Which products will have convenience tills ringing at Christmas? Pat Pape investigates
Soothsayers are expecting shoppers to be extra frugal this holiday season. TNS Retail Forward, a research and consulting company, recently predicted total retail sales in the fourth quarter will increase only 1.5%, making this year’s holiday season the worst for retailers since 1991, when sales grew a mere 1.2%. The National Retail Foundation is a bit more optimistic, predicting that holiday sales will be up 2.2%.
Whatever the actual sales increase, there will be tough competition for every holiday dollar. The best way convenience retailers can buck those predictions — and put more bucks in the register — is to be prepared with the merchandise that busy holiday shoppers want to purchase.
Since convenience stores are usually the only retailers open on Thanksgiving and Christmas days, there are many opportunities to meet the needs of last-minute shoppers seeking fast and easy solutions.
7-Eleven stores have a long history of planning ahead for those shoppers by stocking up on mandatory holiday meal items, such as half and half, whipping cream, drip coffee, canned pumpkin pie filling and frozen pie crusts. Having plenty of batteries on hand is mandatory for the holidays, along with disposable cameras and extra film.
During the holiday season, 7-Eleven stores typically carry gift wrap and related items, a category not available during the rest of the year, and an assortment of gift items, ranging from video games and DVDs to plush toys and gift cards.
“Gift cards are the ultimate convenient gift,” says Brad Haga, senior director of services and new business for 7-Eleven. “Research indicates that the average shopper will buy six gift cards during the holidays.”
Pre-paid bank cards are expected to be the most desired cards this year, just as they were in 2007, according to the results of a holiday survey released in September by Archstone Consulting. Gift recipients prefer cards that give them the flexibility to purchase anything they want, according to the firm.
A 2007 survey commissioned by the Network Branded Prepaid Card Association revealed that more than 93% of consumers who buy branded gift cards are satisfied with their purchase, and 86% admitted to buying the cards as gifts when they have no idea what the recipient wants.
This will be third holiday season for Quick Chek Food Stores, with l00-plus stores in New Jersey and southern New York, to sell gift cards. According to John Schaninger, vice president of sales and merchandising, past top sellers have been American Express and Visa cards. Other popular retail brands are Barnes & Noble, Toys R Us, iTunes and Olive Garden restaurant.
Because each Quick Chek has a full-service deli, the stores enjoy additional holiday sales from party trays laden with bakery items or fresh sandwiches. Other seasonal favorites are the company’s private label coffee and a generous selection of flavored coffee creamers.
The 30-store NOCO Express chain in Western New York will be selling gift cards for the first time this season. In addition to offering gift cards from Home Depot and other major retailers, NOCO Express will feature its own prepaid card, and store signage will let customers know it makes an ideal stocking stuffer. “We also order extra batteries,” says Terry Messmer, merchandising manger for NOCO Express. “And we’ll do some children’s Christmas books that we sell for $1 each.”
At MAPCO Express stores, shoppers can select from a variety of stocking stuffers, including nostalgia novelty magnets, value-priced candles, novelty pillows and boxed gift sets. “We’re bringing back some of the more popular items, like bath sets and jewelry sets for both men and women that include watches and tie clips or necklaces and bracelets,” says Kim O’Dell, vice president for marketing at MAPCO Express.
Many of the newest MAPCO Marts feature Grille Marx, which offers fresh and hot foods, and O’Dell expects customers to take advantage of the to-go offerings during the busy season. “Grille Marx has made-to-order fresh foods and meals, all of which can be ordered and picked up to take home for family meals or even an impromptu holiday get-together,” she says.
Gift cards are expected to do well, too. “We’re selling both Visa and MAPCO gift cards, and they’ll be a feature focus for us in November and December,” she says. As a value-added bonus, customers will receive a free bottle of water with the purchase of a MAPCO gift card.
Flash Foods, a 174-store chain with headquarters in Waycross, Georgia, has the advantage of an in-house distribution center, which allows the stores to set up a replenishment system. During the holidays, all Flash Foods stores will “stock up on paper towels, cups, plates and plastic cutlery,” says Phil Settle, director of marketing. “And we do a little bit of Christmas candy.”
“We introduced Flash Foods gift cards last October before the holiday season,” Settle says. “They do well all year but the bulk of the sales were around the holidays. We advertised them, along with holiday theme tent cards, at each register.”
The 50 Gas City convenience stores in Illinois, Indiana, Florida and Arizona will offer customers a selection of gift wrapping paper this Christmas season, along with both boxed and individual greeting cards. “You always sell some for emergency use,” says Len McEnery, general manager of the chain.
The stores will also feature a wide range of sports attire, including hats, scarves, gloves, shirts and tree ornaments with team logos. McEnery says they will be merchandised near the checkout counter to attract customers on their way out of the store. And of course, Gas City will offer customers its own branded gift card.
Despite the slowing of the US economy, a declining housing market, high oil prices and a battered Dow Jones average, the show must go on for the 2008 holidays. Although consumers will be more cautious when making holiday expenditures, there are many things they will want and others they will need. Convenience retailers who have the right merchandise on their shelves will be able to satisfy those customers and, as a result, celebrate a more prosperous holiday season.
Pat Pape has worked in convenience retailing for 20 years. She currently writes for retailing publications from her home in Texas. This article appeared in the November issue of NACS Magazine. For more information about subscribing, please visit www.nacsmagazine.com