LAS VEGAS – Three areas are vital for NACS as the association moves forward to benefit the industry in the coming years: advocacy, global initiatives and developing a compelling offer for its homogeneous membership, stressed NACS President and CEO Hank Armour at the NACS Show 2006 Opening General Session on October 9.

"First, advocacy is and should always be at the center of NACS activities. Second, we have to be engaged globally. And third, our membership is not homogeneous and we must have a compelling and unique offer for every member," said Armour.

Armour told attendees that advocacy is perhaps the greatest priority of NACS – and among its least profitable. "Government relations doesn't make us money, nor does media advocacy," he said, adding, "As a matter of fact, they cost us millions of dollars each year. But they are critical to ensure that you make money."

Because NACS is the most powerful, most credible and most trusted advocate on behalf the convenience and petroleum retailing industry, "It is our responsibility to ensure that our industry, that our members, are able to play on a level playing field," Armour said.

NACS is aggressively addressing the industry's biggest issue – credit card fees and interchange, noted Armour, citing NACS testimony in the House and Senate this year, as well last year's lawsuit filed by NACS accusing Visa, MasterCard and their member banks of price fixing.

"We're a long way from solving this problem, but we've made some concrete progress," said Armour. "For the first time in history, Visa and MasterCard have not increased interchange fees for convenience and petroleum retailers in three successive rate cycles.  Both Visa and MasterCard have announced that they will make public their secret operating rules. And MasterCard has recently announced that they will cap the transaction amount subject to interchange fees at $50 – certainly not satisfactorily but a move in the right direction."

"All of these actions," stressed Armour, "are the result of the pressure we're putting on them."

Armour added that retailers must continue to play an integral role in the fight against the card companies. "We need you to talk to your congressmen and senators about this outrageous situation. And we need your financial support of our efforts by contributing to the NACS Interchange Action Fund," he said.

"This is the most important issue that our industry has faced in decades. We will continue to do everything in our power to fix this problem," said Armour. "You have my word on it."

Armour also stressed the importance of global engagement, noting that NACS must increase its international involvement to facilitate a global information exchange and "share what we learn with the NACS membership to make our members more profitable and more effective."

Above all, this global initiative should focus on going to where the new ideas are, said Armour.

"It is about learning best practices wherever they happen to be," said Armour, encouraging retailers to tap into global best practices by participating in the June 2007 NACS Global Forum and International Study Tour in Tokyo and Shanghai. 

Armour also stressed that NACS doesn't see a future in a one-size fits-all NACS offer. "You have very different membership needs, and we must have a compelling offer that addresses your specific and unique needs," he said.

For example, NACS offers a number of products and training opportunities that are customized to specific member needs, whatever their company size. NACS also offers conferences and summits that focus on specific and emerging issues. The annual State of the Industry report continues to evolve, increasingly allowing retailers to benchmark their business against other top quartile of performers.

Looking at NACS and the industry's future, Armour also discussed the graphics on display at the Show, which are "part of the NACS brand that you will increasingly see: 'NACS, the Association for Convenience and Petroleum Retailing.'"

The updated brand reflects the association's spectacular growth over the past 45 years since its founding, Armour noted.

"We've grown beyond a national association. We've grown beyond a time in which there were unique and distinct channels of trade. And we've grown to a point where petroleum is a critical part of our business," said Armour. "We're certainly continuing to embrace our long-standing mission and vision. But we have gone beyond the acronym of what NACS stands for – the National Association of Convenience Stores – to what it truly is – the association for convenience and petroleum retailing. We are an association that spans both national borders and narrowly defined channels of trade."

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.