LAS VEGAS – Demand for convenience has never been stronger, and that presents both challenges and opportunities for convenience store retailers, NACS 2005-2006 Chairman Scott Hartman told attendees at the NACS Show 2006 Opening General Session on October 9.

This demand for convenience was evident over the past year, when Hartman logged well more than 100,000 miles representing NACS on what he called "basically one long study tour."

"From the operating expertise that is evident in Asia, to the mastering of senses like food aroma and lighting at the retail level in France, to the sustained excellence of retailers throughout the U.S., I have seen new ways of doing business driven by changing consumer demands, and by technology, noted Hartman, who is president of York, Pennsylvania-based Rutter's Farm Stores.

"Time is money, and time is really what we sell," said Hartman. But convenience is what virtually every other channel is now trying to replicate, he noted.

Above all, the fresh and healthy image is key to today's customer, noted Hartman. "All over the globe the fresh presentation is the first thing customers are seeing as they enter stores, especially in Europe." 

Customers also expect what Hartman called "mass customization" – companies gaining efficiencies by making products in volume, but allowing the individual to customize products to their own needs. And they want their lives simplified, a trend that is clearly evident in Asia.

"Clearly, technology will play an ever-increasing role at our stores. And it already is in Asia. The cell phone you have today acts nothing like the ones they are using in Japan and Korea. But you will soon see them here," said Hartman, noting that they already serve a customers' electronic wallet, personal scanner and personal navigation system and locator. 

"Customers will receive offers on their phones, redeem electronic coupons with their phones and Web applications will allow them to find the lowest priced products between them and their next destination," said Hartman. "As retailers we will market our gas prices to customers as they drive down the highway and customers will have their cars programmed to seek out food offers they prefer. The in-car convenience store billboard is closer than you think."

NACS is doing much more that looking at the future of technology in our industry; it is helping to shape it, said Hartman.

"At NACS, we believe that technology is an investment, that if you make it wisely, it should yield a competitive advantage," said Hartman. "The technology building blocks that we've been putting in place must continue at the store level, and through the involvement of NACS and PCATS, they will make a difference in your operations."

Referencing the industry's biggest pain point, the huge and growing problem of credit card fees, Hartman asked attendees to "give out one big industry boo!"

NACS is actively fighting to reduce credit card fees and "is poised to push the issue even further in the next Congress," said Hartman.

"While we continue to be on the forefront in battling these ridiculous interchange fees, the NACS Card Processing Program that we introduced in 2003 at the NACS Show also has allowed smaller independent operators to reduce their expenses to the tune of more than $4,000 per store per year. Because other card processors dropped their rates to be competitive with ours, we estimate the net savings overall to our industry is upwards of $60 million," said Hartman.
 
Hartman concluded by reminding retailers to stay true to their mission, despite the dizzying pace of change, which will only intensify.

"Only those that seek change, and embrace change will thrive. But let me also offer some caution. Know your competition, but know yourself even better. Seek to change, but don't change because of the competition. Competitors, after all, will come, and competitors will go. Put your real focus on your customer. Study them. Engage them. Learn from them. Change for them," said Hartman.

"Lastly, give back to your customers, your communities and your people any way you can. You'll get back more than you ever gave," said Hartman. "That has certainly been my experience in my own business… and in serving as your chairman this past year."

The NACS Show 2006 runs through Wednesday at the Las Vegas Convention Center. Look for continuing coverage of the event in NACS Daily and at the NACS Show Web site.