NACS Magazine August 2020

convenience.org | AUGUST 2020

Item Number 294756373 Item Name Energy Drink Price $2.99

HIGH-TECH CHECKOUT Impediments to computer vision technology make implementation difficult.

Item Number 4756739376

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6/23/2020 3:46:28 PM

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NACS SHOW

First Glimpse

FOODSERVICE POST-COVID

Changes Ahead

convenience.org | AUGUST 2020

Item Number 294756373 Item Name Energy Drink Price $2.99

HIGH-TECH CHECKOUT Impediments to computer vision technology make implementation difficult.

Item Number 4756739376 Item Name Snack Bar Price $0.99 Item Number 467579125345 Item Name Salad Price $3.95

Item Number 8680722660038 Item Name Hot Coffee Price $0.79

NACS SHOW

First Glimpse

FOODSERVICE POST-COVID

Changes Ahead

The future of our industry is about innovation, products with the potential to reduce harm and adult consumer choice. Through our companies and strategic partners, we’ve invested in the most compelling portfolio of non-combustible products. We strive to give adult consumers the choices they want today — and invest and develop products for tomorrow.

Servicing: Philip Morris USA U.S. Smokeless Tobacco Company John Middleton Nu Mark Nat Sherman

©2020 Altria Group Distribution Company | For Trade Purposes Only

AUGUST 2020

‘Vision’ 36 TofheFuture Checkout

Artificial intelligence, sensors and cameras combine to deliver a frictionless experience.

WHAT'S NEXT FOR DSERVICE

By being flexible and responsive, the c-store ry weathers the pandemic and raises the bar.

BY CHRIS BLASINSKY

44 What’s Next for Foodservice

By being flexible and responsive, the c-store industry weathers the pandemic and raises the bar.

Winning Over Women WHAT'S 50

Retailers see growing opportunity with female-friendly stores.

NEXT Crack the Code 54 FOR A first glimpse at the 2020 NACS Show in Las Vegas.

Is Her Middle Name FOODSERVICE 62 CAfterhaos years on the front lines of global crises, By being flexible and responsive, the c-store NACS Show industry weathers the pandemic and raises the bar.

general session speaker Corinne Hancock shares how to thrive amid chaos.

BY CHRIS BLASINSKY

WHAT'S NEXT FOR FOODSERVICE

By being flexible and responsive, the c-store industry weathers the pandemic and raises the bar.

Cover Art by Beyond Definition

STAY CONNECTED WITH NACS

BY CHRIS BLASINSKY

TWITTER @nacsonline FACEBOOK facebook.com/nacsonline INSTAGRAM instragram.com/nacs_online LINKEDIN linkedin.com/groups/1776505

Subscribe to NACS Daily—an indispensable "quick read" of industry headlines and legislative and regulatory news from Washington, along with knowledge and resources from NACS, delivered to your inbox every weekday morning. Subscribe at www.convenience.org/NACSdaily.

CONVENIENCE.ORG

68 Last-Mile Demands

Whether third-party parcel pickups, on-lot or drive-thru pickups, c-stores are answering consumers’ calls for low-touch, safe options.

72

Double-Down on Local Search

76

Coronavirus, Hurricanes and Other Disasters, Oh My!

Digital listings are the new front door of the convenience store—keep yours up to date.

Retailers can’t afford to let COVID-19 derail their emergency preparedness.

80 Building for Tomorrow

The pandemic has forced a reckoning among retailers when it comes to technology.

AUGUST 2020 |

1

AUGUST 2020

Packaged sweet snacks are everyone’s go-to for a quick snack, especially in the morning.

We’ve had some changes, but one thing has stayed the same: We’re fair, we’re honest and we do a great job.

P.94

IDEAS 2 GO | P.30

08 From the Editor 12 NACS News 20 Good Work 22 Inside Washington

Nationwide coin shortage emerges from the COVID-19 pandemic; U.S. infrastructure bill journeys through the legislative process.

30 Ideas 2 Go

Ben’s Shell Service Center & Towing has served customers for more than 50 years.

86 Gas Station Gourmet

Waller Petroleum goes big on flavor and style with Bon Temps and Smokin’ J’s: A Barbecue Joint.

88 Global Trends

Community stores, services and products are poised to flourish in the U.K. after the pandemic.

94 Category Close-Up

Packaged sweet snacks continue to hit the spot with consumers looking to indulge.

100 Back Page PLEASE RECYCLE THIS MAGAZINE The presence of an article in our magazine should not be permitted to constitute an expression of the association’s view.

2

| AUGUST 2020

CONVENIENCE.ORG

iStock.com/karandaev; MahirAtes

06 Convenience.org

Call us today: 1-800-776-8834

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VOLUME 19, ISSUE 8

AUGUST 2020

EDITORIAL Kim Stewart Editor-in-Chief (703) 518-4279 kstewart@convenience.org Sara Counihan Managing Editor (703) 518-4278 scounihan@convenience.org Lauren Brooks Digital Content Manager (703) 518-4283 lbrooks@convenience.org CONTRIBUTING WRITERS Terri Allan, Frank Beard, Fiona Briggs, Sarah Hamaker, Al Hebert, Bruce Horovitz, Pat Pape, Keith Reid DESIGN Beyond Definition www.beyond-definition.com

ADVERTISING Stacey Dodge Advertising Director/Southeast (703) 518-4211 sdodge@convenience.org Jennifer Nichols National Advertising Manager/ Northeast (703) 518-4276 jnichols@convenience.org Ted Asprooth National Sales Manager (703) 518-4277 tasprooth@convenience.org

PUBLISHING Erin Pressley Publisher and Vice President, Education & Media (703) 518-4208 epressley@convenience.org Rose Johnson Audience Development and Production Manager (703) 518-4218 rjohnson@convenience.org

NACS BOARD OF DIRECTORS CHAIR: Julie Jackowski, Casey's General Stores Inc. OFFICERS: Lisa Dell'Alba, Square One Markets Inc.; Andy Jones, Sprint Food Stores Inc.; Jose Victor Paterno, Philippine Seven Corp.

(7-Eleven Convenience Store); Ken Parent, Pilot Travel Centers LLC; Donald Rhoads, The Convenience Group LLC; Jared Scheeler, The Hub Convenience Stores Inc.; Kevin Smartt, Kwik Chek Food Stores Inc. PAST CHAIRMEN: Frank Gleeson, Aramark Northern Europe; Joe Sheetz, Sheetz Inc. MEMBERS: Chris Coborn, Coborn's Inc. Little Dukes; Joseph DePinto, 7-Eleven Inc.; Bhagdeep Dhaliwal, Dhaliwal & Associates Inc.; Anne Gauthier, St. Romain Oil Company LLC; Varish Goyal, Loop Neighborhood Markets; Thomas Gresham, Double

Quick Inc.; Brian Hannasch, Alimentation Couche-Tard Inc.; Christine Hogan, Wheels Convenience Stores; William Kent, The Kent Companies (Kent Kwik Convenience Stores); Chuck Maggelet, Maverik Inc.; Chuck McDaniel, QuikTrip Corporation; Charles McIlvaine, Coen Oil Company; Lonnie McQuirter, 36 Lyn Refuel Station; Glenn Plumby, Speedway LLC; Robert Razowsky, Rmarts LLC; Stephen Spinks, The Spinx Company Inc.; Richard Wood, Wawa Inc. SUPPLIER BOARD REPRESENTATIVES: Rick Brindle, Mondelēz International; Drew Mize, PDI STAFF LIAISON: Henry Armour, NACS GENERAL COUNSEL: Scott Sinder, Steptoe & Johnson LLP

NACS SUPPLIER BOARD CHAIRMAN: Drew Mize, PDI CHAIRMAN-ELECT: Rick Brindle, Mondelēz International VICE CHAIRMEN: Thomas Blair, MillerCoors; Brent Cotten, The Hershey Company; Frank Squilla, InComm PAST CHAIRMEN: Jay Ard, Coca-Cola Company; Kevin Martello, Keurig Dr Pepper; Brad McGuinness, Qopper Inc. MEMBERS: Blake Benefiel, Altria Group Distribution Company; Steve Bradley, Wilbur Curtis Co. Inc.; David Charles Sr., Cash Depot; Alicia Cleary, Anheuser-Busch InBev; Tony Gaines, NVIP LLC; Josh Halpern, FIFCO USA; David Jeffco, Krispy Krunchy Foods LLC;

Tim Knight, BIC Corporation; Vito Maurici, McLane Company Inc.; Bryan Morrow, PepsiCo Inc.; Sharon Porter, Saputo Convenience; TJ Powers; John Thomas, iSEE Store Innovations LLC; George Ubing, E&J Gallo Winery; Dean Zurliene, Monster Beverage Company RETAIL BOARD REPRESENTATIVES: Stephen Loehr, Kwik Trip Inc.; Chuck Maggelet, Maverik Inc.; Chuck McDaniel, QuikTrip Corporation STAFF LIAISON: Bob Hughes, NACS SUPPLIER BOARD NOMINATING CHAIRMAN: Joseph Vonder Haar, iSEE Store Innovations LLC

NACS Magazine (ISSN 1939-4780) is published monthly by the National Association of Convenience Stores (NACS), Alexandria, Virginia, USA. Subscriptions are included in the dues paid by NACS member companies. Subscriptions are also available to employees of nonmember companies at a rate of $70 per year.

Please add $15 for delivery outside the United States.

Subscription requests: nacsmagazine@convenience.org POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2020 by the National Association of Convenience Stores. Periodicals postage paid at Alexandria VA and additional mailing offices.

1600 Duke Street, Alexandria, VA, 22314-2792

CONVENIENCE.ORG 7/14/2020 2:24:50 PM 7/16/2020 10:58:06 AM

CONVENIENCE.ORG WHAT’S ONLINE | AUGUST 2020

Community Spotlight

Get the inside scoop on Get the inside scoop onby all things convenience all things convenience by downloading our podcast! downloading our podcast!

VIRTUAL EXPERIENCE

2020

ADAPT TO SURVIVE Consumers demand new ways of thinking in category management post-pandemic.

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Lessons From the Cannabis Rollout

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CAN-D ils in Wine and CocktaFans Cans Win Over

JULY 2020

Due to COVID-19, this year’s NACS State of the Industry Summit was recast as a virtual, on-demand experience. But the learning hasn't stopped—you can continue to gain key insights on the state of our industry. Nearly a dozen on-demand sessions with data-rich content from customer experience leaders, economists, CPG experts and your peers across the U.S. are ready for you to view. Members who have already purchased the summit can access them now through September 1 at www.conevenience.org/SOISummit.

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Tune in weekly at Tune in weekly at conveniencematters.com conveniencematters.com

| JULY convenience.org

MANAGEME NT THE CATEGORY

Available on: Available on:

Keep Learning MAGAZINE

Convenience Matters® empowers Convenience Mattersa® community empowers listeners and fosters listeners and a community of sharing by fosters providing of sharing byaccess providing on-demand to business on-demand access to business ideas from those who are at ideas from those who are at the forefront of disrupting the forefront of convenience.

Bydisrupting providing convenience.

By providing convenient access to industry convenient to industry knowledge, access fresh and candid knowledge, fresh candid perspectives fromand thought perspectives from leaders—inside andthought outside of the leaders—inside and outside ofitthe industry—the podcast makes industry—the podcast makes it possible for retailers and suppliers possible for retailers and suppliers to strengthen their bottom to strengthen theirimpact bottomtheir line and positively line and positively impact their communities. communities.

Convenience retailers have a positive impact on local communities by providing jobs, growing the economy and supporting charitable initiatives. More people visit a convenience store each day than any other brick-and-mortar retail location—on average half of the U.S. population buys something at a convenience store every day. These customers frequent their favorite location to refuel and refresh with a snack, beverage and fresh-prepared meal. And with 88% of Americans agreeing that convenience stores are essential businesses, our online “Convenience Stores and Their Communities” helps your teams and customers gain valuable insights on our dynamic industry. You can access the resource at www.convenience.org/cstorescommunities.

COOL NEW PRODUCTS GUIDE

Don’t forget—you can access this issue and previous issues of NACS Magazine as a digital PDF, which offers the page-turning feel of a print magazine. View it now at www.nacsmagazine.com.

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FROM THE EDITOR

Waiting Game Kim Stewart Editor-In-Chief

The pandemic has forced a reckoning among retailers when it comes to technology.

8

| AUGUST 2020

T

he adage that patience is a virtue is hitting home these days in ways that I hadn’t fathomed in years’ past, and I suspect that’s the case for most of us. As I write this column in July, my family is waiting to see if my daughter’s middle school will open for full-time in-person instruction in August, and my college freshman son is waiting to hear if he’ll be on campus or attending online classes in our basement. COVID-19 cases are climbing across the U.S.—and the world— putting a big question mark over the sorely needed economic recovery, not to mention pent-up demand for everything from dinners with friends to haircuts to road trips. Needless to say, we are all playing waiting games these days.

The entrepreneurial spirit of the convenience retailing industry is still powering on. At NACS, we’ve talked a lot during the past few months about how the industry has quickly pivoted in response to the pandemic. “Times like these breed innovation,” Melanie Isbill, chief marketing officer at RaceTrac, told NACS Magazine in “Last Mile Demands.”

RaceTrac accelerated plans to launch an online ordering platform in response to pandemic challenges—just one of many c-store chains that are innovating to meet consumers’ demands for low-touch, safe options.

When it comes to in-store shopping, traditional means of checking out involve face-to-face contact and high touchpoints. Retailers have taken steps to safeguard the process to reduce risks—think plexiglass barriers, queuing indicators and contactless payments—but there’s still friction. A future network of AI-minded c-stores and retail shops

where customers just walk in, grab what they want and leave while payment is instantly processed may be closer than we imagined just a few years ago.

Our cover story examines the “Vision of Future Checkout” and the companies working to make it happen.

In the June 2020 NACS Retailer Member Survey, 40% of respondents said they’d increased contactless payments, 33% said they’d increased curbside pickup, 29% increased drive-thru service and 21% increased delivery. When asked what was the most important issue to address, responses included preparing for a second outbreak of COVID-19, developing and rewarding their teams, thanking customers for their loyalty, rebuilding sales and fuel volume and understanding future customer buying habits.

Reaching customers where they are is a challenge–and so is figuring out what they want and how best to serve them. The pandemic has forced a reckoning among retailers when it comes to technology, and many are realizing they’re saddled with outdated systems that aren’t flexible enough—or data rich enough—to support a business model that’s fast evolving.

Technology considerations aside, perhaps the answer to the puzzle of doing commerce in the COVID age lies not in removing all human interaction but in getting to know customers even better than before, so they’ll feel safe, no matter how they patronize their local c-stores.

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Setting the pace. #1 New Product Pacesetter In c-stores, JUUL outperformed top CPG brands in 2019. JUUL outsold the top 9 pacesetter products in total added $ sales.

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NACS NEWS

And the Winner Is…

N

ACS Magazine was recognized at the 2020 Association Media & Publishing EXCEL Awards in July for its September, October and November issues. The issues won the Gold award in the General Excellence category (20,001 to 50,000 circulation), which judged magazines on originality and quality of content, design and writing, as well as organization of articles and general readability.

NACS also won the Gold award in the Promotional Content, On-Site Convention Daily category for its NACS Show Daily, a print newspaper that NACS publishes during the NACS Show in corporation with Ascend Media. Days 2 and 3 at the 2019 NACS Show in Atlanta won the award. The dailies featured articles on general

session speakers Daymond John of the hit show “Shark Tank” and professional adventure racer Robyn Benincasa, along with coverage of education sessions, trade show happenings and the NACS Ideas 2 Go video series.

The NACS Foundation and creative agency Beyond Definition were recognized with Bronze awards in two categories: Advertising Campaign (event/convention) and Awareness Campaign, both honoring work on the NACS Foundation 24/7 Day, which helps raise awareness for first responders, medical personnel and American Red Cross volunteers each year on July 24.

The Association Media & Publishing EXCEL awards recognize the best and brightest in media among hundreds of associations across the United States.

Allison Dean

12

| AUGUST 2020

Allison Dean, CMP, has joined the NACS Member Services team as retail membership manager. Dean began her career with NACS in April 2015 as meetings coordinator and was promoted to meetings and events manager in September 2017.

Dean holds a B.A. Media Studies/Studio Art from Hobart & William Smith Colleges and has more than eight years of meetings and membership experience, having previously worked for CORE Group and EPIC Events.

Dean is one example of the track record at NACS of promoting from within and enhancing skill development through vertical and diagonal promotions across departments.

CONVENIENCE.ORG

iStock.com/DNY59

Allison Dean Joins Member Services

MEMBER NEWS RETAILER Trenton and Julia Langston have been named vice presidents of Calloway Oil Co. “I am excited both as a business owner and a father to welcome Julia and Trenton to Trenton and Julia the company. With my daughter and son- Langston in-law on board, this is now a company that celebrates four generations of family leadership,” said Tommy Hunt, president and co-owner of Calloway Oil and EZ Stop Food Marts.

Holmes Oil Company Inc. announced the hire of Chris Postlewaite as its new director of foodservice. In this role, Postlewaite will be responsible for concept development and marketing of Cruizers’ Chris Postlewaite prepared foodservice, refrigerated fresh food program, dispensed beverage programs and supply chain management.

SUPPLIER Business Accelerator Team announced the appointments of Ed Burcher and Monique Horn as its newest partners.

Burcher joins the team with broad convenience store industry experience, having held senior operational and foodservice positions with several retailers. Horn’s extensive experience developing and integrating accounting systems, processes and procedures within the convenience and retail petroleum arena spans more than 30 years.

Ed Burcher

Monique Horn

Del Monte Fresh Produce N.A. Inc. announced the promotion of one of its longtime employees, Ana Cristina Fonseca, to the newly created role of vice president, product management. Over the past 28 years, Fonseca has displayed a dedicated commitment to Del Monte Fresh Produce and, in her new role, will lead the product management team and enhance supply-chain

CONVENIENCE.ORG

capabilities to help Del Monte Fresh Produce meet the future needs of the organization.

ASSOCIATION Michael Howells has joined the Pennsylvania Food Merchants Association (PFMA) as association services manager, in charge of leading PFMA’s legislative and regulatory issues research, committee meeting schedules and conference and webinar agenda development.

In addition, NACS Executive Committee member Lisa Dell’Alba, president and CEO of Square One Markets, was named vice chair of the PFMA Board of Directors.

KUDOS Douglass Distributing celebrates its 39th anniversary this year. In June 1981, the business started with one ¾-ton pickup, a 1,320-gallon bobtail and an 1,890-gallon bobtail truck. The company’s original warehouse, built in 1948 on a quarter of an acre, is now surrounded by 40 acres and 12 buildings. There are now six terminals, and its retail stores have grown to 24, while the fleet has expanded to 171 units.

VERC Enterprises announced receipt of the 2020 Best of Plymouth Award in the Convenience Stores category, an honor it has taken for 13 consecutive years. The Plymouth Award Program annually identifies companies that have achieved exceptional marketing success in their local community and business category.

Following 34 years at BIC, Pat Cordle, vice president – field sales convenience, will retire on November 1. Jason Rice, vice president of commercial capabilities, will succeed him, taking over leadership of the BIC sales team serving the convenience channel across the U.S. Cordle’s commitment to the convenience store industry is legendary. He has served on multiple boards, including the NACS Supplier Board.

Pat Cordle

Jason Rice

AUGUST 2020 |

13

NACS NEWS

Bill Deichler to Manage NACS Age-Verification Initiative Bill Deichler has joined NACS in the newly created position of age-verification program coordinator, retail. Deichler will be retail’s dedicated point of contact for the recently launched NACS Age Initiative.

The new age-verification Bill Deichler program is a free, turnkey, next-generation solution for retailers that will verify a user’s age, while also protecting personal information and delivering a frictionless experience. It also offers retailers and their supplier partners a way to pool costs MLP_August2020_half.pdf

1

7/16/20

and resources currently allocated to independent projects. Deichler will assist with the retail rollout of the newly developed digital age-verification software that will be integrated into POS systems in the industry.

Deichler has a broad base of experience in the petroleum industry with more than 22 years at Murphy Oil Corporation, 14 years of which were with Murphy USA, holding positions in payments (acceptance and processing), business development and retail fuel operations.

To discuss this new initiative, please reach out to Deichler at bdeichler@convenience.org or (870) 665-9856.

11:39 AM

Fall 2020

Driving insights that shape your customer experience. convenience.org/ExecEd-Kellogg 14

| AUGUST 2020

CONVENIENCE.ORG

“Our goal is to take category management to the next level and drive higher sales and profits for YOU. Our Category Management, Focused Marketing Initiatives, and Technology Ordering Solutions make it easy for you to maximize and optimize your entire store – making sure you have the right products for your customer when they want it. We are continually developing innovative strategies and solutions designed to help you grow business through marketing and supply chain programs by making your store more efficient, profitable, and a destination for the convenience store customer.”

“Start growing your business! Become a partner today!”

Contact your local Core-Mark representative or visit: www.core-mark.com

©2020 Core-Mark International

NACS NEWS

NEW NACS MEMBERS NACS welcomes the following companies that joined the association between May 16 and June 15, 2020. NACS membership is company-wide so we encourage employees of member companies to create a username by visiting www.convenience. org/Create-Login. All members receive access to the NACS Online Membership directory, latest industry news, information and resources. For more information about NACS membership, call (703) 684-3600.

NEW RETAIL MEMBERS 365 C-Store LLC Clover, SC

Cielo Enterprises Inc Punxsutawney, PA KBK Investments Inc dba Rocky's Perry, FL The University of Arizona Tucson, AZ Eurofuel Inc. Pasay City, Philippines

NEW SUPPLIER MEMBERS

B2Z Products Inc. Waukegan, IL www.funkaway.com

FoodStory Brands Phoenix, AZ www.foodstorybrands.com

Medical Foods Rx dba Xero Picks Scottsdale, AZ www.xeropicks.com

Bowman Andros Mount Jackson, VA www.androsna.com

FreeWire Technologies San Leandro, CA www.freewiretech.com

Mesatech Glen Rose, TX www.mesatechcorp.com

BrèinFúel Deerfield, IL www.breinfuel.com

Fuelco US LLC Durham, NC

Papa's Pops New York, NY www.papaspops.com

CandyCo Lindon, UT www.mrscalls.com Elite Creative Solutions Broken Arrow, OK www.elitecreativesolutions.com

JustCBD Fort Lauderdale, FL www.justcbdstore.com

Zen Beverage LLC Irvine, CA www.zenwtr.com

Knouse Foods Peach Glen, PA www.knousefoodservice.com Krispy Mixes Inc. Theodore, AL www.krispymixes.com

AmercareRoyal LLC Hanahan, SC www.amercareroyal.com

NACS Calendar of Events

2020

OCTOBER 25-30

NACS Women's Leadership Program Yale University, New Haven, CT

AUGUST 9 - 14

NACS Leadership for Success Glen Allen (Richmond), VA

OCTOBER 11-14 NACS Show Las Vegas, NV

16

| AUGUST 2020

NOVEMBER 1-6

NOVEMBER 1-6

NOVEMBER 1-6

For more information about these NACS events, visit www.convenience.org/events.

For the most up-to-date information on event cancellations, please visit www.convenience.org.

NACS Financial Leadership Program Wharton School of Business, University of Pennsylvania Philadelphia, PA

NACS Marketing Leadership Program Kellogg School of Business, Northwestern University Chicago, IL

NOVEMBER 1-5 NACS Executive Leadership Program Cornell University Ithaca, NY

NACS Innovation Leadership Program Massachusetts Institute of Technology, Boston, MA

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NACS NEWS

BY THE NUMBERS

Heard on the Frontlines Each month, NACS conducts a retailer survey to take the temperature of the convenience industry. Especially now, when COVID-19 has disrupted operations and sales to a significant degree, insights from the frontline can guide retailers on a path forward. Overall, the industry is seeing some positive signs, with 82% of retailers surveyed experiencing an increase in in-store sales in June when compared with May, while 64% say they’ve seen fuels sales increase at their locations during that period.

Where have you invested time and resources?

contactless payment

40%

29% drive-thru

3% curbside pickup

21% delivery

62% said cash sales are down

63%

support medical/health-care personnel, first responders or others affected by the crisis

Retailers like being called “essential,” and these words also resonate:

89% essential

67% community

71% local

46% everyday

39% cares

ALSO OFFERED: here to serve, dependable, convenient

What will be the most important issue to address after the pandemic is over?

Rewarding staff for their efforts when times were tough for them and the business

How to thank our customers who have been loyal to our company through this Frictionless

Bringing the community back together

Survival

Have not thought about it with all the changes going on every day!

Having people feel comfortable to shop the store again

Source: NACS Retail Member Survey, June 2020

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| AUGUST 2020

CONVENIENCE.ORG

T H E

A R T

O F

M E R C H A N D I S I N G

T M

HOOKS | SHELF & COOLER MERCHANDISING | LABELING WWW.TRIONONLINE.COM/ART | 800-444-4665 ©2015 Trion Industries, Inc.

GOOD WORK

D

BY THE NUMBERS

$1 billion

$

Amount convenience stores donate to charitable and community groups annually

95% of convenience stores donate to charitable causes

78% of consumers say that convenience stores share their values

20

| AUGUST 2020

uring the pandemic, convenience retailers tapped into their dairy roots to support communities with much-need milk donations.

Weigel’s, based in Knoxville, Tennessee, donated 60,000 gallons of milk for those in need in partnership with Second Harvest Food Bank of East Tennessee and Second Harvest Food Bank of North East Tennessee.

“We feel compelled to help our neighbors during this global yet local crisis,” said Bill Weigel, chairman of Weigel’s.

“We’re in the food business. Many of our neighbors have lost their jobs and are struggling to put food on their tables, so it seemed natural we could contribute in this way.”

Weigel’s selected Second Harvest Food Bank as the one to distribute the vouchers for the milk. “They have been helping our local folks over many years and know how to get these vouchers out to where it’s needed most,” he said. “We knew they were the perfect match, and we appreciate their desire to work with us.”

Kwik Trip, based in La Crosse, Wisconsin, aided local dairy farmers with excess milk supplies and families in need of food during the pandemic.

The company teamed with State Farm

Insurance to help save the milk from ruin and help families in need.

Kwik Trip processed the milk in its own dairy plant, and 300 State Farm agents handed out 54,000 vouchers for free gallons of milk. Vouchers also were made available to local food banks to distribute.

“The family then takes the voucher from the food pantry or the agent and goes to the Kwik Trip to get that milk,” said John McHugh, director of public relations, Kwik Trip. “Part of our mission at Kwik Trip is to make a difference in the lives of others. Teaming up with State Farm helps our communities and our local dairy farmers in a special way in these challenging times.”

Together, Kwik Trip and State Farm contributed more than $120,000 to the project, which also did double duty.

June is Dairy Month in Wisconsin, a time when local farmers invite the public to visit their facilities.

“Many of those farmers host a ‘dairy breakfast,’ which in the past has been supported by Kwik Trip. But because of the pandemic this year, the farm tours and breakfasts were canceled,” said McHugh. “This effort is another way to support our farmers and remind everyone that Wisconsin is the dairy state.”

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iStock.com/kamisoka

Dairy Donations

Children’s Miracle Network Hospitals Honor Speedway

Children’s Miracle Network Hospitals recognized Speedway and its approximately 3,900 locations for its outstanding partnership and commitment to supporting the network of member children’s hospitals by naming the company as the Corporate Partner of the Year for 2019.

“Speedway really is fueling miracles,” said Teri Nestel, interim president and CEO of Children’s Miracle Network Hospitals. “The company saw a remarkable 25% fundraising increase in 2019 to $11.8 million thanks to some innovative campaigns like the coloring book, growth in their

annual golf tournament and the launch of the pin pad donation ask.”

Most funds come year-round from customers, business partners and employees who contribute via a new donation prompt while checking out or in donation canisters at each store. Speedway’s West Coast expansion allowed the company to support 17 new CMN Hospitals and broaden its reach to 80 CMN Hospitals across America.

"As a proud partner with Children's Miracle Network Hospitals since 1991, we are more than honored to be named their Corporate Partner of the Year for 2019," said Tim Griffith, Speedway president. "Thank you for the incredible recognition and to all of our dedicated employees and customers for making this possible."

Speedway also celebrated a new fundraising record of $2.7 million at its annual Speedway Miracle Tournament, one of the largest golf fundraising tournaments held to benefit Children’s Miracle Network Hospitals.

Speedway has raised more than $121 million for the children’s charity through various fundraising activities since 1991.

Mendez Fuel Feeds Its Community When restaurants were forced to close during the early months of the nationwide pandemic, Miami, Florida-based Mendez Fuel stepped in to provide about 150 to 170 meals a day to locals.

“We developed new, loyal customers through this who hadn’t come into our store before,” said Michael Mendez, owner of the four-store company. Regular customers and vendors also helped by sponsoring the meals, with donations of paper products, chips or popcorn. The store gave away 6,500 free meals from April 8 through May 26.

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Community members shared their gratitude with Mendez Fuel, such as this message: “Dear Mr. Mendez, I want to thank you for being so nice to people like me by donating lunch during the COVID-19 pandemic, as I was having a hard time making ends meet with my rent and food expenses.”

For Mendez, the pandemic has accelerated some of the business ideas he’s had, such as exploring a full-service model for pumping gas, expanding the store’s online delivery options and working on a mobile app. “Instead of on our five-year horizon, all of these things have been fast-forwarded because of COVID-19,” he said.

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Short-Changed Nationwide coin shortage emerges from the COVID-19 pandemic.

BY ANNA READY BLOM

$

FACTS & FIGURES

1/3

$

43% of payments made by people with annual incomes below $25,000 are in cash

3.2 billion Amount of coins the U.S. Mint produced for circulation in the first three months of 2020

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T

here are many ancillary effects expected from the COVID-19 pandemic, but no one anticipated a nationwide coin shortage. Convenience retailers rely on coins to complete cash transactions, but in mid-June, store operators and retailers across the country were struggling to make change.

To keep coins in circulation, the U.S. Mint and Federal Reserve depend on Americans using coins and cashing them

at banks or at coin-cashing machines.

The U.S. Mint also produces a small percentage of coins each year to supplement additional needs.

But 2020 has been nowhere close to a normal year. With the COVID-19 pandemic and nationwide stay-at-home orders this spring, Americans were not cashing in coins, and at the same time, the U.S. Mint closed and scaled back its operations, reducing the amount of coins in production. This caused the Federal CONVENIENCE.ORG

iStock.com/ichz

of all in-person transactions are made with cash

Reserve’s coin inventory to drop below normal levels. In response, the Federal Reserve has had to limit the amount of coins it can distribute to its depository institutions, resulting in banks getting far fewer coins, and, thus, businesses.

This created a panic among businesses around the country who have cash-paying customers, and the shortage disproportionally affects low-income Americans. In the United States, more than one-third of all in-person transactions are made with cash. That number rises to nearly half of all funds for transactions under $10. Low-income Americans rely heavily on cash, with cash representing 43% of payments made by people with annual incomes below

$25,000 and 35% of payments made by people with annual incomes between $25,000 and $50,000.

At a House Financial Services Committee hearing in June, Federal Chairman Jerome Powell said that “with the partial closure of the economy, the flow of coins through the economy [has] kind of stopped,” in response to a question from Rep. John Rose (R-Tenn.), who raised concerns that banks in his district say they are running out of coins. “Stores have been closed. So, the whole system of flow has kind of come to a stop. We’re well aware of this.”

The Federal Reserve issued a notice in June that it is taking the “strategic allocation of coin inventories” to resolve the short-term shortage.

With the partial closure of the economy, the flow of coins through the economy [has] kind of stopped.

ONE VOICE This month, NACS talks with Nick Paich, senior director, retailer success at GSTV.

a whole. It’s in our best interests to support our industry from top to bottom to ensure that it remains a great place to do business.

What does NACS political engagement mean to you, and what benefits have you experienced from being politically engaged?

The convenience and fuel retailing industry is made Nick Paich up of so many different components—retailers and suppliers, employees and customers, products and services … the list goes on. It is easy to slide into the groove that most directly affects your own business. Engaging with the NACS’ political engagement team has allowed me to view the industry in a much more comprehensive way and realize that while others are dealing with issues that might not directly affect me, they could dramatically affect the industry as

What federal legislative or regulatory issues keep you up at night?

Liability protections for essential businesses and tax incentives for essential workers—the convenience and fuel retailing industry has remained open, and store-level employees continue to go above and beyond to support their communities every day, proving beyond a doubt that these businesses are truly “essential” to our economy.

Retailers and employees should be protected and recognized for their efforts.

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What c-store product could you not live without?

Epic Bars—I enjoy all of the flavors, but Bison Bacon Cranberry is my favorite. Quality meat, fruit, nuts, seeds and spices combine for a unique on-the-go snack. It’s hard for me to walk out of a c-store without one or two of these!

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Anna Ready Blom is the NACS director of government relations. She can be reached at ablom@convenience.org.

Federal Reserve Banks are allocating “available supplies of pennies, nickels, dimes and quarters to depository institutions as a temporary measure,” using a methodology “based on historical order volume by coin denomination and depository institution endpoint, and current U.S. Mint production levels.” The Mint has also ramped up production of coins.

In response to this emergency, NACS and other associations sent a letter to the Department of Treasury advocating that more coins be produced by the U.S.

Mint and that the current coin inventory be fully distributed by the Federal Reserve. NACS also asked members of Congress to weigh in. Congressman Rose and 11 members of Congress sent a letter to the Department of Treasury, which oversees the Mint and the Federal Reserve, asking them to work to increase coins in circulation as soon as possible.

NACS will continue to follow the coin emergency and urge swift action by the Treasury. If you’re sitting on a stockpile of quarters, dimes, nickels or pennies, now is the time to cash them in!

NACSPAC DONORS NACSPAC was created in 1979 by NACS as the entity through which the association can legally contribute funds to political candidates supportive of our industry’s issues. For more information about NACSPAC and how political action committees (PACs) work, go to www.convenience.org/nacspac.

Richard W. Abel Jaco Oil Company

Chris Coborn Coborn's Inc. Little Dukes

Scott Hunt Hunt Brothers Pizza

Gus Olympidis Family Express Corporation

Randall Sheetz Sheetz Inc.

Riaz Ahmad NSR Petro Services LLC

Ian Davis C.H. Guenther and Son

William B. Kent Kent Companies

Paul D. Reid Reid Petroleum Corporation

George Ubing E&J Gallo Winery

Kathleen Byrd Home Market Foods Inc.

Varish Goyal Loop Neighborhood Markets

Kevin Kraft FIFCO USA

G. Christopher Riley Community Service Stations Inc.

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iStock.com/Filograph

NACSPAC donors who made contributions June 1-30, 2020, are:

Are We There Yet? A U.S. INFRASTRUCTURE BILL JOURNEYS THROUGH THE LEGISLATIVE PROCESS.

iStock.com/Nicola Patterson

BY PAIGE ANDERSON

Do you remember as a kid the ubiquitous summer road trip to see America’s treasures that your parents insisted would be great fun and educational? My family would pack up the old Ford station wagon and head out of southern California to destinations north—sometimes along the coast and other times inland to the Sierra Nevada mountains. Regardless of the destination and detours along the way, the most frequent question on the trip came from my brother or me asking my dad and mom, “Are we there yet?”

So far, the journey of Congress passing an infrastructure bill has been much like a family summer vacation with delays, detours and roadblocks along the way, leaving us asking the same thing.

Perhaps the better question is, “Do we know where we’re going?” (Or I could pose the question, “Are we lost?”)

The journey to develop a highway and infrastructure bill began in early 2017 with President Trump’s first State of the CONVENIENCE.ORG

The big roadblock to passing any significant highway or broader infrastructure bill has been how to find the necessary funds to pay for the programs.

Union address, as infrastructure was one of his policy priorities for his administration. Republican and Democrat leadership in Congress agreed that highway and infrastructure projects should be a priority. With the itinerary set and agreement on the destination, one would think this would be a smooth road trip. But somewhere along the way, Washington took a few unexpected side trips and stops and is now trying to get back on the road to its destination.

The years 2017 and 2018 brought many detours and roadblocks—from investigations into Russian influence in the 2016 elections, repeated attempts to repeal the Affordable Healthcare Act and the Tax Cuts and Jobs Act of 2017, to the catastrophic 2017 hurricane season that brought hurricanes Harvey, Irma and Maria within weeks of each other. Other obstacles and diversions included the Senate confirmation of Brett Kavanaugh to the Supreme Court, border

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and immigration issues and the longest shutdown of the federal government in history at the end of 2018 and into 2019.

After Democrats took control of the House of Representatives in 2019, it appeared there might be a chance to get this road trip back on track and headed to our destination. House leadership listed infrastructure legislation as one of its top three policy priorities, and House

committees began holding hearings and some committee work was being done on infrastructure, though the highway portion of the bill appeared to be moving more slowly.

In the Senate, real progress was made.

The Senate Environment and Public Works Committee marked up its highway authorization bill and passed it out of committee with bipartisan support

EV CHARGING INFRASTRUCTURE Congress is considering legislative proposals to increase the use of electric vehicles (EVs) and expand electric charging infrastructure. As part of the debate, some are looking at encouraging government agencies or electric utilities to build, own and operate electric charging stations. For example, some states have allowed utilities to charge customers (or ratepayers) to subsidize the cost of that infrastructure and the cost of recharging by electric vehicle drivers.

Retail Impact

The convenience and fuel retailing industry sells more than 80% of the motor fuels in the United States.

Policies that impact transportation energy—what and how to sell, store, label, dispense, price and tax fuel—can have a dramatic impact on the industry.

Permitting utilities to charge all of their customers to subsidize EV infrastructure and charging will stunt the private sector’s ability to invest in EV charging infrastructure.

NACS Position on EV Charging Infrastructure

NACS believes that EV charging should be an open, competitive market. Convenience and fuel retailers should have the option to sell any legal source of transportation energy in a competitive market with a level playing field. Allowing the private sector to compete is the best way to spur investment in and the development of electric charging infrastructure. It is also the best way to ensure that vehicle owners get the best prices over the

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long term. With over 122,000 fueling locations, the convenience industry is the best way to fulfill the energy needs of future drivers—regardless of the energy source. All industries, whether it be a gas station, utility, technology company or other type of business, should have the same access to incentive and investment opportunities to provide consumers the widest range of choices in fueling their vehicles.

Legislative Updates and NACS Position

The Senate Environment and Public Works Committee reported out S. 2302, the America’s Transportation Infrastructure Act of 2019, which includes a grant program to invest in electric charging infrastructure and alternative energy fueling infrastructure in designated “clean energy corridors” and ensures that these grants must go to the private sector. Report language filed with the bill discourages providing grants to utilities that charge all electric customers for the cost of EV charging. NACS supports S. 2302.

The House of Representatives passed H.R. 2, the Moving Forward Act. On the positive side, H.R. 2 includes language to encourage states to allow the resale of electricity for purposes of charging EVs without being regulated as a utility. In addition, the rebate program to incentivize building charging infrastructure would be available to the private sector, such as convenience and fuel retailers. Unfortunately, H.R. 2 allows electric charging infrastructure to be built at rest areas and allows investor-owned utilities to “double-dip” by using their rate base and receiving grant dollars. NACS opposes H.R. 2.

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Tight on time?

INSIDE WASHINGTON

The House and Senate have two very distinct versions of what an infrastructure bill should look like.

Paige Anderson is the NACS director of government relations. She can be reached at panderson@convenience.org.

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before it recessed for the summer break in August 2019. Unfortunately, what momentum that had been gained to get a Senate floor vote stalled in September with the House launching its impeachment inquiry and investigation of the president. The impeachment hearings and votes in the House and then the subsequent trial in the Senate in effect stalled not only the infrastructure bill but almost all other legislative activity until the first quarter of 2020. Just as it appeared the legislative process was getting back on track, the coronavirus pandemic essentially shut down Congress, along with the rest of the country.

Does this mean our road trip is over? Can we get back on the road and keep moving to our destination?

As Congress tried to get back to its legislative business in a new normal, one of the first non-COVID-19-related bills that the House worked on was the infrastructure bill. In June, the first committee markup to take place using virtual technology was the House Transportation and Infrastructure Committee when it marked up its highway authorization bill. The bill was added to a larger infrastructure package that included investments in broadband technology, water and housing projects, clean energy projects and other climate-related projects, and many other infrastructure-related programs and projects. Before the Independence Day holiday weekend, the bill passed the House on mostly a party-line vote.

It is now August, so where are we on this legislative quest? Some may argue that Congress took a wrong turn in the desert and can’t find their way back to the highway. Others might say we’ve

hit traffic and just need to find another route. And, more optimistic folks will say adding these few extra detours just adds to the adventure.

A few factors to keep in mind. First, time. It’s an election year, and there are not many days in the legislative calendar.

With new floor procedures and health and safety protocols in place due to the coronavirus pandemic, it takes more time to conduct legislative business, such as markups, hearings and votes.

Second, scope. The House and Senate have two very distinct visions of what an infrastructure bill should look like. The Senate has only marked up a highway bill, not a larger infrastructure package like what passed the House. Even if the Senate attaches other infrastructure-related bipartisan bills, such as its water resources bill or an energy bill, the House bill is much broader and heavily laden with climate and carbon reduction programs. So, if the time challenge is overcome, a conference committee to negotiate differences in the two bills will be complicated.

Finally, cost. The biggest roadblock to passing any significant highway or broader infrastructure bill has always been how to find the necessary funds to pay for these programs. The Highway Trust Fund is unable to keep pace with the need to maintain and grow our interstate and roads system. A stable and consistent long-term funding stream is necessary but difficult to find agreement on a solution.

So, at the end of the year, will we find ourselves, like the Griswold family in “National Lampoon’s Vacation,” finally reaching Wally World, racing across an empty parking lot, only to find the amusement park closed, or will Congress find a way through these detours and misadventures and finish its legislative road trip?

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IDEAS 2 GO

A Friend to the Community Ben’s Shell Service Center & Towing has served customers for more than 50 years.

BY SARAH HAMAKER

We ride Harleys and love old cars, so much of our decorations inside the store echo that.

Family-owned Ben's Shell Service Center & Towing has expanded over the years to include a convenience store, four service bays, 24-hour towing and other services. Friendliness is a core value of the owners and longtime employees.

Y

es, you can make a living by being fair and honest. At least, that’s what Ben Santamauro, owner of Ben’s Shell Service Center & Towing in Orange, Connecticut,

SEE MORE! Ideas 2 Go showcases how retailers today are operating the convenience store of tomorrow. To see videos of the c-stores we profiled in 2019 and earlier, go to www.convenience.org/Ideas2Go.

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concluded. “I’ve been working at this station since 1966 and bought the property from Shell in 1986,” he said. “We’ve had some changes, but one thing has stayed the same: We’re fair, we’re honest and we do a great job.”

The family-owned and -operated business has been chugging along for more than half a century, and it still provides the same great service to the community.

“When I bought it, it was half the size of our current store and two automotive repair bays,” Santamauro said. “Now we have a larger convenience store, four service bays, 24-hour towing and other services, in addition to the working bays.”

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ABOUT

The interior's nostalgic vibe is a nod to the 1960s when owner Ben Santamauro began working at the gas station. His wife, Andrea, stocks the c-store with 10 to 15 different types of old-fashioned bulk candy in addition to the traditional c-store essentials. Many of Ben's employees are long-timers.

Name of company Ben's Shell Service Center & Towing

A FAMILY BUSINESS In the beginning, Santamauro worked seven to midnight as mechanic, bookkeeper and gas pumper. A widower, his three sons eventually joined him in the family business, but a few years ago, two of those sons died. For the past 13 years, he and his second wife, Andrea Santamauro, have been in business together. “Andrea runs our advertising and our convenience store,” Ben said. “Many of our employees have been with us for years. For some, it was their first job after getting their driver’s license.”

That longevity has translated into a community asset for Ben’s Shell Service.

“We get compliments all the time on our staff because of their friendliness,” Andrea said. “We’ve been lucky to hire the right people, who with good training, have become a major reason why people stop by Ben’s Shell Service.”

Andrea carries that welcoming attitude over to the station’s active Facebook page.

“We get a lot of customer interaction on our page, maybe because we post a lot of dog pictures,” she said. “We also support the community through giveaways and donations to local churches, youth sports groups and ‘adopt-a-family’ around the holidays.”

When they added the convenience store in 2016, they knew they wanted

Date founded 1966

CONVENIENCE.ORG

something different. While Ben’s carries much of the same merchandise as other convenience stores, such as coffee, prepared sandwiches, chips, tobacco, alcohol, lottery tickets, grocery essentials and snacks, the Santamauros put their personal stamp on it.

We have 10 to 15 different types of old-fashioned bulk candy,” Andrea said.

“We also have toys for kids like Hot

# of stores 1 Website www.facebook.com/ bensservicecentertowing

BRIGHT IDEAS At Ben’s Shell Service & Towing in Orange, Connecticut, it’s the little things that customers remember. For example, owners Ben and Andrea Santamauro give out dog treats and have bowls of water for pooches. They also provide full-service gas pumping during the day for any customer who honks for it. Those requests ticked up during the coronavirus pandemic, as “a lot of people didn’t want to get out of their car and pump gas themselves,” Andrea said.

But the husband-and-wife pair firmly believe it’s the personal touch that brings customers back. “We greet customers with a friendly hello when they enter,” she said. “Those from out of town often post on our Facebook page that they’ve never been to a friendlier, nicer or cleaner convenience store.”

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IDEAS 2 GO

Ben's stocks classic toys like cars and motorcycles to delight kids and their parents, while edgy jewelry and accessories appeal to the store's many biker customers.

Wheels, tiny tow trucks and motorcycles, which sell really well.”

Sarah Hamaker is a freelance writer and NACS Daily and NACS Magazine contributor based in Fairfax, Virginia.

Visit her online at www. sarahhamakerfiction.com.

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PERSONALIZED MERCHANDISE But what really sets Ben’s apart from the competition is its branded merchandise, nostalgic decor and jewelry. “We ride Harleys and love old cars, so much of our decorations inside the store echo that,” Andrea said. For example, some of the signage comes from the 1960s when her husband started working at the gas station.

The jewelry appeals to bikers, with a lot of blingy skulls and stars adorning the bracelets, necklaces, rings and earrings. She also brought in wallets, flip flops and belts, which are sparkly and eye-catching. “These kinds of things sell very well,” Andrea said.

Ben’s also has its own branded apparel with the old car and motorcycle logo prominent on t-shirts, sweatshirts and hoodies. “It’s great advertising for us, and people love to buy it,” she said.

Like all retailers who stayed open during the coronavirus pandemic, Ben’s Shell Service had to adapt to keep customers and staff safe. Andrea brought in disposable gloves for the gas pumps, and staff wore masks as directed by the local health department. Extra cleaning every half hour of high-touch surfaces in accordance with regulations kept the station operable.

“We brought in tube masks, since those are what bikers like to wear anyway, instead of paper masks,” Andrea said.

“That fit in more with our products and gave us another chance to give our customers something a little bit different.”

Overall, the Santamauros hope to continue serving their community for years to come. Andrea often scouts out other gas stations when out of town to bring back new ideas for Ben’s. “My hope is that when people leave, they’ll remember our friendly service—and enjoy how different we are from other convenience stores,” Andrea said.

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WE’RE

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Item Number 14678 Item Name Water Bottle Price $1.69

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e nsors s , e c n e ig l l e t Artificial in liver a e d o t e in b m o and cameras c less e xperience. fric tion EID R

BY KEITH

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Item Number 90003845 Item Name Gum Pack Price $1.39

Item Number 487521 Item Name Chocolate Bar

T

he customer taking care of some critical needs and wants in a time-effective manner is the linchpin of the convenience retail channel. And what could be more frictionless than never having to interface with the checkout process—literally grab and go?

Amazon has been exploring its frictionless “Just Walk Out” technology concept since it opened its first public Amazon Go store in January 2018.

Amazon has a network of about 26 Amazon Go convenience stores, ranging in size from a little over 450 square feet to 2,000 square feet. It has expanded into the grocery channel with its single Seattle Amazon Go Grocery location and plans to open grocery stores in Irvine and Woodland Hills, California, and Philadelphia this year.

Amazon Go’s technology identifies the customer upon entering the site through a smartphone app or loyalty card linked to a payment vehicle. Computer vision—a combination of cameras, shelf sensors and AI technology—takes over to “watch” the customer while shopping. The system notices if an item is picked up and if it is placed back on the shelf. And when the shopper leaves, it calculates the purchase and charges for any items carried out of the store.

Amazon’s technology doesn’t identify customers’ faces. In a Los Angeles grocery store slated to open later this year, Amazon plans to use “Dash Carts” equipped with computer vision cameras that track items as customers add them to the basket.

Customers sign in by scanning a QR code in the Amazon app and can skip the checkout line.

These solutions offer the possibility of unattended stores, though a more common model (such as that used by Amazon Go) would have some associates at the site to facilitate customer interactions and general store operations. A live cashier is available for customers not taking part in the program. This lower-touch aspect is an appealing format in the COVID-19 pandemic environment—for however long that remains a primary concern.

VISION TECH ON THE MOVE While Amazon was a first mover, the frictionless concept is spreading. The Japan Times has reported that the East Japan Railway Co. is expanding from its first unmanned convenience store, opened in March, to a planned 100 within the next four years. Each store uses about 50 cameras via its joint CONVENIENCE.ORG

Price $0.79

venture partner Touch To Go Co, to facilitate the shopping experience.

In the U.K., grocery giant Tesco has invested $22 million in the startup Trigo to support its development of video-driven cashierless checkout technology. And Trigo is not alone.

Competitors include AiFi, Caper, GetZippin, Grabango, Mashgin, Pensa Systems and Standard Cognition—among others. Amazon itself in late March announced it is licensing its Just Walk Out technology to other retailers.

an s i t c e p s a h c u This lower-to at in the COVID-19 appealing form nment. o pa n d e m i c e n v ir Accel Robotics is one of the startups in the space with a focus on the convenience channel.

The San Diego-based company late last year raised $30 million in Series A funding to finalize the development of its technology. The company is testing its frictionless commerce platform in a range of retail formats—convenience stores, grocery stores, drugstores and quick-service restaurants—though it declined to offer details due to various NDAs with its partners. It hopes to launch its solution in the first quarter of 2021.

“We have cameras that track people, we have cameras that track products, and we link that together in a very efficient way,” said Brandon Maseda, Accel Robotics co-founder and CEO. “We’re at a point now where you can almost do a full c-store with only one computer.”

Maseda noted that much of the current development is not just focused on the technology but on the shopping experience. “What’s the right shopping flow for customers? Should there be a cashier there? Those are all things that we are exploring and learning along with our customers around the world in different environments,” he said.

Accel Robotics developed a “magic box” that allows the retailer to scan in products so that the system can identify them in the store. The company determined the best approach was to leave

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Item Number 487521 Item Name Chicken Wrap Price $4.79

37

Accel Robotics is a San Diego-based startup developing computer vision software for a concept cashierless grab and go store.

the product onboarding up to the retailer and not develop a third party, centralized database approach. Additionally, the company is looking at opportunities to deliver convenience transactions on the forecourt.

k c a r t t a h t s a r “ We have came e cameras that track people, we hav e link that together w d n a , s t c u d o pr .” y a w t n e i c i f f e in a v e r y Meanwhile, Atlanta-based NCR showcased a computer vision technology demonstrator at last year’s NACS Show. “The prototype we showed was designed to solve a specific challenge—take new ‘frictionless’ checkout technologies such as machine learning and computer vision and design a better customer experience,” said Steven O’Toole, NCR retail global head of convenience and fuel retail sales. “Our innovation team created a tabletop computer-vision-enabled checkout to fit the footprint of a typical c-store counter and used a minimum hardware investment.”

The prototype can identify multiple items at once, so shoppers can place their purchase on

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the counter for their basket to be identified. They can then use their mobile phone to complete the payment. “We added a tap-out station to build in an added layer of fraud reduction, preventing the sale from finalizing before a shopper taps their phone to the sensor,” he said. “The technology would also work with more traditional payment methods such as cash and card.”

Conexxus, an organization dedicated to the development and implementation of standards, technologies, innovation and advocacy for the convenience retailing marketplace, views this technology as having a three- to five-year time horizon. “Conexxus is looking to identify any standards that can be created to be ready to test and implement the technology when it becomes more mainstream,” said Gray Taylor, Conexxus executive director.

Yet even these frictionless solutions still have some friction. In most cases, the customer must activate an app or use a card to link the transaction to the customer and payment vehicle. Facial recognition tying customers to payment when they enter the store, however, would be frictionless.

While some of the startups in computer vision checkout are exploring facial recognition capabilities, most are not, or at best they list it as a potential alternative among other approaches.

Consumers who have grown up in the latter part of the digital age might not have an issue trading privacy for convenience, but plenty will have a problem, and a lot will depend upon how the facial recognition is implemented. Most of the frictionless checkout solution providers are focusing, at least initially, on smartphone app or card-based payment identifiers that offer the fewest concerns.

“There are obviously opportunities to leverage facial recognition in the future, and even more so with the COVID-19 concerns,” said Maseda. “But from a privacy standpoint, we have gone into this market thinking that we need to be able to perform CONVENIENCE.ORG

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THE MANY FACETS OF FACIAL RECOGNITION

One-to-many is a facial recognition approach common with government/police applications.

Cameras scan a crowd and identify specific people, making it one of the most controversial applications of the technology, with companies like Amazon, IBM and Microsoft recently stepping back from their support and development.

However, one-to-many has been making inroads into retail in specific applications. For example, FaceFirst uses the technology for security applications in large-format retail, casinos, airports, events and financial institutions. It maintains a database to identify known shoplifters, criminals, persons of interest and other threats.

Facewatch, a similar solution in the United Kingdom, provides these capabilities to smaller retail formats and pubs.

One-to-many also can be used to provide targeted marketing to specific customers while roaming the aisles, and it can facilitate frictionless checkout. But it does raise privacy concerns, since it requires the collection and storage of customer identifiers.

A one-to-one approach involves a specific person being identified by a specific device, such as a smartphone (to unlock access) or a shopping terminal with a camera to facilitate checkout. This can be private in the case of a smartphone, where the identifying data are exclusively kept encrypted on the device, or far less private, where the collected biometric data are centrally stored and managed in the cloud.

With Alibaba, whose “Smile to Pay” technology is already being deployed at KFC restaurants in China, customers who use the facial recognition option in the Alipay app can order and checkout at a kiosk—no smartphone required.

Facial recognition also is being used in an entirely anonymous manner. For age verification on restricted purchases, NCR’s “FastLane” self-checkout stations in the U.K. use a checkout camera to identify the general demographics of a customer and determine an age range. Customers identified as potentially under age 25 require a manual age verification, though the rest are free to grab their purchases and leave.

Walgreens also trialed anonymous facial recognition technology to identity the general demographics of customers at the cooler to develop targeted promotional offers.

A growing number of states and localities regulate the collection of facial or other biometric information in retail environments. The Illinois Biometric Information Privacy Act requires companies to get approval before collecting biometric information. And a class action lawsuit was filed in September 2019 against Home Depot over its use of facial recognition for loss prevention.

There’s also evidence that facial recognition systems can misidentify people of color, women, older persons and children. A 2019 study by the National Institute of Standards and Technology (NIST) raised questions about racial bias. NIST found that algorithms for leading facial recognition systems were more likely to misidentify people of color, misidentify women more than men and elderly people and children more than other age groups.

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int, o p d n a t s y c a v i “ From a pr nto this we have gone i g that we n i k n i h t t e k r a m rf orm e p o t e l b a e b ne e d t o l a i c a f g n i s u t u w i t ho pe y t t a h t r o n o i r e c o g ni t i a bl e f i t n e d i l a n o s of p e r information.” this type of shopping solution without using facial recognition or that type of personal identifiable information. From our side, we are fully anonymous. We see everything as just a shopper session.”

NOT SO FAST While computer vision technology is impressive, there are impediments to its adoption.

Fraud and theft are two concerns, as was the case with more traditional cashierless approaches where research shows an increase in shrink.

Solution providers maintain that the sheer number of cameras and the detailed monitoring process almost eliminate the opportunity for shoplifting.

In fact, solution provider Grabango states that “potential shoplifters are charged for all of the items on their person, even if hidden from view at checkout” without any confrontation.

The most pressing issue is cost. While reducing labor costs is a significant offset, the cameras, sensors, servers and other tech are cutting edge and so typically lack the economies of scale that come with mass deployments. Maintenance costs to keep the tech online are another consideration, along with additional costs to construct new stores or retrofit existing ones to support the technology.

RBC analyst Mark Mahaney outlined the cost factors relative to Amazon Go technology in a Forbes article from January 2019. He estimated CONVENIENCE.ORG

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that the tech cost $1 million per location and that each location would generate $1.5 million in [gross] sales. Mahaney projected a two-year ROI with the format, which provides a reasonably compelling argument in favor of the concept—if the estimates are correct—but that hinges on access to financing and how viable the concept is at locations that do not fit an upscale, urban c-store model.

A new report from the User Experience Strategies Service (UXS) at Strategy Analytics noted that the Amazon Go experience provided a proof of concept, but for now it was limited beyond grocery and convenience and has some impediments in those markets.

Lisa Cooper, USX director, said the concept as it stands isn’t viable for the general convenience channel. “At this time, the costs of implementation and the requirements that would be forced on the customer (credit card/bank account setup) don’t justify the costs,” Cooper said.

“You would need to have close to 100% of customers signed up, and the store must be willing to swallow gargantuan upfront costs for setup, plus significant ongoing maintenance costs with all the processing required to run the system in real time.”

AiFi claims its solution can scale through the range of retail, and Accel Robotics has put cost reduction front and center. “I’ve seen the different companies take different

| AUGUST 2020

approaches, and we’re focused on low cost,” Maseda said. “It gets very easy to turn on demos and showcase this type of technology, but to deliver it at a price point that is going to make it commercially viable is a big challenge. We’ve really been focusing on how we can deliver this to where it’s easy to deploy, it’s low cost, and it makes economic sense for all sides.”

Most of the solution providers, Accel Robotics included, are exploring the range of models to provide the solution, including software-as-aservice models. It also is logical that costs will drop as the tech matures and economies of scale begin to develop.

Computer-vision-aided technology also is competing with less exotic solutions that offer slightly more friction. Kroger, Sam’s Club and 7-Eleven have introduced scan-and-go services where the customer scans the barcodes using a smartphone and an app tied to payment.

“I've tried those shopping experiences myself, and it felt for me like you’re putting the labor on the customer,” said Maseda. “You have to balance that, obviously, with the cost of deploying a system like ours. But that’s why we’ve focused on reducing the cost. Hey, how can we deliver this where we keep the costs low to set up and then make shopping really easy for the consumers?” eith Reid is editor-in-chief K of Fuels Market News, a NACS media entity. He can be reached at kreid@fmnweb.com.

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WHAT'S NEXT FOR FOODSERVICE By being flexible and responsive, the c-store industry weathers the pandemic and raises the bar.

BY CHRIS BLASINSKY

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CONVENIENCE.ORG

A

fter several months of foodservice sales declines due to pandemicdriven restrictions on self-serve food and beverage options, by late spring the tides began to turn and many convenience retailers brought back self-serve foodservice in areas where permissible and in accordance with local health departments. Wawa announced a gradual reintroduction of self-service coffee and beverages in a limited number of stores and markets, and Yesway began its gradual reopening of roller grill and dispensed beverage offers at Yesway and Allsup’s locations.

Allowing customers to use their own refillable cups remained iffy for some retailers, while chains like RaceTrac implemented a fresh cup policy for coffee and fountain beverage refills, in which employees provide cups to customers to fill and then transfer the beverage into their own cups.

For some operations, self-serve bakery items revealed an unexpected shift— consumers liked having donuts, muffins and pastries packaged, and the cleaning process for the bakery case became less time consuming for staff. For the foreseeable future, Yesway’s branded bakery program is completely packaged, said Derek Gaskins, chief marketing officer at Yesway.

The million-dollar question seems to be what’s next for foodservice, namely the longer-term changes customers will see and operational shifts moving forward. Phrases like “back to normal” resonate like fingernails on the chalkboard, and although crystal-ball clarity isn’t in the cards, there are corners convenience retailers can look around to help future-proof their businesses and move forward amid new realities and consumer expectations.

DRIVE-THRUS AND CURBSIDE SeeLevel HX’s 2019 QSR Drive-Thru Study, conducted in conjunction with QSR magazine, found that the U.S. QSR CONVENIENCE.ORG

industry was losing roughly $178 million per 2,000 locations in 2019—that’s an estimated $89,000 loss per location per year because of increased service times and order inaccuracies. Nowadays, the drive-thru could be what saves QSRs during the pandemic.

At McDonald's, 95% of its restaurants worldwide have a drive-thru, and about 75% of its locations remained open to serve customers. Most adapted to focus on off-premise sales like drive-thru, delivery and/or carryout. “I am confident in our ability to manage through the immediate challenges and emerge from this pandemic in a position of competitive strength,” McDonald’s CEO Chris Kempczinski said in announcing the company’s first-quarter 2020 financial results.

In June, Starbucks announced plans to accelerate more “convenience-led formats” with drive-thru, pickup and curbside pickup options during the next 18 months to meet consumer needs for convenience, connection and personalization. “Starbucks stores have always been known as the ‘third place,’ a welcoming place outside of our home and work where we connect over a cup of coffee,” said Kevin Johnson, CEO of Starbucks. “As we navigate through the COVID-19 crisis, we are accelerating our store transformation plans to address the realities of the current situation, while still providing a safe, familiar and convenient experience.”

QSR chains were able to quickly move operations off-premise after dine-in restrictions took effect across the U.S. And since many have drive-thru windows, QSRs were set up to handle a high volume of takeout orders. “The value of incremental on-premise sales isn’t as important to quick-service restaurants,” said David Portalatin, NPD food industry advisor, in a press release, adding that some QSRs resisted reopening dining rooms to forego the incremental cost of doing so and continue to optimize off-premise sales.

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Drive-thrus aren’t that common in the convenience store industry, but one retailer in Kenton, Tennessee, moved quickly in March to build a drive-thru in less than a week. Dawkins Convenience Store owner B.J. Dawkins told the local WPSD news that the drive-thru would help his team with social distancing, while providing another way for the community to access the items they need. “This is one thing that I can add to my business. … To help the community as well,” he said.

DON’T EXPECT CONSUMER PREFERENCES FOR CLEANLINESS AND SAFETY TO GO DOWN, EVEN AFTER THE PANDEMIC SUBSIDES. Mike Lawshe, president of Paragon Solutions, said that curbside pickup extends the drive-thru offer and saves valuable time for customers who don’t want to leave their vehicles, which also has implications beyond the pandemic.

Parents with kids, elderly persons, people with health issues or customers simply pressed for time want to pull up, have their online or mobile food orders and other essentials handed to them and drive away.

Curbside also can make sense for legacy stores where a drive-thru may not be possible, suggests Lawshe, noting that retailers can dedicate parking spots for curbside pickups, which QSRs and fastcasual chains have done for years to grow online and mobile ordering capabilities.

“The difference between now and more than a decade ago is the technology piece, and that more consumers and retailers are embracing these innovations,” said Lawshe, adding that curbside and drivethrus are essentially a variation of service that accomplishes the same goal for the consumer. “Curbside and drive-thru are

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entirely different yet exactly the same,” he said. “To me, convenience stores have a distinct advantage over the QSRs because they offer so much more” like in-store merchandise and, where possible, alcohol sales, Lawshe noted.

Drive-thrus could—and perhaps should— have stickiness beyond the pandemic.

Lawshe noted that one convenience retail client saw about 5% of total sales coming from the drive-thru prior to the pandemic, which jumped to 25% to 35% of total sales as the pandemic continued.

CONSUMERS WANT CLEAN Cleanliness and safety will have lasting effects long after COVID-19. In recent customer surveys, participants rank cleanliness as the No. 1 factor that would make them feel safe in a retail food location.

A May NACS consumer survey revealed sentiments around consumer expectations for safety and cleanliness in convenience stores. The survey found that consumers want retailers to: •P rovide free hand sanitizer or disinfecting wipes at all entrances (68%) and gas pumps (67%) •R equire all employees to wear masks (65%) •R equire all stores to perform enhanced cleaning and disinfecting multiple times per day (65%) •R equire all customers to stay six feet apart inside the store (60%) •L imit the number of customers allowed in the store at one time (57%) The NACS survey also noted that consumer interest in concepts like cashierless checkout, curbside pickup and delivery has grown and attracted more notice since March due to the safety benefits that these concepts could provide. “NACS consumer research shows that about two in five consumers base their store preference on cleanliness. Don’t expect consumer preferences for cleanliness and safety to go down, even after the pandemic subsides,” CONVENIENCE.ORG

said Jeff Lenard, NACS vice president of strategic industry initiatives. “Retailers who address consumer concerns about cleanliness and build upon that with a compelling offer can find ways to grow their sales not just over the coming months but long term.”

For the foreseeable future, retailers cannot pump the brakes on enhanced safety measures, and some are dedicating staff to solely and routinely clean and sanitize stores.

Wawa’s Clean Force is an enhanced safety and cleanliness initiative that ensures every person who walks into a Wawa store is entering a safe, clean, welcoming and comfortable environment. The Clean Force staff focuses on ensuring all high-frequency touchpoints are sanitized and disinfected hourly, and every night Wawa closes stores for a deep clean.

Wawa also added new safety measures to the self-service beverage area that include: • Wrapped stirrers • Tissue paper for customer use with the pour handle • Social distancing markers in the beverage area and throughout the store • The presence of the Wawa Clean Force in-store, with associates dedicated to continuous cleaning tasks above and beyond Wawa’s alreadystrong protocols In May, Wawa said that customer feedback on the return of self-service beverages with enhanced safety measures has been positive, and the retailer will continue collecting feedback from employees and customers as it continues reintroducing self-service beverages in additional stores, while also taking into consideration guidelines from state and local health departments.

“Our cleaning regimen has remained high frequency to allay consumer concerns,” said Gaskins of Yesway, and that employees “continue to service and operate as close to contactless as CONVENIENCE.ORG

EXPANDING CONSUMER REACH Casey’s fast-tracked many of its plans to reinvent the guest experience and expand online ordering and curbside and delivery services.

Chris Jones, chief marketing officer for Casey’s, discussed in a June NACS Daily article the chain’s partnership with DoorDash to provide delivery services to nearly 600 locations across the company’s 16-state footprint. “With this partnership in place, over half of all our stores now offer a delivery service,” he said.

Wawa began adding curbside ordering to more store locations, providing customers with full access to select all items in the store, from freshly prepared foods, beverages and grocery items, without even leaving their car. “We are accelerating our plans to push our out-of-store services to a new level, from delivery and catering to new initiatives like curbside ordering,” said Steve Hackett, director of digital experience and Solutions Lab at Wawa.

QuickChek’s curbside pickup program offers customers the ability to pre-order subs, made-to-order lattes, fruit smoothies, hot breakfast sandwiches and other foodservice items via the QC Mobile App. Sheetz announced a new partnership with Grubhub and launched “SHcan & Go!” which allows shoppers to scan and pay for products through the Sheetz app. “This new feature continues to deliver on our mission to be the ultimate in convenience, allowing customers to scan and pay for items they need easily and quickly,” said Travis Sheetz, president and COO of Sheetz.

Kum & Go launched curbside pickup in most stores across its 11-state footprint, where customers can call the main store phone number and place their order, which will be delivered to their vehicle upon arrival.

RaceTrac rolled out an online platform that allows customers to select and order merchandise from their nearest RaceTrac location and pick up the order within 30 minutes via a “Grab and Go Box” pass-through window. “Online ordering is the newest addition to the products and services we are offering to help continue to get our guests whatever gets them going while providing a safe, clean and reliable experience,” said Melanie Isbill, chief marketing officer at RaceTrac.

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HOWRETAILERS RETAILERSEMBRACE EMBRACESOCIAL SOCIALCONCERNS CONCERNS HOW AROUNDDISTANCING, DISTANCING,PROTECTIVE PROTECTIVEMEASURES MEASURES AROUND ANDGENERAL GENERALCLEANLINESS CLEANLINESSWILL WILLNEED NEEDTO TOBE BE AND ELEVATEDTO TOAANEW NEWHIGHER HIGHERSTANDARD. STANDARD. ELEVATED possible.” The retailer also supplies store employees with custom Yesway- and Allsup’s-branded masks.

Customers can expect to see Yesway and Allsup’s stores continue a heightened focus on safety and cleanliness with store “greeters” who thoroughly clean high-frequency touchpoints. “The core food program in Allsup’s is primarily crew-serve, and as we refine it, we will introduce that into many of our Yesway locations to align with customers’ expectations,” said Gaskins.

Joseph Bona, principle and founder of Bona Design Lab, said that personal safety and food hygiene link to consumer perceptions. “People eat with their eyes before making food purchase decisions, so how retailers embrace some of the social concerns around distancing, protective measures and general cleanliness will need to be elevated to a new higher standard,” he said.

Bona notes that Pret a Manger, a U.K.based fresh prepared foods and coffee chain, delivers high quality food in a quick, grab-and-go format without having preparation areas exposed and in an open environment. The chain “does a great job of communicating here today/gone today and through packaging, merchandising/ display and communications, it all works seamlessly and in a unified way that adds credibility to their offer,” he said.

HERE TO STAY While the immediacy of the pandemic brought on changes like shuttering self-service foodservice and plexiglass shields at counters, the long-term challenge for convenience retailers will be taking a step back and considering which changes will stick. “Many of the changes we’ve seen

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since March are here to stay,” said Lawshe, suggesting that retailers focus on the real motivations for customers around safety and relieving anxiety around purchasing.

“Change and the ability to adapt are core tenets of our industry,” said Gaskins. “I am more confident in our resiliency as an industry than ever before. We adapted quickly to the changing consumer needs in the face of the pandemic, and most stores maintained safe operations as the world shut down around us. This flexibility and agility are core strengths of convenience retail, and all the new consumers that began to rely on us in the face of the uncertain times now have higher esteem for what we can make happen.”

For Bona, retailers that articulate their story through smart store design and instill confidence that they are doing everything they can to provide a safe environment will speak volumes, and ultimately bring customers back into stores to buy their favorite foods and beverages.

“Delivering on those emotional experiences is what the great retailers have always done, and those will be the [retailers] leading the industry forward through their innovation and commitment,” said Bona. Tough times are about creating new and better opportunities—“like turning lemons into lemonade.” hris Blasinsky is C the NACS content communications strategist. She can be reached at cblasinsky @convenience.org and on Twitter and LinkedIn.

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WINNING

WOMEN — OVER —

Retailers see growing opportunity with female-friendly stores.

BY TERRI ALLAN

B

ucky’s convenience stores have a surefire way of letting their customers know they care about them. “We recognize that consumers are very sensitive to cleanliness,” remarked Jason Ricks, vice president of operations at the 95-unit chain, with stores in Illinois, Missouri, Nebraska and Texas. “Having clean restrooms is one of our No. 1 goals.”

That focus on cleanliness hasn’t been lost on a key customer demographic at Bucky’s: females.

“Women drive so much of the decision making

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for the household,” noted Ricks. “We believe it’s important to make our stores welcoming, clean and safe.”

Indeed, convenience retailers around the country are working hard to court and retain female shoppers, and while inroads are being made, operators and industry observers say much opportunity lies ahead. Larry Levin, executive vice president, market and shopper intelligence at IRI, for example, pointed to the progress c-stores are making in “going after different need states,” including fresh food offerings.

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“Fresh is important to females, and the channel has done a good job in answering that need state by putting a big focus on fresh,” Levin said.

Still, c-stores are the only major channel where females don’t drive the majority of shopper trips, according to Todd Hale, a retail consultant and former Nielsen executive. He attributed that lag to c-stores’ important “male-only households”— who make 29% more trips to the channel than female head-of-household consumers—as well as traditional c-store offerings like tobacco and beer. While beer tends to draw more sales from male consumers, tobacco attracts male and female consumers alike.

Today, females comprise 43% of c-store shoppers, Leroy Kelsey, NACS research director, reported, with males accounting for 57%. That compares to a historical 40/60 split between females and males, noted Kelsey, citing CVS’s 2014 decision to pull out of the tobacco business—a move that drove female shoppers from the drugstore chain to c-stores—as a key reason for the shift.

According to the most recent NACS Convenience Tracking Program (CTP), females made an average of 2.1 trips to c-stores a week in 2019, down from 2.6 trips in 2017. Kelsey said that while c-stores in general are losing trips to QSR outlets, the loss of a half a trip a week by females is a slightly faster decline than among males and indicates that females may be shopping other channels for particular items. “This presents an opportunity for c-stores to double down on cleanliness and bright, safe stores,” he said.

Beyond fuel, the largest category drivers for females in c-stores are cold dispensed beverages; store services such as lottery, car wash and ATM; and cigarettes and packaged beverages, CTP found.

Female c-store shoppers are slightly more impulsive than male shoppers, according to CTP, intending to purchase two items on average, but in actuality purchasing 2.1 items. (Males intended to purchase 1.9 items and actually purchased two items.)

Missed purchases also represent a big opportunity for c-stores to court female shoppers, Kelsey said, noting that 5% of females exit a c-store without purchasing an intended item versus 3% for males. Certain trip types, meanwhile, also provide potential for c-stores to leverage visits from females, noted Kelsey, pointing to the fact that women are 3½ times more likely to visit a c-store when picking up children than men.

“There’s an opportunity to capitalize on this type of visit by stocking healthy snacks for children,” Kelsey suggested.

THE NEW BASELINE: AESTHETICS AND CLEANLINESS Store aesthetics are another important factor in driving visits by females, retailers and experts agreed. Steven Cohen, vice president of design services at GSP Inc., which provides in-store marketing and remodeling solutions for retailers and has worked with the likes of Martin & Bayley’s Huck’s and Giant Oil’s On the Fly concepts, advocates for wide aisles and clear and concise signage.

Wide aisles provide comfort and ease of shopping,

— OPPORTUNITY KNOCKS — 43% 5% 19% 2.1 trips 71% of c-store shoppers are women to c-stores each week

are made by females

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of females exit a c-store without purchasing an intended item (vs. 3% for males)

of female shoppers visited c-stores to purchase beverages

of female shoppers visited c-stores to purchase tobacco

Source: NACS CTP (Convenience Tracking Program); IRI 2019 data

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SAFE AND SOUND Convenience retailers seeking to make their stores more female-friendly shouldn’t overlook the safety of this valued customer, both in store and out. And thanks to the latest developments in technology, creating a safe store is easier and more economical than ever.

Plenty of lighting inside the store, in the forecourt and at the pump is a necessity, and c-store operators can easily achieve this with low-cost LED lighting. Safety is often cited by females as one of the reasons they shop dollar stores over c-stores, according to Larry Levin, executive vice president, market and shopper intelligence at IRI. Levin noted that while many c-stores are located on street corners with poor lighting, dollar stores tend to be found in strip malls with abundant lighting.

Steven Cohen, vice president of design services at GSP Inc., meanwhile, advises retailers to ensure clear sight lines. “Signage that doesn’t cover the entire window allows female shoppers and employees a better view both inside and out,” he said, “and provides peace of mind, especially at night.”

According to Corey Hagler, insights vice president at TrendSource Inc., a market research firm that surveys consumers on their retail experiences, “Safety is a greater concern for female c-store shoppers than males.” To address this, some retailers “are leveraging technology via video surveillance at store entrances and fuel pumps,” with uniformed security guards employed at some urban locations, he said. And to discourage vagrancy, some stores are “blaring loud classical music, making it difficult to sleep,” Hagler reported.

Despite the assistance of technology, staffing may be one of the most important tools in ensuring customer safety.

“Females associate store staff with safety and security,” Hagler remarked. “So, as stores move toward a frictionless experience, the absence of staff can be a concern.”

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particularly for mothers with strollers or kids in tow, he said. Also, “female shoppers can take their time reading labels or making decisions without other shoppers crowding their space,” Cohen remarked. Clear signage, meanwhile, “makes everything easier to find,” including restrooms, ATMs and grab-and-go products, he said.

The Mid-Atlantic’s High’s chain kept mothers and children in mind when designing its new flagship store in Gambrills, Maryland, complete with an ice cream counter. “The design of the ice cream case and counter is very inviting for families,” said Brad Chivington, senior vice president and general manager. “Kids can run up to the case and see all of our available flavors. The counter gives a nostalgic feel to the environment with its fun bar stools and bright red coloring.”

Perhaps the most important store aesthetic for females is cleanliness. According to recent research from the Bradley Corp., a manufacturer of commercial plumbing fixtures, nearly 60% of Americans will leave a business or vow to never return after encountering an unpleasant restroom. Indeed, 62% of polled adults said they’re willing to spend more money at a business with well-kept restrooms, the research found, while 75% make it a point to visit a business because it has nice restrooms. Females are more demanding than males when it comes to clean restrooms, added Cohen, noting that the majority of women will avoid an unclean restroom, versus less than half of men.

For c-stores, clean restrooms are “the new baseline,” remarked Bob Bolduc, CEO of Massachusetts’ Pride Stores. “We all agree that the No. 1 offering motorists want to rely on when visiting a c-store is a clean restroom.” At Bucky’s, that means employees check restrooms every 15 minutes and document their checks, Ricks reported. “Customers often tell us that’s the reason they stop,” the retailer said. New York’s Stewart’s Shops also focuses on clean restrooms. “Female shoppers make up a large part of our customer base, and we find that many

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women enjoy shopping at Stewart’s due to our clean restrooms,” said Erica Komoroske, spokesperson for the 336-unit chain. High’s, meanwhile, makes restroom maintenance a priority. “Each year we select a number of restrooms to upgrade,” Chivington explained. “This includes adding touchfree fixtures and baby-changing tables.”

PAYING ATTENTION: MARKETING AND MERCHANDISING The same attention paid to restrooms, of course, must be applied to other areas of the store. When it comes to foodservice, “Women prioritize quality, freshness and healthy offerings more than men,” remarked Donna Hood Crecca, a principal at Technomic Inc. As a result, freshness dates and clear packaging are essential, she continued.

Bucky’s foodservice program, for one, is popular with females. “We have a robust bean-to-cup coffee program that females love,” Ricks said. Under the program, Bucky’s guests can customize their own coffee drinks via a variety of creamers, toppings and whipped creams. Due to customer access to the coffee station, “We make sure that our coffee area, as well as our fountain drinks area, are constantly wiped down,” the retailer noted. Refillable mugs were temporarily suspended due to COVID-19 in favor of disposable cups.

In addition to foodservice, particular merchandise categories can make c-stores destinations for female shoppers. Levin said that IRI’s most recent research (2019) has found that 71% of female shoppers went into c-stores to purchase beverages,

up from 63% in 2018, compared with 61% for male shoppers (up from 56%). Additionally, 19% of female shoppers visited c-stores last year to purchase tobacco, Levin said, up from 12% the prior year. The increase, again, was likely due to the withdrawal of tobacco sales at other trade channels.

Once c-stores have established themselves as destinations for excellent food and beverage options, with clean conditions inside and out, marketing tactics must effectively communicate those attributes to females. Hale and Cohen said digital programming must be inclusive of females. “Make sure that with social media you have a brand, a personality, a voice that speaks to all shoppers,” commented the GSP executive, “not just Bubba.” Levin added that when marketing foodservice items, “focus on promotions and tout good-for-you products. Boast about the high-quality fresh foods you offer.”

Effectively marketing to female shoppers requires close attention to detail and a deep commitment from operators. But with females increasingly accounting for the lion’s share of buying power in virtually all other trade channels, c-stores courting this important consumer have much to gain and little to lose. erri Allan is a New JerseyT based freelance writer, specializing in the beverage industry. She can be reached at terri4beer@aol.com and on Twitter at @terriallan.

C-STORES ARE THE ONLY MAJOR CHANNEL WHERE FEMALES DON’T DRIVE THE MAJORITY OF SHOPPER TRIPS.

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Preparedness plans are evolving daily in light of new guidance on COVID-19.

Any changes to the 2020 NACS Show will be posted at www.nacsshow.com in real-time.

T

he NACS Show holds the key to the most innovative products, eye opening education sessions and engaging networking opportunities for the convenience and fuel retail industry. Join the industry at this year’s show as we crack the code to success in convenience together.

As convenience and fuel retailing’s premier industry event, the NACS Show attracts 24,000+ industry stakeholders from around the world. Every year, the event brings together the most influential people and ideas, explores trends, showcases the most innovative technologies and displays amazing new products. Buyers and sellers come together to conduct business and learn from one another.

While the Show is still a couple months away, our preparedness plans are evolving daily in light of new guidance on COVID-19. Our team is taking precautions and proactively running contingency scenarios to guarantee we deliver the same high-quality networking, access to new products and thought leadership you’ve come to expect—without jeopardizing anyone’s well-being. For real-time updates on the event, visit www.nacsshow.com.

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Conference / Oct 11-14, 2020 Expo / Oct 12-14, 2020 Las Vegas Convention Center

NACS SHOW AND COVID-19 IMPACTS

The current global spread of the coronavirus disease (COVID-19) continues to be of great concern to all of us—after all, we pride ourselves on being the global hub for the convenience and fuel retailing industry. As we prepare for the 2020 NACS Show, we are committed to keeping your health and safety our top priority. The NACS team is continuing to monitor the situation alongside the White House, the Centers for Disease Control and Prevention (CDC), the World Health Organization (WHO), local public health officials and our venue partners in Las Vegas for guidance on how best to ensure the well-being of all attendees, partners and staff on site at this year’s NACS Show.

For the most current information about the 2020 NACS Show, including changes to the schedule, health alerts and enhanced safety protocols for the expo and education sessions, visit www.nacsshow.com/FAQ. CONVENIENCE.ORG

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Preparedness plans are evolving daily in light of new guidance on COVID-19. Any changes to the 2020 NACS Show will be posted at www.nacsshow.com in real-time.

INNOVATE AT THE EXPO

The NACS Show expo holds the key to the products, technology and innovation shaping the future of fuel retail and convenience. Gain access to more than 1,200 fuel retail and convenience store suppliers and vendors all under one roof—a convenient way to compare products, equipment and services from big brands and start-ups, and ask the experts questions face to face.

Bring your team to divide and conquer the 420,000+ net-square-foot expo and gather the clues you need to unlock growth for your c-store or fuel retail business. The six categories of the expo—Fuel Equipment & Services, Food Equipment & Foodservice Programs, Candy/Snacks, Facility Development & Store Operations, Merchandise and Technology—give you a one-of-a-kind, hands-on experience.

Following guidelines from the Las Vegas Health Authority, sampling will be allowed.

A Show favorite, the Cool New Products Preview Room lets you discover the latest, hottest, cutting-edge products and ideas that are ready to redefine our industry. Divided into expo floor categories for your convenience—Merchandise, Candy & Snacks; Technology; Facility Operations; CBD; Fuel Equipment & Services; and Foodservice— it’s loaded with innovative products, services, merchandising strategies and other growth opportunities. This is where customer, convenience and cool are available and ready to become part of your store. Here, you can create your custom expo “shopping list” complete with product details and exhibitor contact information.

• New Preview Room Location: This year, the Cool New Products Preview Room will be in South Hall, near the CBD Pavilion and registration. A larger space and different layout makes it easy for attendees to browse all of the new products while maintaining a social distance.

• Touchless Scanning: Attendees will use the official NACS Show app to scan products. All of your favorite products will be instantly saved to your personalized My Show Planner.

Located on the expo floor, the New Exhibitor Area features supplier companies that have never exhibited at the NACS Show. Be one of the first to engage with these brands and services that are at the NACS Show for the first time. Get ahead of the game and your competition with these new

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products that are ready to hit the shelves and make your cash registers and staff busier than they’ve ever been.

ALL THE BIG IDEAS

Education sessions at the NACS Show will decode trends, skills and best business practices that are shaping the future of the industry. Designed by your industry peers, NACS Show education and training sessions specifically solve the challenges you face in today’s convenience marketplace.

Discuss critical issues in small, intimate gatherings or dive deep into complex topics with larger groups—all in rooms that are thoroughly cleaned after each session and designed to keep attendees safe and socially distanced.

To find the education session just right for you and your current business challenges, NACS has developed three segments based on where you are in the business lifecycle in a certain topic: Launcher, Experimenter or Transformer. To use the segments when planning your education experience at the NACS Show, read each session description and look for the segment identifier to understand if the session is designed for your current needs. You might fit into all three segments during the Show depending on where you are in your business. A session on food safety geared toward Launchers would be ideal for retailers looking to implement a food safety program, but not for retailers with already-established food safety programs, for example.

Education sessions offered at this year's NACS Show can be reviewed at www.nacsshow.com/education.

Adapt to our newly heightened technological world with tools and knowledge gained from the NACS Show’s TechEdge. Our world has been turned upside down this year, and technology is defining the way convenience and fuel retailers must operate their essential business in communities across the globe. TechEdge provides industry retailer technology professionals a specialized experience to learn, connect and access new solutions during the NACS Show, including designated education sessions and the Tech Edge Solutions Center on the expo. This program is brought to you by Conexxus, the industry’s non-profit technology organization dedicated to the development and implementation of standards and technologies innovation to improve retailer operations and reduce the cost of IT ownership.

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MEET YOUR NEW

BEST SELLER

When you put your name on a product, it's got to be better than good. Premier provides high-quality, U.S. tobacco at a value price: everything your customers want. Plus everything you want: great margins and exceptional service. When you our products and marketing put ou support to work - you and your customers will never have to compromise. That's quite a first impression.

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C I GA R E T T E S I C I GA R S I P I P E TO BACCO I RYO I T U B E S

Preparedness plans are evolving daily in light of new guidance on COVID-19. Any changes to the 2020 NACS Show will be posted at www.nacsshow.com in real-time.

PRE-CONFERENCE SESSIONS FOCUS ON TRAINING

After hearing training needs directly from industry retailers, NACS is launching two new pre-conference workshops at this year’s NACS Show. Individuals looking for hands-on training and certification can attend one of two different six-hour interactive workshops directed by leading industry experts.

NACS Show pre-conference workshops are limited to 50 participants each and are available on a first-come, first-served basis. Pre-registration is required.

For more information on the pre-conference workshops, visit www.nacsshow.com and look under Sessions.

MULTI-UNIT LEADERSHIP TRAINING SUNDAY, OCTOBER 11, 2020 \ 9:00 A.M.-3:30 P.M. Author Jim Sullivan brings the principles from his bestselling book, Multi-Unit Leadership: The 7 Stages of Building Profitable Stores, to the NACS Show for a one-day workshop to help retail c-store managers build the needed skills to transition to multi-unit leaders.

In this interactive workshop, Sullivan addresses one of the most challenging transitions in a store

leader’s career: the move from single store manager to multi-store manager.

ATTENDEES WILL LEARN TO: • Abandon the single store “quarterback” mentality and tasks for the more nuanced and leadership focused multi-store “coach” mentality and tasks • Proactively manage time • Execute effective store visits

•D evelop and build a team •S erve as a brand ambassador and role model for store managers • I mprove territory performance WHO SHOULD ATTEND Aspiring, newly promoted or current district/area managers in retail companies.

NACS ADVANCED CATEGORY MANAGEMENT CERTIFICATION SUNDAY, OCTOBER 11, 2020 \ 9:00 A.M.-3:30 P.M. Earn your NACS Certified Convenience Advanced Category Management certification (CCACM) by completing this hands-on education session. Comprised of key strategic planning and analytical skill-building programs, this interactive workshop is tailored for experienced category management and merchandising professionals.

Learn how to develop a holistic brand strategy and identify points of differentiation for your brand.

Discover how to integrate consumer shopping behavior to create winning space and assortment strategies. A deep dive into price elasticity modeling, utilizing behavioral economic principles, will guide attendees on

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how to optimize price, promotions and overall profitability.

Drawing on the fundamentals included in the online NACS Advanced Category Management curriculum, this in-person workshop will incorporate industry data and offer collaborative work sessions designed for maximum learning and retention.

ATTENDEES WILL LEARN TO: • Define brand strategy and develop points of differentiation • Develop a deeper understanding of price elasticity modeling and promotional strategies through the lens of behavioral economics • Optimize space management strategies through assortment techniques,

product adjacency theories, and supportive analytics •F ine-tune assortment decision making through technology and integrating consumer data with consideration around inventory carrying costs and category cannibalization • Utilize a broad set of consumer data from loyalty, census and syndicated sources to better understand shopper behavior and optimize category performance WHO SHOULD ATTEND Retailers and suppliers looking to deepen their existing knowledge of c-store category management.

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Preparedness plans are evolving daily in light of new guidance on

Schedule

Sunday, October 11

Monday, October 12

7:30 a.m. - 5:30 p.m.

7:00 a.m. - 8:00 a.m. Annual Interfaith Prayer Meeting

Registration

9:00 a.m. - 3:30 p.m. Pre-Conference Workshop: Multi-Unit Leadership Training 9:00 a.m. - 3:30 p.m. Pre-Conference Workshop: NACS Advanced Category Management Certification 10:00 a.m. - 5:30 p.m. Cool New Products Preview Room (Retailers Only) 12:00 p.m. - 3:30 p.m. Education Sessions 3:45 p.m. - 5:00 p.m. General Session with Corinne Hancock 5:30 p.m. - 7:00 p.m. NACS Show Kick-Off Party (ticketed event)

GENERAL SESSION WITH CORINNE HANCOCK

In work and in life, we’re put to the test not when things are going right, but when they get chaotic, and this year has brought its fair share of chaos. How we react can be the difference between success and failure and determine whether our team comes together or completely falls apart. Unexpected challenges and changes are all part of this complex world, and leaders today are feeling the pressure even more to exceed expectations, prove themselves and keep everything moving forward … even when things change outside of their control. Hancock will share strategies to adapt your thoughts and actions on a moment’s notice, to stay focused on the mission, power through unexpected challenges and thrive in chaos.

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7:30 a.m. - 5:30 p.m.

Registration

8:00 a.m. – 12:00 p.m. Education Sessions (Group A) 8:00 a.m. – 12:00 p.m. Main Exhibits/CBD Area (Group B) 8:00 a.m. - 11:30 a.m. Cool New Products Preview Room (Retailers Only) 9:15 a.m. - 10:15 a.m.

Super Session (Group A)

12:00 p.m. – 1:15 p.m. General Session with Kevin Brown (all) 1:00 p.m. – 5:00 p.m. Education Sessions (Group B) 1:00 p.m. – 5:00 p.m. Main Exhibits/CBD Area (Group A) 10:30 a.m. - 5:30 p.m. New Exhibitor Area (all) 11:30 a.m. - 5:30 p.m. Cool New Products Preview Room (all)

GENERAL SESSION WITH KEVIN BROWN

Kevin Brown knows firsthand how great brands think, feel and act, after a 30+ year career in franchise development. He spent the last 19 years of his corporate career as part of a leadership team that built a little-known family business into the No. 1 franchise in their industry with annual revenues exceeding $2 billion dollars. Since 2017, he has focused full-time on his mission to share The HERO Effect® message—a simple philosophy that separates world-class organizations and high-performance people from everybody else. Kevin is passionate about helping people expand their vision, develop their potential and grow their results. And, as the father of an autistic child, he knows firsthand how the principles of true success reach beyond the boardroom and into the lives of real people facing the challenges of everyday life.

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COVID-19. Any changes to the 2020 NACS Show will be posted at www.nacsshow.com in real-time.

of Events Tuesday, October 13

Wednesday, October 14

7:30 a.m. - 5:30 p.m.

7:30 a.m. - 1:30 p.m.

Registration

Registration

8:00 a.m. – 12:00 p.m. Education Sessions (Group B)

8:00 a.m. - 1:30 p.m. Cool New Products Preview Room (all)

8:00 a.m. – 12:00 p.m. Main Exhibits/CBD Area (Group A)

9:00 a.m. - 1:30 p.m. New Exhibitor Area (all)

8:00 a.m. - 11:30 a.m. Cool New Products Preview Room (Retailers Only)

8:30 a.m. - 9:30 a.m. General Session (all) 9:00 a.m. - 1:30 p.m. Main Exhibits/CBD Area (all)

9:15 a.m. - 10:15 a.m. Super Session (Group B) 12:00 p.m. – 1:15 p.m. General Session featuring NACS President & CEO Henry Armour and Incoming Chairman Kevin Smartt (all) 1:00 p.m. – 5:00 p.m. Education Sessions (Group A) 1:00 p.m. – 5:00 p.m. Main Exhibits/CBD Area (Group B) 10:30 a.m. - 5:30 p.m. New Exhibitor Area (all) 11:30 a.m. - 5:30 p.m. Cool New Products Preview Room (all)

GENERAL SESSION WITH HENRY ARMOUR AND KEVIN SMARTT

NACS President & CEO Henry Armour will discuss the importance of listening —to our members, to customers and to teams—during a time when it’s more difficult than ever to stay in touch. In addition, incoming NACS Chairman Kevin Smartt, CEO and president of Austin, Texas-based Kwik Chek Food Stores, will share his experience testifying on Capitol Hill to ask the Judiciary Committee to consider reasonable liability protections for responsible businesses.

Armour and Smartt will also discuss how COVID-19 pandemic has catalyzed issues such as the rise of delivery and the move to a cashless society.

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TO KEEP YOU SAFE Staggered groups allow for dedicated and safe access to ALL dimensions of the NACS Show, while addressing social distancing practices and ensuring a deep clean of the expo hall over the lunch hour between groups (additional details regarding assigned groups, by company, to follow to registered attendees via email). Registrants will generally be assigned to one of two groups with adjustments being made to provide diversity by company size, job functionality and time of registration.

YOUR NACS SHOW CODEBREAKER

UNLOCK YOUR FIRST MOVE BEFORE YOU ARRIVE ON-SITE

The NACS Show mobile app makes it easy find exhibitors, navigate the expo hall, search for education sessions and find events, no matter where you are.

Search “NACS Show” in the App Store or Google Play. Best of all, it’s free!

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CHAOS

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Conference / Oct 11-14, 2020 Expo / Oct 12-14, 2020 Las Vegas Convention Center

IS HER

MIDDLE NAME After years on the front lines of global crises, Corinne Hancock shares how to thrive amid chaos.

BY BRUCE HOROVITZ

C

orinne Hancock regularly faces life and death decisions as an international aid worker on the African continent. She says the day-to-day chaos that convenience store owners and workers face isn’t all that different from some of the daily challenges that she’s confronted overseas: Relief trucks stuck in impenetrable mud, relief workers sick with undiagnosed diseases, relief buildings damaged by violent storms. Almost sounds as unpredictable as another day at the c-store.

As the opening general session speaker at the 2020 NACS Show, Hancock will explain how c-store owners and teams can turn

the sudden and unpredictable impact of chaos into an effective way to help a business to thrive. The title of her NACS speech: “Thriving in Chaos.”

“It’s all about what you do and how you lead when chaos hits,” explained Hancock, who has worked on more than 50 international projects with leading organizations including the U.S. Department of State, USAID and Project C.U.R.E., where she was the director of clinics and training programs. She is also the founder of The Curiosity Project, a nonprofit organization that provides health and entrepreneurial opportunities in countries where people have limited access to

OPENING GENERAL SESSION SUNDAY, OCTOBER 11, 3:45 P.M.–5:00 P.M. CONVENIENCE.ORG

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resources. Just last year, she was in the Central African Republic accessing health facilities to help advise the minister of health on what supplies and equipment were needed to prepare for the imminent Ebola crisis.

While working in the chaotic trenches of Africa, she has cradled babies as they died in her arms.

She has witnessed mothers dying in childbirth, and she has observed mothers giving birth by Caesarean section with no pain medication. “How you react to chaos—and it will come—shows who you are as a leader, particularly if you can use it to your advantage,” she said.

GET MAD OR GET SMART For retailers—particularly c-store owners, workers and vendors—the chaotic aftershocks of the financial and human devastation from COVID-19’s unrelenting grip on the world continue to reverberate industrywide. When chaos comes, the nation’s 152,700 c-store owners essentially have two choices: Get mad or get smart, said Hancock.

Getting smart wins every time.

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Let’s take one of the c-store industry’s most common daily chaos-producers: The employee who calls in sick. Since the onset of the pandemic early this year, this has become an increasingly common problem for all retailers. How should c-store managers or owners respond to the employee who can’t make it to work?

Focus on the moment, embrace the chaos, then take action.

“You will never solve anything by freaking out,” Hancock said. The gut instinct, of course, is to blame, complain or try to avoid it all together, when an employee is suddenly absent. That, however, does nothing to improve the situation.

At the same time, it demonstrates to employees that you don’t really value them as human beings.

“Instead, we must focus on the moment, embrace the chaos, then take action,” said Hancock. “You can never be chaos-proof, but you can always be chaos-ready.”

Here are some steps she suggests taking: 1. G et curious: Contact the store manager and ask them to sympathetically reach out directly to the employee and find out what got in the way of them coming to work.

2. G et creative: By creating a human connection, you can offer to help them. Maybe their car broke down, and they need a ride—or perhaps they had a snafu in child-care plans.

A savvy manager can offer an assist with these things.

3. G et smart: By repeatedly turning to this option when your c-store experiences chaotic events— instead of panicking—you create a company culture of kindness that, ultimately, can work as an incentive to retain employees and encourage them to make an extra effort to regularly come to work.

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“If people feel like you understand the challenges they face—even just in conversation— your connection and culture will improve,” said Hancock.

Want another example? It’s the hottest day of the summer and two chaotic things just happened at once: Your c-store’s air conditioning broke down, and the beer delivery truck never showed up. In other words, customers who walk into your store are all going to complain about the heat—and they won’t be able to purchase what would normally be one of your top-sellers on a hot day.

How to react? Well, not by blaming the store manager, then placing angry calls to the AC repairman and the beer supplier, Hancock said.

How you react impacts how the rest of your team reacts. Thriving amid chaos means becoming curious enough to ask the good questions that help you understand why the chaos happened—then creatively collaborating with employees to come up with a positive response.

For the broken AC, until you get it fixed, what if you collaborated with employees on a creative way to make lemonade out of lemons?

Say, for example, you put a big sign out front of your store that specifically says while the AC is temporarily on the fritz, you’re offering free (small) fountain drinks to customers to cool off in the heat, suggested Hancock.

Thriving amid chaos means becoming curious enough to ask the good questions that help you understand why the chaos happened.

As for the missing beer, well, until that arrives, you could place a sign by the beer cooler that notes, in the absence of beer, there’s a special deal on wine today, she suggested. “It’s all about getting CONVENIENCE.ORG

a manager to empower employees to understand the impact, then solving the problem by having the courage to take positive actions,” Hancock said.

KEEP CALM AMID CHAOS Sometimes, the best path from chaos is simply about keeping the people around you calm. Back in 2014, when Hancock was in the Democratic Republic of Congo leading a medical training team, the team was suddenly advised they had to prepare for Ebola. They didn’t know the potential impact at the time, and they had very limited information—which kept changing. On top of all that, Hancock had her then-9-year-old son, Chase, along with her on the trip.

Her mission as she saw it: Keep everyone calm.

“The more clear you can be with the people around you, the more you can help them feel safe and secure,” she said. Also, listening—really listening—to the fears of others “can be one of the best things you can do,” she said.

Her group accessed the supplies it had in-hand and quickly developed a training program where local doctors and nurses could help deliver babies as safely as possible with the equipment they had—even with Ebola fears rising. “Yes, we had to boil water and reuse sheets, but we did the best

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we could with what we had.”

The key to working hand-in-hand with people in the most remote African village is similar to working with CEOs at Fortune 500 companies: Every human being wants to feel as if someone is listening to them and that their advice is considered valuable. That, in itself, can help to turn chaos into progress, Hancock said. In turn, when a c-store manager or owner shows employees that they matter—and have a real impact on decision making—it generally keeps them happier at work and helps to diminish future chaos.

Sometimes the simplest outreach can make a difference. Hancock suggests c-store managers might find out from all employees if they prefer to be contacted via text, email or phone call.

Not only does asking this question demonstrate that you care—but when you do reach out, you’ll always know that it’s in the manner that each employee specifically requested. “You stay relevant by asking employees the questions that need to be asked,” she said.

The best way for a c-store owner to turn chaos on its head, she says, is to embrace the resources you have. Sometimes it’s your employees.

Sometimes it’s outside vendors. Sometimes, she noted, it might be a collaboration with NACS and

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all of its member resources. “Looking to NACS is a great way to find out what’s working—or not—for others,” she said. “And it’s a great reminder that you’re not alone.”

When she was a teenager in Colorado Springs, Colorado, Hancock recalls the Friday night hangout with friends was by the payphone in the parking lot at the local c-store. That’s where they’d meet to decide what to do for the rest of the evening. Sure, the owner came out once in a while to remind the group to pick up their trash, but he always made them feel welcome.

Nearly three decades later, Hancock still finds herself hanging out at c-stores with some frequency.

Now, however, it’s typically at c-stores near airports.

When she’s not restricted by COVID-19, she generally travels all over the country giving speeches and seminars. On the way to the airport after a conference, she typically stops at a c-store to fill up her rental car and grab some healthy snacks for the flight back home—typically a piece of fruit and a granola bar.

It also gives her a unique chance, she said, to interact and connect with local residents. She loves the opportunity to learn about local events and have new experiences. It just takes a little courage to have a conversation, she said, and you always can learn something new. And courage is something Hancock doesn't lack.

For a c-store to succeed in an atmosphere of chaos—be it COVID-19 or a busted AC—it’s all about taking the time to step back, access the situation and figure out what actually you have control over and what you have to creatively work with to respond to each day’s unique chaos.

“Chaos is the catalyst for innovation and growth,” she said. “Chaos makes you stronger— but only if you do the work.”

Bruce Horovitz is a freelance journalist and a national media training consultant. Contact him at brucehorovitz@gmail.com.

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LAST-MILE DEMANDS Whether third-party parcel pickups, on-lot or drive-thru pickups, c-stores are answering consumers’ calls for low-touch, safe options.

BY TERRI ALLAN

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C

onvenience stores are competing more than ever in e-commerce, giving their customers the expanded shopping options they’re increasingly demanding. And as enhanced shopping choices dramatically impact last-mile fulfillment services, convenience retailers are rapidly responding.

Indeed, these emerging “new normal” retail models are likely to continue to evolve and play a key role in the future growth of the convenience store industry.

In recent months, in the wake of the COVID-19 pandemic, much of the focus has been on safe retailer-customer transactions, particularly in the store and on the lot. As a result, numerous operators have expanded or rolled out low-touch shopping options, such as curbside or forecourt pickup and drive-thru windows, often joining the already-established walk-in pickup alternative.

Third-party pickup services, meanwhile, are also advancing, offering retailers incremental sales opportunities and access to new customers.

State-of-the-art technology, including online shopping capabilities and mobile apps, has greatly assisted retailers in getting customer pickup programs up and running, and industry members and experts say there will be no looking back. “Some 67% of millennials and 56% of Generation Z consumers prefer online purchasing versus in-store,” remarked Lori Stillman, NACS vice president of research, and those consumers are likely to retain that penchant down the road.

Beyond consumer preferences, convenience retailers point to the bottom-line benefits that come from e-commerce. “We’re already seeing a 3 ½ minute savings in labor from digital orders, thanks to our new e-commerce platform,” reported Art Sebastian, vice president, digital experience, marketing, loyalty, e-commerce and customer insights and analytics at Casey’s General Stores, pointing to the average time it takes for an employee to take a customer’s order in person or on the phone. Casey’s website and app currently allow customers to place both delivery

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and in-store pickup orders, and at press time, the Midwestern chain was preparing to launch a pilot curbside pickup program at a dozen stores, Sebastian reported.

NEED-BASED INNOVATION The COVID-19 crisis has ratcheted up consumer demand for curbside pickup across all types of retail businesses, and c-stores are no exception.

Several major chains, including RaceTrac and Kum & Go, unveiled on-lot pickup this spring to minimize contact between shoppers and staff members. Melanie Isbill, chief marketing officer at RaceTrac, said the company’s launch of its online ordering platform in April had been on its radar prior to the pandemic, but the outbreak “escalated the opportunity. Times like these breed innovation.” The platform allows customers to place orders from a RaceTrac located nearest to them and pay for and pick up the items within 30 minutes from the store’s “grab-and-go box” pass-through window. (The windows are actually the stores’ already-installed night boxes.)

One month after the rollout, Isbill said that while use of the feature was still low, “we’ve received positive feedback. We see the opportunity to get the word out.” She added that it was too soon to determine the impact of the program on in-store traffic, but bottled water, orange juice, energy drinks and salty snacks are among the more popular items ordered.

“The onset of the coronavirus [pandemic] has changed the way we live,” said Ariel Rubin, spokesperson for Kum & Go. The company’s curbside pickup option, introduced in April for phoned-in orders, is “just one way that we’re working to reach our customers and keep them and our associates

Some 67% of millennials and 56% of Generation Z consumers prefer online purchasing versus in-store.

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safe,” he noted, as the service “helps people maintain social distancing and avoid common touchpoints.” Rubin said in May that Kum & Go had received “terrific feedback” from its customers about curbside pickup.

The pandemic also contributed to the rollout of curbside pickup at Global Partners’ Alltown Fresh concept, according to Melissa Mancini, social and digital marketing manager. In addition to protecting store employees and loyal customers, the transaction option helps to “attract new guests with our various ways to shop,” she said, adding, “Alltown Fresh will continue to offer curbside delivery well into the future to continue serving our guests in a manner they are comfortable with.”

QuikTrip, meanwhile, unveiled on-lot pickup via its mobile app earlier this year after testing in the Tulsa, Oklahoma, area. The feature joins the already-available in-store pickup option. “On-lot pickup is just one more way we’re attempting to make the customer experience at QuikTrip fast, friendly and convenient,” remarked Mike Thornbrugh, manager of public and government affairs. He described the early response as “positive,” and said that while it’s too early to assess the impact on in-store traffic, “a large percentage of on-lot orders have been for our full-service kitchen items.”

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COMPETITIVE ADVANTAGES While the benefits of curbside and on-lot pickup are largely customer driven, the services provide competitive advantages for c-store operators.

“You’re still winning the trip over a competitor,” explained Stillman.

Curbside pickup helps people maintain social distancing and avoid common touchpoints.

Mario Spina, owner and CEO of the Chicago area’s PRIDE stores, agrees. “For a company like mine, curbside pickup gives me an advantage over groceries, as I can offer complete meals from my Urban Counter restaurants; beer, wine and spirits; and typical c-store merchandise—a true one-stop shop.” PRIDE stores are in the process of rolling out a new app, which will allow for curbside pickup, Spina reported.

As with any emerging model, curbside pickup also presents some challenges for retailers. Isbill and Thornbrugh cited the typical pain points that come with introducing new technology to employees and customers. “In the beginning, it was a learning curve as we worked to make the new feature as user friendly for both our customers and store employees,” the QuikTrip executive said. “But we were able to accomplish this during the test phase with a few minor adjustments.”

In addition to staffing concerns, Stillman pointed to inventory challenges. “You have to be able to meet demand,” she explained. “If you can only fill 50-60% of the order, it will reflect poorly on the store.” Global Partners’ Mancini added that curbside pickup removes the opportunity for impulse purchases. “Customers who place their orders over the phone eliminate their ability to peruse the store, which may lower the average ticket,” she said.

In-store pickup of pre-ordered items is a more established model for c-stores. Casey’s, for example, has offered pizza pickup for some time, and among the benefits are the impulse purchases made at checkout. With the move to e-commerce, CONVENIENCE.ORG

customers have been able to add some in-store items to their pizza orders, including drinks, snacks and ice cream, with expanded options to come, according to Sebastian. But the addition of the ancillary items can create challenges when it comes to “uniting different temperature states” during the staging process, the Casey’s executive explained. “You can’t stack a Snickers bar on top of a hot pizza,” he said. “As we move into more items for in-store pickup, we may need to consider other strategies, such as shelving units.”

Drive-thru c-stores are another convenient option for consumers. According to Isbill, RaceTrac opened a store with a drive-thru window last year, and sales have been incremental to in-store purchases. Spina noted that one of his Urban Counter locations features a drive-thru, and during the COVID outbreak, “we tried to sell everything out of it.” Sales of alcoholic beverages via the drive-thru, however, weren’t permitted.

PICKUP POINTS For the last three years, PRIDE stores have benefitted from their partnerships with the Amazon Hub Locker program, whereby customers of the e-commerce giant can pick up ordered items at self-service kiosks at affiliated retail locations, in favor of home delivery. Spina remarked that the program—which is now available at each of the chain’s 15 locations, with plans to include it at a new Indiana store expected to open later this year—“helps traffic count,” and listing PRIDE stores on the Amazon site increases awareness among potential customers. The lockers, which, according to Spina, measure six feet wide by seven feet high by 27 inches deep, are generally located on PRIDE store lots, not in store.

PUDOpoint, meanwhile, is a carrier-neutral parcel pickup/drop-off technology and logistics network that is increasingly working with U.S. c-stores as partners for both its own system, as well as the Amazon Hub Counter program.

“C-stores can now compete in the online opportunity,” said John Clarke, vice president of sales and marketing at PUDO Inc. “With pickup points becoming more common, retailers can benefit from the increased foot traffic.” In fact, Frank Coccia, PUDO CEO, added that consumers prefer CONVENIENCE.ORG

NACS recently completed its Last Mile Fulfillment in Convenience Retail Survey. The results of the survey will be presented at an education session at the 2020 NACS Show in October.

Registration for the Las Vegas event is open at www.nacsshow.com.

small footprint stores to grocery stores when it comes to package pickup due to their convenient locations and easy-in, easy-out model.

In addition to enhanced foot traffic, c-stores enrolled in the Amazon Hub Counter program benefit from having their locations listed on the Amazon marketplace, Coccia added. According to Clarke, retailer requirements include about 40 square feet of space and the ability to expand up to 200 square feet seasonally, a smartphone with a scanner and Wi-Fi. Package pickup and drop off takes place at the store’s checkout counter. “We can set up a store in about 15 minutes,” he noted.

In addition to improved traffic opportunity, the benefits of third-party pickup destinations include impulse purchases. Spina said that depending on the time of day, Amazon Locker customers are likely to purchase a cup of coffee at a PRIDE store or lunch at an Urban Counter location. But he conceded that space can be a challenge. “Floor space is valuable, so devoting the space to the lockers has to be justifiable,” the retailer said.

Stillman agreed, saying that “operators must be prudent with where they put the lockers.” The storage units may make more sense in urban areas with high-rise residential buildings than in rural markets, she noted.

Whether it’s third-party parcel pickups, on-lot or drive-thru pickups, c-stores are answering consumers’ calls for low-touch, safe customer-service options. Spina, for one, said these programs are only just beginning to hit their stride. “I believe there will be an emphasis placed on these services,” he remarked, “not just for safety reasons, but for convenience, too.”

Terri Allan is a New Jerseybased freelance writer, specializing in the beverage industry. She can be reached at terri4beer@aol.com and on Twitter at @terriallan.

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https://www.nacsmagazine.com/issues/august-2020/double-down-local-search

Digital listings are the new front door of the convenience store— keep yours up to date.

BY FRANK BEARD

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t’s easy to see why local search is a blind spot for some retailers. Digital listings platforms like Google Maps are frequently misconstrued as navigation apps. Users get directions to a restaurant across town, a friend’s house or perhaps to cut through busy traffic. The idea that someone needs directions to a convenience store two blocks away sounds preposterous—and rightfully so.

Rather than navigation apps, these platforms serve as a virtual front door for businesses.

Directions are an important component, but so are phone numbers, hours of operation and more.

As Uberall mentioned in a recent report about the impact of COVID-19 on local search, many consumers are relying on this added information to make decisions about how and where to shop.

Data show that requests for directions are down on Google Maps, but calls and website visits are up.

“In some places, everything got shut down,” said Greg Sterling, vice president of market insights at Uberall, developer of a cloud-based platform to help small and large businesses get listed and market themselves. “You have to rely on the internet and phone calls, to some degree, to get the correct information. Is the store even open, and what are the protocols?”

The time to have a local search strategy was yesterday, but it’s not too late to get started or make improvements. It’s a crucial aspect of the digital customer experience now and in the near future.

THE LOOMING E-COMMERCE SHIFT The way consumers shop is changing. Over the past few months, retailing witnessed a digital transformation as convenience retailers expanded beyond the physical point of sale and embraced curbside pickup, home delivery, forecourt delivery, mobile payments and more. Even as traffic rebounds, these are likely to be lasting changes.

“Online retail will become the primary commerce channel for an even greater subset of the American consumer,” writes Web Smith, founder

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of 2PM Inc. “Conservative estimates place e-commerce at 25% or higher penetration rate by September, a number that wasn’t to be reached for another 5-10 years.”

Many readers likely encountered the “hockey stick” graph that circulated via LinkedIn and Twitter during the month of May. According to Bank of America, ShawSpring Research and the U.S. Department of Commerce, e-commerce penetration rose from 16% to 27% during the pandemic in a span of only eight weeks.

While some of this shift is reactionary and will give way as familiar habits return, the e-commerce transformation was already in progress before COVID-19. The pandemic merely poured accelerant on this trend. And the shift shows no sign of slowing down. In recent weeks, major e-commerce announcements have been made by Facebook, Shopify, Amazon and Walmart. These are longterm plays from companies that were not forced to tread water during the pandemic.

“I do think we’re going to continue living more of our lives online and doing more business online,” said Facebook CEO Mark Zuckerberg in response to the company now allowing consumers to make purchases directly from businesses’ Facebook pages.

In January, Google acquired Dublin-based Pointy. The startup’s primary product was a piece of hardware that connects to the point-of-sale system and uses algorithms to make assumptions about inventory based on purchasing patterns.

This information can then be displayed online.

Real-time inventory has been a trend for more than a decade, but it’s not hard to imagine a scenario

All your digital information needs to be up-to-date if you want to show up in search results.

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If retailers expose their inventory online, they will be better able to compete. where it becomes the norm. Perhaps a consumer would search for a favorite brand of chips, and the results would show nearby convenience stores. “If retailers expose their inventory online, they will be better able to compete but will also train consumers to start expecting that,” said Sterling of Uberall.

All of this is to say that consumers will have more ways to conveniently access brands in the near future. Leaving the front door open for businesses is essential, and optimizing for local search is one way to do it.

THE VIRTUAL FRONT DOOR A Google Maps query for REI in West Des Moines, Iowa, yields—within seconds—all the information necessary to make a decision about visiting and shopping. A full overview of COVID-19 protocols is displayed on the listing, including a red “x” next to the words “in-store shopping” and a green checkmark next to “curbside pickup.”

Chick-fil-A has taken similar steps. The listing for the Ankeny, Iowa, location informs visitors that the dining room is closed, while takeout and delivery are available. A phone number is listed, along with a link to the website and detailed hours of operation.

Acquiring this level of information previously involved a visit to a search engine, a query to the company, a visit to its website, clicking on a store locator, typing an address or ZIP code, and then clicking on the appropriate location. Now, all this information is available near-instantaneously— or it should be.

Consider a listing from a major fuel or convenience retailer that has not optimized in a similar fashion. The hours of operation are available, but not the phone number. What if someone needed a few essentials and wanted to call the store to verify that it’s open? Missing information hardly inspires confidence.

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For better or worse, the digital customer experience is now tied to the overall brand experience.

Imagine visiting a quick-service restaurant’s drive-thru at 8:45 p.m. because Google Maps says it’s open, only to discover it had already closed.

Would you blame Google Maps, or would you blame the restaurant?

Fortunately, many convenience retailers take this seriously. “‘Clicks to call’ and ‘clicks to website’ are two of the main things we look at,” said Mike Templeton, director of marketing at Iowa-based Casey’s General Stores. “That’s the closest thing to starting a pizza order. Historically, one of the primary ways people would order pizza is by calling our stores. If they can’t find a phone number, then they go somewhere else.” Casey’s listings on Google Maps also include links to DoorDash. Simply click, view the full menu and submit your order.

IF YOU DON’T STAND OUT Convenience retailers know the importance of location better than most, but it’s not enough to be on the right corner or intersection. When someone searches for “gas stations near me,” you have to be one of the top results to drive visits.

“Search is the new front door of the store,” said Templeton. “If you don’t show up, you’re not an option. Getting things right like where you’re located and how to contact you is as important as having a clean, well-lit store that [customers] feel safe visiting.”

Accurate listings are one way to ensure this. When inconsistencies exist between a company’s listings on Google My Business (GMB) and other platforms— such as Facebook, Yelp and Apple Maps—the GMB listings may be deprioritized and fail to drive traffic.

“This is an issue now and as we move forward,” said Sterling. “Most searches are category searches and don’t have a brand associated with them—Chinese restaurants, hardware stores, gas stations. All your digital information needs to be up-to-date if you want to show up in search results.”

A similar issue plays out on GasBuddy. Since search results give priority to stations with recent gas prices, those that fail to update their prices are buried at the bottom. This can be an issue since only 5% of GasBuddy users ever scroll to the bottom

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of the list screen. Similar to missing phone numbers and hours of operation, the lack of fuel prices on a platform where it matters can erode consumer trust. In a 2019 survey of nearly 20,000 GasBuddy users, more than four in five (84.7%) said they are more likely to trust stations with recent prices.

FEEDBACK IS A GIFT As an added benefit, many listings platforms serve as a venue for ratings and reviews. This immediate feedback is a valuable source of information.

“Gulf has been focused on educating our distributors and dealers on the importance of listening to consumer feedback and monitoring their competitors,” said Nikki Fales, director of marketing at Massachusetts-based Gulf Oil. “Because our sites are operated by distributors, communication is one of our strongest tools.

We are able to ensure our branded partners are upholding an exceptional experience through real-time access to online reviews.”

There’s no denying that COVID-19 has brought about significant changes in consumer sentiment.

“Maslow before Bloom,” as educators like to say—meaning basic needs must be satisfied before higher-order objectives can be achieved. The pandemic has merged cleanliness and safety into one single, fundamental concern. Online reviews provide retailers with immediate feedback on this and other issues, enabling them to quickly identify high- and low-performing outliers across their brand. They also can get a sense of whether or not their perception about the customer experience is accurate.

As Fales pointed out, sometimes customer feedback will also surprise you in unexpected ways. “We had a scenario in which a site operator unknowingly opened for business before the technician had fully finalized the point-of-sale brand conversion. A consumer tried, and failed, to use our mobile payment app. Fortunately, we were alerted by an online review and were able to quickly correct the issue before any other consumers had a negative experience.”

Digital listings have become an important part of the customer experience. The time to have a

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local search strategy was yesterday, but it’s not too late to get started or make improvements. Retailers can help consumers navigate the pandemic and keep the front door open long after it’s over.

Frank Beard is a speaker, consultant and convenience retail analyst who resides in Des Moines, Iowa. Follow Frank on LinkedIn or Twitter at @FrankBeard.

HOW TO OPTIMIZE YOUR DIGITAL SEARCH LISTINGS Local search optimization has been a blind spot for many companies long before COVID-19. Uberall’s 2019 analysis of more than 73,000 businesses on 37 listings platforms found that almost 50% had incorrect or missing opening hours. Nearly 20% had incorrect or missing street information.

Here are some local search optimization tips for independent retailers: 1. Identify the major platforms where customers find your gas stations (i.e. Google Maps, Yelp, Facebook, Bing and Apple Maps).

2. Each platform offers free tools to claim your business and edit your details.

3. Ensure the key details are accurate: a. Name b. Address c. Hours of operation d. Phone number e. Website f. ZIP code 4. Enhance your image by uploading attractive photos.

5. Build trust by responding to reviews.

6. On Google My Business, use tools such as Posts to share relevant and timely information beyond the basic details.

7. For independent retailers with multiple locations, save time by working with an aggregator that can deploy updates to your locations across all listings platforms at once.

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CORONAVIRUS, HURRICANES AND OTHER DISASTERS,

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Retailers can’t afford to let COVID-19 derail their emergency preparedness.

BY SARAH HAMAKER

urricanes. Wildfires.

Tornadoes. Floods. Every retailer has the potential to experience a natural disaster up close and personal. This year, the National Hurricane Center forecast a busy Atlantic hurricane season, with the likelihood of 13 to 19 named storms, of which six to 10 could become hurricanes, including three to six hurricanes of Category 3, 4 or 5 velocity. The U.S. Forest Service also predicted a higher-than-average 2020 wildfire season.

This year, the coronavirus pandemic adds another layer to preparing for an emergency.

“Especially in this time of COVID-19, retailers are pressed for time, but not preparing for a hurricane or other natural disaster will put them at a distinct disadvantage and will hamper their ability to re-open quickly,” said Craig Fugate, former administrator of the Federal Emergency Management Agency (FEMA).

“This year, all of our planning is going to have to add COVID-19 preparations, too.”

PREPARING FOR THE WORST Whether your store will face hurricanes, tornadoes, flooding, earthquakes or wildfires, the cost of not being prepared, especially in the midst of a pandemic, can be catastrophic to your business. “Everyone’s busy, especially with all the extra COVID-19 requirements, but not planning for a natural disaster can shut down your business for good,” Fugate said.

Preparing for a natural disaster while juggling coronavirus tasks can be manageable. “Most of your planning doesn’t have to be done all at one time,” he said. “You can break it into smaller tasks spaced over several days or weeks.”

Overall, Fugate recommended watching the videos associated with the NACS Convenience CONVENIENCE.ORG

Store Emergency Planning and Job Aid resources, which will provide retailers with a solid framework to start disaster preparedness.

“While COVID-19 isn’t specifically addressed in the videos, they will give you a place to start your planning,” he said.

According to Fugate, there are several key things every retailer should do to prepare for a natural disaster during a pandemic.

Know the hazards that can impact your location and your employees. For example, emergency plans should include discussing with local emergency management agencies about potential hazards, such as the current local hurricane or wildfire evacuation zone and route.

“Even if your store isn’t in an evacuation zone, your employees might be in the evacuation zone and be unable to come to work,” Fugate said. “That could impact your ability to operate safely and serve your community.”

Create a shutdown checklist. Once you’re aware of the hazards, make sure you have a checklist of how to shut down the store safely, such as securing high-value items like tobacco and lottery tickets, and ensuring electronic equipment is properly protected from any potential water damage. Check generators to ensure they’re in good working order, or contact rental companies to ensure you can get one quickly.

“The better you secure your store if you have to evacuate or close due to a natural disaster, the easier it will be to re-open,” Fugate said.

“Convenience stores do a lot for their neighborhoods, providing fuel for evacuations and ice, grocery staples and household essentials before and after a disaster. Retailers need to stay open

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Keep employees in the loop. If you haven’t already, review your emergency preparedness plans with all of your workers. “Your staff should have a clear idea what your emergency plans entail and what their roles will be,” Fugate said. “Give them the steps on how to shut down and secure the store.”

Practice the shutdown steps periodically to help mitigate any possible mistakes during an actual crisis. “The more training you give your staff on this, the less chance something will be missed during the shutdown,” he said. “The last thing you want is to wait to figure out what to do until you’re in the middle of the crisis. Leaving it to the last minute will also leave your customers in the lurch.”

Update your insurance coverage. Retailers should periodically talk with their insurance agent to make sure they have the right coverage in case of a disaster. “For example, businesses need content and business interruption insurance to help them stay in business after a disaster,” he said.

THIS YEAR, ALL OF OUR PLANNING IS GOING TO HAVE TO ADD COVID-19 PREPARATIONS, TOO. before a storm hits and open back up quickly after the emergency is over.”

Listen to local authorities. If your store is along the Gulf or Atlantic seaboard, during hurricane season (June 1 to November 30) keep a close watch on any potential storms. If you’re in an area with a high wildfire risk, keep up with whether there’s a drought or other increased risk of fires. “When retailers know a storm is coming, for example, it gives them time to reduce their freezer inventory, make plans to double-bag electronic equipment, etc.,” Fugate said.

Knowing what’s coming also gives retailers time to stock up on essentials, such as fuel, bottled water and ice. “If you’re going to be there for your customers, you’re going to need to have the supplies they’ll need before and after a storm,” Fugate said.

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PREPARATIONS, CORONAVIRUS-STYLE While states are slowly easing back open and Americans are emerging from their homes, the coronavirus pandemic is far from over, complicating emergency plans. Most state disaster planners are scrambling to find ways to provide care and shelter on a massive scale when cramming families into crowded facilities or shelters runs counter to public health guidelines. Those guidelines mean retailers have to consider how to insert the extra cleaning and social distancing into their own disaster plans.

This year, FEMA released the COVID-19 Pandemic Operational Guidance for the 2020 Hurricane Season to help businesses prepare.

The document recommends businesses think about questions like: •D oes your response plan take into consideration reduced staffing due to COVID-19?

•H ave you updated your plan to continue essential functions with little or no interruption?

•D oes your plan include how to protect your employees from both the natural disaster and COVID-19?

•H ave you purchased and stockpiled PPE (personal protective equipment) for workers who need it?

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For convenience stores, Fugate recommended emergency plans to include extra personnel on-site ahead of a hurricane or wildfire evacuation to help manage long gas lines and keep up with COVID-19 sanitization schedules. “Retailers will have to manage the cleaning for COVID-19, as well as the increased demand for fuel, so having a plan in place will ensure they have both things covered,” Fugate said. “During an evacuation especially, having additional employees dedicated to wiping down touchscreen surfaces at the pump will help alleviate some of the stress drivers might be experiencing.”

Continuing to train employees on why coronavirus guidelines should still be adhered to even while preparing for a hurricane will go a long way to getting them to comply with mask regulations and extra cleaning tasks. “The more they can understand why we’re doing this, the more they will be willing to help stop the spread of COVID-19,” Fugate said.

Remind employees who are not feeling well to stay home, even when your store may need extra help ahead of a potential disaster. “Wiping down surfaces and wearing masks is great, but retailers also need to encourage sick workers to skip work to keep COVID-19 from spreading, especially as more people stop for gas or supplies ahead of an evacuation or natural disaster,” Fugate said. “Establish good, clear employee policies that state it’s safe to stay home when sick.”

A FUTURE PLAN During the pandemic, convenience stores have generated a lot of goodwill in their communities by being open to serve and help customers.

Retailers should continue to build upon that

foundation by adequately preparing for natural disasters in this time of COVID-19.

“The bottom line is that your customers will remember whether you were prepared for the natural disaster or not. Those who were not prepared will likely not recover as easily as those who were,” Fugate said. “The longer retailers can stay open during an emergency, the more customers they can help.”

Sarah Hamaker is a freelance writer and NACS Daily and NACS Magazine contributor based in Fairfax, Virginia. Visit her online at www.sarahhamakerfiction.com.

DISASTER PREP RESOURCES The NACS Convenience Store Emergency Planning and Job Aid resources help convenience stores identify and enhance their resiliency as they plan, prepare and recover from a disaster.

NACS offers two versions of the program—one that’s free to anyone and one that’s available for NACS members only. The free edition has the Emergency Planning Guide and the Emergency Job Aids and allows for customization by removing any Job Aid pages that aren’t applicable to that particular company. The NACS members-only version gives companies a wider ability to customize, such as adding the store name and logo to the Job Aids and personalizing individual Job Aids to fit the company or even single locations within a chain.

Watch the six preparedness videos, or download the guides at www.convenience.org/disasterplan. There’s a free mobile app, too, with all of the job aids and videos, so employees can easily access them on their phones in an emergency. Go to www.saberspace.org/nacs-app.html and complete the brief enrollment, then download the app on your Apple or Android mobile device.

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BUILDING FOR TOMORROW The pandemic has forced a reckoning among retailers when it comes to technology.

BY FRANK BEARD

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here was an aspirational flavor to 2019.

From presentations and publications to late-night conversations at industry gatherings, the topic of technological innovation was imbued with a sense of possibility. Amazon Go stores were operational, and China’s retail technology resembled science fiction, but the U.S. fuel and convenience industry’s aging tech stack was a problem that still had time to be resolved. For many, the discussion was focused on big ideas, including 5G and the onset of the fourth industrial revolution.

But COVID-19 changed everything.

REBUILDING THE FOUNDATION Opinions vary on the specifics of habit formation, but it’s safe to assume that many Americans were locked down long enough to disrupt their normal routines and form new ones. Longtime brick-andmortar customers suddenly became accustomed to ordering groceries online and getting curbside pickup at home improvement stores.

This should be concerning for a convenience industry that thrives on routine. For many, the early

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morning coffee run was replaced by a trip to a coffee maker down the hallway. Data from the PDI and NACS weekly COVID-19 reports of consumer behavior indicate that the morning daypart remains the hardest hit.

For all the talk of when we might return to normal, it’s worth pointing out that the concept of normalcy was in flux even before the pandemic. The percentage of Americans working from home had grown for years. According to the U.S. Census Bureau, the 13.4 million Americans reporting from home offices in 2010 represented a 4.2 million increase from 1997.

The challenge is that COVID-19 accelerated this and other trends to levels not experienced for many years. Estimates suggest that nearly two-thirds of Americans were working remotely by April 2. It was enough that Shopify CEO Tobi Lutke announced the end of office centricity a month later: “As of today, Shopify is digital by default."

Shopify is not alone. From Facebook and Barclays to Nationwide Insurance and others, this appears to be a trend rather than a bubble. Mastercard recently announced that it is re-examining the office footprint and considering consolidating operations.

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This is concerning for many retailers. According to a 2018 report from Visa and PYMNTS.com, the work commute facilitated the movement of 135 million Americans and $212 billion in commerce. This has implications beyond fewer coffees and pastries. After all, cars parked at home are now measuring fuel efficiency in miles per week rather than miles per gallon.

The biggest mistake we can make is treating pandemic issues as oneoff concerns instead of fixing the foundation that caused them.

“The new normal is that we’re not making trips,” explained Gray Taylor, executive director of Conexxus. “We hypothesized that footfall fell off in previous years because people weren’t going to the mall, but now it’s telecommuting that’s going to hurt us. Retailers need to have a home delivery offer. The frequency of eating away from the home will be less.”

It’s true that many retailers were able to pivot quickly in the early weeks of the pandemic. New channels opened up beyond the physical point of sale. As many soon realized, however, the economics of delivery are complicated. “The margins of most convenience products don’t work for third-party services that were built to serve restaurants,” said John Nelson, the founder and CEO of Vroom Delivery, an e-commerce platform designed for convenience stores.

The reliance of convenience retailers on age-restricted products is problematic for those companies, and delivery areas are designed around high-density urban environments at the exclusion of others. It’s also difficult for platforms like Grubhub to accommodate the variety of SKUs, frequency of price updates and types of promotions that are common at the average convenience store.

Even where companies like DoorDash offer fulfillment programs, there remains a need to build front-end e-commerce solutions to accept a form of payment. Perhaps the convenience industry

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wasn’t prepared for these issues. “We built a tech stack around a very prescribed operational process,” explained Taylor. “It was about selling Cokes and smokes to people who show up, pay with cash or a card and walk out the door. Now we have an environment where some don’t want to interact with you.

“Why can’t an order be injected automatically like Starbucks? The problem is walled gardens of data and a bad tech stack. The biggest mistake we can make is treating pandemic issues as one-off concerns instead of taking a step back and fixing the foundation that caused them.”

NOW THAT WE’RE HERE Beyond the point of sale, COVID-19 exposed other fundamental concerns. “The pandemic created a perfect storm where you not only have safety issues but you have an impact on fuel demand,” said Tim Tang, director of enterprise solutions at Hughes. “Traffic is down, and when customers do come, you have new rules about how you can engage with them. Retailers need to compensate by becoming more efficient in order to drive profitability.”

The problem is that many retailers had been hesitant to evolve their business model in prior years.

There were of course outliers like Maverik, Sheetz, Wawa and others; but as a whole, much of the industry continued to operate as it did a decade earlier.

“We’re now in a position where you need to sell more stuff to fewer people at a higher margin,” said Tang.

“This has become a technology problem.”

For many consumers, a mobile app is unlikely to even be part of the experience at their local convenience store. Solutions exist at some retailers, but adoption is far

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from ubiquitous across the industry as a whole.

“We need universal adoption of technology for our customers to know they can use a mobile app when they come to our stores,” said Kevin Smartt, CEO of Texas-based Kwik Chek. “Everyone is fragmented. How many of the more than 150,000 stores in our industry have a mobile app?”

But it’s interesting to see how the pandemic has changed the conversation about the mobile app. Before, the discussion focused solely on loyalty or the checkout process—such as scanand-go solutions—and more often now, the app is being viewed more comprehensively as a concierge. It’s a way to meld e-commerce with the in-store shopping experience.

“Checkout is the wrong focus,” said Richard Crone, founder and CEO of Crone Consulting.

“Checkout will be replaced with a check-in strategy.

Retailers need to know who their customer is and be able to understand their intent. That’s what allows you to personalize the experience. If you’re not personalizing, you’re commoditizing by default.”

A check-in process creates the ability to drive new efficiencies. As Crone explained, the one who enrolls is the one who controls—meaning consumers can be guided through a personalized shopping experience with targeted offers and a payment solution. Rather than paying 30% fees to a third-party delivery service or giving control of SKU-level data to another company, a check-in

Tech Debt Technoloy Curve Technical debt forms as the gap between technology and your ability to adopt it widens

Technical Debt

Technoloy Adoption Curve TIME

strategy ensures retailers can maximize profitability in an environment that is theirs to control.

“There were early adopters,” explained Crone, “but the petroleum brands are the ones who are enrolling and building the databases. They’re the ones with the system of record—not the convenience store brands. Retailers need to exercise their data rights and build their own platforms.”

Dive Into the Issues This year, the Conexxus Education and Strategy Conference has transitioned to a two-day virtual event.

Typical attendees are those who are passionate about Conexxus initiatives and the technological changes facing the c-store and fuel industries—like many of the issues mentioned in this article. During the online event, new tech companies will present their research, products and services aimed toward bringing convenience stores into the future, and educational content will focus on the industry’s most pressing issues. Getting solution providers and retailers on the same page, through events like the Conexxus Education and Strategy Conference, helps the industry move faster to deliver improved experiences for customers and employees.

For more information and to register, visit www.conexxus.org.

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There remains, of course, a question of access.

Bifurcation in retailer capabilities was already an issue prior to the COVID-19 pandemic. Large brands were in a position to invest in “nice to have” technologies, while single-store operators and small chains often had more immediate concerns.

Retailers need to exercise their data rights and build their own platforms.

“We’re going to witness the haves and have nots in society but also within the industry,” said Tang.

“When we think of a post-COVID world, everyone suggests three similar policies for retail: masks, social distancing and partial occupancy. The problem is they all do the same thing—reduce the amount of business that retailers can do from an operational efficiency standpoint, especially for a business that was operating on thin margins.”

WHERE DO WE GO FROM HERE? Perhaps it’s wise to be responsive rather than reactive.

Consider curbside pickup. It’s a major trend, but there’s also the question of whether it adds friction to the convenience store model—especially without a seamless check-in process. The needs of retailers and consumers also vary depending on where they’re located. According to Smartt, Kwik Chek’s rural locations have experienced the strongest recovery, while those in Austin, Texas—with a tech industry that has continued working from home—have recovered to a lesser degree.

“I think we really need to figure this out,” said Smartt. “What do consumers want? We have to understand this before rushing in with expensive solutions that change operations, marketing and everything else.”

Indeed, a recent survey gave Smartt reason to pause. When asked about preferences for delivery and curbside, 42% of Kwik Chek’s loyalty members said they were unlikely to use delivery, and 46% said they were unlikely to use curbside pickup. “We felt a lot more certain in the preCOVID environment,” said Smartt. “Now we’re trying to be slower and understand what the new normal will be like.”

Moving forward, however, it’s clear that analytics will become a bigger part of the effort to understand the customer and make wise decisions.

“The changes to online ordering and the changes in behavior—less fuel and fewer but different purchases—have driven a lot of our customers to take a closer look at analytics,” said Stewart. “The big brands already had in-house capabilities, but the smaller retailers wanted to know what was on their shelves that could support online and curbside.

There’s a big push to get analytics to smaller operators who previously lacked the capability.”

As they say, there’s no time better than the present. The pandemic has accelerated certain trends to a level not expected for three to five years, and sometimes the evidence of this change is staring us right in the face.

“Our competition will be the grocery stores,” suggested Taylor. “At my local H-E-B, half of the customers are professional shoppers. They know where everything is. Instead of asking an employee for help, I look for the person from Instacart.”

Frank Beard is a speaker, consultant and convenience retail analyst who resides in Des Moines, Iowa. Follow Frank on LinkedIn or Twitter at @FrankBeard.

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| AUGUST 2020

CONVENIENCE.ORG

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RUNNING YOUR BUSINESS YOUR WAY. POWERED LOCALLY.

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A name your customers trust, a brand you can count on – visit cenex.com/businessopportunities to learn more.

GAS STATION GOURMET

Small Town Boy Does Good

Waller Petroleum goes big on flavor and style with Bon Temps and Smokin’ J’s: A Barbeque Joint.

BY AL HEBERT

Smokin' J's: A Barbeque Joint is a play on the first names of owners Jesse Waller and Josh Hilton, two college buddies with a love of great food.

The 6,000-square-foot c-store, which opened in 2018, has an industrial edge and includes a drive-thru.

COVID CLIMATE There’s a new c-store world out there, and Bon Temps and Smokin’ J’s: A Barbeque Joint in Minden, Louisiana, have had to adapt. “We follow the governor’s orders,” Jesse Waller, president of Waller Petroleum, said. “Being a gas station was an advantage. We’re essential. We have a drive-thru at Smokin’ J’s, and that allowed us to keep the food volume at a good level,” he explained.

Both locations offer outdoor seating, and early on, more people chose to eat outside. “You could tell when the public was getting tired of staying home. We saw more activity in the store. We’re still selling the same amount of food as before, but there’s a different way of selling it,” Waller said.

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| AUGUST 2020

M

inden, Louisiana, has been described as an “old-fashioned” town. The brick main street is lined with buildings constructed decades ago. And while many young people in small town America leave for better opportunity, Jesse Waller decided to stick around.

Waller’s father, Mike, was a Shell jobber in the 1970s and launched Waller Petroleum in 1996. After college, Waller joined the company. During planning for the company’s first c-store, he brought on board Josh Hilton, a fraternity brother with experience managing a barbecue restaurant.

“I have to give my dad credit for the design of the store,” said Waller, who is president of Waller Petroleum today. “There was a certain layout he was looking for: It’s a big store with a customer area in the center of the store facing the pumps.

On one side of the register is the c-store side, with CONVENIENCE.ORG

basic c-store items, and the other side has a high-end coffee bar and restaurant.”

A ‘GAS-TAURANT’ In 2012, when Waller and Hilton launched the c-store, called Bon Temps, the town of Minden “had few quality food offerings,” Waller said. “It was ripe for the picking. … We got really busy in 18 months and became one of the most popular places in town to eat.”

Hilton, vice president of Waller Petroleum, developed menu items packed with flavor. The Breezy, named for New Orleans Saints quarterback Drew Brees, is turkey, bacon, sautéed onion and bell pepper on jalapeño cheese bread with provolone and cheddar cheese. The Burrow Bowl is chicken and sausage gumbo with a scoop of potato salad and named for LSU’s Heisman Trophy winner Joe Burrow.

And what’s a Louisiana gas station restaurant without gumbo? Bon Temps’ gumbo is “a play on my mom’s recipe,” Hilton said. “It has a nice, rich roux, and we use a liberal amount of chicken and andouille sausage. It’s paired with a jalapeño cheese and bacon cornbread muffin,” he said, adding, “It’s a quarter of our food sales. We sell about 10 gallons a day.”

SMOKIN’ J’S: A BARBEQUE JOINT Bon Temps was a hit with customers, and in early 2017, it was time for Waller Petroleum to consider the next phase. “We came up with Smokin’ J’s: A Barbeque Joint,” Waller said. “In our first store, we had great food inside a gas station. … Smokin’ J’s is a restaurant with a gas station.” The 6,000-square-foot c-store embraces an industrial design and includes a drive-thru.

Smokin’ J’s—a play on Waller and Hilton’s first names—opened in March 2018 and quickly developed a following.

“We sold $30,000 in barbecue the first week,” said Waller.

Hilton’s version of barbecue brisket is smoked with pecan wood sourced from pecan trees on Waller family property.

“We smoke it with the fat cap on it,” he CONVENIENCE.ORG

Mike Waller and his son Jesse in front of Waller Petroleum's first c-store, Bon Temps, which includes a restaurant and opened in 2012. The second concept, Smokin' J's, is "a restaurant with a gas station," Jesse Waller says.

said. “We think it gives us a superior product. Customers absolutely love it.”

AN UPHILL CLIMB Smokin’ J’s quickly became a smoking hot destination for food, but the gas station and c-store side was lukewarm at first. “It’s not a traditional layout. Gas pumps are on the side of the building. Parking is different.

We were tearing it up in food sales, but when people were not coming in for food, the store was basically dead. We were expecting to do 100,000 gallons [of gasoline] a month, and we were doing 40,000,” Waller recalled.

“We tried everything. We tried giving away fountain drinks with fill-ups.

Eventually my dad pushed and said we’ll match [fuel prices] at the Circle K down the road. For about eight months we sold fuel at cost,” said Waller. Business improved, and a direct competitor closed.

Another headwind: Minden had been a dry town since a local option election in 1939 forbade the sale of alcoholic beverages. Eighty years later, residents decided it was time for a change, and Waller Petroleum got behind the movement. “We were the business face behind the effort, and in March 2020, we were able to sell beer,” Waller said. “It’s come full circle now. It’s a monster convenience store— and it’s still a great restaurant.”

Today, Waller, 35, is also proud to be the president of the Louisiana Oil Marketers & Convenience Store Association. It’s a big deal for a kid from the town of Minden.

We got really busy in 18 months and became one of the most popular places in town to eat.

Al Hebert is the Gas Station Gourmet and showcases America’s culinary treasure— gas station cuisine. He shares these stories and on occasion, a recipe or two at www.

GasStationGourmet.com. He is a NACS Magazine contributor, bringing foodservice ideas to readers.

AUGUST 2020 |

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GLOBAL TRENDS

Local Is Focal Post COVID-19

Community stores, services and products are poised to flourish in the U.K. after the pandemic.

W

hile the United Kingdom remains second in the world for the most fatalities from coronavirus, the pandemic has unwittingly put community retailers and convenience stores firmly on the map for British shoppers. And, as lockdown restrictions first imposed on March 23, 2020, gradually ease, the appetite to both shop and order locally and access local produce shows no signs of letting up.

Deloitte Digital’s survey of 2,140 consumers age 16 and older in Great Britain between May 22 and 26, 2020, found three in five (59%) consumers have used more local stores and services to support local businesses during the lockdown. Further, 57% of consumers said they would be more likely to spend money at a business that offers locally

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| AUGUST 2020

produced products once the lockdown lifted than they would have done before the stay-at-home order was imposed.

“Independent convenience stores have attracted a whole different world of loyalty and love off the back of their response to COVID,” said Dev Dhillon, a convenience and foodservice specialist.

Debbie Robinson, chief executive at the Central England Co-op, agreed. “Most of our colleagues have continued to work on the front line. Society is in awe, and their status will soar as a consequence,” she said.

The organizational support behind that retail response has not gone unnoticed, Deloitte reports.

It found one in five (20%) consumers have stopped using a business due to its response to COVID-19; while a similar number (19%) started using a brand CONVENIENCE.ORG

iStock.com/Maica

BY FIONA BRIGGS

NACS GLOBAL CALENDAR OCTOBER 11-14, 2020 NACS Show Las Vegas, Nevada www.nacsshow.com

MARCH 2-4, 2021

NACS Convenience Summit Asia Bangkok, Thailand www.convenience.org/csa Central England Co-op is helping to encourage bicycling to work by offering free water and bicycle repair kits to commuters.

as a result of its COVID-19 response, such as a business that has prioritized frontline workers or quickly introduced measures to keep employees safe.

Becky Skiles, partner and chief marketing officer at Deloitte Digital, said: “The COVID-19 pandemic has challenged brands to demonstrate their commitment to upholding the health and well-being of both their staff and their customers, while continuing to deliver products and services as safely and seamlessly as possible. Those that have done this well are seeing real benefits in terms of customer loyalty.”

SAFETY MEASURES Convenience stores have been proactive in introducing measures to safeguard employees and customers. The Central England Co-op, for example, outlined a second phase of social distancing measures aimed at keeping people safe, including hand sanitizer stations at the front of all stores and a one-way aisle system permanently put in place. The retailer is also offering free water and bicycle repair kits for those heading back to work on their bike or by foot, in response to the government’s advice for people to walk or cycle if possible to help maintain social distancing and ease pressure on public transport.

CONVENIENCE.ORG

JUNE 1-3, 2021

NACS Convenience Summit Europe Dublin, Ireland www.convenience.org/cse

“Anyone commuting to or from work can nip into one of our stores and enjoy free access to all different kinds of support, from customer toilets and water refills to special charging points and special store bike repair kits,” said Robinson. The retailer is also passionate about enacting change around colleague safety—a new survey has found a quarter of U.K. supermarket staff have experienced abuse from customers during the coronavirus outbreak. “We have shared a lot about making the environment welcoming from a customer’s perspective,” Robinson said. “That’s absolutely crucial.

But there’s something that’s very close to our hearts at Central England Co-op, and it’s actually the safety of our colleagues.

“Each time there is an incident we write to our local MPs; we write to the Home Secretary, and we would be looking for a change in the law that really gives the same custodial sentence to violence against shop workers that you get from public service workers,” she said.

Aldi is implementing an automated traffic light system at entrances to control the number of customers going in and out of stores. It is being rolled out nationwide, in addition to other measures. Such moves should place the businesses in good stead, with Deloitte

Independent convenience stores have attracted a different world of loyalty and love off the back of their response to COVID.

AUGUST 2020 |

89

GLOBAL TRENDS

Retailers have done a brilliant job of reacting to a sudden spike in demand by increasing their online capacity.

An automated traffic light system at Aldi stores lets customers know when it's OK to enter to help maintain social distancing.

research finding 62% of consumers are more likely to spend money at a business that takes extra steps to ensure the safety and well-being of their employees once the lockdown restrictions have lifted.

Meanwhile, the wider co-op movement will benefit from Deloitte’s finding that 46% of consumers are more likely to spend money at a business that supports local charities, such as food banks, once the lockdown is lifted.

Central Food Co-op has created a coronavirus fund, which enables Co-op members to donate unspent rewards from their membership scheme to the fund, which helps support food banks and frontline community cases, along with a funeral hardship fund.

The funds are sorely needed, with figures from the Central Food Co-op showing food banks have recorded increases of up to 70% in the number of people accessing their services and 100%+ increases in the number of people being fed.

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| AUGUST 2020

ONLINE SHIFT Kantar reports online shopping has attracted more grocery shoppers in 2020 than the channel has in the previous five years. “The retailers have done a brilliant job of reacting to a sudden spike in demand by increasing their online capacity, and it’s meant that nearly one in five British households ordered groceries online in the most recent four weeks (ended May 17, 2020)—1.6 million more than this time last year,” said Fraser McKevitt, head off retail and consumer insight at Kantar.

While the gains made by online shopping are unlikely to be sustained at these levels, the crisis has certainly accelerated the move toward online, McKevitt added.

“The grocers have attracted a new group of customers, in particular older demographics, and we expect some of them may continue using online services,” he said.

With some consumers finding it difficult to access goods or services online during the initial lockdown period, retailers have been ramping up their delivery options. Waitrose has extended its rapid delivery service threefold to enable 7,000 households per week to book and receive up to 25 items with same-day delivery in as fast as two hours.

Waitrose rolled out click and collect to an additional 70 stores by the end of May. Aldi has tested a home delivery service with Deliveroo, offering 150 products in as little as 30 minutes. Morrisons also forged a Deliveroo partnership, enabling customers to order 70 essential items for on-demand delivery in under 30 minutes.

But it’s not just groceries experiencing an online boom—people missing their favorite restaurants have pushed takeaway deliveries up by 250% year on year, according to Kantar. By mid-June, Pret, for instance, had opened 300 of its stores, offering takeaway plus delivery in tandem with Deliveroo, Just Eat and Uber Eats.

CONVENIENCE.ORG

For brands to build loyalty, the positive contribution they are bringing to employees and communities must be as clearly communicated as their product offering.

KFC reopened more than 500 locations in May for contactless delivery and drive-thru service. Central England Co-op expanded its same-day delivery service using robot shuttles, which have become a key way to serve vulnerable community members sheltering at home.

KFC, meanwhile, reopened more than 500 locations by May 24, reuniting fans with their favorite fried chicken via contactless delivery. EG Group, KFC’s largest European franchisee, acknowledged the latent demand for foodservice offers in the U.K. EG Group also has been gearing up for the “new normal,” where an increasing number of shoppers will wish to access its brands digitally. In response, the business is launching a retail app, EG Club, to enable customers to access fuel foodservice, grocery and merchandise on a single digital retail platform.

The pandemic has already driven a surge in delivery at EG Group and a massive shift to people wanting to use digital platforms to pre-order, pre-pay and organize delivery, reported Ilyas Munshi, EG Group commercial director. “Consumers are comfortable paying a premium for delivery to a location of their choice or even to be served at curbside,” he said. Drive-thru also has won increased traction due to COVID-19 and is now “a given,” according to EG Group, which anticipates sites with multi-lane drive-thrus becoming more prevalent in the future.

CREATIVE TECHNOLOGY Convenience retailers are extending their reach and routes to market via new CONVENIENCE.ORG

technology. The Co-op is expanding its same-day, autonomous robot delivery service in the U.K., following a trial in 2018. According to the retailer, the number of customers using robot deliveries has more than doubled since the start of lockdown, with the value of transactions increasing fourfold as shopping habits change. The service is now available from eight stores and, while originally intended to offer additional choice, ease and convenience for time-pressed shoppers, it has become a “lifeline” for vulnerable or housebound members of the community.

The Co-op also has focused on developing the range of products available through robot delivery, with shoppers now able to select from around 1,000 everyday essential products and family favorites.

Jason Perry, Co-op head of online development, said: “Quality, ease and convenience is at the core of our approach, and we continue to innovate and expand access to our products online in order to offer greater flexibility and choice to meet consumer needs in our communities.”

COVID-19 has thrown everyone a curveball, but the convenience channel has demonstrated a unique ability to react and adapt.

Fiona Briggs is a retail business journalist. She can be reached at fionalbriggs@gmail.com.

AUGUST 2020 |

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Conference / Oct 11-14, 2020 Expo / Oct 12-14, 2020 Las Vegas Convention Center

BRING I NG Y OU A N

EXTRAORDIN EXPERIEN SAFELY Working in collaboration with governing health officials with jurisdiction in Nevada, Las Vegas and our hotel and venue partners, we continue to develop fresh insights and strategies for the upcoming show.

Here is what that means for your experience at the NACS Show this fall!

The Las Vegas Convention Center (LVCC) is pursuing the GBAC Star Accreditation Program, an accreditation that establishes gold standard cleaning, disinfection and infectious disease prevention protocols that meet or exceed the highest standards

There are hundreds of ways we are all working to keep you safe and productive; here are just a few:

Enhanced cleaning and sanitization throughout the LVCC, including modifying Show hours when necessary to allow for thorough disinfection.

Personal protective equipment (hand sanitizer stations, masks, etc.) required for employees and guests.

of cleanliness for pathogens like the novel coronavirus.

To learn more and to download a comprehensive list of Health & Safety protocols from the LVCC and our hotel partners, visit our FAQs at nacsshow.com/faq NACS has implemented a relaxed cancellation policy to allow for maximum flexibility and confidence in securing your registration for NACS Show.

WHAT’S NEW AT

THE EXPO

NARY NCE,

Staggered Schedule Staggered access to the expo and conference portions of the show, to Buffer zones/floor markings at

accommodate physical

entrance to Education Sessions

distancing, capacity limits

and Expo maintain physical

and traffic flow.

distancing in queuing locations.

Designated directional walking paths/lanes, and monitored, All show entrances will

open entrance points and exit

feature thermal scan stations

points, with doors that are

conducting non-invasive

either propped open, or are

temperature checks.

automated or manually operated by a guest service attendant.

Pre-mailing NACS Show badges

Cool New Products Preview Room Featuring a larger space, more open layout and touchless scanning.

New Exhibitor Area Features supplier

in September for a convenient,

Use of My Show Planner and

companies that have

contactless experience that

the official NACS Show mobile

never exhibited at the

also limits lines in registration

app to schedule appointments

NACS Show.

at show opening.

in advance.

Seating in General Sessions,

Individually packaged and

Super Sessions, Education

served food item samples

Sessions and designated

available on the exhibit floor

“overflow” rooms allow for

(assisted sampling only; there

social distancing.

will be no “grab-and-go” at the 2020 NACS Show).

NACS Show Electric Vehicle (EV) Pavilion Presented by the Fuels Institute, will provide you access to resources to adapt your store.

Additional time between sessions to allow for thorough room cleaning and sanitization.

CATEGORY CLOSE-UP / PACKAGED SWEET SNACKS

Sweet Expectations

Packaged sweet snacks continue to hit the spot with consumers looking to indulge.

BY SARAH HAMAKER

JUST THE FACTS According to 2019 NACS State of the Industry data, packaged sweet snacks bring in a healthy average margin of 41.55% for retailers.

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| AUGUST 2020

the midst of the coronavirus pandemic, we sold a lot from the category in the morning daypart,” said manager Nichole Locastro. “Packaged sweet snacks are everyone’s go-to for a quick snack, especially in the morning.”

“Though a small percentage of the c-store bottom line (1.74% of in-store sales in 2019, according to NACS State of the Industry data), it’s an important category for the morning daypart,” agreed Jayme Gough, NACS analyst.

“The overall category skews to the earlier dayparts for pairings with morning beverages like coffee.”

SWEET SALES Overall, the pandemic appeared to redirect sales in general at convenience stores. “There is evidence that during the COVID-19 crisis, there was a shift in the trip mission for patrons of c-stores,” said Chris Balach, brand director of all-day snacking for Hostess. “Seeking a store with a smaller crowd, consumers utilized the c-store for traditional grocery shopping as opposed to the items meant for immediate consumption, such as packaged sweet snacks.”

However, that didn’t mean recent sales of packaged sweet snacks declined across the board. “At Cowboys 280, packaged CONVENIENCE.ORG

iStock.com/MarkGillow

T

here’s something about a donut or pastry with a cup of coffee that can brighten your day.

Many customers at Cowboys 280 in Birmingham, Alabama, agree, often picking up a packaged sweet snack with their morning coffee. “Even in

Industry Sales

% of In-Store Sales 2018

2019

1.73% 1.74%

% of Stores Selling

Avg. Sales/Store 2018

2018

2019

2019

99.2% 99.6%

$40,126 $40,949

iStock.com/igoriss

Source: NACS State of the Industry Report of 2019 Data

sweet snacks have always done fairly well for us, and that didn’t change during the lockdown,” Locastro said.

Sales of packaged sweet snacks jumped at Little Roy’s in Peterborough, New Hampshire. “All of our snack products, including packaged sweet snacks, have seen increases because of the pandemic,” said manager Chris Monkton.

According to 2019 NACS State of the Industry (SOI) data, packaged sweet snacks bring in a healthy average margin of 41.55% for retailers. Snack cakes, pastries and desserts accounted for the majority of category sales in 2019 (48.9%), down slightly from 2018 figures, followed by muffins/donuts (34.1%) and cookies (17.0%). Muffins/donuts and cookies both gained category sales share from 2018 to 2019. “Overall, the total category generated $40,949 sales per store in 2019, an increase of 2.1% yearover-year,” Gough said.

At Homeless Halley’s Convenience Store in Largo, Florida, packaged sweet snacks have been a bright spot since the store opened in mid-April. “We opened in the middle of a pandemic, but our snacks, including packaged sweet snacks, have sold very well already,” CONVENIENCE.ORG

said owner Halley Williams. His store offers a dozen or so snack cakes, plus about a dozen types of packaged cookies.

“People have been buying them, and I have to stock something in the category every day,” he said.

All of our snack products, including packaged sweet snacks, have seen increases because of the pandemic.

ON THE SWEET SHELF In general, the packaged sweet snacks category has benefited from a rise in convenience snacking, and retailers can highlight its portability to generate sales. “Pre-packaged snacks are a perfect option for customers to purchase and eat on-the-go, preferably with a morning or afternoon beverage,” Gough said. “Combine that

THE POWER OF CSX DATA CSX, the engine behind category metrics and NACS State of the Industry data, provides current and customizable tools for financial and operational reporting and analysis in the convenience industry. Retailers can measure their company by any of the myriad metrics generated via our live database. Contact Chris Rapanick at (703) 518–4253 or crapanick@convenience.org for a complimentary executive walkthrough.

AUGUST 2020 |

95

CATEGORY CLOSE-UP / PACKAGED SWEET SNACKS

PER STORE, PER MONTH SALES $3,200

2017

$3,055

2018

$3,011

2019

$3,010

$3,000

$2,800

$2,600

$2,400

$2,200

$2,000 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

with the category being one of the more impulsive purchase categories in a convenience store, and it means retailers have an opportunity to boost category sales.”

Social media posts can drive in-store sales of packaged sweet snacks. Williams does a lot of Facebook boosted posts to

The NACS Convenience Tracking Program (CTP) comprises consumer behavior analytics from more than 10,000 convenience store shoppers across 42 states, representing the most comprehensive consumer-driven metrics available to the industry.

To learn more about CTP and how to participate, contact Leroy Kelsey, director of industry analytics, at lkelsey@convenience.org or visit www.convenience.org/ctp.

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draw attention to his store, including ones featuring packaged sweet snacks, that translate into sales.

Bundling and two-for specials can be particularly effective with packaged sweet snacks. Williams also has buy-oneget-one for all snack categories and pairs snacks like packaged pastries or donuts with soda or coffee. Cowboys often runs a special buy-two-for-$2 in packaged sweet snacks. “Our customers like that price point for the category, and it’s a popular sale,” Locastro said. “We don’t do more beyond that because everyone knows they can get packaged sweet snacks at a convenience store.”

Convenience store operators can encourage impulse purchases of packaged sweet snacks with eye-catching displays CONVENIENCE.ORG

iStock.com/JohnGollop

Source: CSX; csxllc.com

ANNUAL EDUCATION & STRATEGY CONFERENCE

August 11th – 13th 2020

REGISTER NOW: www.conexxus.org/2020summer

This August, Conexxus’ annual education and strategy conference is going virtual.... and will be more powerful than any year prior. Members and non-members join top industry experts over three days: Day 1: The new normal: The concepts weren’t new and moving forward won’t be normal. The impact of the pandemic on society and retail.

Day 2: Disrupt or be disrupted: Industry initiatives to reshape your response to disruption and grow new business models.

Day 3: Digital transformation: Designs and strategies essential for innovation.

Technology Education Sessions

Conexxus Strategy Meeting

Non-members are welcome to join us for this incredible opportunity to test-drive the cutting edge content Conexxus provides its membership.

Participants will discuss the top priorities, strategies, and initiatives for Conexxus as we move forward into 2021 and beyond.

Register now for this highly anticipated event!

Find the full schedule, sessions, and speakers at www.conexxus.org/2020summer.

Attendance is limited, have you claimed your seat at the table? Contact Ann Zecca with any questions at azecca@conexxus.org.

August 11-13, 2020

August 18, 2020

Thank you to our 2020 Diamond Sponsors

Learn more & register at: www.conexxus.org/2020summer

CATEGORY CLOSE-UP / PACKAGED SWEET SNACKS

Subcategory Performance PACKAGED SWEET SNACKS

% of Sales

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2018

2019

2018

2019

2018

2019

2018

2019

Snacks Cakes/Pastries/ Desserts

50.9%

48.9%

$20,412

$20,018

$7,920

$8,548

38.80%

42.70%

Muffins/Donuts

33.0%

34.1%

$13,245

$13,954

$5,023

$5,311

37.92%

38.06%

Cookies

16.1%

17.0%

$6,469

$6,977

$2,982

$3,155

46.10%

45.22%

TOTAL

100.0%

100.0%

$40,126

$40,949

$15,925

$17,013

39.69%

41.55%

and signage in primary and secondary locations throughout the store. For example, Locastro merchandises the category near the coffee to boost impulse sales.

“Retailers who have a thorough understanding of the store’s customer demographic can help in the selection of regional or customer-specific items to drive traffic and supplement the core items customers rely on,” said Balach.

THE POWER OF BENCHMARKING Don’t forget to pick up your copy of the newly released “NACS State of the Industry Report of 2019 Data”—the convenience and fuel retailing industry’s premier benchmarking tool and the most comprehensive collection of data and trends. This report will help you: • Understand the “big picture” with data and analysis on economic, market and shopper dynamics • Maximize effectiveness and profitability with insider access to aggregate financial, operational and category data • Benchmark against top performers in the industry and determine key drivers to their success Order your copy today at www.convenience.org/SOI.

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| AUGUST 2020

SEASONAL SWEETS As with other categories, showcasing seasonal offerings of packaged sweet snacks energizes interest and sales in the category. “Seasonal offerings such as pumpkin spice during the fall can be a hit with customers, as the new item may catch their eye and encourage an impulse buy,” Gough said. Locastro takes advantage of seasonal flavors, bringing in pumpkin-flavored packaged sweet snacks in the fall and Christmas flavors in the winter. “We put the seasonal flavors on the counter by the register and usually sell out pretty quickly,” she said.

Hostess provides a range of seasonal and limited-time-offer flavors built around consumer taste trends. Some LTOs, like Hostess Birthday CupCakes, and Hostess Iced Lemon CupCakes, proved so popular the company moved them to everyday offerings. “Innovation keeps the category fresh, which is why Hostess engages in a spectrum of innovation, ranging from expansions to flavor innovations, and a robust calendar of limited-time offerings over the course of the year,” Balach said.

CONVENIENCE.ORG

iStock.com/EasyBuy4u

For more information on NACS category definitions, visit www.convenience.org/categorydefinitions.

Source: NACS State of the Industry Report of 2019 Data

But sometimes, it’s the basics customers crave. Little Roy’s sticks to the tried-andtrue in its packaged sweet snacks. “We carry the usual cookies and pastries and donuts but haven’t tried seasonal flavors because of lack of customer interest,” Monkton said.

A SWEET FUTURE As people return to their daily lives and hit the road for longer and more frequent trips, convenience stores will likely see a corresponding lift in traffic and more interest in categories like packaged sweet

snacks. “Overall, customers seeking ‘permissible indulgence’ can find it in this category,” said Gough.

As Williams quickly discovered, the category is a customer favorite. “I couldn’t survive without sweet snacks, as it brings in a high margin percentage and is what my customers want,” said Williams.

Whether for a little something sweet to go with a morning cup of coffee or an afternoon pick-me-up, packaged sweet snacks has a lot to offer customers—and retailers. As Monkton with Little Roy’s noted, “There’s always going to be demand.”

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A ltria Group Distribution Company................ Inside Front Cover AGDCTradeRelations@Altria.com www.altria.com

Johnsonville Sausage LLC............................................. Inside Back Cover www.johnsonville.com

NACS State of the Industry Compensation Report.................................4 www.convenience.org/CompReport

Arrow Lighter Inc....................................................................................29

J UUL..........................................................................................10-11 retailers@juul.com

Premier Manufacturing Inc.............................................................17 & 57 www.gopremier.com

Lavi Industries......................................................................................... 41 (800) 624-6225 sales@lavi.com www.lavi.com/store-fixtures

R AI Trade Marketing Services Company...........Insert in polybag (VELO) www.engagetradepartners.com

Bob’s Red Mill..........................................................................................59 www.bobsredmill.com C ash Depot.....................................................................................3 (800) 776-8834 sales@cdlatm.com www.cdlatm.com CHS Inc. – Cenex Petroleum...................................................................85 www.cenex.com/businessopportunities ClickIt Inc.................................................................................................39 www.clickitinc.com Conexxus Annual Conference.................................................................97 www.conexxus.org

iStock.com/chaosmaker

Contact Information

Sarah Hamaker is a freelance writer and NACS Daily and NACS Magazine contributor based in Fairfax, Virginia.

Visit her online at www.sarahhamakerfiction.com.

C ore-Mark International Inc........................................................15 www.core-mark.com Electrolit USA...........................................................................................43 www.electrolit.com T he Hershey Company................................................. Back Cover www.HersheySolutions.com I TG Brands....................................................................................67 www.itgbrands.com

CONVENIENCE.ORG

L iggett Vector Brands Inc...........................................................33 (877) 415-4100 www.liggettvectorbrands.com L iving Essentials LLC (5-hour ENERGY)........................................7 (866) 960-1700 www.5HErewards.com

S wedish Match North America (Game)......................................27 (800) 367-3677 www.smna.com S wedish Match North America (White Owl)..............................49 (800) 367-3677 www.smna.com

Loomis U.S.................................................................................................9 www.loomis.us

S wedish Match North America (Zyn)...........................................5 (800) 367-3677 www.smna.com

NACS Convenience Matters.......................................................................6 www.conveniencematters.com

Trion Industries Inc................................................................................. 19 (800) 444-4665 www.triononline.com/art

NACS Executive Leadership Program....................................................85 www.convenience.org/ExecEd-Cornell NACS Marketing Leadership Program.................................................... 14 www.convenience.org/ExecEd-Kellogg

Vitamin Energy LLC......................................Front Cover Tip & Pgs. 34-35 (800) 420-3106 Orders@VitaminEnergy.com www.VitaminEnergy.com

NACS Show......................................................................................... 92-93 www.nacsshow.com

AUGUST 2020 |

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BACK PAGE

Florida Man One man in Florida lost out on $60 worth of gas by mistaking a fishing pole slot in his boat for the gas tank. All the fuel poured out onto the deck of the 24-foot boat and on the ground of the fuel island before the 31-year-old man noticed something was amiss. The fire department was called, and a technical rescue team siphoned the gas from the boat and cleaned up. The situation was described as a “level 3 hazmat.”

Thank Ewe A convenience store in Ireland welcomes customers from all walks of life, including an escaped sheep from the farm across the street. Aiden Benson, owner of Benson’s Quikpick Gas Station in Castlemaine, County Kerry, Ireland, shared a few videos of the incident on the company’s Facebook page. The caption of the first post reads, “New customer looking for ATM today.” During the incident, an employee was helping another customer and didn’t notice the sheep until it passed the refrigerator on its way out. Ironically, the gas station was having a special on lamb chops that day. Maybe that’s why the sheep didn’t stay long.

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| AUGUST 2020

Quadruple Parked We’ve all done it—driven up to a fuel pump and gotten out to pump gas only to realize the tank is on the other side of the car. Most of us correct our mistake right away by circling around to the opposite side of the fuel pump—or simply stretching the nozzle to the far side. One driver recently found the challenge especially tricky. A viral video shows a young woman reparking her car not once, not twice, but four times in an attempt to correctly align her minivan’s fuel tank with the fuel pump. The poor woman becomes increasingly frustrated after each wrong park. The video was captured by a man and woman who after watching her multiple failed attempts, helped the woman park correctly and congratulated her once she succeeded.

CONVENIENCE.ORG

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We’re an elite lineup featuring Ultimate Brat, Ultimate Italian Sausage, Smokey Cheddar Sausage, and our Beef Hot Dog. Ready and able to fill your entire roller grill, we’ll make it a craveable destination for your operation.

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And with a variety of enticing products for any craving, it’s no wonder why. Give your customers the assurance of safety with a premium product and Johnsonville’s trusted name.

Family owned since 1945 • Proudly made in the USA Hungry for more? See all of our delicious products, including our full range of roller grill flavors, at CStore.Johnsonville.com. © 2020 Johnsonville, LLC

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Deemed essential businesses, U.S. convenience stores stayed open during the pandemic to serve their communities.

This story brought to you with support from RAI Trade Marketing Services Company, a NACS Hunter Club Gold member.

Early in 2020, all of us across the country found ourselves in a very unfamiliar situation, in the midst of a pandemic, locked down and sheltering at home. It was a difficult time for many people as we disrupted our normal lives in the hopes of slowing the spread of COVID-19.

As we began to adapt to this new reality, with terms like social distancing and self-quarantine, we soon learned another new expression: essential business.

Deemed essential businesses by the Department of Homeland Security early in the pandemic, our nation’s convenience store operators and employees stepped up and answered the call.

As critical retailers in our cities and in many rural and remote communities, you quickly adapted to your new role on the front lines supplying products essential to your customers and maintaining jobs vital to families and local economies. You put on the mask and gloves and went to work every day, stocking the shelves and serving your communities. You ensured the people who counted on you for fresh foods, pantry items, cleaning supplies, toiletries and other essentials were able to find a familiar and friendly face behind the counter and a sign in the window that said “Open for Business.”

Despite catastrophically low fuel sales and declines in many categories, you displayed resilience and a desire for community well-being, even in the face of personal risk.

Through your actions, you've clearly demonstrated why convenience stores are essential and ready to serve our country in times of crisis and beyond. For all this, Reynolds Trade Marketing Services is very proud to be your partner. We are also proud to team up with another great partner, NACS, to honor all of you.

Thank you for all that you do.

The global coronavirus has had a dramatic effect on how we do business in the communities we serve.

There are new paradigms for how businesses address and showcase their cleaning and safety measures. Consumers are changing their shopping behavior in ways that could shape long-term buying patterns. Retailers are reinventing their business models—working with their supplier and distributor partners—to focus more on take-home packaged and prepared items.

What hasn’t changed is how our industry comes together, something that I saw when I was a retailer and joined NACS decades ago. Over the past few months, the NACS team and I heard from members who shared ideas and insights to help each other navigate the pandemic.

Our stores are considered essential businesses because of the products we sell and our proximity to customers around the world.

Millions of customers continue to rely on our industry every day, and I am proud to be part of an industry that continues to operate and serve communities across the globe through difficult times. We are the first supporters for the first responders on the front lines in our communities.

I’m appreciative of your continued support of our industry, our customers, our communities and of NACS. And I am fully committed to helping move the convenience and fuel retailing industry forward so we can all thrive for years to come. As an industry we are resilient, and we will get through this together!

Stay safe and healthy,

Mike Auger President, RAI Trade Marketing Services

Henry O. Armour NACS President & CEO

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#CONVENIENCECARES

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onvenience stores play a major role in their communities, from providing daily food and fuel to giving generously to local groups and individuals. A NACS survey found that convenience stores donate more than $1 billion annually to charitable organizations.

But during the coronavirus pandemic, these retailers proved just how essential they were to their communities by staying open, stocking the products customers needed and finding ways to give back to not just their own workers but also other frontline workers and those who needed a helping hand.

According to a May 2020 national consumer survey conducted for NACS by PSB Insights, distributing food (30%) and personal protective equipment (18%) directly to those needing them rated the highest when consumers were asked to name the most important donation retailers could make. “The great news is that consumers are well aware of how our industry serves communities,” said Jeff Lenard, NACS vice president of strategic initiatives. “A record 78% of consumers now say that convenience stores share their values and do business the right way.”

From extra cleaning to helping customers with food and supplies, convenience stores and their employees—the backbone of the convenience retailing industry—have shown how essential they are by continuing their good work even in this time of uncertainty. The following stories from around the country highlight how the retailers who make up this industry pulled together to bring hope to their communities and help to their neighbors and employees.

7-ELEVEN As the number of COVID-19 cases climbed in Dallas County, Texas, Raman Saini, a 7-Eleven franchisee, reached out to help frontline nurses and doctors working at Parkland Memorial, the county hospital.

Saini’s wife is a registered nurse there, and many employees are regular customers at his store, located two miles away. He coordinated with the hospital director to deliver lunch—100 7-Eleven pizzas—three times a week, and since he started, he’s delivered more than 400 pizzas to the busy facility.

South Chicago franchisee Mujtaba “Muji” Baqir posted this message on Facebook: “If anyone is not working and runs out of food, please don’t go to sleep #CONVENIENCECARES

with an empty stomach. Don’t be afraid or embarrassed to send me a private message. We will be more than happy to share whatever food we have. I will drop it and go.” Several residents have taken Baqir up on his offer and have quietly received food from him.

In Santa Maria, California, the number of residents facing financial uncertainty soared with the pandemic, and many turned to the local Salvation Army, which expanded lunch service from five days a week to seven. Ravi Chahal and wife, Harpreet, who franchise 7-Eleven stores in Santa Maria and Arroyo Grande, California, volunteered to provide lunch and give the regular cooks a much-needed break. The couple served nearly 400 people homecooked lunches, as well as donating snacks, drinks, gloves and hand sanitizer to local law enforcement departments.

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including cleaning, protective supplies and adjusting the way people move throughout our stores,” Jones said. “We took these steps because we know Casey’s plays a unique, essential role in the communities we serve, and we care about making life better for them every day.”

CASEY’S Casey’s, headquartered in Ankey, Iowa, supported team members and customers during the pandemic. “We continue to strategically invest in causes that strengthen our connections within the communities across our 16-state footprint,” said Chris Jones, chief marketing officer.

The chain created its Slice of Thanks program to provide essential workers in Casey’s communities with slices of pizza and other food items. By early June, Casey’s had donated nearly 15,000 pizza slices and other prepared foods to healthcare workers, first responders and others helping their communities across nine states.

In addition, the chain launched a partnership with Feeding America to give a half million dollars over the coming year. “This partnership prioritizes children, families and rural communities that have far fewer options for food and resources and includes an immediate cash donation of $150,000 of support directly to 52 food banks within Casey’s 16-state footprint, including $15,000 to food banks in Illinois,” Jones said.

Wherever there’s a Casey’s, the chain wants to be “Here for Good.” “That’s why in addition to investing in the towns where we live and work, we took immediate steps to protect the health and well-being of our guests and team members in response to the pandemic,

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CHOICE MARKET Choice Market in Denver pivoted to offer curbside pickup and delivery at its two locations. Customers could use contactless delivery through third-party delivery partners for in-store merchandise, such as home essentials, bathroom products, proteins, produce, dairy and dry goods, as well as vegan, gluten-free and other diet-friendly items.

“Choice is committed to ensuring the safety of our customers and our staff and will continue to take proactive measures while we service our customers with fresh food, groceries and home necessities,” the retailer said on its website during the pandemic. The store also enhanced cleaning and safety procedures by sanitizing all high contact surfaces every 15 minutes and required all staff to wear disposable gloves at all times.

Choice also recognized those in the community who are on the front lines of the pandemic: “To support our fellow colleagues who have been the most impacted, Choice is offering a 20% discount on the entire bill for any employee in the service industry, as well as any first responders and medical personnel.”

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#CONVENIENCECARES

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QUICKCHEK EMPLOYEES GO THE EXTRA MILE Prior to COVID-19, QuickChek customers often praised its employees for their service, and the pandemic only heightened how having team members who genuinely care about their work can make a positive impact on their communities.

“Caring is a core value at QuickChek,” said Amy DaSilva, corporate communications manager for the Whitehouse Station, New Jersey-based retailer.

“During the pandemic, our team members continued to deliver caring, customer-focused service providing essential services and support to our first responders and communities.”

The chain’s 160 locations kept their regular 24/7 schedule to meet the needs of customers and embodied its motto: “Here for You.” The company responded quickly to the ever-changing environment, expanding its already-strict hygiene and sanitation policies to ensure that each and every customer felt safe walking through their doors.

“A key focus throughout the entire pandemic was the constant reinforcement of our thanks and gratitude to our team members for coming in day-in and day-out to keep us operating smoothly,” DaSilva said. “We implemented a $3 hourly wage bonus and sent frequent ‘Thank You’ messages and communications to our team members across New Jersey and New York. During this time, we also froze team member job and benefit status, regardless of hours worked and provided numerous scheduling accommodations as requested.”

During the pandemic, QuickChek did not layoff or furlough employees. This attention to its employees and their safety resulted in customer appreciation for the staff. “The first week of April, we opened our ‘voice of the customer’ lines and received more than 600 shoutouts for our team members,” she said. One customer said, “I go to many different QuickCheks and I see team members doing their part in this time of crisis.

Hats off to all the people that work in your stores!”

QuickChek team members also went above and beyond their jobs by making face masks, donating meals and asking customers about their families and work. One employee found a customer’s stimulus check and personally drove it to the customer’s home.

“Customers praise our dedicated staff for not only offering the same, consistent service as usual but by doing so with more fervor than ever,” DaSilva said. #CONVENIENCECARES

JR COUNTRY STORES KEEP EMPLOYEES FIRST JR Country Stores in Colorado have weathered the pandemic by focusing on what matters most—its 100 employees. “When the pandemic started, we closed early and opened later at first because traffic in our stores dropped,” said John Montoya, vice president of the nine-location chain. “A month into the pandemic, we went back to regular hours because our customers needed us.”

“ A month into the pandemic, we went back to regular hours because our customers needed us.”

To stay operational and keep customers and employee safe, JR’s instituted strict guidelines for all employees, having a sign-in log with temperature checks and requiring gloves and masks while working. Employees sanitized all areas of the stores every hour as well.

For foodservice, the stores initially shut down hot dog grills and nacho machines and handed out cups for fountain drinks and coffee. Employees also gave out individual packets of sweetener and creamer upon request. “We wanted to control access to all areas where there could be potential cross-contamination,” Montoya said. Several JR locations also had onsite foodservice, and those restaurants pivoted to takeout only, with some also offering curbside pickup.

The mostly rural communities have been very appreciative of JR’s staying open during the pandemic. “We’ve been around for more than 30 years, and we’ve got many loyal customers,” Montoya said. “We’ve been able to serve the basic needs of our customers, with many stopping by our stores because it’s quick and easy to grab what they need and get out.”

While its gas volume dropped between 40% and 50% during the lockdown, JR stores registered increases in inside sales. “We carry a big variety of merchandise that allows customers to get what they need without going to a supermarket,” he said.

The chain also has always been involved in their communities, supporting local schools, 4H and youth sports teams. The stores continued to do that during the pandemic, offering first responders a free cup of coffee or fountain drink at any location.

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MORE THAN SNACKS, DRINKS & FUEL Bhagdeep Dhaliwal, owner of four convenience stores in Danville, California, kept regular operating hours to allow “emergency workers to get much-needed fuel and essential employees working late shifts to have a reliable location to pick up food and supplies,” he wrote in the Mercury News.

During the stay-at-home edicts, Rotten Robbie Gas Stations experienced an increase in take-home water and nonedible grocery sales at its 34 locations. The Santa Clara, California-based chain quickly put into place guidelines from the CDC to keep employees and customers safe and provided plenty of gloves and hand sanitizer for its staff.

Russel’s Convenience stores, which has locations in Colorado and California, offers frictionless checkout via its Skip app. The chain increased the amount of cleaning and gave full-time and part-time workers sick leave and vacation time.

At Cedar Market in North Berkeley, California, owners Preet Kaur and Gary Singh have been serving their community for five years with packaged Indian fare, fresh food and other staples.

During the pandemic, the pair shortened hours and cut back on the amount of fresh food made onsite in order to fit in more COVID-19-related cleaning. As one customer told the Berkeleyside Nosh recently, “Cedar Market represents the small neighborhood store that many of us grew up with that’s disappearing from the national landscape. The current owners are clearly vested in carrying on the tradition of the neighborhood store.”

TravelCenters of America (TA) and Petro are focused on taking proactive and appropriate steps to deal with the COVID-19 pandemic. TA offered online ordering and takeout to serve its customers during the pandemic, while also taking extra precautions and measures with its already-strict cleaning protocols by increasing the cleaning frequency for high touchpoints, such as showers, restrooms, door knobs, light switches, countertops and other non-food contact surfaces.

C&W Market and Ice Cream Parlor in Evanston, Illinois, handed out free masks, groceries and hand sanitizer to those in need and partnered with the Evanston Community Foundation

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to deliver goods to local senior citizens. Owners Clarence and Wendy Weaver “have big hearts for the people of Evanston.

They love this community and it shows by their service to it,” said Sharon Weeks, a former neighbor, in the Evanston Patch.

Beck’s in Princeton, Illinois, has added more frequent sanitation to its cleaning, with reminders scheduled via an app. “It reminds us to sanitize,” manager Jill Waldo said in the BCR News. “Every hour we sanitize inside the store … every two hours, we … sanitize the pumps.” The customers have been appreciative of the effort to keep the store safe.

“They thank us for our diligence in trying to keep them safe and us safe,” she said.

GetGo Café and Market launched a food bank donation campaign in late March and recently reached the $200,000 milestone. At more than 250 GetGo locations across five states, customers donated at the register or at the fuel pump.

All amounts raised will be donated to Feeding America food banks throughout Indiana, Maryland, Ohio, western Pennsylvania and West Virginia.

Royal Farms, headquartered in Baltimore, Maryland, gave nurses free pulled chicken sandwiches over two days in May. “Royal Farms would like to thank all the hardworking nurses for their non-stop dedication, especially now during the COVID-19 pandemic,” said John Kemp, president of Royal Farms, in a press release. “Everyone is aware that nurses are working around the clock and going beyond the call of duty during these stressful times.”

The Phoenix Market in Minneapolis has worked hard to keep essentials in stock for customers during the pandemic.

“I want to keep this stocked because this is a neighborhood store,” Tarig Mohamed told the Minneapolis Star Tribune. “They need us to keep it open. … They said they have gone to other stores, and it is empty.”

The Lakeport Market in Lakeport, New York, began giving elementary and middle school students free lunches. Co-owner Matt Paduano’s daughters organized the idea.

Within 10 days, the store had given out more than 800 lunches. Customer donations allowed the girls to add snacks and drinks to the lunches, as well as coloring books and puzzles. #CONVENIENCECARES

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Olive’s Country Store in Ashokan, New York, and Home Plate Deli in Kingston, New York, took part in Ulster County’s Project Resilience by making hot meals and delivering the food to specific pickup points. “We have offered to assist many of the newer restaurant and cafes and have even placed select orders for them with our suppliers, since we are large enough to make more than the minimum purchases,” co-owner Alex Stier told the New York Association of Convenience Stores (NYACS).

Blueox Neighborhood Markets in Oxford, New York, offered full-service fueling and reduced hours to keep up with cleaning, along with curbside pickup. “We moved to a full-time employee business model last fall to reduce turnover, which has worked incredibly well and proved to be the right move because our people are showing up and taking great pride in offering [curbside pickup] service,” Julia Miller, vice president of business growth and development for Blueox, told NYACS. In April, Crosby's in Lockport, New York, partnered with Connect Life to generate blood donations via the Connect Life Bus, which parked at store locations. Each person who donated blood received a Crosby’s gift card.

QuikTrip, headquartered in Tulsa, Oklahoma, joined with HollyFrontier to help local families during the COVID-19 pandemic. The partnership produced more than 5,000 free prepared meals to 1,200 families in need, with volunteers also giving out 1,200 $10 QuikTrip gift cards.

Weigel’s, headquartered in Knoxville, Tennessee, gave away dozens of pizzas and donuts to 15 local hospitals and 18 fire stations. “The men and women who are on the front line each day, serving our needs during this pandemic [show] such a heroic dedication to their professions, and we wanted to do a little something to let them know how much we appreciate them,” said Kurt Weigel, Weigel’s recruiting director, in a press release.

Cruizers and Holmes Oil Company Inc., headquartered in Chapel Hill, North Carolina, donated $5,000 to the Chapel Hill-Carrboro Meals on Wheels. These funds will help the nonprofit deliver meals to food-insecure and homebound members of the community.

“Meals on Wheels cares for some of our most vulnerable community members,” said Edward Holmes, #CONVENIENCECARES

president and chief executive officer of Holmes Oil, in a press release. “Our corporate culture is wholeheartedly committed to giving back, and … with the devasting effects of the pandemic on our community, it needs our support now more than ever.

Rutter’s in York, Pennsylvania, recently gave the Central Pennsylvania JDRF $50,000 in funding for type 1 diabetes research. Knowing that COVID-19 is having a bigger health impact on people with diabetes, Rutter’s understands the critical need for funding for diabetic research. “We’re so glad that we’re able to help out this great foundation during a difficult time,” said Scott Hartman, Rutter’s president and CEO, in a press release.

RaceTrac, headquartered in Atlanta, Georgia, handed out complimentary Red Bull to nurses on May 12 in honor of National Nurse’s Week. “RaceTrac is proud to show our support and appreciation for the more than 3 million brave and hardworking nurses across the country,” said Melanie Isbill, chief marketing officer of RaceTrac, in a press release.

Massachusetts convenience store owners, including Verc Enterprises, donated 210 of bags of food to homeless shelters, first responders, hospitals, nonprofits and community groups. The contents of the bags, which included energy bars, drinks and snacks, were scheduled to be handed out during the New England Convenience Store and Energy Marketers Association, which was postponed.

“We are truly all in this together,” said Jonathan Shaer, director of the association. “During this difficult time, convenience stores are essential services where people can buy food, fuel, drinks and other items, while maintaining safe social distancing guidelines. Our hardworking employees are doing their part to keep stores safe, stocked and open, and these bags are a small contribution to help the communities we serve that are in need during this crisis.”

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A CARING ENVIRONMENT AT QUICKCHEK At QuickChek, an attitude of caring permeates the entire organization, from the corporate office to the individual store. During stay-at-home edicts, QuickChek employees like Matt Lehr continued to work long hours and shouldered extra duties to ensure stores stayed open to serve their communities.

“It’s part of our mission: A Great Place to Work, A Great Place to Shop, and A Great Place to Invest,” said Lehr, assistant manager at the North Plainfield, New Jersey, location. He started out part-time as an overnight clerk 20 years ago and said the way QuickChek treated its employees influenced his decision to make it a career. “We all stuck side-by-side as a family and as a company before and during the pandemic. From the head to the bottom, everyone really tries to live out our mission.”

When the pandemic began, QuickChek quickly revamped procedures to ensure the safety of its workers and customers. The chain was one of the first to put up plastic barriers between cashiers and customers. The company also increased sanitization routines.

Through it all, Lehr kept his cheerful attitude, as noted by this customer comment: “Matt remembers my name. He knows I work a grueling job as an EMT. … He knows how I take my custom drink and makes it perfect each time. He has become family—especially during COVID-19. He always checks in and makes sure I am OK. Where else do you get that? Nowhere! Only right here. When I am in darkest of days from my job, he always makes me laugh. He is truly an unsung hero!”

“ We all stuck side-by-side as a family and as a company before and during the pandemic.”

“Our store, like all QuickChek locations, is very community based,” Lehr pointed out. “We’re a very tightknit community. These aren’t random customers—these are people from the neighborhood who come in three or four times a day. Even before the pandemic, we treated them as part of our community, not as a number, because we are all in this together.”

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EVERYONE’S WELCOME AT 36LYN At 36Lyn in Minneapolis, owner Lonnie McQuirter has been helping his community since he first opened in 2005. “It’s very important to be a place for everyone to feel comfortable,” he said. “It’s important for the success of our business community and our customers for all of us to work together.”

McQuirter kept his store open during the pandemic, instituting extra cleaning with eco-friendly supplies and keeping the cost of goods the same. “We brought in cleaning supplies that we made available to our customers and gave to our staff for free as needed,” he said. “We maintained our same hours of operation to allow for those working overnight to have access to fuel and products. It defeats the purpose of being a convenience store if you’re inconvenient to the customer.”

In early March, McQuirter told his five full-time and three part-time employees they could continue working, but that if they didn’t feel safe, he would keep their job for them. During the pandemic, two workers had to quarantine because of potential exposure to COVID-19.

“I paid them as usual during their time away from the store,” he said. “Yes, it was the law to make those accommodations to essential employees, but for me, it went beyond that, as I want my employees to feel like they can stay home when they don’t feel safe or don’t feel well.

When I take care of my employees, I’m also taking care of my customers.”

That care didn’t go unnoticed. And one way in particular that has resonated with customers has been allowing access to the store’s bathroom during the shutdown. That meant a lot of extra cleaning to keep the facilities sparkling, but McQuirter sees it as part of his store’s community outreach. “People tend to forget that convenience stores often offer the only safe bathrooms for some in our community. At times, there are no other public facilities for them to use,” he said.

Overall, McQuirter said it has been nice to have governors and other state and city officials recognize how essential convenience stores are to their neighborhoods.

“If you can’t buy toilet paper and the bare essentials, your reality stops pretty quickly,” he said. “Our society won’t function without convenience retailers staying open and being there for our communities.” #CONVENIENCECARES

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GLOBAL PARTNERS Boston-based Global Partners supported its local communities and thanked its more than 3,000 frontline employees. “I just want to thank everybody who comes out and goes to work every day and really delivers to the community that they’re serving,” said CEO Eric Slifka, “because without our team members, we wouldn’t be able to help those in need.”

During this pandemic, Global has increased its philanthropic efforts with weekly contributions and meal donations to families, health-care workers and first responders. The effort is driven by Global’s frontline employees, such as those in Warwick, Rhode Island, at Fast Freddies, where territory manager Glenn Carroll and store manager Tonya Spencer don costumes for their weekly delivery of donated meals.

From behind the counter to behind the scenes, Global thanks its dedicated team for serving the community, keeping drivers fueled, homes warm and neighbors fed. To show gratitude to their frontline employees, Global has increased wages, given out monthly gift cards and launched a public “thank you” campaign.

Spearheaded by Global’s director of culinary innovation, Josh Smith, Global also delivered handcrafted family meals to each of the 3,000+ essential frontline employees. “The fact that our own people in our company have made these meals really goes to show that we’re all equal, we’re all on the same path, and we’re all trying #CONVENIENCECARES

to do the right thing,” said Robert Kemp, manager of Global’s Alltown convenience store in Billerica, Massachusetts.

KUM & GO Headquartered in Des Moines, Iowa, Kum & Go began a full-service fueling program in nearly 400 locations, including stores in Colorado. An employee, wearing fresh gloves, handles the payment and pumping for free. The stores also provide curbside pickup.

“We are always looking for ways to better safeguard our customers and associates,” Tanner Krause, president of Kum & Go, said in a press release. “Going back to our roots to provide a full-service fueling option can help people maintain social distancing and avoid common touchpoints.

Our stores provide essential services and goods, and we are proud to be able support our communities during these challenging times.”

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The chain increased pay for all store associates, including its general managers, by $2 an hour from mid-March through May. Employees leading COVID-19 sanitation measures also received bonuses, as did all general managers and district supervisors. In addition, Kum & Go is giving its workers one free meal per shift.

“Our communities depend on our 400 stores for food, fuel and so much more,” said Kyle J. Krause, Kum & Go CEO and chairman. “The commitments we’re making today will ensure our people are able to continue to serve communities in this time of extraordinary need.

Nothing is more important than our associates’ health and well-being.”

MENDEZ FUEL Michael Mendez has long been serving his community with good food, fuel and convenience store items at Mendez Fuel in Miami. But when the pandemic hit, he wanted to do more. “We stayed operational all during the pandemic while restaurants had to close,” he said. “Because so many foodservice places were shut down, the cost of food had come down considerably. That made it easy for us to provide free meals to those in our community [in] a very cost-effective way.”

His employees loved the idea. They developed the menus and cooked the food for 150 to 170 meals daily. Running April 8 through May 26, every day except Sunday, anyone could come in for a free meal. “We developed new, loyal customers who hadn’t come into our store before,” Mendez said.

Soon regular customers and vendors were helping to sponsor the meals, with donations of paper products, chips or popcorn. The store ended up giving away 6,500 free meals.

While things are slowly returning to normal, Mendez Fuel continues to take extra precautions with daily cleaning and a once-a-week store disinfection, as well as asking employees and customers to wear masks and continue social distancing.

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#CONVENIENCECARES

PRIDE Parent Petroleum’s PRIDE chain, headquartered in Warrenville, Illinois, switched to offering its restaurant menus for carryout and delivery via Uber Eats. “With many grocery stores hit hard by consumers stocking up on products, our restaurants continued to be busy because of the lack of options available, so we [didn’t have to] route employees to other roles,” said Mario Spina, owner and CEO. To protect employees and customers, PRIDE cashiers must wear plastic gloves during their shift, and the 24/7 stores close for two hours overnight for a deep sanitization. Gas pumps are cleaned multiple times throughout the day. PRIDE stores have hand sanitizers by each door as well.

In addition, Spina said managers are keeping an eye out for any team member showing signs of illness. “Open communication regarding this is crucially important,” he said.

WAWA Wawa, headquartered in Wawa, Pennsylvania, created the “Wawa Clean Force” of dedicated and trained team members working in its 850+ stores every day to keep them clean, sanitized and safe.

“Throughout the COVID-19 crisis, we have stayed focused on serving as an essential provider as safely #CONVENIENCECARES

as possible and giving back to our communities,” Wawa President and CEO Chris Gheysens said.

“And now as some areas begin transitioning back to a new normal, many will notice that the world is looking a bit different. At Wawa, we want to make this transition as easy as possible, so we have been making a few key changes of our own to make sure we are here for you in the safest, most convenient ways possible,” he said.

Gheysens outlined four key ways Wawa is working to keep customers safe and continuing to support local communities: 1. L aunching The Wawa Clean Force to keep its stores sparkling clean 2. U pping safe behaviors, including clear plastic safety guards at checkout and foodservice counters 3. Offering more digital and delivery options, with expanded door-to-door delivery services covering 95% of its market area 4. H eightened community giving through The Wawa Foundation’s Emergency Food Distribution Fund

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Courage. Strength.

Thank You,Convenience Store Employees.

In these extraordinary times, you’ve persevered in extraordinary ways. You’ve stayed open, strong, and safe for your community, and for that we can’t thank you enough. You’ve stood with us – and we proudly stand with you.

#conveniencecares