NACS Magazine 2023 November by NACS Magazine

Advancing Convenience & Fuel Retailing

NOVEMBER 2023 FINE WINE Coolers and cocktails spur growth EXPO A TO Z Walking the Show floor

STRONGER TOGETHER Inspiration and ideas from the NACS Show

A NAME YOUR CUSTOMERS TRUST, A BRAND YOU CAN COUNT ON.

convenience.org

Advancing Convenience & Fuel Retailing

NOVEMBER 2023 FINE WINE Coolers and cocktails spur growth EXPO A TO Z Walking the Show floor

STRONGER TOGETHER Inspiration and ideas from the NACS Show

convenience.org

Today, more than 20 million U.S. adult smokers are seeking potentially less harmful alternatives to cigarettes. We are committed to preserving the harm reduction opportunities that smoke-free tobacco products hold for adult smokers. And to making sure that, even as the tobacco category changes, your retail success continues.

ONTENTS NACS / NOVEMBER 2023 FEATURES

30 10 Takeaways From

54 Learning Together

72 Innovating Together

The four-day event brings the industry together.

From safety to seasonal offerings and from foodservice to fuel, NACS Show education sessions had it covered.

From crawfish to a t-shirt press, this year’s NACS Ideas 2 Go program has something for everyone.

the NACS Show

36 Finding Inspiration Together

On the cover: Rachaphak/Shutterstock. This page: David Malan/Getty Images

Speakers at the general sessions focused on inspiration, innovation and telling the story of your business.

So Cool! Here are the top 10 new products from the 2023 NACS Show.

Powering Profit Adding revenuegenerating services to a convenience store can boost traffic and the bottom line.

STAY CONNECTED WITH NACS @nacsonline facebook.com/nacsonline instragram.com/nacs_online

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

linkedin.com/company/nacs NACS NOVEMBER 2023 1

ONTENTS NACS / NOVEMBER 2023

DEPARTMENTS 06 From the Editor 08 The Big Question 10 NACS News 18 Convenience Cares 20 Inside Washington

What’s the lay of the land heading into the 2024 elections?

28 Ideas 2 Go

P&H Truck Stop serves homemade food and sells essentials to locals and truckers.

88 Cool New Products 94 Gas Station

Gourmet Calloway’s Tennessee Kitchen features “affordable, delicious regional food.”

96 Category Close-Up

General Merchandise and Wine

$1,331

112 By the Numbers

The average per store, per month sales of wine in 2022 CATEGORY CLOSE-UP PAGE 104

PLEASE RECYCLE THIS MAGAZINE 2 NOVEMBER 2023 convenience.org

The presence of an article in our magazine should not be permitted to constitute an expression of the association’s view.

THEERADECH SANIN/Getty Images

IT’S A FACT

/ NOVEMBER 2023 EDITORIAL

NACS BOARD OF DIRECTORS

Jeff Lenard V.P. Strategic Industry Initiatives (703)518-4272 jlenard@convenience.org

CHAIR: Victor Paterno, Philippine Seven Corp. dba 7-Eleven Convenience Store

Ben Nussbaum Editor-in-Chief (703) 518-4248 bnussbaum@convenience.org Lisa King Managing Editor lking@convenience.org Batya Levy Editor blevy@convenience.org Leah Ash Assistant Editor lash@convenience.org CONTRIBUTING WRITERS Terri Allan, Amanda Baltazar, Chrissy Blasinsky, Shannon Carroll, Sarah Hamaker, Al Hebert, Jeff Lenard, Pat Pape, Keith Reid DESIGN Imagination www.imaginepub.com

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

PUBLISHING Stephanie Sikorski Vice President, Marketing (703) 518-4231 ssikorski@convenience.org

COME TOGETHER. DO MORE. Join us at conveniencecares.org

Nancy Pappas Marketing Director (703) 518-4290 npappas@convenience.org Logan Dion Digital Media and Ad Trafficker (703) 864-3600 ldion@convenience.org

OFFICERS: Lisa Dell’Alba, Square One Markets Inc.; Annie Gauthier, St. Romain Oil Company LLC; Chuck Maggelet, Maverik Inc.; Don Rhoads, The Convenience Group LLC; Brian Hannasch, Alimentation Couche-Tard Inc.; Varish Goyal, Loop Neighborhood Markets; Lonnie McQuirter, 36 Lyn Refuel Station; Charlie McIlvaine, Coen Markets Inc. PAST CHAIRS: Don Rhoads, The Convenience Group LLC; Jared Scheeler, The Hub Convenience Stores Inc. MEMBERS: Chris Bambury, Bambury Inc.; Tom Brennan, Casey’s; Frederic Chaveyriat, MAPCO Express Inc.; Andrew Clyde, Murphy USA; George Fournier, EG America LLC Terry Gallagher, Gasamat Oil/Smoker Friendly;

Raymond M. Huff, HJB Convenience Corp. dba Russell’s Convenience; John Jackson, Jackson Food Stores Inc.; Ina (Missy) Matthews, Childers Oil Co.; Brian McCarthy, Blarney Castle Oil Co.; Tony Miller, Delek US; Natalie Morhous, RaceTrac Inc.; Jigar Patel, FASTIME; Robert Razowsky, Rmarts LLC; Kristin Seabrook, Pilot Travel Centers LLC; Babir Sultan, FavTrip; Richard Wood III, Wawa Inc. SUPPLIER BOARD REPRESENTATIVES: David Charles Sr., Cash Depot; Kevin Farley, Impact 21 STAFF LIAISON: Henry Armour, NACS GENERAL COUNSEL: Doug Kantor, NACS

NACS SUPPLIER BOARD CHAIR: David Charles, Cash Depot CHAIR-ELECT: Vito Maurici, McLane Company Inc. VICE CHAIRS: Josh Halpern, JRS Hospitality/BCIP dba Big Chicken; Bryan Morrow, PepsiCo Inc.; Kevin LeMoyne, Coca-Cola Company PAST CHAIRS: Kevin Farley, Impact 21; Brent Cotten, The Hershey Company; Drew Mize, PDI MEMBERS: Tony Battaglia, Tropicana Brands Group; Patricia Coe, Advantage Solutions; Jerry Cutler, InComm Payments; Jack Dickinson, Dover Corporation; Matt Domingo, Reynolds; Mark Falconi,

Oberto Snacks Inc.; Ramona Giderof; Mike Gilroy, Mars Wrigley; Danielle Holloway, Altria Group Distribution Company; Jim Hughes, Krispy Krunchy Foods LLC; Kevin Kraft, Q Mixers; Jay Nelson, Excel Tire Gauge; Nick Paich, GSTV; Sarah Vilim, Keurig Dr Pepper RETAIL BOARD REPRESENTATIVES: Scott E. Hartman, Rutter’s; Chuck Maggelet, Maverik Inc.; Tom Brennan, Casey’s STAFF LIAISON: Bob Hughes, NACS SUPPLIER BOARD NOMINATING CHAIR: Kevin Martello, Keurig Dr Pepper

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 qualified recipients. The publisher reserves the right to limit the number of free subscriptions and to set related qualifications criteria. Subscription requests: nacsmagazine@convenience.org POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2023 by the National Association of Convenience Stores. Periodicals postage paid at Alexandria VA and additional mailing offices.

1600 Duke Street, Alexandria, VA 22314-2792

The Rich, Bold FlavoR FlavoR oF oF

Our premium quality cigarettes, pipe tobacco, cigarette tubes, and roll-your-own tobacco products are all made from the finest U.S. tobacco.

UP FRONT FROM THE EDITOR

Show First Impressions

he NACS Show happens over the course of four days, but in the NACS building it’s a year-long project. We’re already working on the NACS Shows for 2024 and beyond. The actual week of Show is a blur for the whole organization. Almost everyone who works at NACS travels to the site of the Show and pitches in, often in an onsite role that has nothing to do with their regular job. The 2023 Show in Atlanta was my first, and it didn’t disappoint. Here’s what some other NACS first-timers thought of the Show. Ever since my first day at NACS, I have heard nothing but amazing things about the Show from my coworkers, our members and even employees of other trade associations who view NACS as the standard. Even with all that hype, I still felt it was undersold. This show is an incredible team effort and really speaks to NACS’ dedication to advancing convenience and creating amazing opportunities for our members to network, learn from each other and lift each other up. —Melissa Paul, meetings and events manager If I had to describe the NACS Show in three words, I would use: engaging, informational and fun. It was overwhelming in the best possible way—not only learning so much but being inspired by all the members I was able to meet. —Leah Ash, assistant editor

6 NOVEMBER 2023 convenience.org

Being able to experience the show in its entirety, from setup to shutdown and everything between, was an overwhelming feeling (in a good way, of course). My favorite highlight by far was working in the Cool New Products Preview Room because I was able to get a first glimpse of all the new, unique products. —Siara Corprew, member services specialist It felt like I was inside all the convenience stores at the same time. Now I have context for the scope and significance of the industry. —Batya Levy, editor NACS Show exceeded all of my expectations with its scale, scope and the professionalism of our team. You can’t explain it. You’ve got to experience it. My highlight was definitely meeting John Cena, although I couldn’t “see” him. What a show! —Jay Lee, qualitative survey research analyst

The NACS team— both weary and giddy—celebrates the close of another successful NACS Show.

Someone outside the company warned me that not all trade shows are like this one, and I can see why—it was a wonderful spectacle filled with interesting, dedicated people who are the smartest in the industry … and lots and lots of delicious goodies. —Shannon Carroll, editor/writer Check out our extensive Show coverage, including our top takeaways, insights from the education sessions and a recap of the action on the floor. And a big thanks from me to everyone I met at the Show! Ben Nussbaum Editor-in-Chief

UP FRONT THE BIG QUESTION

How did you get involved in the convenience retailing industry?

I studied engineering at Lehigh University in Bethlehem, Pennsylvania, in the late 1980s, and you could make an argument that’s where I first got heavily involved in the industry. There was a Wawa down the street, and I became intimately familiar with that store. After graduation, I worked in an instant coffee factory in New Jersey, where I hoped the management track that I was on would get me into an MBA program that would launch my career as an investment banker. (Remember, that was back in the “greed is good” days.) It wasn’t for me, and neither was New Jersey. I drove to New York City every weekend to visit friends. But after my car was stolen in the East Village a second time, I figured it was a sign that it was time to go home. And that’s when my true career in the industry began. I arrived in the Philippines with vague ideas about entrepreneurship and, more importantly, an offer from my father to handle construction and maintenance in the interim. He had cofounded 7-Eleven Philippines 10 years earlier, and his private equity investors wanted to go from 40 stores to 100 as soon as possible so they could get their IPO exit. In a couple of years, I had moved up to essentially “general manager for all things except the stores.” My father insisted that the stores report to 8 NOVEMBER 2023 convenience.org

 Victor Paterno, President & CEO, Philippine Seven Corp., 2023-24 NACS Chair him directly, because he worried that my “overly logical” approach would threaten the store-first culture he built the company upon. My father cast a long shadow, so I didn’t protest too much—he was widely respected in business circles for his service in the Cabinet and Senate. But he had yet to build a successful business of his own, and I thought I could help him do that—if only he’d let me. When we got to 100 stores and the IPO, I told my dad that I valued our relationship too much to continue to work under him. You can guess what came next, as this was the late 1990s. I cofounded a

payments company to take offline payments for online services, with—you guessed it—7-Eleven as its anchor channel. Meanwhile, 7-Eleven Taiwan acquired a majority stake in Philippine Seven Corp. and doubled its size, but also found that there were challenges in continuing this growth. Here was the pitch that got me back in the business for good: “You know the business and what to do. Come back, build it to a couple thousand stores, and that’s your tech platform.” I was fortunate to be able to step out of my father’s shadow, and also fortunate to see things more clearly before he died 10 years ago. “I never thought we’d ever get to a thousand stores when a hundred was such a struggle; I’m proud of you, son,” he told me. Today, I wish I could tell him that the reason it took him 10 years to get to 40 stores was because, perfectionist that he was, he unknowingly laid the foundation for 4,000 stores—and perhaps more after that. Today, I’m as old as he was when he opened his first store nearly 40 years ago. And I have matured enough to realize that in regards to the compassion and charisma that it took to build this company, I am still in his shadow—but this time gratefully so.

Contact Peter Olbrys At 630-432-3329 or polbrys@tymail.com about bringing Ty into your locations

UP FRONT NACS NEWS

New NACS Chair Victor Paterno (left) with 2022-2023 Chair Don Rhoads

Paterno Leads NACS Board of Directors, Executive Committee Retailer and supplier leadership changes were announced during the NACS Show. 10 NOVEMBER 2023 convenience.org

Victor Paterno, president and CEO of Mandaluyong, Philippines-based Philippine Seven Corporation (dba 7-Eleven Convenience Store), has been named the 2023-24 NACS chair. He began his term following the NACS Board of Directors meeting on October 3 during the NACS Show in Atlanta. Philippine Seven Corporation holds the license to operate 7-Eleven stores in the Philippines. There are 3,600 stores operating on the main island of Luzon, of which 54% are franchised. At the invitation of his father, Paterno joined the company as the construction and maintenance manager in 1993. He was appointed president and CEO in 2005 by majority shareholder President Chain Store of Taiwan. Paterno serves on the Board of Trustees and is the director for foreign franchises at the Philippine Franchise Association. He is also a past council member of the NACS/Coca-Cola Retailing Research Council.

As NACS chair, Paterno also leads the NACS Executive Committee, which provides strategic direction and financial oversight to the association. Committee members are: • Vice Chair, Legislative & Treasurer: Lisa Dell’Alba, Square One Markets Inc. (Bethlehem, PA) • Vice Chair, Retail Engagement: Annie Gauthier, St. Romain Oil Company LLC (Mansura, LA) • Vice Chair, Research and Technology: Chuck Maggelet, Maverik Inc. (Salt Lake City, UT) • Vice Chair, Political Engagement: Don Rhoads, The Convenience Group LLC (Vancouver, WA) • Vice Chair, At Large: Brian Hannasch, Alimentation CoucheTard Inc. (Laval, Quebec, Canada) • Vice Chair, At Large: Varish Goyal, Loop Neighborhood Markets (Atherton, CA) • Vice Chair, At Large: Lonnie McQuirter, 36 Lyn Refuel Station (Minneapolis, MN) • Vice Chair, At Large: Charlie McIlvaine, Coen Markets Inc. (Canonsburg, PA)

During the meeting, NACS also named new retail members to its Board of Directors: • Tom Brennan, Chief Merchandising Officer, Casey’s (Ankeny, IA) • Frederic Chaveyriat, CEO, MAPCO Express Inc. (Franklin, TN) • Natalie Morhous, President, RaceTrac Inc. (Atlanta, GA) • Stan Reynolds, President, 7-Eleven Inc. (Dallas, TX) • Kristin Seabrook, VP, Chief Legal Counsel & Secretary, Pilot Travel Centers LLC (Knoxville, TN) • Babir Sultan, CEO, FavTrip, (Grandview, MO) Also serving on the Executive Committee is 2021-22 NACS Chair Jared Scheeler. During the NACS Show, the NACS Supplier Board also named new leadership and members. David Charles, president of Cash Depot, has been named the 2023-24 chair. Vito Maurici, customer experience officer at McLane Company Inc., will serve as chair-elect of the Supplier

Board and as a supplier representative on the NACS Board of Directors. New Supplier Board leadership: • Vice Chair: Bryan Morrow, Senior Director C&G Sales, PepsiCo Inc. • Vice Chair: Josh Halpern, CEO, JRS Hospitality/ BCIP dba Big Chicken • Vice Chair: Kevin LeMoyne, Senior Vice President, Convenience Retail, Coca-Cola Company New Supplier Board members: • Ramona Giderof • Nick Paich, Convenience Industry Ambassador, GSTV • Patricia Coe, Senior Director, National Convenience Retail, Advantage Solutions • Jay Nelson, President, Excel Tire Gauge A member-driven organization, NACS is led by a 30-member Board of Directors, which includes three retailers from non-North American countries. In addition, the chair and chair-elect of the NACS Supplier Board also serve on the Board of Directors.

NACS Compensation Survey The 2023 Compensation Survey is now open. Each spring, NACS publishes its State of the Industry Compensation Report, providing benchmarking data and up-to-date standards in the key human resource categories of compensation, turnover, benefits and recruitment. The report breaks down the newest available information in the convenience industry and is considered an essential guide for HR professionals. By choosing to participate in the 2023 compensation survey, you can benchmark against industry averages to see how you measure up, where you are excelling and what

strategies you can use to improve your business through your greatest assets: your people. Submit your data by Friday, December 29, 2023, and your company will receive enterprise access to our new compensation database, which reports the same high-quality and comprehensive data you’ve come to expect from NACS through an intuitive, one-stop dashboard. Your survey data will fuel the industry’s most comprehensive tool. Participate in the survey today at www.convenience.org/ compsurvey. NACS NOVEMBER 2023 11

UP FRONT NACS NEWS

From left, Henry Armour, Emilio Alonso Diaz Escalante, Claudio Reboredo and Mark Wohltmann

NACS Launches Inaugural Retailer of the Year Award Latin America Two winners, Lion Place Cardales and LiSTO! Castaños, showcase convenience retail excellence. This year at the NACS Show, NACS launched the Convenience Retailer of the Year Award Latin America and awarded two winners: Lion Place Cardales and LiSTO! Castaños. Executives from both companies were recognized among their convenience retail peers during the Global Colleagues Reception on October 5. Located in Buenos Aires, Argentina, Lion Place Cardales is operated by FGC Fuels Marketing, a new, independent fuels retailer with ambitions to revolu12 NOVEMBER 2023 convenience.org

tionize the convenience store industry in Argentina. Lion Place Cardales opened in October 2021 and is located near a highway entrance/exit in a new suburban development area outside Buenos Aires. The concept was created to stand out from the crowd, meaning the architecture and layout of Lion Place is designed to impact the customer in a way that shifts their conception of a service station. Food is a huge part of the concept, with multiple

foodservice and coffee offers alongside a carefully curated convenience range in a spacious retail environment. The judges agreed that FGC Fuels Marketing is hitting high marks on its goal to “make a real impact on the way people think about fuels and convenience, making them more relevant in the 21st century” with its Lion Place Cardales location. LiSTO! Castaños is located in the historic San Isidro district in Lima, Peru. It is operated by Corporacion Primax S. A. Foodservice takes center stage with an impressive Peruvian coffee selection ranging from drip coffee to indulgent cappuccinos, lattes, Americanos and espressos crafted from freshly ground beans. Product ranges feature classic convenience items that cater to families and households, including an exclusive liquor cellar that elevates customers’ at-home celebrations. For this location, which was remodeled in 2022, the judges agreed that LiSTO! Castaños has enhanced the customer experience by introducing self-checkout, digital signage and menu boards, self-serve coffee and roller grill options and adding more seating.

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NACS NOVEMBER 2023 13

UP FRONT NACS NEWS

Member News RETAILERS

Rutter’s announced Philip Santini as its new senior director of advertising and foodservice. Santini will oversee Philip Santini Rutter’s foodservice program, as well as the advertising department. Prior to joining Rutter’s, Santini helped launch the QSR program at the Tin Building in New York City. Santini also served as general manager for Eataly, overseeing operations across nine locations. EG Group announced John Carey as CEO and president of EG America. Carey succeeds George Fournier, who John Carey stepped back as EG America president in 2022. Carey has previously held senior executive positions at BP and ADNOC Distribution. Parkland Corporation announced Jim Pantelidis has retired as chair of the board. For over two decades, Pantelidis guided Jim Pantelidis the company from a small regional player to an international organization operating in 25 countries. The Parkland Corporation board appointed Steven Richardson as chair of the board. Richardson joined the board in 2017. Steven He currently Richardson serves on the human resources and compensation committee and is the chair of the audit committee. Richardson has 14 NOVEMBER 2023 convenience.org

over 30 years of experience in the financial and retail sectors. SUPPLIERS

Consolidated Sales Network (CSN) appointed Christina SlemonDokos executive vice president and member of Christina the CSN board of Slemon-Dokos directors. Dokos will lead strategic planning and growth initiatives across the CSN network. She has extensive experience providing strategic and tactical leadership, spanning from start-ups to Fortune 500 and 100 companies. Her most recent role in the industry was with Core-Mark, where she led the North American marketing initiative.

chain optimization technologies at Amazon, Bhatia brings expertise in developing cutting-edge automated systems, supply chain planning, optimization and simulation, artificial intelligence and predictive analytics. Melinda R. Rich now serves as chairman of Rich Holdings Inc. Rich joined the company in 1985 and worked in various Melinda R. Rich roles, including executive vice president of innovation. In that position, she unified initiatives across the enterprise, established best practices and processes and identified new business opportunities and technologies.

Steve O’Toole joined Mashgin as head of business development for convenience and fuel retail. With more than two Steve O’Toole decades of experience, O’Toole is an experienced c-store leader focused on leveraging technology, improving operational efficiency and increasing profitability. Before joining Mashgin, O’Toole spent four years at NCR Corporation, where he led global convenience and fuel retail sales.

Tracey Ziener joined Rich’s as executive vice president, chief research and development, food safety quality Tracey Ziener assurance officer. Ziener specializes in the development and delivery of new products, packaging and technology programs. Ziener joins Rich’s after a career at Mars, where she most recently served as vice president of research and development, global chocolate business.

The Hershey Company announced Deepak Bhatia as its first chief technology officer and newest member of its Deepak Bhatia executive committee. Bhatia will lead the company’s global technology strategy, architecting and deploying digital capabilities. Formerly the vice president of supply

Nichols Farms announced that Joseph Wodyka now serves as vice president of sales and marketing. Wodyka Joseph Wodyka comes to Nichols Farms with more than two decades as a sales and marketing leader from Wonderful Pistachios and Almonds and GT’s Living Foods.

NACS NOVEMBER 2023 15

UP FRONT NACS NEWS

New Members NACS welcomes the following companies that joined the Association in July 2023. 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 and the latest industry news, information and resources. For more information about NACS membership, visit convenience.org/membership. NEW RETAIL MEMBERS Cedar Farms Energy LLC Fairfield, CT Chehalis Tribal Enterprises dba End of the Trail Stores Oakville, WA www.chehalistribe.com Compass Travel Center DeMotte, IN www.compasstravelcenter.com Gonzalez & Jaquez LLC El Paso,TX Joseph L. Chiriaco Inc. Chiriaco Summit, CA www.chiriacosummit.com Mega Stop Inc. Lakeville, MN

Oakcrest Market Fort Smith, AR www.oakcrestmarket.com Shoshone-Bannock Tribal Enterprises Corporation Fort Hall, ID Southeast Petro Dist. Inc./ M & R United Inc. Cocoa, FL Southwest Fuel Company Phoenix, AZ www.southwestfuelcompany.com V & R Taneja Inc. Tuxedo Park, NY Whitaker Oil Inc. Loveland, CO Xpress Fuel Mart Inc. dba Fast Trac Girard, OH www.fasttracstores.com

Groupe Filgo-Sonic Sainte-Marie, QC, Canada Riverbend Co-op Ltd. Outlook SK Canada Sobral e Palácio Petroleo Ltda. Fortaleza Brazil The Convenience Holding Ltd. Malta Zebbug Zebbug Malta www.theconvenienceshop.com NEW HUNTER CLUB MEMBERS BRONZE Max Distributing Little Rock, AR www.maxdelivers.com The Lemon Perfect Company Atlanta, GA www.lemonperfect.com

Calendar of Events 2023

NOVEMBER NACS Innovation Leadership Program at MIT November 05-10 | MIT Sloan School of Management | Cambridge, Massachusetts NACS Women’s Leadership Program at Yale November 12-17 | Yale School of Management | New Haven, Connecticut 2024

FEBRUARY NACS Leadership Forum February 13-16 | The Ritz-Carlton Amelia Island, Florida MARCH NACS Convenience Summit Asia March 05-07 | Signiel Seoul Hotel Seoul, Korea

NACS Day on the Hill March 11-13 Washington, D.C. NACS Human Resources Forum March 18-20 | Hyatt Regency Jackson Riverfront | Jacksonville, Florida APRIL NACS State of the Industry Summit April 03-05 | Hyatt Regency O’Hare Chicago Rosemont, Illinois Conexxus Annual Conference April 28-May 02 | Live! By Loews Arlington Texas Arlington, Texas

JUNE NACS Convenience Summit Europe June 04-06 | Intercontinental Barcelona Barcelona, Spain JULY NACS Financial Leadership Program at Wharton July 14-19 | The Wharton School University of Pennsylvania Philadelphia, Pennsylvania NACS Executive Leadership Program at Cornell July 28-August 01 | Dyson School, Cornell University Ithaca, New York

For a full listing of events and information, visit www.convenience.org/events. 16 NOVEMBER 2023 convenience.org

Titan Cloud Software Franklin, TN www.titancloud.com NEW HUNTER CLUB MEMBER SILVER Vivid Impact Louisville, KY www.vividimpact.com NEW SUPPLIER MEMBERS Accelerate Investment Partners Plano, TX www.we-are-accelerate.com Advance Displays Salt Lake City, UT APS (Advanced Printing Systems) Cholet, France aspectLED Saint Paul, MN www.aspectled.com Ben E. Keith Beverages Dallas, TX www.benekeith.com Blue Yonder Scottsdale, AZ www.jda.com Cognira Atlanta, GA www.cognira.com CornerUp New York, NY www.cornerup.com Country Fresh Food & Confections Inc. Oliver Springs www.countryfreshfood.com D. Gray & Associates Pittsburgh, PA DHL Supply Chain Westerville, OH www.dhl.com Digital Products International St Louis, MO www.dpiinc.com Diversey Fort Mill, SC www.diversey.com Eurow & O’Reilly Corp. Simi Valley, CA First American Development Inc. Henderson, NV First Financial Capital LLC Los Angeles. CA www.firstfincap.com

Flying Embers Brewing Company Ventura, CA www.flyingembers.com/ Frymaster LLC Shreveport, LA www.frymaster.com Gallimore Products (USA) Inc. Toronto QC Canada GPO Plus Inc. Las Vegas, NV www.gpoplus.com Gummer Wholesale Inc. Heath, OH www.gummerwholesale.net International Dairy Deli Bakery Association Madison, WI www.iddba.org IP Brands Webster, MA www.industrialpackaging.com Iron Kingdom Sports Nutrition Corp North Richland Hills, TX www.ddbevnutrition.com J.R. Simplot Company Boise, ID www.simplotfood.com JCM Commerce Mechatronics Inc. Schaumburg, IL JF Petroleum Group Morrisville, NC www.jfpetrogroup.com KinaneCo Printing Systems Commercial Printing Syracuse, NY www.kinaneco.com Macro Integration Services Greensboro, NC Merrychef Fort Wayne, IN www.merrychef.com MFSC LLC Waxhaw, NC www.myfoodsc.com/ MPL Brands NV dba Patco Brands Peoria, AZ www.patcobrands.com Nuts ‘N More East Providence, RI OLIPOP Oakland, CA Pop Vapor Co. LLC Atlanta, GA www.popvapor.com

PreGel America CONCORD, NC www.pregelamerica.com Quick ‘N Eat Gainesville, GA Redneck Sunscreen LLC Medford, OR www.redneckcompany.com RJP Consulting Group Exton, PA RPI Industries Medford, NJ rpiindustries.com SIG Group Northlake, IL www.sig.biz SMPLY Brands Columbia, TN www.smplybrands.com Snap2Insight Portland, OR Southland Entertainment Wrightsville Beach, NC www.southlandentertainment.com Teriyaki Madness Denver, CO The Innovation Group Littleton, CO Tielman North America Toronto, ON, Canada www.tielman.com Tillamook Country Smoker/ Snak Club Walnut Creek, CA www.insigniacap.com Toolkit Services Eads, TN Tru Kava Fayetteville, AR trukava.com Veritas Collaborative veritas.associates Vulcan Industries Moody, AL www.vulcanind.com Well Versed Garden City, NY Worthy Promotional Products Wetumpka, AL www.worthypromo.com

CONVENIENCE CARES

Maverik & Swire Coca-Cola Raise Over $686,000 for the National Park Foundation Funds were raised through Round Up Your Change.

s another summer came to a close, the convenience retail industry continued to support the communities it serves. Maverik convenience stores, with locations throughout the western United States, in partnership with Swire Coca-Cola, raised $686,576 for the National Park Foundation (NPF). The funds will enable children to connect with meaningful experiences in nature through the NPF’s Open OutDoors for Kids program. Funds were raised through Round Up Your Change, a customer donation campaign that ran over the summer. Customers were able to donate at the register upon checkout. Donations from customers totaled $411,576, and Maverik offered another $250,000 while Swire donated $25,000, bringing the program’s coffers to nearly $700,000. “We’re incredibly thankful for our customers’ generosity and excited they share Maverik’s enthusiasm for helping provide children access and educational opportunities at America’s national parks—some of the world’s biggest outdoor classrooms,” said president and chief adventure guide of Maverik Chuck Maggelet. Since 2011, Open OutDoors for Kids— NPF’s flagship youth program—has served nearly two million students, many from under-resourced school districts and Title 1 schools. By funding 18 NOVEMBER 2023 convenience.org

This donation will benefit approximately 20,000 students. field trips, educational resources, virtual experiences and classroom visits, students and educators have had once in a lifetime opportunities to engage with and learn from nature in national parks.

By activating the program at over 30 national park sites across Maverik’s footprint, this donation will benefit approximately 20,000 students. “The Cola-Cola Company has long been committed to protecting parks, as the longest standing corporate partner of the National Park Foundation,” said Katie Lattanzi, VP, convenience retail, Swire Coca-Cola. Chad Jones, senior vice president of corporate partnerships at the National Park Foundation, said, “Engaging young people in educational experiences in national parks is critically important, and we thank Maverik and Swire for helping connect more kids to these special places through their generous support.”

In The Community Every year, the convenience retail industry dedicates billions of dollars to advancing the futures of individuals and families in our communities. The NACS Foundation unifies and builds on NACS members’ charitable efforts to amplify their work in communities across America and to share these powerful stories. Learn more at www.conveniencecares.org.

WAWA SUPPORTS SCHOOLS 1 All day, every day in September, teachers and school administration staff were able to receive free hot coffee at Wawa locations in Pennsylvania, New Jersey, Delaware, Maryland, Virginia and Washington, D.C. Additionally, Wawa designated a $50,000 matching fund to DonorsChoose, an online resource for teachers to submit funding requests for school supplies and support.

MAPCO MAKES OVER MUSIC CLASSROOM 2 MAPCO and music education nonprofit Music Will recently partnered to make over Danielle Taylor’s music classroom at Smith Springs Elementary School in Antioch, Tennessee. The one-day project launched with a school assembly that featured a performance from local Nashville country artist Redferrin. During the assembly, MAPCO presented a $25,000 check to the CMA Foundation on behalf of Luke Combs and Whiskey Jam. Volunteers painted murals, assembled donated furniture and set up new recording equipment. MAPCO’s Giveback program provided a grant to Music Will, which provides free music instruction and instruments to K-12 students across the country.

CUBBY’S RAISES SOME DOUGH FOR SCHOOLS 3 Cubby’s, headquartered in Omaha, Nebraska, raised $13,219 in the second quarter of 2023 1

for schools and youth programs through its Raise Some Dough program. Twenty-one Cubby’s locations in Nebraska, Iowa and South Dakota participated in the Raise Some Dough program. In 2022, the fundraising program contributed $35,110 to local school districts. The program has raised $24,270 in 2023 through the end of the second quarter of the year.

CASEY’S FOURTH ANNUAL CASH FOR CLASSROOMS CAMPAIGN 4 Beginning in August and running through September 5, Casey’s guests could round up their purchases to raise funds for students, families and educators. Casey’s, together with its generous guests and LIFEWTR, have raised $1 million annually in the last three years, awarding grants to more than 250 schools across its 16-state footprint. In 2022, 79 grants were awarded to K-12 schools in 75 Casey’s communities.

7-ELEVEN UNITES FOR MAUI

5 In the wake of the wildfires that occurred in August, the 7-Eleven global family of brands, comprising more than 84,000 stores across 20 countries and regions, united to offer support to the historic lands of Lahaina, Maui. Together, the family of brands donated approximately $393,343, raised through corporate and customer donations. Donations were made to the Hawai’i Community Foundation Maui Strong Fund, the American Red Cross Hawai’i Wildfire Relief Fund and the Salvation Army.

2 5

NACS NOVEMBER 2023 19

INSIDE WASHINGTON

A Year Out What’s the lay of the land heading into the 2024 elections?

Key Figures

the number of open Senate seats in the 2024 election

The number of Senate seats that Republicans are defending, out of 34 total races

the number of states that vote on Super Tuesday, March 5

20 NOVEMBER 2023 convenience.org

A year before the 2024 presidential election is ultimately decided, campaign efforts are churning at full speed after a sluggish start. The activity increase is largely because voters in the pre-Super Tuesday states will be casting their ballots earlier than ever before. Originally, the Iowa caucuses were pinpointed for February 5, but instead, the state leaders decided to hold the event on January 15. Then, South Carolina will kick off the primaries with a Democratic contest on February 3. The New Hampshire primary, typically in February though still not firmly set, will have to move to January 23 if the state is to retain its first-in-the-nation primary status. It is unclear if President Biden will participate in the New Hampshire primary, since Granite State leaders rejected the Democratic National Committee’s alternate schedule proposal. Nevada, now a primary for both parties but a Republican caucus for delegate apportionment, will move to February 6 (GOP caucuses slightly later). The South Carolina Republican primary will be held February 24, while the Michigan primary, a new entry into the pre-Super Tuesday schedule, is scheduled for

February 27 for both parties. A total of 14 states, the American Samoa caucuses and Democrats Abroad will then vote on Super Tuesday, March 5. Another issue is beginning to draw a great deal of attention. It relates to whether Donald Trump will be slated on state ballots, irrespective of whether he is chosen as the official Republican presidential nominee. Some are claiming that Trump will be disqualified from running for President due to a clause in the U.S. Constitution’s 14th Amendment. The phrase “have engaged in insurrection or rebellion” is the debate’s focal point. Some legal scholars

SDI Productions/Getty Images

BY JIM ELLIS

The important U.S. Senate races are beginning to take shape.

put forth the argument that Trump committed insurrection with regard to his actions surrounding the January 6 Capitol incursion, while other equally qualified scholars maintain that the U.S. Senate found then-President Trump not guilty of insurrection during the second impeachment vote. Therefore, they say, the “rebellion or insurrection” phrase does not apply to the Trump situation. That said, this is a debate that already appears to be winding down. Even Democratic Secretaries of State in key states such as Arizona and Michigan have said they will have no alternative but to slate Trump. Unless a top swing state such as

Georgia, New Hampshire, Pennsylvania, Wisconsin or any state that Trump carried in 2020 strikes his name from the ballot, this will largely become a non-issue. The important U.S. Senate races are beginning to take shape. Democrats hold a tenuous 51-49 seat majority and the 2024 map clearly puts the Republicans in a favorable position. Of the 34 Senate races on the ballot next year, the GOP must defend only 11, and none of them are dangling at the highest vulnerability level. Conversely, Democrats must protect three states where President Biden is NACS NOVEMBER 2023 21

INSIDE WASHINGTON

We will see a wild card three-way campaign unfold in Arizona, where Sen. Kyrsten Sinema hopes to win re-election as an Independent. virtually assured to lose: Montana, Ohio and West Virginia. The 2022 Nevada Senate race proved the closest in the nation, and the 2024 contest, featuring first-term Sen. Jacky Rosen (D), will also likely become a top-tier GOP challenge race. Additionally, we will see a wild card three-way campaign unfold in Arizona, where Sen. Kyrsten Sinema hopes to win re-election as an Independent to the seat she won five years ago under the Democratic Party banner. There are six open Senate seats now that Utah Sen. Mitt Romney (R) has announced he will not seek a second term in office. Of the six, four are currently in Democratic hands, with the other two held by Republicans. The Michigan race, now that former Rep. Mike Rogers (R) has joined current Rep. Elissa Slotkin (D) in the open contest, will become competitive. All six, however, will feature hotly contested partisan primaries. If Republicans are going to win a Senate majority, 2024 gives them their best opportunity for such a result. It remains to be seen if they can convert this favorable political map into tangible victories. 22 NOVEMBER 2023 convenience.org

ONE VOICE This month, NACS talks to

Brandon Duckett, Vice President of Finance RaceTrac Inc. What role in the community do you think convenience stores should play? Convenience stores are an integral part of the community. They serve as the local one-stop shop, the preferred fueling destination and the “convenient” location to grab your favorite food or snacks. What does NACS political engagement mean to you and what benefits have you experienced from being politically engaged? NACS political engagement means so much. Being engaged provides a voice for all convenience stores on issues that impact us and our guests. It provides a platform where the convenience store community can ensure our concerns are heard and—more importantly—addressed. What federal legislative or regulatory issues keep you up at night (with respect to the convenience store industry)? Swipe fees and SNAP hot foods. Swipe fees are the second largest expense behind labor, and those fees continue to rise year after year, which has a major impact on our guests. SNAP hot foods because all our customers, including those who participate in the SNAP programs, should be able to buy a hot meal. If you can buy the same exact meal cold, why can’t you buy it warmed up? What c-store product could you not live without? I’m a sucker for sour gummy worms.

ameriCan grown • manufactured • owned

ThaT’s The Premier advanTage Premier Manufacturing, Inc. is owned by U.S. Tobacco Cooperative, a cooperative of proud American farmers who grow the finest flue-cured tobacco in the U.S. to make high-quality, value-priced cigarette brands for adult consumers.

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The House races will be close once again. Republicans hold a slight 221212 majority, with each party having one vacancy. Both voids will be filled in November, and each party’s special-election nominee is favored to hold the respective seat. Redistricting in places like Alabama, along with possible redraws in Louisiana, New York, Ohio and South Carolina, could result in Democrats regaining the House majority they lost in 2022. A redraw in North Carolina, however, soon to be completed, will favor Republicans and likely negate some Democratic gains. California and New York will play a major role as to how the House races unfold. Republicans outperformed the redistricting maps in these two states by four seats apiece, and such a result provided them their slim majority. New York Republicans must again win tough races on Long Island and in the Hudson Valley if they are to hold their majority. In California, incumbents in the state’s San Joaquin and 24 NOVEMBER 2023 convenience.org

Central Valleys, along with seats in Los Angeles and Orange Counties, are going to be difficult to hold in a presidential election year when the turnout will almost assuredly favor Democrats. On the other hand, the Republicans seem to have California conversion opportunities in an open Orange County seat where Rep. Katie Porter (D) is now running for Senate and in Stockton where the city’s Republican Mayor, Kevin Lincoln, is forging what promises to be a highly competitive campaign against Democratic Rep. Josh Harder. Right now, Republicans should still be slightly favored to hold the House, but the majority is clearly up for grabs. One conclusion, however, is clear: Yet again, we will see a close House majority regardless of which party assumes control. Jim Ellis is president of Ellis Insight, LLC, specializing in election analysis, and is a frequent contributor to the NACS newsletter.

Elena Sunagatova/Getty Images

INSIDE WASHINGTON

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. NACSPAC donors who made contributions in August and September 2023 are:

AUGUST Annie Alabaugh Casey’s General Stores Inc. Stace Anne Benu Executive Leadership Solutions Inc. Jonathan Bowyer C3|Creative Consumer Concepts

Enrique Sales Abierto Networks LLC Greg Scriver Kwik Trip Inc. Van Tarver PDI Technologies Ena Williams Casey’s General Stores Inc.

SEPTEMBER

Tom Brennan Casey’s General Stores Inc.

Patrick Abernathy Ignite Retail Technology

Greg Cushard Lockton Insurance Brokers LLC

Rashid Ali Chomps

Matt Durand EG America LLC Angela Gearhart Nittany Oil Company Joe Juliano United Pacific Jennifer Loper C3|Creative Consumer Concepts Wolfgang Manz PWM Electronic Price Signs Inc. Nicole Masullo Nittany Oil Company Vito Maurici McLane Company Inc. Gilbert D. Moyle Moyle Petroleum Company Doug New Nouria Energy Corp. Charles Reesman Nittany Oil Company

Daniel Alsaker Alsaker Corp Ismail Arslangiray DuPont Grocery, Inc. Amy Ashley-Burke NACS Wynne Barrett Jera Concepts Frank Beard Rovertown Doug Beech Casey’s General Stores Inc. Michael Bendt Moyle Petroleum Company Ronald Brown BF Holdings LLC Scott Burchfield Impact 21 Tom Bush Food Concepts Inc. Kevin Carroll RaceTrac Inc. Liz Carter Chomps

26 NOVEMBER 2023 convenience.org

Philip Chamblee Mississippi Petroleum Marketers & Convenience Store Association Sheryl CoyneBatson Techniche Jerry Cutler InComm Payments Michael Deal Moyle Petroleum Company

David Jaffer National Alliance of Trade Associations Mickey Jamal Chesnut Market AJ Jha Tustin Arco Michael Junk QuikTrip Corporation Paul Kern Invenco Group Limited

David Ezell Conexxus

Lance Klatt Minnesota Service Station Association

Robert Forsyth FKG Oil Company

Kevin Kraft Q Mixers

Varish Goyal Loop Neighborhood Markets

Charles Lawton United National Consumer Suppliers

Darlene Hall Nittany Oil Company

Patrick Lewis Oasis Stop N Go LLC

Matthew Hanson Black Buffalo Inc.

Chuck Maggelet Maverik Inc.

John Harris Coulson Oil Company

Sean McCaffrey GSTV

Chris Hartman Rutter’s

Steve McKinley Urban Value Corner Store

Tom Healey Nouria Energy Corp.

Brian Moran RaceTrac Inc.

Cara Heiden Casey’s General Stores Inc. Elizabeth Hoffer Weigel’s Stores Inc. Tommy Hunt E-Z Stop Food Marts Inc. David Hutchinson Hutchinson Oil Co.

James Morgan J.R. Morgan Oil Company

Robert Razowsky Rmarts LLC Mark Reese RaceTrac Inc. Merlix Reynolds RaceTrac Inc. Frank Romeo Partner Engineering and Science Inc. Jerome Sedelmeyer Ignite Retail Technology Kay Segal Business Accelerator Team Rajeev Sharma VideoMining LLC Keith Solsvig Buddy’s Kitchen Inc. Chris Steplock NCR Corporation Eva Strasburger StrasGlobal Roy Strasburger StrasGlobal Haskel Thompson Haskel Thompson & Associates Nick Triantafellou Weigel’s Stores Inc. Richard Wood Wawa Inc. Charles Young Impact 21

John Oakley Taiga Data Inc.

Malik Yousif MYS Energy

Gabriel Olives Impact 21

Dathan Zang Harbor Industries Joseph Zietlow Kwik Trip Inc.

Angela Pimental RaceTrac Inc. Robby Posener RaceTrac Inc.

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IDEAS 2 GO

P&H Truck Stop started as a 12-stool restaurant in a “little, tiny building.”

A Hometown Truck Stop Name of company: P&H Truck Stop Year founded: 1980

P&H Truck Stop serves homemade food and sells essentials to locals and truckers. BY SARAH HAMAKER

# of stores: 1

28 NOVEMBER 2023 convenience.org

P&H Truck Stop has evolved from a “very little, tiny building with diesel pumps for truckers” to a sprawling complex catering to long-haulers and locals alike, according to Elaine Stevens, general manager of the Wells River, Vermont, store. Stevens would know—she’s been working for P&H Truck Stop for most of its existence, clocking 16 years in the early days, then coming back in 2006 after a brief hiatus. “We’ve been written up in so many different magazines and have even been on the Food Network in the late 1990s as one of the top 10 best truck stops,” she said. “That’s a testament to how good our fresh foodservice was—and still is.”

LOCAL COOKING FOR WEARY TRAVELERS Positioned along Interstate 91, a popular travel route for truckers, P&H Truck Stop started as a place to fuel up both vehicles and stomachs. “Delbert Lee started the store with a small, 12-stool restaurant,” Stevens said. “Local ladies brought in their home cooking to P&H.” Popular menu items back then included hot dogs and beans, chicken and biscuits and chop suey. A local baker supplied fresh homemade pies, some of which became famous outside of Vermont, such as the maple cream pie. By the early 1990s, the truck stop had become “a good place for truckers to stop for a shower and good food with friendly service,” she said. The truck plaza even offered rooms for truckers to catch some shut eye during their trip, although those rooms have since been revamped into private showers. As word spread about the store, the foodservice section evolved from a single counter to booths and tables for more seating. “We took on more cooks, including some who experimented in our bakery,” Stevens added. P&H became known for its cinnamon raisin bread and now offers seven different kinds of fresh breads made in-house. The kitchen also churns out dozens of rolls and pies for to-go orders. “We think we have the world’s best dinner rolls, and each Thanksgiving we’ll sell better than 600 dozen rolls and 600 pies to-go for the holiday,” she said. Today’s menu boasts club sandwiches, huge “Big Rig” burgers and rotating daily specials, including chicken and biscuits every Friday. “We’ve expanded our offerings and tried to change it up over the years to meet the different taste expectations of our customers,” Stevens said. “People come especially for our

daily specials, and our Canadian neighbors particularly like our hamburger steak with cheese and fries.” Customers who don’t want to wait for hot food can grab prepackaged sandwiches and chicken salad, along with smaller portions of daily specials. Frozen meat pies and frozen dough for dinner rolls are available, too. “We are in the process of setting up heat slides for hot to-go dinners, which we hope to roll out soon,” Stevens said. A coffee bar provides fresh-ground cups of Alltown Coffee from bean-tocup machines, while coolers stock packaged beverages. The store carries snacks and a full selection of candy, along with a small section of health and beauty products and essentials and accessories for truckers. A HOMETOWN CONNECTION ON THE ROAD P&H Truck Stop offers visitors an authentic local experience while they’re just passing through. A part of that authenticity comes from caring for the Wells River community. The store frequently supports the local community with donations. “Our most common ask is to donate our dinner rolls to events, and we gladly do that on a regular basis,” Stevens said. The employees add to the local vibe, with friendly people waiting tables and working behind the counter. “While we feel the labor pinch like everyone else, we’ve been fortunate to have some really outgoing waitresses, which makes our restaurant an even better place to stop by,” Stevens said. Stevens hopes customers visiting the P&H Truck Stop will leave thinking, “That was a fun place.” She explains, “I’ve had people who come in and have a waitress who interacts with them

The bakery offers seven kinds of bread, including cinnamon raisin.

BRIGHT IDEAS At P&H Truck Stop, truckers, tourists and locals can pick up some local Vermont goods along with their fresh foodservice order. “We stock good maple syrup made in Vermont, as well as a selection of candies also made in the state,” said Elaine Stevens, general manager of the Wells River, Vermont, store. Tourists can snag Vermont t-shirts, hats and bumper stickers, too.

enough say when they’re leaving what a fun time they had. To me, there’s not a better feeling in the world than knowing you made someone’s day a little brighter.” Sarah Hamaker is a freelance writer, NACS Magazine contributor and romantic suspense author based in Fairfax, Virginia. Visit her online at sarahhamakerfiction.com.

Ideas 2 Go showcases how retailers today are operating the convenience store of tomorrow. To see videos of the c-stores we profiled in 2022 and earlier, go to www.convenience.org/Ideas2Go. NACS NOVEMBER 2023 29

10 TAKE FROM THE NACS 30 NOVEMBER 2023 convenience.org

AWAYS SHOW It’s a four-day marathon that brings the industry together. BY JEFF LENARD

NACS NOVEMBER 2023 31

More than 1,200 exhibitors brought their products and solutions to the expo.

he NACS Show is a not a sprint, it’s a marathon. That means you need to have a plan, pace yourself, wear comfortable shoes and hydrate. There is a lot to report from the 2023 Show in Atlanta—the learnings from the education and general sessions, new connections made with attendees and all the cool new products. And there’s plenty of all that in the following pages. But first, here are some big themes and developments.

CONVENIENCE IN ONE PLACE Let’s start with the airport. For the first time ever, NACS Show attendees could pick up their registration at Atlanta’s Hartsfield-Jackson International Airport. Yes, the airport, not the place that most people associate with a positive experience, was just that during the NACS Show. Attendees were able to walk up to one of a few kiosks and print their badges and get all the basics they needed to hit the ground running. It’s a test-and-learn experience for NACS to see if it enhanced convenience for you, just like you all (okay, “y’all” since we were in Atlanta) do for your customers.

DETERMINING THE AGENDA FOR 2024 AND BEYOND

In total, more than 24,000 people made it to the 2023 NACS Show in Atlanta. 32 NOVEMBER 2023 convenience.org

Hitting the ground running was the constant state of action at the NACS Show. For many attendees, the event started well before the posted dates of the conference. The NACS Show is also a business meeting, and there were plenty of board and committee meetings related to NACS and the other event co-sponsors, the Petroleum Equipment Institute (PEI), Energy Marketers of America (EMA) and Conexxus. These meetings will also define many of the strategic issues these groups will attack in 2024 and beyond. Let’s go back to that marathon theme: Those first two to three days were jam-packed and the main events hadn’t even begun. We were just getting warmed up.

UNIQUE OPPORTUNITIES TO LEARN—AND MASSIVE CROWDS We’ve all been there as speakers: You accept a request to speak at an event and you find that attendance is sparse, with maybe a dozen people. But even speaking before a small group can be rewarding when it’s the right group and you make new connections. The NACS Show education sessions, meanwhile, had staggering attendance counts. On average, each of the 50 education sessions had about 250 attendees. You know what most conferences call a session with 250 attendees? The general session. Education sessions took place over a threeday period, but that doesn’t begin to describe the learnings available to attendees. Cumulatively, these sessions totaled 3,975 minutes, and let’s remember that there are only 1,440 minutes in a day, so if you found enough energy drinks and coffee—and plenty of companies that provided both were on the expo floor— you could technically go to non-stop sessions for three straight days. (And read that long sentence in one breath.) Of course, that’s not the way to experience the NACS Show. Smart retail teams instead planned in advance to split up and hit as many different concurrent sessions as they could. It is still possible to get the information. Go to convenience.org and click on “Solutions,” then “Online Store” to purchase the session recordings.

FOODSERVICE IS OUR FUTURE—BECAUSE IT’S OUR PRESENT The most-attended education session was about foodservice. “Solutions to Optimize Your Foodservice Space” drew nearly 400 attendees and was one of several popular food-focused sessions. In addition, the adjacent NACS Food Safety Forum focused on how food safety culture can contribute to your company’s vision and mission. It was obvious that there was a hunger for information on foodservice, and it was even more obvious that attendees were just plain hungry—and the 990 minutes of expo time provided plenty of opportunities to taste, test and quell those hunger pangs. If you didn’t know what types of food you could sell—or the equipment needed to make and merchandise it—you do now. The latest NACS State of the Industry data shows that foodservice accounts for 36% of in-store profits. Based on the interest in foodservice at the NACS Show, there’s no question that number will increase.

The NACS Show Turns 30 … in Name, Anyway This year marked the 30th anniversary of the NACS Show. NACS has had an annual meeting every year since its founding in 1961, but initially they had different theme names. And, let’s be honest, some of them weren’t all that compelling. For one, NACS really liked announcing the obvious when new decades approached: In 1969, the theme was “Countdown to the ’70s,” in 1979 it was “Preparing for the ’80s” and in 1989 it was “The ’90s Are Coming.” Thankfully, we were off and running with the NACS Show theme by 1999, or there would have been quite a struggle to determine if we announce the new decade—or the new millennium. Some NACS annual meeting names were real head scratchers. 1971’s “Fountain of Ideas” doesn’t really reference something our industry is known for—besides the ideas part, of course. 1992’s theme was “Q.U.E.S.T.,” which sounds more like the name of a TV show in which a kid robot goes back in time to solve crimes. And thank goodness the copyright lawyers were asleep at the switch when we had our 1988 meeting, “NACS’ Wheel of Fortune.”

NACS NOVEMBER 2023 33

EVS ARE ALSO OUR FUTURE As a NACS Show general session speaker noted last year, “We can all agree that EVs are the future. The only thing that we can’t agree on is when that future is.” For fuels retailers—actually let’s call them energy retailers—who see that future coming closer, there were plenty of opportunities to learn. In addition to discussions in education sessions, there were at least 30 exhibitors offering products or services related to electric vehicles and staff from the Transportation Energy Institute (formerly known as the Fuels Institute) were everywhere, helping retailers navigate the evolving energy market.

“C-store doesn’t just stand for convenience store, it also stands for community store,” said NACS President and CEO Henry Armour. And community was certainly a focus. TruAge, the innovative, universally accepted—and 100% free—age-verification system developed by NACS to prevent underage access to age-restricted products, was a focal point of discussions. The TruAge booth signed up new retailers who are bringing the program online. And you still can join: Go to mytruage.org. Exhibitors also focused on their commitment to communities, with unique products and campaigns celebrating and supporting crit-

THE ROAD LESS (OR MORE) TRAVELED

It was obvious that there was a hunger for information on foodservice.

The general sessions were packed, averaging nearly 3,000 attendees each of four days. NACS 2022-23 Chairman Don Rhoads set the tone by talking about the job of hitting the road to find adventures and celebrate frontline employees who “are the heartbeat of the industry.” A guy whose last name is Rhoads spending a lot of time on roads … makes sense! Don then had a conversation with three acclaimed road warriors—Al Hebert (the Gas Station Gourmet), Stafford Shurden from Gas Station Tailgate Review and Stephanie Stuckey of Stuckey’s—who told attendees how to create experiences that will get their stores found when people are road tripping. The three of them had never met each other but became fast friends, which is something you frequently see at the NACS Show—and they even took a road trip together around Atlanta the day after their presentation. And they found a gem: Che Butter Jonez. Look for a profile in an upcoming issue of NACS Magazine. Want to share your ideas about road trips with them—or with us? Shoot us a note at roadtrip@convenience.org.

YOUR COMMUNITY WAS THERE

Community was a huge focus at the NACS Show. The industry conducts 160 million transactions a day, meaning that approximately half of the country is buying something at a c-store every day. But that only begins to describe our importance in communities. 34 NOVEMBER 2023 convenience.org

ical community heroes like teachers, healthcare workers and members of the military. Speaking of military heroes, Rocky Sickmann, one of the 52 Americans held hostage for 444 days in Iran starting in 1979 and a true American hero—and current Anheuser-Busch and Folds of Honor representative— presented a check for $100,000 recognizing Anheuser-Busch’s support of the 24/7 Day celebration of everyday heroes. (Join us in celebrating 24/7 Day this coming July 24; learn more at conveniencecares.org.) After the NACS Show, exhibitors also supported the Atlanta community by donating extra product to the Atlanta Community Food Bank.

GOATS WERE EVERYWHERE No, not goats that eat grass and do yoga with hipsters, but GOATs, the Greatest of All Time, who were everywhere in the expo. The GOAT wide receiver Jerry Rice was in in one booth, so naturally, the GOAT tight end Rob Gronkowski (let’s give Travis Kelce a few more years before we go there) was in another booth. The crowd was pumped for closing NACS Show speaker John Cena, a 16time WWE champion. But if you think that Hulk Hogan (with 12 championship belts)

was the best, you’re not alone. He drew big crowds on the expo floor. Let’s go back to John Cena, though. He spoke at the NACS Show on Friday morning, and later in the day was on live TV delivering a smackdown in the ring, joined by his partner LA Knight, who was also at the NACS Show. They both were in a Fastlane (hey, that sounds like a term our industry would use) bout the day after that. They won, and LA Knight is now being called a future GOAT. Which is appropriate, since the NACS Show is about finding the future. Wade Boggs, Dominique Wilkins and plenty of other WWE and MMA fighters were among the many big-time stars on the expo floor. And, if you think you are the GOAT, you had a chance to prove it at the kick-off party, which was held next door in Mercedes-Benz Stadium, home of the Super Bowl, SEC football championships and even Taylor Swift concerts. Attendees could get on the field and test out their skills passing and kicking. Did that kick get shanked and only go about 10 yards? Well, the picture that you post online, taken from the right angle, can show a different story.

SHARING THE EXPERIENCE The NACS Ideas 2 Go videos focused on the customer experience, and that was exemplified by the 40,000-square-foot store

Wally’s, which must be seen to be believed. The same is true of the NACS Show. It was cool to hear from those attending their first NACS Show after years of hearing how awesome it was from their parents—or to watch seasoned team members shepherd new ones attending their first Show. One retailer told me that he instinctively knew how to navigate the NACS Show, but bringing a first-timer required him to plan more in advance, and that the advance planning made the event even more valuable. As for the first-timer? “Tired,” he said, but he also had a giant smile on his face. We also saw that on NACS staff. “I can’t wait for you to experience the NACS Show,” we said in preconference meetings. Seeing is believing, and they are pumped to prepare for next year’s NACS Show, October 7-10 in Las Vegas. Bring along a new team member and experience the wonder of the NACS Show through their eyes. You’ll both learn something new.

IT’S NOT THE END OF THE YEAR, UT THE START We repeatedly heard that the great ideas and contacts fit perfectly into retailer’s strategic planning sessions that typically take place between the end of the NACS Show and Thanksgiving. Then, retailers are ready to attack 2024 with a game plan. Speaking of 2024, we have a lot to offer before next years’ NACS show. The first half of the year is the busiest in terms of NACS events. Buckle up. We’re going to do some winning together well beyond the NACS Show. Let’s finish with the theme presented at the start: The NACS Show is a marathon, not a sprint. To confirm that, I checked out my fitness tracker, and it showed that over the course of the NACS Show I covered 27.1 miles, a little more than the 26.2 miles in a marathon. But this was a lot more fun. Jeff Lenard has been to 23 NACS Shows, and this one might be his favorite … although it was pretty amazing to be part of the team in 2005 that moved the NACS Show to Las Vegas on 10-weeks’ notice. Yes, that really happened; see the video at convenience.org/media/NACS-TV/ Katrina2005MovingtheNACSShow. NACS NOVEMBER 2023 35

FINDING INSPIRATI TOGETHER Speakers at the general sessions focused on inspiration, innovation and telling the story of your business. BY LEAH ASH, SHANNON CARROLL, LISA KING AND BATYA LEVY

36 NOVEMBER 2023 convenience.org

ON NACS NOVEMBER 2023 37

The more inspired your team is in their lives, the more inspired your customers are and the more inspired your profits are.

Kevin Paul Scott kicked off the first general session with the case for inspiration.

ver the course of four days, thousands of convenience industry stakeholders gathered to hear from a variety of speakers— including a 16-time WWE champion.

GENERAL SESSION DAY 1 The first general session of the NACS Show made the case for inspiration. Kevin Paul Scott, founder of consulting firm ADDO, offered simple advice. “Great leaders don’t manufacture inspiration, they foster it, find it and fuel it.” Leaders foster inspiration by creating an environment for inspiration to grow. Simply put, find connection. People want to be connected to each other and a goal. To be inspired is to be purpose driven. “When purpose becomes clear, work becomes meaningful,” said Scott. And when work is meaningful, people perform at a high level. How do we get people working eight hours a day behind the register, stocking coolers or cleaning bathrooms to feel inspired, not only at work but in life? Because the more inspired your team is in their lives, the more inspired your customers are and the more inspired your profits are. The customer experience comes from the bottom up—which comes from the top down. Inspired leadership trickles down to customers. 38 NOVEMBER 2023 convenience.org

Scott posited that when leaders “connect people to purpose,” they can inspire action. He illustrated the point with the example of a janitor who worked at NASA. When President Kennedy asked him what he did there, he answered “I’m helping put a man on the moon.” Scott shared his belief that “stories are the way we that we bring inspiration to life.” Once we find those stories, we need a way to share them and communicate them to others. Fueling inspiration requires sharing stories and celebrating the results in an ongoing way. He shared an example of how a bank’s mission was to fuel prosperity and how the bank had high levels of engagement, deposits and loans because it built stories around its customers. Celebrating a family getting a loan isn’t enough; instead, breathe life into the moment by recognizing what that loan does for them. Did they buy their first home? Put their child through college?

GENERAL SESSION DAY 2

Stephanie Stuckey, Stafford Shurden and Al Hebert talked about the importance of storytelling.

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Everyone has a story to tell. Finding a way to share your store’s story and be a part of the American road trip goes a long way towards putting your operation on the map. Stephanie Stuckey, chair of Stuckey’s Corp., told the story of her journey to revive her family’s brand after buying it from the previous owners. Stuckey’s was founded in 1937. It was the first roadside retail chain. “Before there was Walmart or TA or Love’s or Bucee’s, there was Stuckey’s.” To save Stuckey’s, she leaned into storytelling. “The road trip represents freedom and fun and independence. It’s a uniquely American experience,” she told the audience. On social media, Stuckey shared her own experiences with Stuckey’s and road trips growing up, attracting customers who want those same experiences with their own families. According to Al Hebert (Gas Station Gourmet) and Stafford Shurden (Gas Station Tailgate Review), Stuckey’s isn’t the only store offering a unique road trip experience for customers. Unique stops lead to great memories, with the panelists discussing stops on their own road trips that featured experiences such as a psychic goat, a historical marker for a UFO sighting and more.

Stuckey noted that you don’t have to go to those extremes because there are stories inside every convenience store. She started to experience success when she shared her own personal story, not just what she thought customers wanted to hear. “I pulled over to this former Stuckey’s that just looked awful, and I posted something very vulnerable. And that was very authentic, but also inspirational,” she said. By the end of the day, she had over 25,000 notifications on her post—a far cry from the couple likes from her family she was receiving before. Hebert shared that he was pulled into the industry not just by delicious meals, but by the stories behind every store. “So what I really tried to do is tell your stories, so other people can benefit from your successes,” Hebert said. And stories don’t have to just be about your store. For example, as Stuckey made her way to a c-store in Hattiesburg, she pulled over and saw a castle on the side of the road. Instant content. “It’s exploring all these fun places and letting your customers know that it’s the journey, it’s the places along the way … and then pull over at our store and we’re part of that overall experience. It doesn’t have to be hard to share your story. The panelists recommend taking advantage of what is available to you—use social media. It’s free. Staying on the theme of road trips, 2022-23 NACS Chair Don Rhoads shared his recent road trip adventures. Rhoads wanted to thank c-store frontline workers, so he went on three road trips and visited over 80 stores on what he called his “Thank You Tour.” “Let’s face it, people are generally in a bad mood,” Rhoads said. “But our industry can change that. No one else has the relationship we have with our customers.” He finished his speech with gratitude, saying “I’d like to thank everyone in our industry for inspiring me. You have great teams and it’s obvious we have a bright future.”

GENERAL SESSION DAY 3 Victor Paterno, the 2023-24 chair of NACS, opened Day 3’s general session by marking the 50th anniversary of the first 7-Eleven to open in Asia. Paterno shared his own background of helping his father, who co-founded 7-Eleven Philippines, take his business from 40 stores to 100. After leaving the company to forge his own path, Paterno returned in the late ’90s inspired by the challenge to grow the business to 1,000 stores. The retailer now has well over 3,000 stores. (Read more about Paterno on page 8.) Next on stage was a panel on creating a culture of innovation. Moderator Gray Taylor, the executive director of Conexxus, was joined by Emily Sheetz, who is the vice president for innovation and IT at Sheetz, and Vish Ganapathy, director, customer engineering retail, Google. Sheetz said it’s a typical misconception that technology drives innovation. She believes technology should be seen as tool of innovation rather the driver. “Really understanding what your customer wants, and not what you think they want, helps you innovate towards value,” said Sheetz. Ganapathy agreed. “Purely technology-based innovation, what we consider shiny objects, is not sustainable [even though] it might drive a lot of enthusiasm and interest at first,” he said. Google regularly surveys its teams to ask what is needed to innovate, Ganapathy shared. The top response was a safe, non-judgmental environment. Sheetz agreed that creating a culture of innovation requires creating a sense of safety. “That starts from the top. Leadership has to create an environment where people feel they can take risks. You don’t innovate without risks,” she said. Ganapathy believes that innovation comes from the frontlines. “The people who are working with your customers every day are best positioned to know what’s going to work,” he said. “Innovation isn’t creating a brand-new business model,” said Sheetz. “It’s about how do you do your job day in and day out better. And sometimes that is making it easier for our

Henry Armour, Zeynep Ton, Varish Goyal and Joe Hamza shared the stage to talk about good jobs.

Gray Taylor, Emily Sheetz and Vish Ganapathy gave a roadmap for creating a culture of innovation. store employees. So when I say thinking about the end customer, our successful innovations have gone all the whole way back to the value chain.” Sheetz has an innovation hub in Pittsburgh. Partnering with universities in the area has been “win, win, win, all around,” Sheetz said. “From a number of different standpoints, universities are doing cutting-edge research and technology development across so many different disciplines that our business is in,” she said. “Students get access or exposure to our company and how we treat people, and then we become a viable option for somebody coming out of school to come work for us.” To close out the session, NACS CEO Henry Armour introduced Dr. Zeynep Ton, the author of “The Good Jobs Strategy.” Dr. Ton explained her solution for developing a more reliable, more motivated workforce. One key element is standardization, which enables efficiency, consistency and productivity. Another is empowerment. “That standardization is really done to reduce mental overburden,” she said. “The empowerment enables workers to contribute to higher sales and reduce costs by coming up with ideas that improve their systems all the time. That combination increases their productivity.”

Creating a culture of innovation requires creating a sense of safety.

NACS NOVEMBER 2023 41

“Wow, how’d you get John Cena?” was a question that we heard repeatedly in the weeks leading up to the NACS Show—and even more so after his awe-inspiring presentation. Because the closing general session is early (8:30 a.m. start), and it comes after a long week of activity, it’s important to find someone who is a recognized name who people will get up to hear. A variety of sports stars were options, and several rose to the top of the list. But Cena was only one who is currently active, and that was a big plus. More important, his story perfectly fit the general session theme of inspiration. Cena’s work with charities, especially with Make-A-Wish, was too hard to ignore. Cena also has a reputation for having a great work ethic, and for really preparing for each speech—and that was obvious with his specific references to our industry, which included a reference to an article in NACS Magazine. (Pro tip: Green rooms where speakers prepare before hitting the stage can be pretty boring, so if you place some magazines there, odds are they will be read.) We prepared more than 50 questions on virtually every topic possible, ultimately whittling them down to about a dozen to allow time for audience questions. And in the end, Cena delivered exactly how he is described in his speaker profile: “He leaves audiences feeling motivated and inspired to be themselves and try their best every day.” And that went even beyond his appearance, based on what he posted on X, formerly known as Twitter, right after he left the NACS Show. —Jeff Lenard, VP, strategic industry initiatives, NACS

Kevin Paul Scott returned to the stage to host John Cena in a Q&A.

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GENERAL SESSION DAY 4 It was a Friday morning SmackDown at the NACS Show when WWE wrestler and actor John Cena took the stage. Connecting to the theme of inspiration, Cena shared the journey that took him from his childhood in West Newbury, Massachusetts, to movie and TV screens worldwide—a journey he called a “series of happy accidents.” “I’ve had a whole bunch of losses, but I’ve just never given up trying,” he said. Cena also explained that he isn’t so different from a typical c-store operator. “We are in the customer service business,” Cena said, “and we know what it’s like to open the door on a day where maybe we wake up on the wrong side of the bed and we still have to be empathetic to the needs of your customer. And your experience and your existence is to make that customer happy so that they want to continue to do business with you. So in that regard, we are all in the same fight.” Cena had to run out the door after his speech because he was wrestling later that evening in St. Louis. His first stop in the city? A c-store to look for water, caffeine and protein bars. “That has been my path of action for 20 years,” Cena said. “This is like the golden era for me. I can now walk into any convenience store and be flooded with options.”

BUT I WOULD WALK

500 MILES Although after this year’s NACS Show, I’m not sure I could walk 500 more. BY CHRISSY BLASINSKY

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... NACS NOVEMBER 2023 45

Candy

y first NACS Show was 2005. I remember fondly the rookie mistake I made that was a huge lesson learned: I wore the wrong shoes. Like, very wrong. Proper shoes for walking the NACS Show expo—all 436,100 net square feet of it—are a must. It’s my go-to advice for anyone new to the event. For many, the walking begins before the expo doors open. This year I covered about 10 miles, give or take. There is so much ground to cover. I did not see every exhibitor in every aisle. Breaking it down from A to Z, here’s what an 18-year NACS Show veteran (aka me) saw, and likely tried, on the expo floor:

There’s a reason we often hear the NACS Show compared to adult trick-or-treating.

Air Come to think of it, the only place I’ve gone to for filling my tires is a convenience store.

Car wash

s “C

”

I’ve always wanted to run through one of these …

Beverages It goes without saying that you can’t NOT find new flavors, packaging or products in the beverage space at the NACS show.

Bonu

Dispensers Companies like Gilbarco and Dover not only keep customers fueled up and filled up … they’re also keeping them charged up.

Energy To quote an industry friend, “You can’t swing a dead cat without hitting an energy drink.” I have no idea what that means, but yes, energy is huge at the NACS Show and has been for a few decades. 46 NOVEMBER 2023 convenience.org

Driving the industry forward, together Convenience is always evolving, but NACS delivers the insights and innovative tools to help retailers win. Our latest initiatives improve how you serve your customers and communities and keep your business one step ahead.

Revolutionizing age verification at the register and beyond

Optimizing retailers’ digital presence to drive traffic & growth

Ice Cream

Foodservice Pizza, chicken, hot dogs, taquitos, coffee, fountain drinks (cold and frozen), sandwiches, Asian fare … expo eating is a must. I manage my feasting as: hot dogs on day 1, chicken on day 2, and pizza on day 3.

Here’s my before and after shot, thanks to Hershey. And this makes me feel a little old: Rich’s celebrated the 20th birthday of f’real shakes and smoothies with a new LTO flavor, Birthday Cake Batter.

Gronk At 6’5”, he was fairly easy to spot in the Monster booth.

Jerky Sasquatch is an institution in the Jack Link’s booth. This year he was joined by actor and “Busch Guy” Gerald Downey.

Hydration In the words of The Waterboy himself, Adam Sandler, “that’s what I call high quality H2O.” It was refreshing (pun intended) to see Gatorade step into the water realm.

Kitchen

Hulk Hogan This isn’t the first time the Hulkster has been at the NACS Show. He was also at the 2006 Show in Las Vegas. Bonus “H”

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To make great food, store it and serve it, you gotta have the right equipment.

Keebler Elf Was that Bon u s “K ” a Keebler Elf or Elf on the Shelf??

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Lottery I didn’t get a chance to visit a lottery exhibitor, but a few days after the NACS Show ended, nobody had claimed the fourth-largest jackpot in Powerball history.

Q Would you believe there are no product categories that begin with Q? This is your chance to become a trailblazer.

Mexican Food Si por favor.

Refrigeration Nozzles No nozzles, no gas. It’s as simple as that.

Other Tobacco Products Here’s where you’ll find innovation with smokeless tobacco alternatives. According to the NACS State of the Industry Report® of 2022 Data, the OTP category had double-digit sales growth year over year.

Pickles My favorite sandwich and burger partner in crime.

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Snacks Salty, sweet, heat, traditional, savory, cheesy, spicy … if you can’t find your favorite snack flavor at the NACS Show expo, it may not exist.

FongFong2/Getty Images; ThomasVogel/Getty Images; Danang Setyo Nugroho/Getty Images

Let’s talk food safety for a moment. Temperature control and monitoring relies on proper and reliable refrigeration. Make sure those temps are where they need to be.

BEST IMPRESSIONS FROM FLOORS TO FORECOURTS AND MORE

DUNNAGE RACKS

DISPLAYS & MERCHANDISERS

FORECOURTS & FUEL ISLANDS

masonways.com • newpig.com 365121

FLOOR SAFETY

Technology Where would you like me to start? There were 139 exhibitors in the Technology area of the expo and 32 more tech-related exhibitors in the New Exhibitor Area. If you needed a tech solution, this was your Super Bowl.

eXpo eXcitement! I had to do it. Like our friend Q, the letter X needs some love.

Uniforms Although there are only a few exhibitors in this space, first impressions can make a difference when it comes to your frontline teams.

Vitamins/Supplements I see this as a category ripe for our industry. Perfetti Van Melle USA’s Mentos Mints with Vitamins stood out for me.

Yogurt Drinkable, mixable, frozen, non-frozen. Yogurt can serve as a healthier go-to for your healthminded customers. Personally, I like the yogurtcovered snacks.

Zzzs Sleep aids: You gotta have something to bring you down from all that caffeine!

Wrestlers

Bonu

Dominique Wilkins ”

s “W

Former NBA star Dominque Wilkins, now the VP of basketball operations for the Atlanta Hawks, met with fans in the Anheuser-Busch booth.

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Honestly, this list is barely the tip of the iceberg in terms of what one could find on the expo floor. Every aisle was packed with things that were unique, delicious, useful, indulgent, healthy, innovative, creative and just downright cool. The NACS Show is the greatest show on the planet, and I hope to expand this list next year when I do this all over again in Las Vegas, October 7-10, 2024. Chrissy Blasinsky is the digital and content strategist at NACS.

frytka/Getty Images

the Street Profits, Hulk Hogan, LA Knight, Bianca Belair … who am I missing? Oh wait—you can’t see him, but our closing General Session speaker was John Cena.

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LEARN

From safety to seasonal offerings and from foodservice to fuel, NACS Show education sessions had it covered.

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ING

GETHER NACS NOVEMBER 2023 55

Chris Rapanick delivered an update on the industry’s financial report card.

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A STATE OF THE INDUSTRY UPDATE Chris Rapanick, managing director of research at NACS, led attendees of “State of the Industry Update: Leveraging the Latest Financial Benchmarks” through a deep dive of the convenience industry’s financial report card with “a goal to help you make use of this data to make better strategic decisions.” The session covered top-of-mind and key performance metrics on inflation, fuel and store counts based on the data presented at the State of the Industry Summit in April 2023. While a lot has changed since earlier in the year, inflation remains a top concern. “Everyone was concerned with how inflation was affecting business and asking, ‘How bad will it get?’” noted Rapanick. NACS, using BLS data and other syndicated sources, determined the actual level of inflation on the categories accounting for at least 85% of sales (for example, salty snacks). This meant, “If you were operating in 2022 and you grew your merchandise sales at a rate less than 9%, then you were probably losing against inflation,” explained Rapanick. Today, that percentage is closer to 6%. Inflation’s impact on foodservice improved as well. Inflation’s impact on foodservice came in at 10.5% in the first half of 2023, down from 15.5% in 2022. Recent data on fuel sales revealed that fuels’ total sales contribution saw a yearover-year decrease from 75.3% to 71.1%, and total gross profit contribution decreased from 43.6% to 41.7%. Fuel prices settled at about a $3.50 average for the first half of the year, a 14.5% decrease from the same time last year. “Another thing that we always share at the summit is the store count, and everyone waits with bated breath to see how the store count

changes over the year,” said Rapanick. “In the first half of 2023, the total store count grew 1.3%, driven by single stores and large chains. Companies with stores in multiple regions drove much of the E-size chain store growth.” Rapanick closed out the session with some advice: “Do something to get outside of your company. Benchmark against your competitors, as well as top performers in the industry. Whether you are foodservice-focused or fuel-focused, it’s important to evaluate your competitive position.”

Innovation is about much more than new flavors, the “Innovating Your Menu” panel agreed. It’s also about better operations. INNOVATING YOUR MENU The first step of becoming an innovator is to never settle, Jessica Williams, founder and CEO of Food Forward Thinking, stated at the “Innovating Your Menu” education session. It involves always looking to improve, no matter how hard or impossible it may seem. Additionally, Williams said that “success doesn’t come by accident. It doesn’t happen by chance. It’s planned.” She emphasized the need for a formal innovation process and open communication within the team. Innovation doesn’t work as well if only one person understands the process. Stephanie Hurt, head of food innovation and development at QuikTrip, discussed the logistics of menu innovation. According to Hurt, menu innovation requires operational innovation. And in order to successfully innovate, she said, you can’t just consider things at the corporate level—you have to look at them from the team members’ perspective.

Recently, Hurt and her QT team went to talk to crew members. “Not the managers, by the way, and they’re great, we all love them,” she said. “However, we really want to talk to the people who are actually doing the work.” After talking to the team and implementing operational changes, QuikTrip saved 16 hours of labor per week, per store. Instituting operational change is just one aspect of menu innovation. Tony Sparks, head of customer wow at Curby’s Express Market, stressed the importance of using the data you have to move forward: “It’s not getting the data. It’s not reviewing the data. It’s doing something with the data.” As an example, Sparks discussed his process of creating the menu at Curby’s. In his research, he noticed the rapid rise of cold beverages and energy drinks, causing him to focus on hand-crafted drinks in his menu. Curby’s Express Market offers freshbrewed tea, craft sodas, hand-crafted customizable energy drinks, shakes and various coffee creations. With these offerings, Curby’s beverages make up 38% of sales and continue to grow, said Sparks. “Menu balancing is more than just food,” said Sparks. It can be beverages, it can be trimming the menu and it can be instituting operational changes. Williams added, “Don’t be so food-focused that you can’t see opportunities outside of your category.” THE FUTURE OF FUEL RETAILING The session “The Future of Fuel Retailing” discussed how fuel retailers need to anticipate the evolving needs of their customers and adapt accordingly. Transportation Energy Institute Director John Eichberger moderated the session and provided some significant background information for the discussion. Gallons are going away, but not necessarily from the most perceived source. He addressed the common messages coming out of the media and many governmental institutions related to electric vehicles compared to reality. For example, surveys show that Americans believe 20% of vehicles in operation are electric. In reality, only 1.5% to 2% of vehicles in operation are electric.

“Electric vehicles are a huge part of the future, and they’re a great tool to be leveraged on this path to a lower environment-impact transportation system,” he noted. “However, they alone are not going to achieve what the objectives are.” Eric Nelsen, managing director for AlixPartners, added that perhaps 5 to 10% of traditional gas stations will be closed in the next 10 years or so. “It doesn’t matter what’s driving [the loss of gallons],” he said. “It’s still a challenge for you all and you should be focused on how to win in that environment as opposed to being one of those casualties.” Matthew Dunn, head of mergers and acquisitions at Pilot Company, discussed its approach to the challenge. “It’s about offering the guests quality product—what they’re looking for. We have a loyalty program, we have a mobile app, so we try and engage customers where they are as frequently as they need so that we can let them know what we’re offering,” he said. FOOD SAFETY AND THE RISKS YOU CAN CONTROL Intentionally managing food safety can enhance your brand and reputation—and protect the customers you serve. During the “5 Food Safety Risks You Can Control” session, food safety and foodservice leaders from La Crosse, Wisconsin-based Kwik Trip discussed how convenience retailers can build the foundation of a food safety program by

How should retailers adjust to gallons going away was a theme of “The Future of Fuel Retailing.”

We really want to talk to the people who are actually doing the work.”

NACS NOVEMBER 2023 57

Say what you do, do what you say ... and prove it.”

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addressing the top five food safety risks and help mitigate most foodborne illness risks. They also emphasized that with the 2011 Food Safety Modernization Act, focusing on food safety is more important than ever as rules and regulations are rapidly changing. Dr. Jay Ellingson, chief scientific officer at Kwik Trip, summarized the thousands of pages of the 2011 act (the most sweeping changes in food safety in the U.S. since 1933) with three statements: “Say what you do, do what you say and now, today, you have to prove it.” The leading five food safety risks are: purchasing food from unsafe sources, improper cooking temperatures, using contaminated equipment, poor personal hygiene (particularly improper handwashing) and improper holding temperatures. To avoid purchasing from an unsafe source, examine your food supply chain and have a written vendor approval process. Only purchase from reputable vendors, review annual third-party food safety audits, confirm liability insurance and develop a recall plan and verify its effectiveness. Kwik Trip’s food program began in 2002. That year the company had food sales of $61.5 million, and in 2023 food sales reached $1.4 billion. Christina Hanson, director of foodservice, said of those early days, “Honestly, I felt like we were throwing away more food than we were selling, but we were dipping our toes into the food business.” “With the growth of our food program, we also had to grow our leadership teams,” Hanson explained. Kwik Trip instituted a layer of Food Service District Leaders who undergo training focused on safely selling food. Improper handwashing is the No. 1 cause of foodborne illness in the United States. Review the most important times to wash hands, such as after using the restroom or handling raw product and allergens. In addition, part of personal hygiene is keeping ill co-workers out of the establishment. Create an illness policy and document when illnesses are reported. In the event of an outbreak investigation, documentation of who was sick, their symptoms and the action taken is required. Showing the proof behind a food program

also includes documenting temperature checks and equipment cleanings. The best way to grow your food program is to start benchmarking with the right companies and the government, and continually communicate with those groups. Ellingson recommends reaching out to your health inspectors to walk through their expectations and your business model. “I’m an old baseball guy. By benchmarking, you hit the sweet spot and you’re one step ahead of regulations,” said Ellingson. The next step in foodservice regulation is active managerial control and tech-enabled traceability, which will become prominent in the coming years. “Before 2026, every retailer or production facility needs to understand what these new laws and regulations are to mitigate risk for your company,” said Ellingson, in reference to the FDA’s final rule on tech-enabled traceability.

The panel discussing seasonal offerings agreed that seasonal displays are a great way to engage associates. SEASONAL OFFERING TIPS In the session “Growing Baskets with Seasonal Offerings,” category managers gave their advice for capitalizing on these products. The session began with insight provided by Jason Zelinski, vice president for North American retail at NIQ. Internationally, 21% of yearly fast moving consumer goods (FMCG) value sales occur during eight main international holidays: Thanksgiving, Halloween, Christmas, global New Year, Chinese New Year, Valentine’s Day, Easter and Ramadan. Data shows that convenience stores don’t see the sales spikes that other channels do around the holidays. However, c-stores still see seasonal surges. Beer sales spike near the Fourth of July and Thanksgiving, for example, including a major spike in beer packages with more than 12 cans. Zelinski also pointed out that seasonal spikes are not just related to holidays.

Depending on customer demographics, seasonality can revolve around sports, school calendars, vacation destinations and more. The panel consisted of Rebecca Gregory, the center store category manager at Weigel’s Stores; Joseph Bortner, senior category manager at Rutter’s; and Peter Kempton, Jr., senior category manager at TravelCenters of America. They agreed that using data is vitally important. “It’s like you’re up against the clock, right? You’re kind of gambling with your forecast and hoping that you hit that sweet spot as the last Reese’s pumpkin is sold on Halloween,” said Bortner. “So how we’ve always approached it is using data as the guidelines.” The panel also emphasized the importance of making the offerings fun for associates— they make it fun for the customers. Gregory described how Weigel’s will have store decoration contests, where the winning store receives prizes. NACS NOVEMBER 2023 59

needs to be properly trained on correct procedures, such as how to lift items, and that food safety is a weak spot for a lot of operators. “My priority for employees is: What is our culture of business?” Wells said. “[It’s] that we care about our employees and our customers and that we have a safe store environment.”

Overall demand is going down but operators still have opportunities, according to the “Thriving in a Shifting Fuel Market” panel.

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BEING A SAFE STORE Being a safe store requires focusing on a variety of things—among them crime deterrence, hazard prevention and food safety—and all are important when making sure everyone in your store returns home unharmed every day. At the “Creating a Safe Store Environment” small operator workshop, speaker Mark Wells, the owner of LJT Management, reminded attendees that while they may have policies and a plan in place, the key to success is daily enforcement. Attendees sat at round tables around the room and were frequently given time to converse and collaborate. Wells would pose questions to the tables, and people at them would then talk through issues before bringing what they had discussed back to the larger group. Discussion started around what a safe store environment is—and what everyone in the room thought were some elements they needed to work on. One thing top of mind for those in the room was robbery deterrence and prevention, and Wells asked the group to share some of what they’ve been doing to mitigate these issues. Some people shared that they had been working on employee training, making sure employees are never alone and implementing new security systems. “There’s no better way to train than through experience,” Wells said. He recommended quizzes or simulations such as fake robberies. Wells said that everyone in the workplace

THRIVING IN A SHIFTING FUEL MARKET Today’s vehicles are more efficient than ever, which is cutting fuel demand along with the current push to decarbonize transportation. The session “Thriving in a Shifting Fuel Market” provided insights on how to maintain profitability at the pump when drivers demand less fuel, and how to leverage low carbon trends. Still, there is plenty of expected demand for energy. “Gasoline demand is not going up. Let’s be honest about it, it’s going down. But we have a population that continues to grow, not just in the United States, but globally,” noted Denton Cinquegrana, chief oil analyst at OPIS, a Dow Jones Company. “So, we’re going to need energy. I don’t care where it comes from—renewables, nuclear power, fossil fuels, whatever.” Katie Kline, U.S. south sales manager for Exxon Mobil, expanded on the theme. “Governments are not going to be able to subsidize their way into the emissions reductions that they want to see. It must have consumer support. There’s not one pathway that’s going to get to this energy transition state. What we need to consider is an all-of-the-above approach. There’s no outlook for 2050 that doesn’t include oil and gas.” From a success standpoint, it was noted that Casey’s fuel sales were up 0.4% in a region where the overall sales were down about 4%. Nathaniel Doddridge, Casey’s VP, fuels, noted the company prides itself on things that attract people to the stores besides the fuel. “Being able to offer a competitive pizza price against the Papa John’s and Pizza Huts of the world brings traffic to our locations,” he said. “You think about some of your value items like our private label, those things are

attracting people in this kind of recessionary environment. We’ve got seven million rewards members. So how do you attract and retain and reward people for coming to your pad? I think those are the things that make the most difference right now.”

The FMN Fuels Innovator of the Year Awards recognized OnCue and Sheetz.

EMBRACING DEI AS A BUSINESS IMPERATIVE According to Larry Hughes, the vice president of corporate human resources and DEI at 7-Eleven, diversity, equity and inclusion (DEI) should be a “business imperative.” “Within convenience, nearly two-thirds of customers consider inclusiveness and brand marketing to be important when choosing a store,” he said at the “Building a Culture of Diversity and Inclusion” session. Kent Montgomery, PepsiCo’s senior vice president of industry relations and multicultural development, said he and his team take a multipronged approach, looking at the impact they can have on people, businesses and the community. 7-Eleven has a three-pillar approach to DEI: • A culture that embraces diversity • A diverse workforce where everyone feels included • Community outreach To help with these three things, 7-Eleven has created a number of Associate Business

Resource Groups (ABRGs)—“groups inside of the organization that really focus on the development and progression of folks that belong to certain demographics,” Hughes said. These include 7Hola, which recently hosted Dr. Franklin Chang Díaz, the first Hispanic NASA astronaut, as a guest speaker. The company has a number of other ABRGs, including for veterans, Black professional women and young professionals. Hughes said 7-Eleven has only leaned on ABRGs over the last five or six years, but they’ve already become an integral part of the company’s strategy. Recently, 7-Eleven reached out to people to see how the ABRGs are being received, and “82% said they feel more engaged with the enterprise because of their activity inside the ABRG, and we know there’s a straight line between engagement and productivity, and there’s another straight line between productivity and profitability.” He added that the ABRGs help 7-Eleven maintain a “competitive advantage through our human capital” because, in a time when employee turnover is high, happy, engaged workers stay longer. DEI is so important to 7-Eleven that it’s part of the company’s enterprise strategy, and Hughes said these ABRGs will continue to gain momentum moving forward. Montgomery said the retention rates he has seen among these affinity groups has been double what he’s seen elsewhere. “Our affinity groups do a great job recruiting on behalf of our company,” he said. “And there’s nothing better from a recruitment standpoint than to have someone … who’s currently in a company saying this is a great place to work.” RECOGNIZING INNOVATIVE FUEL RETAILERS The FMN Fuels Innovator of the Year Awards were presented by Fuels Market News Magazine at a combination award and education session. OnCue Marketing received the award for an operation with under 100 sites and Sheetz for an operation with 100 or more sites. The convenience retailers were selected for the award based on overall fuel excellence, technology and operational efficiency. The awards were determined by combining

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Engaging women consumers is not about excluding men, it’s about excluding stereotypes and elevating the customer experience

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the criteria used in the annual OPIS/FMN Fuel Leaders issue that ranks retailers with a core focus on fueling efficiency, plus examining how retailers innovate with fuel products, their use of technology and strategies for EV charging. A lively Q&A session ensued after the awards were presented. Representatives from both companies were asked how they perceive and promote the energy and fueling offer compared to the other offers that they have inside the store. “Our company has always had a focus on using the forecourt to get people to come into the main store,” said Scott Minton, director of business development, OnCue. “We want to have a nice, open, inviting forecourt, so we have canopies that cover our customers from the dispenser all the way to the store. We want to make sure everyone feels comfortable going in, but once they get in you have to give them a good experience there as well. And of course we offer a lot of different fuels to get as many people on the forecourt as we can.” Brian Renaud, director of retail fuel pricing and analytics, Sheetz, gave his company’s perspective. “I’ll just echo some of Scott’s comments,” he said. “We feel fuel is the front door to our business, then you take advantage of our tremendous inside offers. Our customers value both fueling and our inside offer. And now with EVs coming along the way it is, just a diverse product mix across the space.” WOOING WOMEN TO YOUR STORE Bridget Brennan, CEO and founder of Female Factor, a consulting firm focused on understanding women consumers, shared her work researching women’s purchasing behaviors and the external factors driving them to the store in a Super Session. “Engaging women consumers is not about excluding men, it’s about excluding stereotypes and elevating the customer experience,” she said. Brennan implored operators to understand the connection between profit and purchasing power—women are responsible for 70-80% of consumer spending.

She notes that, based on her research, 43% of convenience store shoppers are women. She wants to know why that number isn’t higher. “When women participate in a business, a sport or an industry ... it grows,” she said, citing the global fitness industry explosion in recent years. Driven by women, new sectors include studio/boutique fitness, athleisure fashion and wellness and nutrition supplements. Brennan discussed the four reasons why women buy: • Societal and family roles • Time and money • Cultural relevance • Health and safety She noted a cultural shift from “Where can I buy it?” to “Where do I want to buy it?” How can operators incorporate what women want

During a super session, Bridget Brennan described how wooing women to a store helped attract more men, too.

How can c-stores best profit from EV drivers? “The Business Case for EV Charging” dove into challenges and opportunities. with how best to give it to them? Brennan explained her Four Motivators Framework, a formula for driving an emotional connection and winning women’s business. 1. Connection: Women want to feel connected with the brand, the store and the associates. More women are looking for services over products, so how is your business helping her check off her to-do list? 2. Inspiration: “Inspiring is the new selling. Nobody wants to be sold.” Brennan explained that women want to feel inspired to stop, shop and buy. Are you making shopping easier for her by bundling products or offering new ideas? Does she feel inspired to come in because the exterior looks well-maintained, clean and safe? If a woman can feel safe, she can feel inspired. 3. Confidence: “Women want to feel confident they will have a good experience,” she said. Does your store make them feel confident that they will have a good experience? Brennan specifically noted that good lighting inspires confidence. 4. Appreciation: Brennan lauded the “underappreciated art of appreciation” as a significant factor in driving repeat business. Frontline associates can welcome women into the store, initiate conversations and thank them for their business. 66 NOVEMBER 2023 convenience.org

MAKING A PROFIT SELLING CHARGING The market for electric vehicles continues to expand, creating increased demand for publicly available EV chargers. The session “The Business Case for EV Charging” dove into the realities of charging economics with insights that can help retailers realize a profitable return on investment. “Don’t underestimate the amount of learning that needs to happen. Everybody in your company has to go through their own learning process,” said Scott Shepard, director, EV program research, Center for Sustainable Energy (CSE). “There’s a lot that you can do with data to help tailor your program to make sure you’re optimizing takeaways. Using transaction data to understand the relationships and what users need is key.” Data aside, applying the attention to detail and customer service that you are already providing to the conventional fueling customer to an EV customer is beneficial. “Our philosophy at Parkland has been that EV charging is more than just a plug. I think everybody in this room recognizes that a gas station is more than just a fuel pump,” said Scott Sharabura, vice president, EV charging, Parkland Corporation. “Having strong amenities, a great bathroom, great food, safe lighting, great easy access, location—things like that. We’ve been trying to recreate that for EV drivers as well.” He noted that Parkland has been putting in lighting to continue that safe environment, and canopies to protect the EV driver from sun and rain. EV drivers also provide some special opportunities. “People are there longer than fuel customers would be,” Sharabura said. “They’ll be at your site for 20 to 30 minutes. It’s a great opportunity for retailers if you have a captive customer there for 30 minutes.” Leah Ash, Shannon Carroll, Lisa King, Batya Levy, Keith Reid and Emma Tainter contributed to this article.

COOL!

Here are top 10 new products from the 2023 NACS Show.

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he Cool New Products Preview Room at the NACS Show is the place to be. It’s where attendees could get an inside look at the best and newest trends in the industry. Every year, retail buyers are permitted special, early access to the room on the opening day of the NACS Show—a whole day before the expo floor opens—in addition to early access when expo opens to everyone the next day. Whether it was an attendee’s first time at the Cool New Products Preview Room or their 15th, there was something there for everyone to behold. While visiting the room, NACS Show attendees were able to scan QR codes for the products on display through the NACS Show mobile app. Once scanned, the app offered guests information about the product and which booth to visit on the Show floor for more information. There were 300 products on display this year and 17,082 total scans. These were the top 10 most-scannewd products.

LUNCHABLES CRISPY GRILLED CHEESIES KraftHeinz

SOW GOOD FREEZE DRIED CANDY CB Distibutors, Inc. dba Fenix

SAFE PINCH TAMPEREVIDENT BOWLS WITH INSERT Anchor Packaging

FREEZE DRIED CRAZY CANDY Smithco Distributing DSD Express

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NEW PRODUCTS FROM DRINK BLOCKS LLC Drink Blocks, LLC

NEW PRODUCTS FROM HATCHERI FOODS Hatcheri Foods

NEW PRODUCTS FROM CHEERS Cheers

VALUE LUNCHABLES KraftHeinz

CAFÉ TANGO Frazil

ALCOHOL BREATHALYZER RAPID TEST Big Ideas Marketing

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INNOV From crawfish to a t-shirt press, this year’s NACS Ideas 2 Go program has something for everyone. BY CHRISSY BLASINSKY

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VATING

GETHER NACS NOVEMBER 2023 73

CAJUN COUNTRY FOOD FINDS In Louisiana, the local gas stations are the best places to eat. From shrimp po’boys to homemade boudin to fried catfish to boiled crawfish and plate lunches for under $8, the four stores NACS visited in south Louisiana prove that gas stations are supreme when it comes to authentic, and delicious, Cajun fare.

YABBOS DRIVE-THRU You might remember reading about Yabbos in our July 2022 issue. We got to see the team in action as they took care of customers, and we enjoyed some very large crawfish. “We have a little bit of everything here. At our soul, we’re a convenience store,” said Adam Brewer, general manager of Yabbos. “We serve plate lunches Monday through Friday, we have burgers, wraps, we boil crawfish … our customers love it,” he said. And there’s the chocolate chip cookie, which team member Kaylee Mouret said is not only popular, but is the size of her face. Brewer explained that a unique feature of the convenience store is that customers literally drive through the store and don’t have to leave their vehicle. “We want people to say, ‘Wow!’ But not only wow, but ‘I had a really great experience and really good service driving through.’ Ultimately it’s all about the customer experience here,” he said. Yabbos also has a strong social media presence and posts pictures of its plate lunches and drink specials daily on Facebook and Instagram. 74 NOVEMBER 2023 convenience.org

WALLY’S With locations in Fenton, Missouri, and Pontiac, Michigan, Wally’s pitches itself as the Home of the Great American Road Trip. What’s driving this concept, from the branding, store layout and design to the foodservice, clean bathrooms and own-brand merchandise, is early childhood memories of family road trips along Route 66. Cousins Michael Rubenstein, president and CEO of Wally’s, and Chad Wallis, chairman of the board, fully embrace the notion that first impressions count, especially when customers walk into either of the Wally’s locations for the first time. “We want that first impression to be a smile on their face and know that they’re entering a space that’s comfortable, exciting and a new experience, and we hope that experience is something the guest hasn’t experienced before,” said Wallis. The Fenton store is about 36,000 square feet with more than 72 fueling positions and electric vehicle charging stations. Store design captures the feel of an ’80s family road trip, along with mid-century vibes. Growing up together, Rubenstein and Wallis have fun road trip memories and see Wally’s as a destination for current and future road warriors. “We’re hoping to bring that opportunity to other people who get to go on a road trip, and hopefully this is a memory that they get to take home with them,” said Wallis.

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BOURBON STREET DELI We’ve written about Bourbon Street Deli a few times in NACS Magazine, most recently in the May issue, where Angelle Cloud, director of foodservice compliance and corporate dietitian, shared how the company helped its community get back on its feet after Hurricane Laura in 2020. We visited Cloud at a Bourbon Street Deli location on Abbeville, where the shrimp po’boys and crawfish Acadiana loaded fries are local favorites. When it comes to great food, the key to Bourbon Street’s success is consistency. “We make sure all our people are trained the same way. They have the same ingredients and the same instructions,” she said, noting that customers appreciate the local flare. “Our seafood comes from Louisiana sources. They are local products and are shipped directly to us, and then we use those ingredients from scratch to create really great products,” said Cloud. With such an extensive menu of fresh ingredients and raw protein, including seafood, Cloud emphasized the importance of food safety: “Nobody deserves more care and more attention than the health of our customers. We want to make sure that our customers don’t have to worry when they come to us and they feel comfortable.”

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FAVTRIP FavTrip has three locations, with stores in Kansas City, Grandview and Independence, Missouri. CEO Babir Sultan fully embraces the power of social media, including posting videos of customers getting caught red-handed shoplifting. “We’re not afraid to download security footage and make fun of somebody,” he said. Those videos are posted to FavTrip’s YouTube channel. As of September, FavTrip had more than 84,000 YouTube subscribers. “We started putting up video with no content, just background music. And then one of our videos hit 4 million views. There were people in the comments section saying they’re from Mexico, from Detroit, you need to open a store here, and then a local customer would say, ‘I’ve lived in Independence, Missouri, all my life and I didn’t know you existed!’ So we started doing more and being consistent,” Sultan explained.

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CAJUN COUNTRY FOOD FINDS

VAUTROT’S Joshua Venable, the owner and operator at Vautrot’s, has been running the store his godfather opened more than 50 years ago for the last 15 years. Aside from offering delicious made-from-scratch food, it’s also a meat market, deli, gas station and convenience store. “It’s hard to describe,” he said. “You’re talking about a little store that employs almost 30 people. It’s a lot of moving parts. It’s an experience.” What makes the food at Vautrot’s unique comes directly from the kitchen and the kitchen manager, Janie Monroe. “She’s the best cook in 100-mile radius. People come for her cooking every day,” said Venable. “People come from all over just to get her plate lunches, burgers, po’boys, salads—you name it.”

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SHEETZ Earlier this year Sheetz opened its Innovation Hub, also known as the Sheetz Pittsburgh Office, in a historical business complex called Bakery Square in downtown Pittsburgh. The Pittsburgh Office is attractive to college graduates from the University of Pittsburgh and Carnegie Mellon University. The staff of about 70 has a central focus on innovation and testing new ideas for the company. Their goal is this: Find ideas that will put the current version of Sheetz out of business over the next five years. “The expansion of our office space at Bakery Square will allow us to further develop, test and implement transformative products and services that will help Sheetz meet and surpass customer demand for the ultimate one-stop shop,” said Emily Sheetz, vice president of strategy and IT.

Education Sessions Available Online Now Purchase access to 40+ education sessions through the NACS Store today.

Scan to unlock what you missed.

CAJUN COUNTRY FOOD FINDS

CORNER GROCERY Located in the small town of Loreauville, population around 700, Corner Grocery serves its community by being a bit of everything: convenience store, grocery store, general store, restaurant, gas station and hot spot for Sunday barbeque. “When you have a small community that can’t support a whole restaurant, you still need places to eat. So we’re happy to serve in that role,” said Mandi Pooler, co-owner of Corner Grocery. Like many gas stations and convenience stores in Louisiana, plate lunches are a daily attraction. “Our plate lunches are definitely a hit. When we decide what we’re cooking, we post it on Facebook because we know people are looking to see what we have. And then at 10:30 a.m. when our plate lunch is ready, we post a picture—and if we forget to do that, people let us know,” said Pooler, adding, “and our Sunday barbecue usually sells out every week.” 80 NOVEMBER 2023 convenience.org

Y-NOT STOP Since 1987, south Louisiana locals have come to know and rely on Y-Not Stop convenience stores, operated by St. Romain Oil Company. Annie Gauthier, co-owner and CFO, envisions Y-Not stores as the Chick-fil-A of convenience stores or the Buc-ee’s of Louisiana—but on a much smaller scale. “When customers walk into a Y-Not Stop, we want them to feel like it’s open and inviting. We want people to plan their trips around where there is a Y-Not Stop,” she said. Being in south Louisiana, where plate lunches from gas stations rival—and beat—five-star restaurants, Gauthier said her teams learned a long time ago with food that “we can’t be all things to all people and we can’t execute on all things well.” The retailer pared down its menu to select offers at Y-Not Stops and focuses on the items that move. “We try to keep things fresh by having limited time offers, but we also try to be focused on not bringing in too many new ingredients and overcomplicating processes. A lot of our limited time offers are around our cookie program, because it’s not a big training lift,” she said. Chrissy Blasinsky is the digital and content strategist at NACS. Got an idea for a road trip stop? Shoot her an email at cblasinsky@ convenience.org.

THANK YOU FOR VISITING US AT THE

Missed the show? Scan here to learn more!

Adding revenue-generating services to a convenience store can boost traffic and

THE BOTTOM LINE. BY AMANDA BALTAZAR

LOOKING David MalanGetty Images

NEW

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FOR

onvenience stores are hubs of communities. They’re where consumers pick up snacks, beverages, tobacco, gas and other sundries, but they can also be a place to do a lot more than that. Consumers at c-stores can play games, use simulators, wash their dogs and their cars, go bowling, trade cryptocurrency and even pick up dry cleaning. “Convenience stores are all about providing convenience, and the savvy operators are the ones investigating ways to provide convenience in all new ways,” said Brynn Capwell, CEO of Archer ATR, a consulting firm in Rochester, New York. However, success, she said, comes down to performing due diligence. “Do you understand what you are getting into, the resources you’ll need and the space it’ll demand? Second, have you performed a thorough consumer-needs assessment? Is there a brand people love, or a specific need the consumer expects this offering to address?”

IDEAS

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Travelers in South Carolina can relax in this bowling alley in a Petro.

CUSTOMERS AT TWO 7-ELEVEN STORES IN HAWAII CAN DROP OFF AND PICK UP THEIR DRY CLEANING.

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OUTSIDE THE BOX TravelCenters of America’s Petro in Columbia, South Carolina, lets customers kick back in a bowling alley or at sporting simulators for golf, hunting, baseball and basketball. The company has other locations that offer “dwell time” spaces, lounges with Wi-Fi where drivers can watch sports or movies. Customers at two 7-Eleven stores in Hawaii can drop off and pick up their dry cleaning through the chain’s partnership with Hakuyosha Clean Living. Customers use their phones to register for the program and receive a notification when their clothes are ready for pickup from contactless lockers. The company would love to introduce more but space is an issue. “These two stores had a bigger footprint,” said Annika Streng, marketing manager, 7-Eleven Hawaii. “And we did try to pick locations in business districts to make things as convenient as possible for customers.” GAMES OF SKILL Dragon’s Ascent, Gem Master and Amigos Locos are just some of the options from PaceO-Matic, a Duluth, Georgia-based company that offers legal games of skill. The company works with around 3,000 convenience stores and is helping draw more people into the stores.

“We’re bringing consumers from the gas pump into the location and giving them a reason to stay,” said Gina Trumm Reinhardt, chief marketing officer. These people play the games for fun and entertainment, the company’s research shows. That research also shows these customers stay in the store for around 30 minutes and buy products, “so it’s increasing the overall market basket.” The stores with the games, Reinhardt points out, typically see a 5% to 8% increase in overall revenue. Many c-stores also have ticket terminals so when a player wins at the games they can cash out their ticket by themselves, without involving store staff. A video screen demonstrates how to use the machines and how to redeem tickets. Stores typically sign up for a five-year contract and aren’t allowed more than three games, “because we don’t want this to be more than 50% of their income,” said Reinhardt.

These games “can be very profitable,” said Ed Burcher, partner, The Business Accelerator Team, Phoenix, Arizona, but there are tradeoffs. “You may have lost … prime parking places in the front of your store for 30 minutes or more for your core food, beverage or tobacco guest,” he says. In addition, he points out, companies may make future growth more difficult with placement of offers that limit kitchen and storage expansion. BITCOIN ATMS Around 6,000 U.S. convenience stores offer Bitcoin ATMs, and these typically work best in high-foot-traffic stores, says Bitcoin Depot COO Scott Buchanan. Once a convenience store has opted to have a Bitcoin ATM, the two parties agree on a monthly rent, plug it in and it’s open for business. Ideally, they’re placed near the door, says Buchanan, though they can go anywhere. Bitcoin pays the stores to lease the space the ATM goes into, which turns them into revenue generators for the store. The machines drive people to the stores, too, he adds. DOG WASH Evolution Dog Wash is featured in 400 to 500 c-stores. “It’s a growing market, as people travel more with their pets,” says Matt Ogden, president of the Golden, Colorado-based company. He points out that more than 60% of truckers now have a pet with them. As that grows, c-stores are also adding pet areas. The dog washes appeal more to traveling consumers, he says, though plenty of customers also bring their dogs from home to the convenience store for a wash.

According to the American Pet Products Association, 70% of U.S. households owned a pet in 2022, and 78% of these people traveled with their pets. Evolution has two main varieties of dog wash machine—a larger model and the mini. The machines are fully automated. Evolution controls everything from soap to water temperature. The machines don’t require any interaction from store staff. The larger model is more popular with convenience stores because it has more features. Also, says Ogden, it “is a statement piece.” Convenience stores either buy the Evolution dog wash machines outright or lease them with a revenue share. “People who wash their dog in our machine in general spend 30% more in the c-store” than regular customers, he says. Stores with these machines “can capture revenue from more items in the store and from higher profit items.” Many of the Evolution customers are new to the store, too, says Ogden—50% to 60% of users don’t normally stop at the store, creating the possibility of winning new customers. Ogden reports that Evolution washes at convenience stores typically wash six to eight puppies a day, with 15 to 20 on weekends. The average wash is about 10 minutes for $12, says Ogden, “but we’re seeing a migration to $15 for 12 minutes.” In a 12-minute wash, the operating costs are just $1.70, including water, electricity and soap. Once the machine is installed, a staff member has to check the machine around once a day or every 10 washes.

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WE HAVE SIGNAGE ALL THE WAY FROM THE GAS PUMP, WITH DANGLERS INSIDE THE STORE TO LEAD PEOPLE TO THE GAMES.”

CAR WASH OPW Vehicle Wash Solutions has machines at hundreds of convenience stores nationwide. Before adding a car wash the company needs to ensure there’s adequate traffic to warrant it. “One of the first questions we ask is how many gallons of fuel are you pumping per month,” says Kris Oliver, North America sales manager. That gives OPW an idea of how many cars it would expect to wash at the site. “We also take into consideration the demographics and the traffic in the area,” he added. “You need space for the car wash and room for the queue for the car wash,” said Oliver. “Typically we plan for four to six cars stacking, and maybe that line wraps around the backside of the building. Demographics are also important, he points out, because in a higher-income area, more people are likely to use the car wash. “Car washes went down in Covid when people had to choose where to spend money. It’s something that’s easy to cut out. But cars are becoming more expensive right now and people want to take care of them.” Convenience stores buy the car washes outright. If it’s a new construction for the car wash, it usually takes five to seven years to see a return on that investment, Oliver says. For sites that are replacing an existing car wash, Oliver says that the return on investment is faster—two to three years. Once it’s installed, consumers pay on average $12 for a car wash and a site typically washes 12,000 to 15,000 cars a year, though that can go as high as 25,000 at some locations. Oliver said that it’s not just the revenue from the car wash that’s beneficial. Sales of fuel rise and so does foot traffic in convenience stores after a car wash is installed, LOCATION MATTERS Gaming machines can be located anywhere, though near an eating area is a great spot, Reinhardt said, because the games and food-

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service complement each other “by encouraging patrons to stay in the location longer and purchase more items.” It’s important to lead customers to those game terminals, Reinhardt said. “In Texas, we have signage all the way from the gas pump, with danglers inside the store to lead people to the games.” Pace-O-Matic also puts information about the games outside the stores on trifolds around bollards and on reader boards, as well as digital boards within stores. Signage at EV charging stations can also be a good idea, since these drivers have time to kill. “This gives the consumer something to do,” said Pace-O-Matic director of marketing Evelyn Frederickson. Evolution dog washes can be placed inside a c-store or outside. Indoors, they require a space that is eight feet by eight feet, ideally fenced in to separate it from the rest of the store and to allow some secondary retail tied to dogs. One multilocation retailer places them inside at the back of the store, so that dog owners have to walk past a lot of merchandise. However, more often than not, retailers are putting the dog washes on the outside, often under a lean-up with a little roof or in a small standalone building. The placement of an OPW car wash “is key to being successful,” said Oliver. “If space permits, I want that car wash where it can be seen from the pumps, seen from the road. A lot of the older car wash facilities were tucked behind the building. and you don’t even know there’s a car wash there.” There have been a lot of eye-catching enhancements to the equipment, too, over the years, said Oliver. The car washes flash colored lights when they’re in use, which can also draw the attention of people driving by. And the bays are well lit so that all customers feel safe. “It’s open and inviting; we’re trying to make that overall experience easy for everyone,” said Oliver. At the end of the day, said Capwell, convenience stores are community hubs. Services like dog washes, laundry pickup and games of skill encourage community engagement, giving them an increased chance of success.

March 12-13, 2024 Washington, DC

Convenience

United

Join us as we unite as an industry on Capitol Hill to advocate for your business and—ultimately—all convenience and fuel retailing establishments across the United States.

Cool New Products Guide This advertorial-style guide of services and packaging appears monthly and is an information-packed tour of ideas and approaches that can change how consumers view your store or choose your brand. It spotlights the newest thinking in convenience and fuel retailing and gives you an advance look at ways of staying in front of industry trends. Products are categorized the same way we organize the Cool New Products Preview Room at the NACS Show each year in October— New Design, New to the Industry, New Flavors, Health & Wellness, Green (EcoFriendly), New Services and New Technology. Products are considered “new” this year if they’ve been introduced since October 2021. The products featured here also can be seen in the Cool New Products Discovery Center at www.convenience.org/coolnewproducts.

NEW TECHNOLOGY

Logile Logile Thermal Intelligence

Stay out of the danger zone with Logile Thermal Intelligence

Now more than ever, your customers are relying on you to provide enhanced food safety standards and protocols. Implementing the right solution that accurately monitors and reports the actual temperature of both hot and cold foods, not the ambient surrounding air temperature, will mitigate the risk of food contamination. Maintain compliance and increase consumer trust with Logile Thermal Intelligence.

88 NOVEMBER 2023 convenience.org

NEW TECHNOLOGY

NEW TO THE INDUSTRY

E-Machines Inc.

Diageo Beer Company

ATM Machines, POS, and Credit Card Terminals.

Smirnoff Ice Original

One-Stop Shop

The OG to GO

The ultimate destination for all your payment processing needs. Call us at 516-461-3608 or visit our website www.atmb2b.com.

THE FMB THAT STARTED IT ALL IS NOW IN SINGLE-SERVE CANS. The classic citrusy Original Smirnoff ICE is now in a format that fits perfectly in your shopper’s lives– in your optimal cooler assortment. Now available in 16 and 23.5 oz cans with a fresh new look and package poised to attract a fresh wave of shoppers to the category. The flavor that kicked things off is ready to kick up your sales. For more information, call your Smirnoff Ice Distributor. PLEASE DRINK RESPONSIBLY. SMIRNOFF ICE Premium Flavored Malt Beverage. The Smirnoff Co., New York, NY.

NEW TO THE INDUSTRY

Monarchy Beverage Company Monster Tour Water ™ - Still and Sparkling

Monster ® Launches Tour Water for the public!

Making water to support the Vans Warped Tour ®, it’s Musicians, Artists, and Athletes since 2003, Monster ® has now made its Still and Sparkling water available to the public. No caffeine, no additives, just straight up great tasting pure water, nothing else! Using bold retro can designs dating back to the 2007 and 2010 Vans Warped Tour ®, these amazing looking cans are sure to attract attention on the water shelves, and the pure, great taste will draw customers back for more. Available in 19.2 oz singles, and 12pk/16oz for both Still and Sparkling water. Want to turn the volume of your water sales up to 10? Reach out to Jon Bevins: (603) 793-1287 or jon.bevins@monarchybev.com NACS NOVEMBER 2023 89

NEW TO THE INDUSTRY

Ty Inc. Beanies!

DRAGONS!! (and a lot more...)

Contact Peter Olbrys: Call 630-432-3329 or email polbrys@tymail.com about bringing Ty into your locations

NEW TO THE INDUSTRY

Crane Payment Innovations Paypod™ Compact

Paypod Reduces Operational Costs and Maximizes Customer Throughput Successful checkout strategies begin with exceptional payment technologies, which is why CPI delivers the industry’s most sophisticated and secure cash handling devices. Paypod Compact is the cornerstone of CPI checkout technology, delivering fast, secure, compact cash acceptance in all checkout designs. The new front-access variant, equipped with CPI note and coin acceptors, enhances the store experience by automating cash acceptance and minimizing wait times for all customers – not only those paying with a card or digital wallet. Featuring a secured cash cabinet and sleek design, Paypod Compact can easily integrate into an existing POS system to provide cash-using customers with a seamless payment experience. Retailers can also benefit from monitoring real-time analytics through the Simplifi™ Remote Management Software. Contact us - https://solve.cranepi.com/nacs-2023-more-info 90 NOVEMBER 2023 convenience.org

NEW FLAVORS

pladis Global Flipz State Fair Strawberry Shortcake Flavored Pretzels & Flipz State Fair Churros Flavored Pretzels

Flipz State Fair lineup twists celebrated state fair snacks into pretzel form

Available as a summer limited-time offer, the Flipz State Fair lineup is sure to take your taste buds on a flavorful ride! The two new offerings – Flipz State Fair Churros and Flipz State Fair Strawberry Shortcake – bring all the mouthwatering excitement of the concession stand staples that inspired the flavors, with no admission ticket required to get a taste. Flipz State Fair Churros feature our signature salty and crunchy pretzels coated in a cinnamon sugar churro flavored coating, drizzled with creamy milk chocolate. Meanwhile, Flipz State Fair Strawberry Shortcake offers a new twist on the light and fruity concession snack, featuring our pretzels covered in fresh strawberry, sweet cream, and buttery cake flavored coating.

NEW FLAVORS

NOS Energy / The Monster Energy Company NOS Zero Sugar

NOS Energy Kicks It Into Overdrive with NOS Zero Sugar!

The Original NOS Profile that Fans Love, NOW Formulated with ZERO SUGAR! NOS Zero Sugar provides consumers the fuel they need, without the heavy cargo and regret. NOS Zero Sugar contains 200mg of caffeine and only 5 calories per can. It provides a refreshing tropical citrus flavor with balanced mango and passion fruit notes – all in a ZERO Sugar package. For sales inquires, please visit drinknos.com.

NACS NOVEMBER 2023 91

NEW DESIGN

NCCO Clear DateCodeGenie Labels

Elevate Your Grab-and-Go Packaging with Clear Labels

Elevate your grab-and-go packaging with DateCodeGenie Clear Labels, a revolutionary solution that transforms our packaged items into enticing, information-rich presentations. These clear labels deliver a clear, easy-to-read thermal imprint of essential product details such as barcodes, brand logos, and nutritional information. Their transparent design beautifully showcases the freshness and quality of the food within, making your products even more irresistible to consumers. Crafted from eco-friendly PP5 recyclable material, DateCodeGenie Clear Labels reflect your commitment to sustainability. They come in two versatile sizes, 3” circle and 2”x 6” rectangle, boasting a robust and permanent adhesive that resists water and tearing. Ensure your products stand out in the market and offer enhanced value to your customers. For more information, visit ncco.com/cool-new-products.

NEW DESIGN

Anchor Packaging Safe Pinch® Rounds plus 3-Compartment Tray

More Versatility for Grab & Go!

The new 3-compartment tray insert adds amazing versatility to the Safe Pinch® 7” crystal clear bowls. Large windows with minimal ribbing and anti-fog keep food highly visible in both refrigerated and ambient temperatures while the secure, stackable design creates an eye-catching display. The Safe Pinch® patented, pinch-to-open, no tear-strip design is preferred by consumers and ideal for hand or automated filling.

92 NOVEMBER 2023 convenience.org

HEALTH WELLNESS

Pzaz Breath Spray Peppermint Breath Spray with Caffeine Energy

Energize the Check-Out with Pzaz Breath Spray

Pzaz is a zero-calorie breath spray with a controlled kick of energy that you keep in your pocket or bag and use anytime, delivering a small, measured dose of caffeine to keep you focused and alert. Revitalize your impulse area with an innovation that will increase cart value, add gross profit and take up no more space than another box of gum. Contact sales@pzaz.com to learn more.

INDEX NEW FLAVORS

HEALTH & WELLNESS

Pzaz..................................................................................... 93 NEW DESIGN

Anchor Packaging.......................................................... 92 NCCO.................................................................................. 92 NEW FLAVORS

Greenridge Naturals

Greenridge Naturals...................................................... 93 Monster Energy Company............................................ 91 Pladis Global dba Star Brands..................................... 91

Greenridge Naturals Snack Sticks

NEW TO THE INDUSTRY

All-Natural On-The-Go Energy

Crane Payment Innovations........................................90 Diageo Beer Company USA........................................ 89 Monarchy Beverages..................................................... 89 TY Inc..................................................................................90

Greenridge Naturals is a family-owned brand that produces all-natural meat sticks, deli meats, and sausages. Our popular beef and chicken snack sticks debuted at NACS in convenient 1-ounce servings in four flavors including the new Italian-Style Grass-Fed Beef and Buffalo Chicken Snack Sticks, as well as our popular Classic Grass-Fed Beef Stick and Jalapeno & Cheddar Grass-Fed Beef Stick. Available in multiple snack pack options including single, two, and four packs, these snack sticks are high in protein, with zero sugar and no added nitrates, nitrites, or artificial flavors.

NEW TECHNOLOGY

Logile Inc........................................................................... 88 E-Machines Inc................................................................ 89

GAS STATION GOURMET

C-Store Staples With Local Flair Calloway’s Tennessee Kitchen features “affordable, delicious regional food.” BY AL HEBERT

alloway Oil Company started in 1957 as a wholesale distributorship. The company’s first convenience store, EZ Stop Food Mart, opened in 1984 in Maryville, Tennessee. The company stayed in the family and grew. It now has 24 convenience store locations. Trenton Langston is the fourth generation to work at the company. When he came on board, he looked at where the business needed to go. “We knew we needed to start something new,” Langston said. “Food is a huge part of our future going forward. Convenience and quality foods are part of our vison for success.” Calloway’s Tennessee Kitchen opened in September of 2022 in an EZ Stop. THE BEST LOCAL PRODUCTS “We’re a family business. We want to have the best ingredients and feed other families as we would feed our own. We try to stick to a simple pantry of ingredients that you might have in your own home but use them in a way that celebrates the quality of the food and creates fun experiences right in our gas stations,” Langston said. To follow through on Calloway’s Tennessee Kitchen’s commitment to using local and regional products, Langston employed a strategy that is a bit outside the box. The team spent a couple of months working with the Tennessee 94 NOVEMBER 2023 convenience.org

Department of Agriculture, Nourish Knoxville Farmers Market and the University of Tennessee Culinary Institute. “We met with the local agriculture extension agent to see how we could go 100% local, but then realized we would need to start with a few key items and work on expansion. We don’t claim to be local all the time, but we are continuing to try,” Langston explained. “We are blessed to have a lot of great products like James Beard Award-winning Benton’s Bacon right in our backyard, as well as many other great local products, like Sweetwater Valley Farms cheese, Springer Mountain Farms chicken, dairy from Cruze Farm and Swaggerty’s Farm sausage,” he said. Langston is passionate about the food in his region of the country. “East Tennessee and Appalachia have great food with wonderful regional flavors. No one was making it accessible to everyone,” he said. “We saw a void in the market for affordable, delicious regional food, and there is no reason it can’t come from a convenience store. Calloway’s Tennessee Kitchen pushes the envelope on what you can order and enjoy without a sitdown experience.” FINDING THE RIGHT PEOPLE “Once we had everything in place, we needed to find the right person to take our vision to the next level,” Langston said.

The first Calloway’s Tennessee Kitchen is part of an EZ Stop location in Maryville, Tennessee. Customers can order at the pick-up window or use the drive-thru.

“We got Vince Seery, a highly talented restaurant manager with great experience working in high-end steakhouses.” A Maryville-area resident of 17 years, Seery was familiar with the Calloway family. After seeing the first prototype kitchen and the investment the family had made, he knew that he and Langston would make a good team. “Vince took the handful of recipes that we developed with the UT Culinary institute and my humble experience

From left, Trenton Langston, EZ Stop VP of Operations Brian Cosentino and Vince Seery.

from my own kitchen and combined it with his robust knowledge of commercial kitchens and operations to bring the vision to life,” said Langston. To give the new team experience, first responders were invited to come in and eat for free. “We are highly invested in our first responders and wanted to show our appreciation for the sacrifices they make. It also gave us valuable experience,” Seery said. When it comes to hiring staff, Seery has a simple strategy: “We believe in nice people. We want to hire people that customers would like to come back and visit.” CHICKEN TENDERS AND OTHER STAPLES People love chicken tenders, and it’s no surprise that Calloway’s Tennessee Kitchen has taken them to the next level. “We are famous for our chicken tenders,” Langston said. “We have a very traditional Southern dry-wet-dry hand-breaded process, seasoned with our own blend of spices combined with a buttermilk egg wash that delivers consistent

A good burger doesn’t have to be outlandish.” lightly breaded and flavorful chicken.” The chicken has a big role in all dayparts. “Breakfast is big for us,” Langston said. “We knew if we were going to have a chicken biscuit, it had to be a darn good one.” Calloway’s covers all the bases by offering a traditional fried chicken biscuit and a specialty biscuit that highlights its suppliers, appropriately called the Local. “It’s a fresh-cooked biscuit with a hand-breaded chicken tender, Benton’s Bacon, Sweetwater Valley cheddar cheese and house-made Swaggerty’s sausage gravy. It will set you right for the day,” said Langston.

This is a big sandwich. It even led to a contest that got attention for the business and helped the community. Langston explained how it worked. “We had a speed-eating contest for local charities. We put a Local in front of each contestant. It was done in the forecourt by the pumps and island. The winner ate it in one minute and 51 seconds. All contestants got money for charity.” The burgers have also gained a following. Using handmade, never-frozen beef patties, the burgers are cooked to order. Calloway’s also offers a medium-cooked patty. “Not a lot of places will cook a burger to medium and sell it out of a drive-thru window, but for us it’s about the taste, the juiciness, the seasoning and giving the customer what they want,” said Seery. Langston emphasized the attention to detail. “A good burger doesn’t have to be outlandish. Our goal is to present you with a great all-American cheeseburger with fresh ingredients and local produce whenever available.” ••• A new flagship location will soon open, with more on the horizon. “We want to bring our vision and our food to more people. We will continue to evolve our relationship with regional and local suppliers. Our goal is to take what we’ve achieved at our current location and bring it to each new kitchen, which includes the renovation of existing locations to accommodate Calloway’s Tennessee Kitchens. By the middle of next year, we anticipate offering five locations in East Tennessee, and we could not be more excited,” Langston concluded. Al Hebert is the Gas Station Gourmet, showcasing America’s hidden culinary treasures. Find him at www.GasStationGourmet.com. NACS NOVEMBER 2023 95

CATEGORY CLOSE-UP GENERAL MERCHANDISE

A Little This, a Little That Retailers can use the general merchandise category to generate interest and surprise customers.

48.18%

average gross margin for general merchandise in 2022 Source: NACS SOI Data

96 NOVEMBER 2023 convenience.org

icture a c-store with displays near the front entrance that change with the seasons. In the winter, stocking hats, ice scrapers and hand warmers hug the front window. In the summer, sunglasses, sun hats and sunscreen beckon shoppers to stock up and stay cool in the heat. Items that change with the seasons have seen growth within the general merchandise category, according to Jayme Gough, NACS research analyst. “However, overall general merchandise sales are way down as needs for COVID-specific safety products like sanitizer, gloves and masks continue to decrease.” General merchandise accounted for 1.30% of in-store sales in 2022, contributing 1.67% to the inside gross margin, according to the 2022 NACS State of the Industry (SOI) data. The category aver-

aged $2,961 sales per store, per month, a drop of 13.1% year over year. While general merchandise is an overall small in-store category, the category averaged margins of 44.09% last year. “General merchandise as a whole is down because of the decrease in pandemic-related products, which had helped push up sales in 2020 and 2021,” said Gough. “However, retailers who use the category to introduce new products to consumers and capture those seasonal impulse sales should continue to see good results with higher rings.” With 14 subcategories, it’s truly a section with a little bit for everyone. “The general merchandise category is an easy way for us to boost basket size and offer our customers more things to buy,” said Jody Van Regenmorter, one of the owners of Oak Street Station in Inwood, Iowa.

Lorerock81/Getty Images. ajt/Getty Images

BY SARAH HAMAKER

Industry Sales

Nadezhda Nazarova/Getty Images. clu/Getty Images

We often sell through our seasonal items fast.” SELLING SEASONS The seasonal subcategory, including items like firewood and road salt, grabbed 10.7% of the category’s sales in 2022, according to the NACS SOI data. More broadly, items that change with the seasons lifted the category overall. “Seasonal-themed gifts and impulse items have been consistent hot ticket items for us,” said Ross Dantonio, chief creative officer for Smith Co. Distributing, which works with convenience stores and other retailers. “Seasonal merchandise capitalizes on holiday and summer travel, too.” At Oak Street Station, seasons-based general merchandise does well for the store. For example, in the summer, Van Regenmorter stocks firewood, propane tanks, bait and fishing lures and coolers, while in the colder months, Van Regenmorter brings in winter hats and gloves plus hand and foot warmers. “We also try to have something related to kids, so for the winter, we’ve sold the stocking hats with animal ears and claws, while in the summer, we offer furry animal backpacks,” she said, adding that kid-oriented items sell extremely well. She also contracts with a local florist to offer fresh flowers around major holidays like Valentine’s Day and Mother’s Day, which have been popular with customers.

At Filling Co. Gas & Grub’s three locations in Virginia, seasonal items are hot. “We often sell through our seasonal items fast,” said manager Jordan Rubino. Other general merchandise subcategories also have seasonal options. For example, the BIC pocket lighter has many seasonal designs, like for Halloween and the winter holidays. “C-store consumers love these seasonal offerings,” said Shweta Chawla, channel development manager for BIC Consumer Products. Several years ago, Ty Inc.’s Beanie Babies began offering seasonal plushies. For example, pink, heart-stamped bears for Valentine’s Day, a bear in a pumpkin costume for Halloween or bears with Santa hats for Christmas. “We sprinkle our holiday offerings in with our everyday product on our

% of In-Store Sales

1.58% 1.30% 2021

2022

Avg. Sales/Store

$3,409 $2,961 2021

2022

% of Stores Selling

99.10% 99.80% 2021

2022

Source: NACS State of the Industry Report® of 2022 Data

NACS NOVEMBER 2023 97

CATEGORY CLOSE-UP GENERAL MERCHANDISE NACS CSX Benchmarking Database, Per Store, Per Month Sales

n 2020

n 2021

n 2022

n 2023

SEP

OCT

NOV

DEC

$6,574 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

Source: NACS CSX Convenience Benchmarking Database

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.

98 NOVEMBER 2023 convenience.org

permanent store display,” said Peter Olbrys, vice president of convenience/gas division for Ty Inc. “Having seasonal options makes the overall display pop and catches the eye of customers.” CHARGING SALES Telecommunications hardware continues to be a strong seller for the category, grabbing 17.0% of general merchandise sales last year. “To maximize impulse sales, we strategically place these items near high-traffic areas, such as the checkout counter or alongside snacks and beverages, to increase visibility and encourage customers to make spontaneous yet necessary purchases,” Dantonio said. In the front of the store, a separate rack filled with car and wall chargers,

headphones and cords helps move the items at Filling Co. “People are always looking for things related to their devices,” Rubino said. Oak Street Station’s telecom-related merchandise is by the register. “We put those front and center to grab customer attention,” Van Regenmorter said. SMOKING SALES At Oak Street Station, lighters, rolling papers and other tobacco- or cannabis-related accessories have been selling

Juj Winn/Getty Images

The Power of CSX Data

the O.G.

TO GO

THE FMB THAT STARTED IT ALL IS NOW IN SINGLE SERVE CANS The classic citrusy Original Smirnoff ICE is now in a format that fits perfectly in your shoppers lives – in your optimal cooler assortment. Now available in 16 and 23.5 oz cans with a fresh new look and package poised to attract a fresh wave of shoppers to the category. The flavor that kicked things off is ready to kick up your sales. For more information, call your Smirnoff Ice Distributor. PLEASE DRINK RESPONSIBLY. SMIRNOFF ICE Premium Flavored Malt Beverage. The Smirnoff Co., New York, NY

For more info: smirnoff.com Follow us @smirnoff

CATEGORY CLOSE-UP GENERAL MERCHANDISE

Subcategory Data Same-Firm Sample, Per Store, Per Month Percent of Sales

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2021

2022

2021

2022

2021

2022

2021

2022

Smoking Accessories

19.2%

17.7%

$654

$525

$326

$283

49.86%

53.85%

Telecommunications Hardware

17.1%

17.0%

$584

$504

$286

$276

49.01%

54.67%

Propane Exchanges

14.4%

13.1%

$491

$387

$217

$167

44.15%

43.23%

Seasonal

10.6%

10.7%

$362

$317

$146

$141

40.51%

44.33%

Wearables/ Apparel

8.1%

9.0%

$276

$267

$127

$141

46.24%

52.77%

Other General Merchandise

8.8%

8.3%

$299

$247

$69

$74

23.23%

30.12%

Greeting/Gift/ Novelties/Toys/ Rec Equipment

9.6%

7.3%

$326

$216

$161

$107

49.38%

49.45%

Trading Cards

1.7%

6.2%

$60

$183

$27

$72

44.76%

39.54%

Film/Photo

4.1%

3.5%

$138

$102

$85

$70

61.76%

68.42%

School/Office Supplies

0.6%

2.3%

$21

$69

$30

43.51%

44.20%

Batteries

2.3%

1.8%

$78

$53

$45

$32

58.55%

61.35%

Floral

1.6%

1.3%

$55

$39

$13

24.38%

23.64%

Hardware/Tools/ Housewares

1.3%

1.2%

$45

$36

$20

$17

44.39%

45.47%

Video/Audio Tapes

0.6%

0.5%

$21

$16

36.40%

47.62%

Total

100.0%

$3,409

$2,961

$1,541

$1,427

45.21%

48.18%

General Merchandise

Source: NACS State of the Industry Report® of 2022 Data

Having seasonal options makes the overall display pop.” 100 NOVEMBER 2023 convenience.org

well when they are positioned right by the cash registers. The smoking accessories subcategory pulls in consistent sales for retailers accounting for 17.7% of the general merchandise category sales in 2022, according to NACS SOI data. Sales of smoking accessories have been good at Filling Co. “A lot of people want lighters to go with their cigarette or tobacco purchases,” said Rubino. Part of the draw of smoking accessories is how suppliers keep it interesting. “This year, BIC is marking the 50th anniversary of the BIC pocket lighter, so

keeping the category fresh and exciting is something we have excelled at for many years,” said Chawla. “We start with consumer research to identify what our audience wants and needs, and we are constantly introducing fresh new designs as well as innovating to meet consumer needs.” APPEALING APPAREL More convenience stores are branching out into branded apparel as customers snap up hats, t-shirts and sweatshirts with the store’s logo and name. Wear-

CATEGORY CLOSE-UP GENERAL MERCHANDISE

General merchandise will play a crucial role in expanding [c-store] offerings beyond traditional convenience items.”

PLAY TIME Greeting/gift/novelties/toys/rec equipment accounted for 7.3% of general merchandise sales in 2022. One of Oak Street Station’s bestsellers in general merchandise is its vinyl stickers for vehicle windows. “A few years ago, one of our suppliers offered them to us for a six-week trial, and we took a chance,” Van Regenmorter said. “To our surprise, they’ve sold extremely well.” One of the surprisingly popular items at Filling Co. is Beanie Babies. “We have a rack and stock it with regular and 102 NOVEMBER 2023 convenience.org

seasonal Beanie Babies, which do really well for us,” Rubino said. “Convenience stores offer huge potential for our plushies,” said Olbrys. “Consumers know our Ty brand and they flock to the displays at their favorite c-stores.” A GENERAL CONCLUSION The general merchandise category provides retailers with the opportunity to bring in products to meet an immediate need but also to surprise the customers. “The general merchandise category might have been overlooked in the past, but it’s becoming a very viable category for convenience stores as shoppers find interesting and fresh items to buy,” Olbrys said. “As c-stores continue to adapt to changing consumer behaviors and preferences, general merchandise will play a crucial role in expanding their offerings beyond traditional convenience items,” Dantonio said. “Overall, the future of general merchandise in convenience stores will be marked by innovation, convenience-driven strategies and a focus on meeting evolving consumer expectations.”

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

HomePixel/Getty Images

ables/apparel, which includes non-branded items, accounted for 9.0% of general merchandise sales last year. Oak Street Station decided to add store-branded apparel like hats, sweatshirts and t-shirts since it already had stock on hand for employees. “Truthfully, it’s not one of our good sellers,” said Van Regenmorter. “But since we already have the items, we figured we’d offer them to customers, too.” While Filling Co. has sold some branded shirts and sweatshirts to customers who ask after seeing an employee wearing one, Rubino said the store hasn’t added apparel permanently. “It’s something we’re looking into, but haven’t decided on the logistics necessary to have our branded shirts for sale,” she said.

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CATEGORY CLOSE-UP WINE

28.16%

the average gross margin on wine in 2022 Source: NACS SOI Data

Coming of Age The wine category has matured in c-stores with single serves and ready-to-drink cocktails. BY TERRI ALLAN

104 NOVEMBER 2023 convenience.org

Photobalance/Getty Images. flyparade/Getty Images

hanks to the emergence of new products and packaging, the wine category continues to enjoy steady growth in convenience stores, with sales even outpacing the surge brought on by the pandemic. With more stores stocking wine and operator interest in the category on the rise, the segment is well positioned to capitalize on current trends and become a bigger contributor to c-store profitability. “Unlike other trade channels, wine sales are growing in c-stores, and that’s particularly impressive given that the category is going up against Covid numbers,” said Rick Rechetnik, senior vice president of sales for Riboli Family Wines, the maker of Stella Rosa wines. Indeed, for the 52-week period ending in early August, dollar sales of wine in c-stores were up 6%, Rechetnik reported. While c-stores are generally known for carrying lower-priced wines, “Some c-stores are even finding that they can sell high-end wines. Their customers are receptive to it,” Rechetnik said. According to the NACS State of the Industry Report® of 2022 Data, wine averaged $1,331 in sales per store, per month last year, an increase of 11.1% from the previous year. With margins of about 28% in 2022, the category recorded gross profit dollars per store, per month of $375, a 10.4% increase from 2021. Still, wine remains an overall small contributor to c-store sales, accounting for just 0.41% of in-store sales in 2022, according to the SOI report, an increase of 0.02 points from the year prior.

Industry Sales % of In-Store Sales

0.39% 0.41% 2021

2022

Avg. Sales/Store

% of Stores Selling

68.1% 69.1%

$1,198 $1,331 2021

2021

2022

THEERADECH SANIN/Getty Images. pogrebkov/Getty Images

Source: State of the Industry Report® of 2022 Data

WINE COCKTAILS GAINING While table and varietal wines account for the largest share of category sales—42% in 2022—wine-based coolers and wine cocktails are gaining. The emerging subcategory represented nearly 33% of wine sales in c-stores last year, Emma Tainter, NACS research analyst, said, and through the first four months of 2023, its average sales per store per month appeared to be driving overall category growth. “Wine-based coolers and cocktails are benefitting from the convenience factor,” she noted. And they’re providing a lift for many stores as well. “As more c-stores can sell wine-based cocktails than liquor-based cocktails, these products give them the opportunity to compete in the cocktail segment,” Tainter explained. “Consumers can stop in a c-store on a Friday night and purchase cocktails, making it a one-stop shop.” Marketers of wine-based cocktails say the products have been a welcome addition to c-store coolers and shelves. “Wine-based cocktail offerings in c-stores provide accounts with an exciting opportunity to reach shoppers they may not have had access to in the past with their wine and beer selection,” said Tracy Frisbie, executive vice president,

sales and marketing, BuzzBallz/Southern Champion LLC, which markets single-serve wine-based BuzzBallz Chillers, along with liquor-based BuzzBallz Cocktails. Herb Smith, vice president, customer development, E. & J. Gallo Winery, added that c-store customers are responding favorably to the products. “The ready-to-drink category has really penetrated the c-store channel by offering consumers multiple formats and sizes to consider,” he noted. Gallo recently added Vibe by Vendage fruit-flavored wine beverages in 500 ml Tetra Paks, and according to Smith, they’ve been an “instant success.” Convenient packaging isn’t just limited to wine-based cocktails, though, as table wine is increasingly appearing in more user-friendly packages, including single-serve cans and pouches and multiserve wine boxes. Rechetnik noted

Table wine is increasingly appearing in more user-friendly packages. NACS NOVEMBER 2023 105

CATEGORY CLOSE-UP WINE

NACS CSX Benchmarking Database, Per Store, Per Month Sales

n 2020

n 2021

n 2022

n 2023

OCT

NOV

DEC

$2,322

$2,500

$2,000

$1,500

$1,000 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

Source: NACS CSX Convenience Benchmarking Database

sumption,” Smith said. “Consumers often want to enjoy a single glass of wine, so the 750 ml package can sometimes be a barrier. Alternative packaging allows our products to be very versatile, which consumers appreciate.” Indeed, at Rocket Market in Spokane, Washington, “canned wine flies off the shelf,” said wine specialist Teddy Thompson. To drive sales, she puts chilled whites like pinot grigio on the top shelf of the cold box. Pointing to the demand for immediate consumption from consumers, the retailer noted that canned wines that aren’t chilled don’t sell as well as those that are. INCREASED INTEREST FROM RETAILERS The growth of c-store wine sales in recent years wouldn’t have been possible without increasing interest in the category from retailers. According to the SOI report, 69.1% of c-stores offered wine last year, up one percentage point from 2021. Rechetnik noted that some stores confronting anti-tobacco and anti-vaping sentiments in their markets have leaned into other categories. “They need to make up for the lost revenue,”

106 NOVEMBER 2023 convenience.org

joxxxxjo/Getty Images

Consumers often want to enjoy a single glass of wine.”

that while 750 ml bottles remain the predominant package for wine, smaller packages are gaining ground. He pointed to 187 ml bottles, single-serve cylinders, 500 ml Tetra Paks and mini boxes. Stella Rosa’s 250 ml skinny cans, available in seven flavors, are selling well, he noted. “Convenience shoppers are shopping for a variety of occasions, but most of those occasions are for immediate con-

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CATEGORY CLOSE-UP WINE

Subcategory Data Same-Firm Sample, Per Store, Per Month Wine

Percent of Sales

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2021

2022

2021

2022

2021

2022

2021

2022

Table/Varietal Wine

38.3%

42.0%

$459

$559

$136

$156

29.63%

27.96%

Coolers/Wine Cocktails

30.6%

32.5%

$366

$433

$98

$116

26.69%

26.82%

Other Wine

21.6%

13.4%

$259

$179

$71

$53

27.52%

29.79%

Champagne/ Sparkling Wine

6.6%

7.1%

$79

$95

$23

$28

29.49%

29.13%

Fortified Wine

2.9%

4.9%

$35

$66

$11

$22

32.08%

32.79%

Total

100.0%

$1,198

$1,331

$339

$375

28.34%

28.16%

he explained. Frisbie and Smith pointed to the loosening of restrictions in some areas that now allow for the sale of wine in c-stores, such as in Colorado. “As more retailers pivot toward a more robust offering of wine and spirits in their stores, customers will continue to gravitate towards the channel for their wine and spirits needs,” Smith said. Private label wines are another growth area for c-stores. 7-Eleven has offered its own labels, Yosemite Road and Plot + Point, for some time, and earlier this year Circle K announced plans to launch its first private label wines, to be rolled out to some 3,000 stores 108 NOVEMBER 2023 convenience.org

Traditional beer and RTDs should coexist with wine-based options.”

across the United States. The portfolio includes its line of Sunshine Bliss wines, priced under $8 a bottle, as well as a fine wines range, priced between $10 to $25. Even one-store Rocket Market boasts a line of private label wines and sparklers, Thompson said, priced up to $14 a bottle. Best-in-class merchandising practices can go a long way in building wine sales in c-stores. The Stop & Go chain, with more than 60 stores in Ohio and Michigan, has been allocating more space to the category, and according to Neal Frandsen, vice president, marketing, wine sales have seen double-digit gains over the last three years. Some of the stores provide up to 24 feet of shelf space for wines, including fine wine selections with bottles priced up to $230. As a result, some of the sites have emerged as destination stores for local area wine consumers. Stop & Go also ties in wine messaging to its customer loyalty program, Frandsen reported, with tactics like geofencing and email and text-message blasts.

Floortje/Getty Images

Source: NACS State of the Industry Report® of 2022 Data

CATEGORY CLOSE-UP WINE

Wine marketers encourage retailers to feature wine displays, even if they are small.” person. “People love it,” Thompson said. In addition, Rocket Market offers 12 different wine club configurations, so customers can customize their monthly packages based on wine type, quantity and price point. Convenience retailers like Thompson and Frandsen are seeing success with wine because they’re dedicating the time and space necessary to build the category. Pointing to Stop & Go’s 43% margin on wine, Frandsen advised other retailers to consider the opportunity saying, “It’s a high-margin category.” Terri Allan is a New Jersey-based freelance writer, specializing in the beverage industry. She can be reached at terri4beer@aol.com.

Stockah/Getty Images

MAKING ROOM Wine marketers encourage retailers to feature wine displays, even if they are small, to drive category awareness. Rechetnik noted that Riboli Family Wines offers racks designed for c-stores that merchandise both standard wine bottles and the smaller variants. BuzzBallz’s Frisbie also pointed to “strategic placement at the store counter or in the cold box.” Smith recommended that wine-based cocktails and coolers should be merchandised in the cold box with beer. “Traditional beer and RTDs should coexist with wine-based options,” he remarked. Rocket Market even employs marketing tactics more customary of fine wine shops. The store holds weekly wine tastings that feature eight different wines, paired with snacks, for $30 a

110 NOVEMBER 2023 convenience.org

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ADVERTISER INDEX Contact Information

Page

Altria Group Distribution Company...........Inside Front Cover AGDCTradeRelations@Altria.com www.altria.com www.tobaccoissues.com ATM Unlimited Inc............................................................................. 63 www.atmunlimited.net Beam Suntory.................................................................................... 65 www.beamsuntory.com/en Black Buffalo Inc................................................................... 43 www.Blackbuffalo.com Buzzballz LLC.................................................................................... 107 (972) 242-3777 www.buzzballz.com Calico Brands Inc............................................................................... 79 www.calicobrands.com Cash Depot................................................................................7 (800) 776-8834 www.sales@cdlatm.com www.cdlatm.com Cenex (CHS Inc.)....................................................... Bellyband https://www.cenex.com/chsinc/about-chs Cigtrus, Magical Industries..............................................................103 www.cigtrus.com

Cool New Products Guide..................................................................93 www.convenience.org/Media/NACS-Magazine/Cool-New-Products

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Thank you to these advertisers who have demonstrated their support of the convenience and fuel retailing industry by investing in NACS Magazine. Page

Darrell Lea Brands dba DL Distribution LLC....................... Back Cover www.darrelllea.com Diageo Beer Company USA............................................................... 99 www.diageo.com E&J Gallo................................................................................101 www.gallo.com Flowers Foods Snack Group LLC............................................67 www.flowersfoods.com Franke Coffee Systems...........................................................53 www.franke.com Ganymede Technologies Corp dba J3POS.........................................75 (888) 600-5522 sales@j3pos.biz www.j3pos.biz ITG Brands...............................................................................61 (866) 328-2485 Domestic U.S. toll-free (336) 335-6669 North Carolina www.itgbrands.com Krispy Krunchy Foods LLC...................................................... 81 www.krispykrunchy.com Liggett Vector Brands Inc............................Inside Back Cover (919) 990-3500 www.liggettvectorbrands.com MasonWays Indestructible Plastics LLC............................................ 51 (800) 837-2881 www.masonways.com MOOSOO Corporation.........................................................................25 www.moosoo.com

Contact Information

Page

NACS Convenience Voices..................................................................77 www.convenience.org/Solutions/Business-IntelligenceData-Analytics/Convenience-Voices NACS Data Archive............................................................................. 49 https://www.convenience.org/Research NACS Day on the Hill..........................................................................87 www.convenience.org/events/Day-On-the-Hill NACS Education Sessions Recordings...............................................79 www.nacsshow.com/Sessions/Education-Sessions NACS THRIVR & TruAge.......................................................................47 www.convenience.org/THRIVR www.mytruage.org Patron Points...................................................................................... 15 (877) 623-6073 www.patronpoints.com Premier Manufacturing.................................................................5, 23 (636) 537-6800 www.gopremier.com Swedish Match North America LLC (Game Leaf)..................27 (800) 367-3677 www.gamecigars.com Swedish Match North America LLC (ZYN)............................. 13 (800) 367-3677 www.smna.com Titan Cloud Software.........................................................................39 (615) 372-6000 www.titancloud.com TY INC................................................................................................... 9 www.ty.com

Crane Payment Innovations................................................................3 www.retail.cranepi.com NACS NOVEMBER 2023 111

BY THE NUMBERS

Feeling Good? You’re Not Alone Summer brought high temperatures and high spirits for retailers. The NACS State of the Industry Report® of 2022 Data, published in June, kicked off the start of a successful summer when it reported year-over-year inside sales growth of 7.9%. The optimism lasted through the season: In July, NACS distributed the Retailer Pulse Survey, a quarterly custom research study with retailer members to identify key priorities and opportunities across the convenience and fuel retailing landscape. Convenience retailers reported higher sales so far in 2023—and that they are optimistic

about that trend continuing through the rest of the year. NACS’ CSX database of industry metrics shows similarly positive numbers. Through the first six months of 2023, in-store sales were up 9.4% compared to the same period in 2022, with inside transactions also up 1.0%. About two in three retailers (65.88%) report that their sales for the first seven months are higher than over the same period last year. Equally important, retailers are bullish about the convenience channel’s sales for the rest of 2023; fully one-third (33.33%) of all convenience retailers said that convenience stores were the best positioned of six channels for success over the rest of 2023.

Chris Rapanick, managing director of research, spoke about the power of CSX and NACS data at the NACS Show in October. Read more about his presentation in the article “Learning Together.”

Which channel do you think is best positioned for success over the second half of 2023? 33.33%

35%

32.08%

30% 25% 20%

14.47%

15%

11.32%

10% 5%

4.40%

3.14%

1.26%

s th O

PTG PRO/Getty Images

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ur an ta R

y ro ce r G

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112 NOVEMBER 2023 convenience.org

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