With the heartfelt donations of the toys, children in our community will get to enjoy Christmas,” the Sheriff’s Office wrote at the time.

“Thank you to the staff of KARS Petro Distributors for making the KARS CARES Program a huge success.”

In August, KARS CARES participated in the Walgreens Red Nose Day with fundraising events in the office every day. Red Nose Day is a campaign raises money for charities working on the ground to deliver the basic needs of kids living in poverty.

Tens of millions of dollars have been raised throughout the country to help fight kids’ poverty in America and around the world, according to Walgreens.

“In the mix of all the fun, we could not forget what this event stands for: the children,” KARS Petro wrote. “Without the outpour of assistance from everyone, children all over the world would have to go without what we take for granted.”

provide security surveillance. The company is also developing a secured portal for customers to login and manage their sites. “The reason for developing this product in-house is to ensure that the application is developed within the capabilities of existing infrastructure and flexible enough to integrate with E-Store Accounting & Security Systems,” the company says.

KARS Petro focuses on staying innovative and being its customers’ No. 1 wholesaler and distributor.

“We constantly aim to stay innovative in order for our customers to gain an edge over the competition and to protect against the uncertainties that accompany the gasoline industry,” the company explains. “KARS Petro is committed to form trustworthy and prosperous relationships between our vendors and customers. We pledge to offer the highest quality of professionalism, expertise and dedication to promote our branded fuel.” O November/December 2016

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Smoker Friendly added growler stations to get into the growing popularity of craft beer.

SMOKER FRIENDLY

Open to All

Smoker Friendly creates a welcoming environment for smokers and vapers while it plans to grow its liquor locations and growler stations. BY STEPHANIE CRETS Regan Bartley, co-owner and marketing director www.smokerfriendlywv.com Parkersburg, W.Va

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here can be a stigma to buying cigarettes in today’s world, but Smoker Friendly creates an open, pleasant environment that makes customers feel welcome. “We provide a very bright environment – one where you don’t feel ashamed coming in and buying your cigarettes,” Co-owner and Marketing Director Regan Bartley says. “If you’re a regular, our employees know what you want, and they’ll carry on and joke around with you. Our slogan is ‘clean, friendly, pleasant,’ but our employees make Smoker Friendly what it is.”

Smoker Friendly’s 41 locations are mainly dispersed across West Virginia, but it also has five stores

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in Ohio, one in Virginia and one in Maryland. The company has a couple acquisitions in the works and hopes to see some growth in its store numbers in 2017. In the meantime, Smoker Friendly is focusing on its rewards program for its loyal customer base.

Launched at the beginning of October, the rewards program is free to sign up and allows customers to accumulate points for free products while also entering store sweepstakes.

“I’ve created one big program with so many benefits that the success rate has been seeing huge increases in sales,” Bartley says. “We’ve created a strong program to keep customers back in the stores.”

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Smoker Friendly

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We’re very laid back, and it’s a really cool environment to work in. People are happy to be a part of it.

New Trends

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Since its inception in 1997 by Bartley’s father, Steve Norman, Smoker Friendly has diversified its offerings quite a bit. The company added liquor to a few locations, rebranding some of them as Smoker Friendly Liquor Plus. The company capitalized on the growing popularity of the e-cigarette and vape trends and added more glass pipes for customers to get their supplies as more states legalize marijuana.

“I try to stay on top of what’s going on in other industries, not just our industry, so I end up doing a lot of things that are outside of the box when it comes to tobacco out-

lets,” Bartley explains. “We went big on the vape because it’s huge and evolves very quickly, as far as devices and juice go.

Customers come to us for juices because we have a different selection; we don’t have handmade or homemade ones, like some stores. Our juices are all regulated by well-known companies that have put in the research to be safe products for the customers. I hope to see our sales grow since we’ll be a safer place to come for that type of product.”

Additionally, Smoker Friendly added growler stations to two of its locations to get into the growing popularity of craft beer. Customers can come in and buy a growler, which is a refillable container for draft beer, and fill it up with a locally brewed beer or other craft beer. The company’s growlers are made of a dark amber glass to protect the beer inside from damaging ultraviolet rays.

“We’re going to be expanding the growlers in stores because we think it will succeed,” Bartley says. “There’s been education involved on our side and for customers about what it is since it’s something completely different than what we normally do. I think that, as the craft beer industry expands, more people will know what it is. Plus, how we pour the growlers is very efficient. There’s less airflow, so less foam and less waste, which saves money. It’s been fun working with the beer companies and finding out which ones are coming in.”

Family Culture While joining the family business wasn’t Bartley’s initial career goal, she joined Smoker Friendly to help her dad with marketing the business and job recruitment when he had only 12 stores. Fifteen years later, she’s part owner, as is her brother Ryan, who is also operations manager, and her mom, Peggy, is the company’s treasurer and silent partner.

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tions and creates a welcoming environment for employees and customers.

Every employee has the opportunity to make the store his or her own with guidance from the owners. Smoker Friendly also has a profit-sharing program and frequently gives bo-

nuses and raises. “They create the environment and it gives them the feeling of it being their own, which helps when they have accountability and ownership in what they’re doing,” Bartley says. “We’re very laid back, and it’s a really cool environment to work in. People are happy to be a part of it, help to create it and watch it grow.”

Smoker Friendly’s goal is to have at least 50 stores and nine more liquor stores in the next five years. “I want to continue to build what we’ve done over the last 20 years and provide more jobs in West Virginia,” Bartley explains. “I’m proud of the direction the company has gone in since my dad started the business.

I do have a college degree but I think I’ve learned Swisher International more in the last 15 years Swisher International is proud to support working with my father Smoker Friendly of West Virginia. Our and being hands-on in partnership has spurred year after year growth and has helped to make Swisher the stores with the peoSweets the #1 Brand in WVA. Under the ple. I’m really proud of guidance of Regan Bartley, Smoker Friendly the relationships we have has become the destination store for adult instilled and grown with tobacco consumers in WVA. Her leadership all of our employees and and dedication to the business is something to be admired. customers.” O

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Retail

SUPER KING MARKETS

King of Diversity

Super King Markets provides next-level service by staying abreast of customers’ needs and hiring knowledgeable personnel to help guide them in shopping. BY JANICE HOPPE-SPIERS

To support a quality workforce, Super King Markets offers full-time positions to most of its staff and strives to promote from within.

Daniel Barth, general manager www.superkingmarkets.com Los Angeles

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uper King Markets is known as the goto supermarket in southern California to find the largest variety of international foods and knowledgeable employees who help customers find exactly what they are looking for. “Southern California is a melting pot with tremendous ethnic diversity,” General Manager Daniel Barth explains. “All of those people shop in our stores.

People from all over the world and from different ethnic backgrounds like our store for different reasons.”

The Los Angeles-based supermarket offers foods from customers’ home countries and unique offerings, as well as traditional supermarket items all in a bright, clean, well-staffed and stocked store with aggressive retail prices. Founded in 1993, Super King Markets remains a family owned and operated company.

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all the time,” Barth notes. “We have a good idea up through today at noon, but we are learning all the time by listening, talking to our employees and talking to the shoppers. The promotional mix as well as the product mix is evolving all the time. We know what we know now.”

Super King Markets operates seven locations throughout southern California that range in size from 35,000 to 55,000 square feet. Inside each market, patrons will discover an “extraordinarily” large produce department, as well as expansive meat and seafood counters, Barth explains. The market also offers a large liquor department, including value-priced wines to premium wines and spirits.

The mixed nut department is also a differentiator for the company. “We have a large and unique mixed nut, dried fruits and candies department,” he

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Super King Markets adds. “We have more than 300 SKUs in the mixed nut department and it’s so large and unique that other southern California retailers are copying us. Dried fruits and nuts are big items in the Middle East, and all of us like cashews, pistachios and mixed nuts.”

Super King Markets adds new products weekly and is currently expanding its offerings to include more “Healthy Direction” products. “Those are anything that come under the heading of organic, non-GMO, low sodium or low sugar,” Barth explains. “It is anything that has a particular brand or package identified with a healthy attribute. We are rapidly expanding organic and natural products across all departments.”

The company can provide a wide variety of international food products at a reasonable price because of its volume.

“It’s no secret we need volume,” Barth says. “We have 12 to 14 checkout stands in our stores and we generate big volume in our stores.”

Although buying in bulk helps maintain competitive pricing, Super King Markets employs 12 buyers for its seven stores to ensure it is partnering with the best suppliers and getting the best prices for its products. “We have great vendor partners who support us with on-time deliveries and participate in our marketing plans,” Barth says. “We have good, stable, successful partnerships.”

Super King Markets has a core group of suppliers it works with regularly, but the company is always open to adding new vendors. The company has a vendor portal on its website where potential partners can introduce themselves.

“Southern California is so competitive, I assume everyone in this environment has to be constantly looking from a price perspective,” Barth adds. “That said, there is something to be said for long-term relationships because they understand us and we understand them, and we are on a first name basis with many people in our vendor companies.”

to speak to our customers. We can usually find an employee who can speak to a customer in their native language.”

Super King Markets offers full-time positions to a majority of its workforce. It also provides people with a future as the company looks to promote from within as it continues to expand. “We are trying to be a good employer, give people lots of hours and keep them busy,” Barth says. “A busy store is just a little more fun than if it’s really quiet. The more engaged our people are the more fun they will have.”

By engaging with the customer, Barth believes Super King Markets employees will find retail more interesting and exciting. “Human contact is what energizes us,” he adds.

“By being at work and connecting with someone on any level is better than not doing it. We try and focus on that as an attribute of job satisfaction. We have no self-checkouts and baggers are at every checkout stand because we are very focused on service.”

Moving forward, Super King Markets plans to continue expanding throughout southern California. “We will continue to grow the store network by focusing on increased opportunities for existing employees,” Barth says. “We will continue to look at technology that improves our cost of doing business and visibility into the business.” O

Solid Expertise Customer service is of the utmost importance at Super King Markets. The company prides itself on hiring people who are right for retail and then providing them with very specific training in regards to the department they will be working. “There is a set of personal characteristics for retail that people either have or don’t have,” Barth says. “We try to be effective in the hiring process and hire people who are right for retail. We hire right, train them and lead them in a way that will help them be successful as long as they are here.”

As diverse as its customers are, the same can be said for Super King Markets’ employees. “We have dozens of employees whose first language is something other than English,” Barth notes. “It’s good, wonderful and fun, but it’s also a challenge in terms of communication. It provides us the benefit of diversity, excitement, authenticity and the ability November/December 2016

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Retail

KLN FAMILY BRANDS

Family Manufacturing As a third-generation family company, KLN Family Brands manufactures and supplies pet food, confections and candy to retailers across the United States. BY STEPHANIE CRETS

Tuffy’s is upgrading its facility to accommodate innovative trends and keep pace with the everchanging pet food industry.

N Charlie Nelson, president www.klnfamilybrands.com Perham, Minn.

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ow in its third-generation of family ownership, KLN Family Brands is upholding its 50-plus year tradition of producing high-quality products in both the pet food industry, as well as the candy and confections arena. KLN Family Brands is made up of two distinct companies: Tuffy’s Pet Foods and Kenny’s Candy & Confections.

Tuffy’s was established in 1964. Throughout the years and today, the company manufactures dry and semi-moist dog and cat foods. The innovative prod-

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ucts it produces with clean labels can be found in its premium brands including NutriSource, Pure Vita and Natural Planet. In these brands, customers can find grain-free, natural and unique ingredients and premium protein sources such as duck, venison and salmon. In addition, it manufactures private label dog food for a handful of prominent companies in the pet food industry.

Recently, Tuffy’s invested $75 million on a new state-of-the-art extrusion facility. “We were at a place until this past year where we were producing

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KLN Family Brands

high-quality foods in an aged facility,” President Charlie Nelson explains. “We needed to ask ourselves, ‘Are we going to continue being a serious player in this industry or not?’ If we are in, we need to be the safest, highest-quality facility in the country. That is what we expect from ourselves today and going forward.”

In addition to the company’s $75-million investment, Tuffy’s is in the middle of an upgrade to other areas of the facility to better accommodate changes in diets and other inno-

vative trends in the industry. “The pet food industry is an exciting and ever-changing one,” Nelson says.

“We are focused on working hard and investing in having the ability to provide the products that are most demanded. Grain-free diets and unique protein source diets continue seeing substantial growth in our industry. We need to make sure we are set up to efficiently produce high-quality products in the category. We invested in this facility because we love this industry. We greatly enjoy this business and the partners who we work with.”

Pet foods make up a significant amount of business at KLN Family Brands. The company PPi Technologies Group remains excited about the industry and the oppor- PPi Technologies Group is proud to be an tunity to grow moving approved machinery supplier and long-term KLN partner. Our PSG LEE by Leepack is the forward. By upgrading its world’s leading fill-seal premade pouch facility, the company can machine. With a dozen patented features, capitalize on growth op- under 0.5-percent waste and over 95-percent portunities and should be operating efficiency the PSG LEE handles able to increase capacity all types of zipper and corner spout fitment pouches. We congratulate KLN on their success. by 30 percent.

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KLN Family Brands expands from feeding pets to the owners’ sweet tooth with Kenny’s Candy & Confections.

Kenny’s was established in 1987 and added confections in 2011. The company manufactures licorice, gummies and fruit snacks, while also producing indulgent drizzled, specialty popcorn, chocolate enrobed and panned items. Wiley Wallaby is the premium gourmet line of licorice products and known for its unique flavor profiles and a soft textured bite, which was created in 2007 after extensive R&D. Kenny’s has also built prominent relationships with national private-label partners and has licensing agreements with Dr. Pepper Snapple Group and Pearson’s.

In 2013, Kenny’s began manufacturing gummies and fruit snacks, along with valued-added types with natural colors, natural flavors and real fruit juice. Most recently, Kenny’s crafted the Sweet Chaos brand, which consists of a mixture of specialty kettle corn, pretzels and potato chips drizzled in chocolate. Today, its top products on the market are Sweet Chaos Original and Peanut Butter.

High-Quality Products Tuffy’s and Kenny’s values safety and produces high-quality products in facilities that are inspected and audited to maintain their Global Food Safety Initiative (GFSI) certifications.

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The most important thing is that we care deeply about our employees.

”

In 2015, KLN sold Barrel O’ Fun, its salty snack food division, which has allowed the company to focus on pet food, candy and confections now more than ever. “There aren’t any immediate plans to expand manufacturing outside of Perham, Minn., but both our pet food and candy and confections divisions do sell and ship products throughout the U.S., as well as several other countries,” Nelson notes. KLN has built and maintained strong relationships with some of the largest retailers, as well as smaller independents, across the country.

KLN may not be the largest but Nelson says it does things right. “I believe we work extremely well with our customers,” he says. “We are strong at doing what we say and saying what we do.”

Employees are Family KLN is truly a family business and every employee becomes part of the

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”

KLN Family Brands greater family company. Nelson finds that most employees are long term and stay with the company for many years.

KLN employs about 500 people from the community. The facilities are all located in Perham, Minn., within about a mile of each other. Nelson says the community actually has more job opportunities than people available in the immediate areas.

“The most important thing here is that we care deeply about our employees,” Nelson says. “We pay fair wages, offer free individual health insurance and offer profit sharing. When we make money, our employees do too. We’ve always cared about our employees, but a tight workforce has continued to make us take a look at how we recruit and retain people.”

KLN not only wants to retain its employees, it wants to ensure everyone has the opportunity for a life filled with health and wellness. The company has established “KLN Care” to provide opportunities for healthy lifestyles both inside and outside the work environment by encouraging healthy eating, physical activity and educational support among employees. At every facility, a wellness committee assists employees to determine specific needs and helps them lead a healthier lifestyle through personal training, walking groups and wellness coaching.

Giving Back KLN believes in giving back to its community by supporting a number of organizations, including The Cystic Fibrosis Foundation, The Mayo Clinic, Perham-Dent Public Schools, Relay for Life and The Boys and Girls Club of the Perham Area. KLN’s latest and most formal addition is the Pinky Swear Foundation, which works to ease the financial impacts experienced for families that have a child with cancer.

“We are quite big on giving back to the community, worthy organizations and foundations,” Nelson says. “A portion of every KLN purchase is put back into the community.

“I’m proud that we remain family owned, of the relationship we have with our community and how we Famo Feeds, Inc. value our employees,” he continues. “We will nev- Famo Feeds has long been at the forefront of er stop working towards livestock, pet and poultry nutrition. As our company has grown and flourished, we have being an even stronger never forgotten our roots. Our family-owned company and produc- operation takes pride in manufacturing the ing great products, while highest quality products combined with making sure our employ- premier customer service. Our HACCP, Safe ees have the best work Feed Safe Food, and FCI certifications reflect our dedication to food safety and quality. experience possible.” O

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Retail

EMPIRE PETROLEUM PARTNERS

Filling Up on Service Empire Petroleum Partners develops programs and strong vendor partnerships to boost sales for independent gas station operators. BY TIM O’CONNOR

The people of Empire Petroleum are completely dedicated to serving and working with independent dealers.

Hank Heithaus, CEO www.empirepetroleum.com Dallas

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uel distributor Empire Petroleum was founded in 1998, but today’s incarnation of the company truly started in 2011 when it merged with Quikway to create a larger customer network. Since then, it has grown more than five fold. The company now supplies more than a billion gallons of fuel to 1,200 independent filling station operators annually, making it one of the top gasoline distributors in the United States.

The company primarily serves gas stations in southwest Texas, Midwest, mid-Atlantic and Southeast, but brings its commitment to customer support to hundreds of new independent dealers every year.

For many customers, Empire Petroleum is more than just a fuel seller. It is a partner who can support every facet of their business from store operation to credit card systems, insurance and equipment leasing.

Unlike some distributors, Empire Petroleum only operates a few of its own locations, which are mainly used as test sites for new programs and promotions.

“We are 100 percent dedicated to servicing, supply-

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ing and interacting with independent dealers,” CEO Hank Heithaus says.

Empire Petroleum distributes for several of the country’s most well- known brands, including Shell, Sunoco, BP, Chevron, Texaco, Valero, Gulf, Marathon, ExxonMobil, Phillips, Crown and 76. The company also has its own labels, Empire’s Fast Fuels and Solo.

Fast Fuels targets higher volume customers while Solo is aimed at mainstay stores. Operators who rebrand their stores under the Fast Fuel flag also gain access to exclusive benefits, programs and promotions such as layout design assistance and fresh food products.

The breadth of its brands is how Empire Petroleum distinguishes itself from other distributors.

“The competition is always different in every area,” Heithaus says. “That’s why we maintain the brand portfolio we have today.”

Food Focus With larger footprints and more programs, the gas station is becoming today’s general store. According to

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Empire Petroleum Partners Empire Petroleum, 33 percent of millennials want a one-stop shop where they can buy food and cigarettes alongside fuel.

“It’s tailoring to the customer and the customer’s needs,” says Robert Spurgeon, director of marketing and food. “People don’t want to stop into a gas station today and not have options.”

As cigarette sales decline, food is becoming a more important part of balancing the retail equation. For those operators who want to handle food themselves, the company offers fresh chicken, barbecue, pizza, sandwiches and roller grill items. Empire Petroleum is developing a proprietary food program with Sysco aimed at giving dealers better pricing options. The Sysco program will have different tiers to suit every size of store. For example, a smaller station might require smaller ovens while a larger one can handle more equipment.

On the restaurant side, Empire Petroleum has vendor partnerships in place with chains such as Little Caesars, Subway, Dunkin’ Donuts and Krispy Krunchy Chicken to co-locate at gas stations. “We want to diversify a little bit and get QSR (quick service restaurants) more than fresh case,” Spurgeon says.

Through the preferred vendor program, clients can obtain a restaurant at a discounted or no cost franchise fee. Empire Petroleum offers financing for the equipment and provides

ROI and margin data to help operators understand how long it will take to break even and begin turning a profit. Between Jan. 1 and Sept. 19, Empire Petroleum’s customers adopted 763 food programs, compared to about 250 for all of 2015.

Because it is involved with each area of an independent gas station’s business, Empire Petroleum can offer programs that bring the pump and inside retail together. The company recently introduced its Perks of the Pump fuel discount program. Customers who sign up can buy multiple products, such as two cans of Monster energy drinks, and save five cents a gallon on gas. The discounts stack, so if someone adds a Snickers bar to their energy drink purchase, the discount might rise to 10 Swisher cents a gallon.

Swisher’s partnership with Empire has Another new program resulted in a 16 percent volume increase continues those incen- in Total Large Cigars for their locations, compared to a 10 percent increase in tives at the counter. IMEmpire’s trading area. Empire utilized PULSE is a product that Swisher’s category management strategies uses screens placed near plus participated in Limited Edition 2pk the register to display pro- Swisher Sweets distributions, leading to motions. When complet- adult consumer excitement and increased profits in Empire’s overall OTP category. ing a transaction, custom-

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“

ers swipe through the promotions and have the option of adding onto their order. It’s another way Empire Petroleum helps dealers upsell during each visit.

Operators that switch to the Fast Fuels branding to take advantage of those programs often see immediate results.

Fast Fuel stores, on average, see candy/ snack sales increase 22 fold and three times the sales for dairy and edible groceries, according to Empire Petroleum’s numbers. Locations that undergo remodeling have seen even more drastic results, with 391-times the sales of fountain drinks and 15-fold increases in muffins and donuts.

Empire Petroleum uses multiple avenues to inform dealers about its food and retail incentive programs. Field consultants are frequently update operators on their options, but the company also touts the programs at monthly dealer meetings held in various regions.

Those meetings provide an opportunity for dealers to have direct access to Empire Petroleum’s upper management and meet with vendors.

It is through such programs that Empire Petroleum shows it puts dealers first. The company’s 23 field consultants – who average more than 20 years of experience in the industry – are the ones who work with gas station operators on a daily basis. “Field consultants do an excellent job helping the dealer understand his business and providing him with consultative services to help him improve the profitability of his business,” Heithaus says.

Growing Footprint Since the merger of Empire Petroleum and Quikway in 2011, the company has continued to grow primarily by acquiring smaller distribution contracts.

This year alone, the company bought out the wholesale distribution rights of Keeman Petroleum Co. Inc., a Georgia-based distributor that supplied gas to stations in southern Georgia and Florida; and Triple a Fuels Inc., which 82

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Field consultants do an excellent job helping the dealer understand his business.

”

served the Dallas-Fort Worth market.

The company made two more major acquisitions this fall: Arkansas Valley and Sunshine Fuel. Arkansas Valley, a petroleum distributor with an annual volume of more than 80 million gallons, has 120 sites in Oklahoma, Nebraska, Iowa, Arkansas, Missouri and Minnesota. The Sunshine Fuel purchase included distribution contracts for 22 customers and two subleased sites in Oklahoma, Kansas and Missouri with a total expected annual volume of more than 1.5 million gallons of gasoline.

The gas station fueling business is a slow growth industry, Heithaus says, necessitating the buyouts. “If you want to grow you grow through acquisitions,” he adds. In some cases, the smaller distributor wants to exit the market or has no succession plan in place. By buying those contracts, Empire Petroleum keep those gas stations supplied while expanding its market presence.

The aggressive purchase of distribution contracts has enabled Empire Petroleum to grow by about 50 percent annually. The company adds about 300 independent gas stations to its customer base each year. “We want to continue to provide regional solutions for markets,” Heithaus says. “Although we may have a more national landscape as a distributor, we want to help them respond to local competition better.” O

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Solution Providers ETAIL WEST

Transforming Retail eTail West is the main event for e-commerce and multi-channel retail innovators. eTail West, organized by Worldwide Business Research, is at the cutting edge of multi-channel, omnichannel and e-commerce.

The show is a community of executives, where you will be invigorated by innovation and attend memorable keynotes that not only change businesses, but the way people do business. Taking place Feb. 27 to March 1, 2017, eTail West allows its more than 2,500 attendees to partake in interactive sessions and fun networking at the JW Marriott Desert Springs Resort & Spa in Palm Springs, Calif.

Some of the notable keynote speakers include: Emilie Arel Scott, CEO of Quidsi; Fred Argir, chief digital officer of Barnes & Noble; David Yeom, co-founder and CEO of Hollar; and Mike Edwards, CEO of eBags. Key themes discussed at this year’s show include innovation and disruption and the ways that both traditional retailers and startups are navigating today’s landscape. eTail West’s content covers every area impacting an attendee’s bottom-line – personalization, content marketing, mobile engagement, social marketing, CRM, omnichannel – whatever the pain

point, the show has everyone covered.

Whether in need of new contacts, are looking for the right partner or just want to sanity check strategies for 2018, the answer is waiting at eTail West.

Every day in every session, attendees have the opportunity to make valuable business contacts, connect one-on-one with other retailers and catch up with friends. Some of the networking opportunities include: • Retailer-Only Meet-Ups: Attendees can mix it up with executives who can give free advice in tons of different areas such as customer acquisition, omnichannel and mobile.

• Women in eTail Cocktail Hour and Leadership Panel: Listen and be motivated by an accomplished panel of female e-commerce executives

and then cultivate new friendships and discuss the issues that were raised on the panel. eTail West’s exhibit hall is unique compared to the average tradeshow.

Each solution provider has been handpicked to help transform attendees’ digital presence, while retailer-only chats provide answers to some of the industry’s most pressing questions throughout the day. Additionally, attendees can participate in XBOX tournaments, giveaways, cash prizes, specialty cocktails and much more.

The next eTail show will be eTail East, occurring Aug. 14 to 17, 2017 at the Sheraton Boston Hotel in Boston.

For more information about eTail West, visit etailwest.wbresearch.com. O

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SOLUTION PROVIDER DIRECTORY CONTENT DELIVERY NETWORKS www.akamai.com

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Coyote Logistics Coyote is a leading third-party logistics service provider offering supply chain solutions to more than 14,000 shippers in industries such as retail, food and beverage, industrial goods, and more. Email contactshipper@ coyote.com to learn more about how Coyote can help you.

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November/December 2016

11/8/16 10:38 AM

NFLPA

New&Notable McFarlane Toys and EA Sports

Dallas Cowboys

Madden Ultimate Team Action Figure Series

Face Tees Cowboys fans can show their pride with cool, edgy Face Tees of stars Dez Bryant and Ezekiel Elliott. Sold at shop.dallascowboys.com, these unique and simple tees feature silhouettes of each player’s face and make the perfect gift for all those game days!

McFarlane Toys and EA Sports have teamed up for a line of NFL player action figures, available in iconic game-action poses from the Madden series. Each life-like collectible includes a redemption code that gamers can use within the video game to unlock exclusive content.

shop.dallascowboys.com

www.easports.com/madden-nfl mcfarlane.com/toys/brands/nfl Tervis

Tumblers Player Collection Whether tailgating or working, every day is game day with Tervis Tumblers. Fans can enjoy their favorite beverages as football stars burst off Tumblers with the passion that makes them the best in the game.

www.tervis.com/sports Funko

Fanatics

Pocket Pop! Vinyl Keychains

Emoji T-shirts

With Pocket Pop! Keychains, fans can carry their favorite players wherever they go! Players are in vintage Pop! Vinyl styling and make the perfect stocking stuffer.

Avid fans have a winning look with Fanatics’ emoji t-shirts adorned with eye-catching caricatures of the most-talkedabout players in the NFL. Fans can even get them using emojis through the Fanatics NFL Shop App.

funko.com/collections/nfl

www.nflshop.com/search/emoji

Funko

Dorbz Minis Each bag of Dorbz Minis figurines is random, making this Funko product a blast each time a fan opens one.

funko.com/collections/nfl Funko

Wobblers

Hallmark

Funko’s NFL player Wobblers are a fun, new twist on the classic bobblehead. These 6-inch tall figurines make a great gift for all fans.

2016 Keepsake Ornaments

funko.com/collections/nfl

www.hallmark.com/ornaments/keepsake-ornaments/nfl

Holidays come to life with Hallmark’s newest Keepsake ornaments to commemorate the most colorful players in the NFL. The beautifully crafted collectibles depict the players’ passion and personalities and are ideal for adding a sporty, personal touch to the holidays.

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BEAT BUGS

New&Notable Hijinx Toys

3” Poseable Figures A collection of highly detailed, 3” scale action figures that have articulated arms, heads and waists. Kids can collect all five of the main Beat Bugs characters: Crick, Buzz, Walter, Kumi and Jay.

beatbugs.com

Hijinx Toys

Walter Plush 12” scale Walter Toys-to-Life Magical Mystery Toy plush with light-up cheeks, magically sings along with the music made famous by the Beatles featured in the Beat Bugs show. Also, squeeze Walter’s hand to play three more songs.

Hijinx Toys

beatbugs.com

Magical Mystery Toys: Figures and Plush Toys magically come to life when they interact with the TV show. 6” poseable figures: a collection of extremely detailed action figures that sing along with the music in the show made famous by the Beatles. Each figure is articulated with sounds, lights and an animated mouth.

beatbugs.com

Global Design Concepts (GDC)

Backpack and Lunchkits GDC is developing an interactive collection of backpacks and lunch kits featuring the lovable Beat Bugs, as well as lyrics and songs from the hit TV show, Beat Bugs. Kids will be able to sing along with the characters as they head to school!

www.gdcny.com

Harper Collins is creating a collection of 10 storybooks and early reader books releasing in 2017 that are based on the TV series, Beat Bugs, inspired by songs made famous by the Beatles.

www.harpercollins.com

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The ‘Best Of’ soundtrack includes all 16 featured-artist tracks, by artists such as P!nk, Sia, Eddie Vedder, Rod Stewart and Jennifer Hudson, as well as the show’s theme, “All You Need Is Love,” and four additional tracks recorded by the Beat Bugs cast.

www.republicrecords.com/beat-bugs/

Beat Bugs Submarine Playset

Early Reader Books and Storybooks

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Beat Bugs: Best of Seasons 1 & 2 Soundtrack

Hijinx Toys

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Republic Records

Push-along vehicle plays ‘Yellow Submarine’ music and has strobing lights inside.

Propeller spins as it rolls. Fits six 3” Beat Bugs characters inside. Comes with an exclusive 3” poseable figure.

beatbugs.com November/December 2016

11/7/16 9:39 AM

New&Notable Aminco International (USA) Inc.

Running Back Bottle Opener Magnet Functional and fun! Enjoy your favorite beverage while supporting your favorite team.

The Bottle Opener/Magnet from Aminco sticks to your fridge and is great for tailgating.

Available for Colleges and NFL teams.

www.amincousa.com/rm

Aminco International (USA) Inc.

Impact Plush Travel Pillow Travel in first-class comfort while supporting your favorite team. Aminco’s signature Impact Neck Pillow is filled with premium microbeads for ultimate comfort and support, and is both soft and durable. Available for Colleges, NFL, MLB, NBA and NHL.

www.amincousa.com/rm Under Armour

Aminco International (USA) Inc.

Curry 3

Swirl Heart Keychain

Stephen Curry returns to the court this season with a renewed drive, hunger and focus on the future. Fueled by Stephen’s unwavering will to always take his game to the next level, Under Armour will drive the game of basketball forward with the latest addition to Stephen’s signature footwear collection, the Curry 3.

Accessorize and show off your favorite team.

Aminco’s deluxe Swirl Heart Keychain features your favorite team or school’s logo in a dynamic heart design.

Available for Colleges, NFL, MLB, NBA and NHL.

www.amincousa.com/rm

www.underarmour.com

Fanatics

RUN-CTY Fanatics announced the launch of RUN-CTY, a new, exclusive product line produced in collaboration with legendary hip-hop group RUNDMC. Fans around the world will now be able to combine their love for music, fashion and sports with licensed apparel featuring the multi-platinum masters’ legendary logo in the largest collaboration of the famed group’s history.

NBAStore.com Pyramid Breweries Universal Pictures Home Entertainment

I AM BOLT

1977 Lager

I AM BOLT will give audiences a unique portrait of the world’s fastest man, Usain Bolt. With unprecedented access to the Olympic and sporting legend as he trains, travels, races and relaxes, the film also spotlights Bolt’s other roles as best friend, teammate and son. I AM BOLT will be available on Digital HD, On Demand and DVD from Universal Pictures Home Entertainment.

Pyramid Breweries announced the launch of its 1977 Lager in commemoration of the Portland Trail Blazer’s 1977 title run. As the third edition of the brew partnership with the Trail Blazers, raising a pint with this distinctly Portland beer celebrates the 40th anniversary of the team’s victorious season.

www.uphe.com

www.pyramidbrew.com November/December 2016

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