LAS VEGAS – Judging from a standing-room-only workshop crowd, a key challenge for suppliers to convenience stores is to stay ahead of the trends retailers are following to satisfy their changing customer bases.
Wednesday’s session, “The Changing Economy: A Supplier’s Guide to Survival in the C-Store Industry,” offered four speakers who presented trends gathered from research, and retailer and distributor sectors of the industry.
For background, research from the Nielsen Company was presented, showing that in the current economy, more shoppers are interested in value, value, and more value, but those same shoppers still have loyalty to many top brands.
“In branded sales, the mid-level brands have been hit the hardest,” said Kristen Moore, director of product leadership for Nielsen, who said that sales of private label brands are on the increase, but “customers are loyal to top brands.”
The same research also shows much more interest in convenience products that people can prepare at home, and that those same customers are increasingly carrying their lunches to work, she said.
Retailers are also finding success with “meals to go,” and are adding ovens to offer fresh-prepared food, Moore said, adding that the category is “Exploding in the C-store channel. Convenient solutions are skyrocketing.”
Presenting the view of the mid-size retailer was Tony Kenney, president of SuperAmerica, who supported the Nielsen data by making it clear that his stores recognize that their customers want value, convenience and good service.
“Value means more than a low price, though,” Kenney said, adding that having product in stock and innovation are part of the mix. He urged suppliers to approach retailers about supply chain efficiency through technology.
“The difference is our customer loyalty program. It is the glue that holds everything together,” he said, adding that customers like to earn points to redeem for gasoline or coffee.
Presenting the larger retailer viewpoint was James Hachtel, senior category manager for BP/ampm, who emphasized the importance of a business knowing its core customers.
“Our core customers tend to be highly impulsive and highly indulgent,” he said, and the unemployment in this group is double the national average, so they need value.
Also important is innovation to help site managers and a marketing plan to have the right product mix. What he likes from suppliers is “sound category management strategies” that are “at the heart of relationships.”
Stuart Clark, senior vice president for sales and marketing for McLane, talked about distribution, and said that his keys are productivity, efficiency, accuracy and quality, and that his company is interested in working with suppliers to optimize supply chain solutions.