Convenience Store Decisions articles from June 2005

Convenience Store Decisions archives from June 2005

Welcome to Uber-Mart.(Editor's Memo)(Editorial)
June 1, 2005... Defiling the English language has become an art form in our business. Convenience retailers just seem to have this weird kind of dyslexia; we've got 27 ways to spell the word "quick" (e.g., Quick Chek, Quik Trip, Kwik Pik, Qwik Sak, etc.), for...

Ad it up: digital advertising networks boost the top line by funneling traffic from the great outdoors to inside the store.(FrontEnd)
June 1, 2005... How to consistently transform gas customers into inside-the-store customers remains one of the great mysteries of our time. Retailers have tried a battery of techniques--in-store promotions with banners, advertisements blasting from overhead...

Captivated audience.(FrontEnd)(Shell dealers Pacific Fuels)(Brief Article)
June 1, 2005... Los Angeles-based Shell dealers Pacific Fuels and C.A.R. Enterprises Inc. have launched a new customer communications network at their gas pumps. At 17" daylight-viewable screens, customers can catch the score of the Dodgers game, take in the...

Network advertising.(FrontEnd)(Brief Article)
June 1, 2005... Five seconds could mean the difference between a sale and a no sale, according to Craig Heard, president of Gateway Outdoor, who says the final five seconds before a customer enters a convenience store are the most valuable to engaging that...

Insurance assurance: lawsuits and fraud investigations targeting the soon-to-be embattled insurance industry have retailers reconsidering the coverage they pay for--and from whom they buy it.(FrontEnd)
June 1, 2005... Until it became the subject of billion-dollar fraud investigations, the mere mention of "insurance" would cause many retailers' eyes to glaze over with disinterest. But today, with criminal charges pending and millions of dollars in restitution...

Effortless eats: a gourmet sandwich program gives Kwik Chek added food sales and additional menu items--without adding labor.(FrontEnd)
June 1, 2005... For a company whose foodservice strategy started out as "fry it, box it and hope they buy it," Kwik Chek Food Stores (Bonham, TX) has come a long way. About 12 years ago Kwik Chek realized it had to get serious about food, so it signed on...

Term of the month: sub-off.(FrontEnd)
June 1, 2005... Everyone struggles with drive--offs-customers who pull away from the pump without paying for the gas their cars consumed. But at least one convenience retailer contends with a distant cousin of the drive-off: the sub-off. The term, coined...

Paying with the touch of a finger.(Combos convenience stores)(Brief Article)
June 1, 2005... At Combos convenience stores in the Utah towns of Provo and Spanish Fork, customers are making secure payments with the touch of a finger--and biometric payments vendor BioPay LLC (www.biopay.com) is helping to make it happen. The payment...

Bill payment by kiosk at On the Run, Maverik.(Brief Article)
June 1, 2005... ExxonMobil On the Run stores in Charlotte, NC, will roll out E-Wiz kiosks from Info Touch Technologies Corp. (www.infotouch.net). The self-service, cash-accepting kiosks enable store patrons to pay wireless, utility, cable and other bills, as...

CSD feedback.(FrontEnd)
June 1, 2005... * Regarding the issue of going to prepay on fuel ("A push for prepay," CSD Insider, 5/24), our industry must understand what that does to our overall sales volumes inside and out. When we ask our customers to prepay, we are assuming that they...

Saving space at the point of sale.(Brief Article)
June 1, 2005... Flash Foods Inc. (Waycross, GA), which operates more than 180 stores in Georgia and North Florida, has roiled out NCR Corp.'s (www.ncr.com) RealPOS 70 point-of-sale terminals and RealPOS thermal printers, as well as Pinnacle's Palm POS...

Making over Mainway: Irving Oil's Mainway stores make way for Bluecanoe, an uncommon concept driven by best-in-class service, an intense focus on fresh foods and a unique sense of humor.(Cover Story)
June 1, 2005... People don't pay much attention washroom signs. But at Irving Oil's new Bluecanoe stores, the signs are tough to ignore. Tan Guen, senior brand manager for the Portsmouth, NH-based retailer of 250 stores, says even the smallest...

Milk money: Farm Crest Milk Stores gives its dairy doors the royal treatment. While some retailers skim by with a few facings of milk, Farm Crest serves its customer base of "diggers" with no fewer than five doors of all-natural dairy products.
June 1, 2005... Denver's Farm Crest stores compete in today's modern convenience retailing arena by employing a 1950s-style game plan. This chain of "milk stores" still provides home delivery, offers refunds on returnable bottles and utilizes blue milk crates...

Something to cluck about: any fresh chicken program requires dedication, but see how a little ingenuity earned these retailers recognition and, oh yeah, thousands of dollars in chicken sales per week.
June 1, 2005... Despite their obvious size differences, 170-store Fas Mart Convenience Stores, 23-store Johnson Oil and single-store operator One Stop Convenience Store all have one thing in common: They know chicken. They may use different suppliers and...

Chew on this! Innovation in candy, gum and mints creates big opportunities--and even bigger margins--for space-challenged category managers. Consumers appear to be shying away from "intense" or "extreme" mints in favor of flavors.(Category Manager's Notebook: Candy, Gum & Mints)
June 1, 2005... Convenience retailers should expect some volatility when it comes to famously unpredictable categories like tobacco and gasoline. But candy? Sweet, innocent candy? In the past year, candy and gum manufacturers seemed hellbent on destroying...

Ice on the horizon.(New Stuff!)
June 1, 2005... The first of Follett's new Horizon icemakers is now available. The 1000 series will produce up to 1,025 pounds of Chewblet ice and is the most efficient machine in its class, consuming approximately 40% less electricity and water than...

Lighter leash.(New Stuff!)
June 1, 2005... With four million BIC lighters sold each day and 80% of smokers choosing hard packs, it's no wonder that Fireklip has so quickly found a niche. Measuring 2.25" by .5" and designed specifically to fit a BIC Mini lighter, Fireklip clips perfectly...

Sparking sales.(New Stuff!)
June 1, 2005... Jump-start summer sales by attracting the second-largest beer consumer group--economy shoppers. This July and August, Miller High Life and Miller High Life Light are lighting a fire under economy consumers with an exciting summer grilling...

Hold and serve.(New Stuff!)
June 1, 2005... Hatco Corp. introduces its new Glo-Ray narrow infrared food warmers that are perfect for heated buffet stations. The slimline strip heaters are only 2" high and 4" deep, allowing for greater visibility of food choices. Utilizing Hatco's...

Bakeless profits.(New Stuff!)
June 1, 2005... Bake'n Joy introduces PANfree 5.25-oz. predeposited muffin batters, part of the company's FreshBakes (freezer-to-oven) line of predeposited frozen batters. Premeasured and deposited into bakeable, upscale paper liners, there's no need for...

Sweet smoothies.(New Stuff!)
June 1, 2005... A joint effort between Mars and Bravo! Foods International has created Slammers Starburst Fruit & Cream Ultimate Smoothies. Slammers include a blend of milk and natural juice and will first come in four Starburst flavors including orange,...

French toast fun.(New Stuff!)
June 1, 2005... New French Toast Sticks from Krusteaz have half the fat and 28% fewer calories than the leading competitive brand, with no trans fat. By using state-of-the-art griddles--instead of deep frying--Krusteaz delivers a real French toast flavor kids...

Premium profits.(New Stuff!)
June 1, 2005... Heineken USA confirms it will continue its pioneering leadership in the beer market with the introduction of its luxury light beer, Heineken Premium Light Lager. The new introduction will be tested in four select U.S. markets beginning in June...

Safety kicker.(New Stuff!)
June 1, 2005... M. Carder Ind. has added a new safety feature to its 5-Star nozzles. The Kicker is designed to insure the hold-open clip will always release when the automatic shut-off occurs. This eliminates the possibility of the main valve getting held open...

Cleaning up.(New Stuff!)
June 1, 2005... Chicopee Inc. introduces new products in three categories: improved fabrics in its Chix with Microban and Chix Utility towel lines to provide better particle pickup, rinsing and scrubbing capabilities; new Chix Quat-Safe towels, designed to...

Hot times.(New Stuff!)
June 1, 2005... The Lincoln Dual Technology Finisher (DTF) is a convenient, compact unit that's engineered for powerful heat capacity and fast production of baked items using two technologies--patented air impingement and infrared heat--in food prep areas. The...

Heart-healthy snacking.(New Stuff!)
June 1, 2005... Nature Valley introduces a category first: Nature Valley Healthy Heart Granola Bars with CoroWise Plant Sterols. Plant sterols are clinically proven to significantly reduce cholesterol in as little as four weeks. Each Nature Valley Healthy...

Smooth operator.(New Stuff!)
June 1, 2005... Blue Bunny has developed a drinkable yogurt product that goes a step further to promote health and wellness. Blue Bunny's Carb Freedom Yogurt Smoothies are drinkable yogurts which contain a plant sterol proven to help lower cholesterol and help...

Crafting loyalty.(New Stuff!)
June 1, 2005... Gold Key Loyalty's Free Loyalty Card Program incorporates a new distribution channel that will give retailers thousands of dollars of immediate and free advertising, along with increased foot traffic inside the store. Gold Key has teamed with...

Refreshing pain reliever.(New Stuff!)
June 1, 2005... Health-conscious consumers are looking for more natural alternatives in not only dealing with pain, but also proactively preventing it. Logic Juice 4 Joints combines the benefits of 1,250 milligrams of glucosamine with 250 milligrams of...

Hot and cold convenience.(New Stuff!)
June 1, 2005... Alto-Shaam's 200-HST/CB combines the beauty and durability of granite in a 38" hot food island that's perfect for hot hors d'oeuvres, pizza or side dishes. The granite insert is sealed above a thermostatically controlled Halo Heat base and...

Sturdiness with stamina.(New Stuff!)
June 1, 2005... It takes workers of all sizes to make the world go around. The problem is, retailers don't have adjustable counters to accommodate them all. Add Structural Plastics' Work/Anti-Fatigue Platforms behind cash registers and retailers will be amazed...

Tobacco showcase.(New Stuff!)
June 1, 2005... Altadis U.S.A. proudly introduces its new Black & Blue Super Aromatic Pipe Tobacco Cigars. Black & Blue's initial launch allows retailers to buy 50 cigars and get 50 cigars free for maximum profit. Sold in attractive, eye-catching combo units...

Greenlight.(New Stuff!)
June 1, 2005... Rock Green Light (RGL), the low-cal, light beer counterpart of Rolling Rock Premium Beer, is sporting a bright new look for summer. RGL has new primary and secondary packaging that echoes the well-known image of Rolling Rock, sharing such...

Flame on.(New Stuff!)
June 1, 2005... Scripto's new line of Stars & Stripes C-thru lighters feature an innovative clear wrap design that gives the image an amazing 3-D effect. The designs proudly display images of American icons with the American flag as the backdrop. This unique...

Car wash creations.(New Stuff!)
June 1, 2005... PDQ Manufacturing Inc. introduces several new products to help retailers "clean up." The LaserWash M5 combines the heritage of the industry standard LaserWash 4000 with the cutting-edge technology of PDQ's LaserWash G5 S-Series to create the...

Irving keeps the Promise.(Back Room: "Stuff you need that we didn't have room for anyplace else")
June 1, 2005... Irving Oil developed the "Irving Promise" as a guide to reinforce the importance of doing whatever it takes to simplify the lives of its customers throughout its network, including its newly reimaged Bluecanoe stores (see Making Over Mainway,...

Petro-Canada.(Decision Makers)(executive retires)(Brief Article)
June 1, 2005... Last month marked the end of an era as Ford Ralph retired from Petro-Canada (Mississauga, Ontario). Ralph spent more than 42 years serving the industry. After 23 years with Gulf Canada, he joined Petro-Canada in 1985 as vice president,...

NOCO Energy Corp.(Decision Makers)(Brief Article)
June 1, 2005... NOCO Energy Corp. (Tonawanda, NY) has promoted Rick Klyczek from NOCO Express director of operations to dealer business manager. In his new position, Klyczek will be responsible for all facets of NOCO's branded dealer program. NOCO has also...

KSS.(Decision Makers)(appointed Bob Johnson as an executive advisor)(Brief Article)
June 1, 2005... Pricing solutions provider KSS has named Bob Johnson an executive advisor. Prior to joining KSS, Johnson served 7-Eleven Inc. for 32 years, most recently as general manager, gasoline and environmental services. As an executive advisor to KSS,...

Adams & Brooks Inc.(Decision Makers)(appointed Stephen R. Meisinger as vice president, sales)(Brief Article)
June 1, 2005... Adams & Brooks Inc. has appointed Stephen R. Meisinger as its vice president, sales. Meisinger will direct sales for all Adams & Brooks product lines through all trade channels. Before joining Adams & Brooks, Meisinger served Storck USA for the...

FireStream WorldWide Inc.(Decision Makers)(appointed Doug Brown as director of sales and marketing)(Brief Article)
June 1, 2005... FireStream WorldWide Inc. has named Doug Brown director of sales and marketing. Brown brings to FireStream 30 years of leadership experience in the construction, financial and automotive industries. He's tasked with increasing the company's...

Pay By Touch.(Decision Makers)(appointed John Morris as president and chief operating officer)(Brief Article)
June 1, 2005... Payments industry innovator Pay By Touch has appointed John Morris president and chief operating officer. Morris will manage operations and lead the company's vision to "transform the way the world transacts." Morris joins Pay By Touch...

An education on every page.(Editor's Memo)
June 15, 2005... You learn a lot from piecing together something as ambitious as the Sales Trend Handbook. For instance, I never would have guessed that convenience stores sold $54.9 million worth of Yoo-Hoo chocolate drink for the 52 weeks ending March 20 of...

The big boom: explosive growth edges key minority groups closer to the majority. Learning to market to Hispanics. as well as teens and seniors, can unlock the door to profitability.(CUSTOMER)
June 15, 2005... Most teenagers today don't have to scour the seat cushions for spare change. Today's teens, in fact, have loot to spare--and they like to spend it. Teens (kids ages 12 to 17), at 25 million strong in 2004, constituted 8.5% of the total U.S....

Lots of company: dollar stores sell smokes. Big boxes pump up the gas volume. QSRs brew gourmet coffee. C-store retailers bare become small fish in a pond now teeming with hungry predators.(COMPETITION)
June 15, 2005... All retailers great and small traffic in convenience, but many outside the convenience store channel have "kicked it up a notch or two." Key competitors are now stepping unapologetically on the c-store channel's toes with new formats or new...

Playing catch-up: retailers use technology to slash costs and better serve customers. Soon, they expect it to bring relief from rising credit-card processing costs.(TECHNOLOGY)
June 15, 2005... The convenience retailing industry is in the middle of its own little industrial revolution. Every week, technology providers issue news releases about successful installations or pilots of everything from biometrics and bill-payment kiosks to...

Healthy vs. hearty: name recognition and proven menus make branded programs very appealing. Now chains teeter between offering healthier items or biting into bigger; beefier portions.(BRANDED FAST FOOD)
June 15, 2005... According to the National Association of Convenience Stores 2004 State of the Industry Report, the most popular menu format for branded quick-service restaurants at convenience stores was sandwiches (3,682 restaurants affiliated with c-stores),...

Eyes for pies: while the low-carb craze didn't hurt the ready-to-eat pizza business, frozen pizzas could bite into sales. Experts encourage operators to be creative with familiar toppings, like chicken.(PIZZA)
June 15, 2005... Retail pizza sales totaled more than $33 billion in 2004, according to Leading Edge Reports. Pizza/Italian concepts are the fastest-growing segment in foodservice, and are predicted to stay in that position for the next five years, according to...

Fried with pride: most people claim to be eating healthier, but fried chicken remains one of the top-selling food items. Retailers taking steps to keep their offers fresh will likely profit.(CHICKEN)
June 15, 2005... Looks like chicken has some legs. Among those consumers following high-protein, low-carb diets, twice as many people reported eating more chicken than more beef or pork, according to a survey conducted by PKS Research Partners for the National...

Lighter fare: customers turn to the deli for healthier eating options. Retailers must differentiate their offers with sauces. salads and other add-ons.(DELI)
June 15, 2005... From indulgent to healthful; unheated, baked or grilled; on all sorts of bread varieties with all sorts of fillings; sandwiches easily adapt to the changing tastes of consumers. The sandwich category, which has traditionally been more closely...

Better baking: bakeries are challenged to find low-labor methods of producing better-for-you treats. While low-carb did some damage to sales last year, sugar-free and whole-grain items are making up for lost time.(BAKERY)
June 15, 2005... As in-store bakeries strive toward more consistent products and lower overall costs, they continue to turn from labor-intensive product preparation to frozen and thaw-and-sell products. A recent study indicates that 63% of participants are...

Pourable profits: customers' taste for gourmet coffee is being nurtured in some non-traditional channels. Retailers throughout the industry are upping the ante to win customer roles--and dollars.(DISPENSED BEVERAGES)
June 15, 2005... Gourmet coffee is now more than a $9 billion industry in the U.S., according to the Specialty Coffee Association of America. The National Coffee Association's 2004 National Coffee Drinking Trends report found that of consumers who said they had...

The price is right: after working out the kinks in 2004 premium-priced brands seem to have regained their moxie--winning back the ground ceded to deep discount brands.(CIGARETTES)
June 15, 2005... Other than rising state excise taxes, higher price points, increased competition, continued threats of regulation and a slowly but steadily shrinking consumer base, 2004 was a pretty good year for the cigarette category. Of the top 10...

Burning up: "other" tobacco products continue to gain momentum. flavored products in major segments of the category drive excitement, encourage trial and spur sales growth.(TOBACCO PRODUCTS)
June 15, 2005... New non-cigarette tobacco products introduced in 2004--most notably flavored items--should take a bow. In major segments of the "other" tobacco products category, flavors ranging from the fruity (apple and peach) to the exotic (pineapple and...

Sweet denial: as America wrestles with obesity and the dying down of the low-carb craze, the candy category has taken some bits. Chocolate is still a crowd favorite, but it was a better year for sugarless gum.(CANDY)
June 15, 2005... The National Confectioners Association (NCA) estimates chocolate sales reached $15.1 billion in 2004 (up 3.9%), while sales of non-chocolate confections saw only a slight increase of 1.6% to $7.8 billion in 2004. But the ever-growing concern...

Meaty sales: carb-heavy snacks took a bit last year, while meat snack's thrired thanks to a customer base fixated on high-protein foods. Portion-control packaging could help cookies and crackers recover.(SNACKS)
June 15, 2005... Today's health-conscious consumers are looking for ways to snack healthier, which in turn drives sales of non-traditional snack items, according to Information Resources Inc. (IRI). Opportunities exist for healthy snack alternatives for both...

Get carded: increased confidence in online shopping enhances the value of gift cards. Prepaid services help forge loyalties with unbanked patrons, while kiosks make c-stores more of a destination.(PREPAID SERVICES)
June 15, 2005... In 2005, consumers are expected to spend $172.4 billion online--a 22%jump from the $141.4 billion spent online in 2004, according to a survey conducted by Forrester Research. This trend of shopping right from the desktop has in turn led to an...

Profit potential: general merchandise appeals to customers needs. Retailers who dedicate space to people's "passions" or their more "practical" sides stand to make great margins on high rings.(GENERAL MERCHANDISE)
June 15, 2005... There are two schools of thought when it comes to the general merchandise category: passion and practicality. While the category represents only 2% of inside sales, non-traditonal offerings provide higher profit margins and can help a...

Primping is in: oral care and grooming products were big sellers in 2004, and surprisingly, teenage boys were the big spenders. The ladies are in the market for health products and vitamins.(HEALTH & BEAUTY CARE)
June 15, 2005... Oral care/breath freshening was a big money-making category in 2004. Portable oral care products in convenience stores rang up $109.8 million, with brand extensions like Trident White controlling the lion's share with $41.5 million. Out of the...

Short-term plans: Shorter shopping trips show consumers are living in the "now." Even though consumers eat out more often. refrigerated dell meats are still on the menu.(GROCERY)
June 15, 2005... Consumers are picking up their groceries one day at a time, according to international food and consumer products company Unilever. The company tracked the shopping habits of 2,400 consumers and asked 900 to keep a detailed online diary of...

A flat note: diet soft drinks drive growth in a category that, at least for the past few years, has lived up to its name. Analysts and marketers remain bullish on reduced-sugar beverages.(Soft Drinks)
June 15, 2005... As a category, carbonated soft drinks (CSDs) kind of resembles an aging champion sumo wrestler: This now mature category has become so massive that it can no longer maneuver as quickly as its smaller, hungrier, more nimble competitors. In the...

RTD tea party: RID teas put a stranglehold on the c-store channel's No. 2 beverage position in 2004. Its grip could tighten as consumers better understand the benefits of drinking tea.(TEAS)
June 15, 2005... The British just might be onto something. Americans, too, appear convinced of the health benefits associated with drinking tea. Known for being rich in antioxidants that fight free radicals and prevent ailments like heart disease and cancer,...

Packing it in: even after the demise of the low-carb "revolution," light beers remain the darlings of the beer category. Innovations in flavors and packaging should boost sales in 2005.(BEER & WINE)
June 15, 2005... Last years, it seemed that beer consumers shopping the convenience channel just couldn't make up their minds. "To splurge, or not to splurge?" That was the question. Popular/budget beers and higher-priced imports both saw slight...

Go with the flow: retailers continue to get good performance out of their bottled water sets. New products--including functional value-adds and exotic flavors--will drive future sales.(BOTTLED WATER)
June 15, 2005... Even though bottled water grew almost imperceptibly as a percentage of convenience store cooler sales in 20004 (from 13.1% to 13.4%), the tide is by no means rolling out on the category. In truth, the "water level" (as in total U.S. category...

Get squeezed: recovering from the low-carb fad, juices and juice drinks stand to grow sales in light of increased scrutiny given to CSDs. A jolt could (eventually) come from organics.(JUICES)
June 15, 2005... Earlier this year, orange juice purveyors were thrilled to hear former Major League Baseball superstar Jose Canseco's bashing of a different kind of juice for a change. Perhaps no other segment of the packaged beverage category was more...

Adrenaline boost: energy/sports drinks provide a welcome kick in the pants to cooler sales. While strong brands dominate, rowdy start-ups threaten to rein in the energy segment's leader.(ISOTONICS & ENERGY DRINKS)
June 15, 2005... The cooler can be surreal. Take the energy drink segment as an example. The battle for shelf space among energy drinks sounds like a back-alley pro wrestling match gone horribly wrong: Red Bull does its best to gore Monster into submission,...

Plain won't do: dairy customers want more for their money. Dairy beverages and ice cream have stronger flavors and added health benefits, while frozen pizza continues to claim RTE dollars.(DAIRY, ICE CREAM & FROZEN)
June 15, 2005... Fluid milk sales are down, but flavored milks still get cusomers' dairy dollars. The industry is working with flavors new to many consumers, like tropical-type flavors (mango, papaya and guava) introduced primarily because of Hispanic...

Staying pumped: concerns over supply, competition and price volatility leave retailers vexed. Marketers whose survival is not tied to fuel margins are finding it easier to sleep at night.(MOTOR FUELS)
June 15, 2005... U.S. gasoline demand continues to rise, but supply hasn't caught up. In April 1983, there were 40 gallons of gasoline for every individual living in America, according to Oil Price Information Service (OPIS). Today, that number has dropped to...

Good neighbors: car washes are an ideal complement to a convenience store. Financial services kiosks and WiFi also attract customers, while distribution centers can provide added flexibility.(NEW PROFIT CENTERS)
June 15, 2005... Convenience stores and car washes make great bedfellows, especially as new and increasingly aggressive competitors toss their hats into the fuel-marketing ring--and retailers have grown wise to that fact. In 1998, just 2% of the c-store...

2005 sales trend handbook sources.(Directory)
June 15, 2005... INFORMATION/DATA SOURCES ACNielsen www.acnielsen.com American Pet Products Manufacturers Association www.appma.org American Wholesale Marketers Association www.awmanet.org Beverage Digest ...