Place Innovation Front & Center on Your Resolutions List

Pandemic-Driven Spending Habits Are Here to Stay

Place Innovation Front & Center on Your Resolutions List

Don’t let current troubles stifle new ideas

ONE OF THE BIG QUESTIONS retailers explored at our recent Convenience Foodservice Exchange (CFX), held late last year in Charlotte, N.C., was the role of innovation and new ideas at a time when so much attention needs to be focused on everyday challenges.

The twin dilemmas of the acute shortage of store workers and the extreme difficulties of getting products due to the massive supply chain backlog have many retailers scrambling just to keep their stores open for normal operating hours and to stock their shelves with the products their customers want to buy.

“Who has time for innovation?” one retailer recently asked me, noting that the past year has been a greater strain on him and his company than even the worst months of the pandemic. I know several convenience channel executives, particularly those in store operations, who have exited the industry or retired early due to burnout.

Nevertheless, it is critical for retailers to pursue innovation despite the labor shortage and supply chain disruptions. There’s always going to be immediate challenges that need to be addressed, but innovation is what differentiates the great retailers from the good ones.

Speaking at CFX, Joe Chiovera, principal at XS Foodservice Solutions, recommended that c-store operators take a “strategic and proactive” approach to innovation. He explained that setting a pro-innovation culture from the top down is key, and that companies need to be planning for months and even years ahead.

Rutter’s, based in York, Pa., has a history of being one of the most innovative chains in the industry. When asked how the pandemic and recent labor and supply chain issues affected the company’s innovation process, Foodservice Category Manager Chad White told the CFX audience that it is about focusing on the important things. “Through menu rationalization and focusing on the most important aspects of the menu, we were able to continue to innovate in small ways, while also maintaining in-stock positions and service levels,” he said.

So, if the pandemic slowed your pace of new idea generation, now is the time to get back on the innovation train. In fact, if you haven’t made out your list of New Year’s resolutions yet, here are two items that definitely should be on it:

• Resolve to continue taking care of your frontline store employees and field operations staff. They’ve borne the brunt of the pandemic-related risks and challenges. • Resolve to always maintain a structured and strategic approach to continued innovation.

I hope all our readers have a happy, healthy and prosperous New Year.

For comments, please contact Don Longo, Editorial Director, at (201) 855-7606 or dlongo@ensembleiq.com.

EDITORIAL EXCELLENCE AWARDS (2013-2021)

2021 Jesse H. Neal National Business Journalism Award Finalist, Best Infographics, June 2021 2018 Jesse H. Neal National Business Journalism Award Finalist, Best Editorial Use of Data, June 2017 2013 Jesse H. Neal National Business Journalism Award Best Single Issue, October 2012 2013 Jesse H. Neal National Business Journalism Award Finalist, Best Profile, August 2012

2016 American Society of Business Press Editors, National Azbee Awards Gold, Best How-To Article, March 2015 Bronze, Best Original Research, June 2015 2016 American Society of Business Press Editors, Midwest Regional Azbee Awards Gold, Best How-To Article, March 2015 Silver, Best Original Research, June 2015 2015 American Society of Business Press Editors, National Azbee Awards Silver, Best Profile (long form), February 2014 2015 American Society of Business Press Editors, Midwest Regional Azbee Awards Gold, Best Special Supplement, November 2014 Silver, Best Profile (long form), February 2014 2013 American Society of Business Press Editors, Midwest Regional Azbee Awards Bronze, Best Editorial/Commentary, July 2012 2020 Eddie Award, Folio: magazine Business to Business, Retail, Series of Articles, September 2019 2018 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Website Business to Business, Retail, Full Issue, October 2017 Business to Business, Editorial Use of Data, June 2017 2017 Eddie Award, Folio: magazine Winner, Business to Business, Retail, Single/Series of Articles, May 2017 Honorable Mention, Business to Business, Retail, Single/Series of Articles, June 2016 2016 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Full Issue, October 2015 Business to Business, Retail, Single/Series of Articles, August 2015 2015 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Single Article, February 2014 2014 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Full Issue, October 2013 Business to Business, Retail, Single Article, February 2013 2013 Eddie Award Honorable Mention, Folio: magazine Business to Business, Retail, Full Issue, October 2012

2020 Trade Association Business Publications Intl. Tabbie Awards Honorable Mention, Best Single Issue, September 2019 2016 Trade Association Business Publications Intl. Tabbie Awards Silver, Front Cover Illustration, June 2015 EDITORIAL ADVISORY BOARD

Laura Aufleger

OnCue Express

Ray Johnson

Speedee Mart

Chad Beck Core-Mark

Edward Davidson

Ed Davidson & Associates (7-Eleven Inc., retired)

Robert Falciani

ExtraMile Convenience Stores

Jim Hachtel

Eby-Brown Co.

Chris Hartman

Rutter’s

Ruth Ann Lilly

GPM Investments LLC

Vito Maurici

McLane Co. Inc.

Matt Paduano

Lakeport Markets

Jonathan Polansky Plaid Pantries Inc.

Greg Scriver Kwik Trip Inc.

Roy Strasburger

StrasGlobal

COVER STORY PAGE 33

STUDY 2022

FEATURES

COVER STORY

33 On the Road to Recovery Navigating detours has become a way of life for the convenience store industry, but 2022 brings signs of cautious optimism and hope.

34 Seeing the Promise of a Better Year C-store retailers are heading into 2022 with more optimism than they had a year ago.

38 Holding the Line Retailers expect to see more of the same in terms of sales for most product categories this year.

52 Cautiously Optimistic, But Still Realistic A majority of the convenience channel’s suppliers and wholesalers feel good about their 2022 business outlook, though stumbling blocks remain.

54 Embracing the New Normal Operational challenges and changing consumer behavior will drive convenience store retailers to switch things up in 2022. DEPARTMENTS

VIEWPOINT

3 Place Innovation Front & Center on Your Resolutions List Don’t let current troubles stifle new ideas.

10 CSNews Online

20 New Products

SMALL OPERATOR

26 Dark Days Ahead? The economic pressures of the ongoing COVID-19 pandemic have left the convenience channel’s small operators feeling less optimistic about 2022.

INSIDE THE CONSUMER MIND

82 Pandemic-Driven Spending Habits Are Here to Stay A significant number of Americans are reconsidering the meaning of essential spending.

20

12

INDUSTRY ROUNDUP

12 The New Year Brings New Leadership at Sheetz 14 Eye on Growth 14 Fast Facts

16 Retailer Tidbits

16 Supplier Tidbits

TECHNOLOGY

59 The 2022 Technology Hit List Frictionless checkout, all things digital, data management and labor optimization are the biggest priorities c-store operators have for technology implementation this year. CATEGORY MANAGEMENT

TOBACCO

56 A Category in Flux — Again C-store retailers are cautiously optimistic about the vapor category despite its challenges.

56

8550 W. Bryn Mawr Ave., Ste. 200, Chicago, IL 60631 (773) 992-4450 Fax: (773) 992-4455 www.csnews.com

BRAND MANAGEMENT Vice President/Group Brand Director Paula Lashinsky (917) 446-4117 plashinsky@ensembleiq.com EDITORIAL Editorial Director Don Longo (201) 855-7606 dlongo@ensembleiq.com Editor-in-Chief Linda Lisanti (201) 855-7608 llisanti@ensembleiq.com Senior News Editor Melissa Kress (201) 855-7618 mkress@ensembleiq.com Senior Editor Angela Hanson (201) 855-7619 ahanson@ensembleiq.com Managing Editor Danielle Romano (201) 855-7604 dromano@ensembleiq.com Contributing Editor Renée M. Covino (303) 741-3377 reneek@aol.com Contributing Editor Tammy Mastroberte (201) 280-2614 tmastroberte@gmail.com ADVERTISING SALES & BUSINESS Associate Brand Director & Northeast Sales Manager Rachel McGaffigan (774) 212-6455 rmcgaffigan@ensembleiq.com Associate Brand Director & Western Sales Manager Ron Lowy (330) 840-9557 rlowy@ensembleiq.com Associate Publisher & Midwest Sales Manager Kelly Fischer (773) 992-4464 kfischer@ensembleiq.com Account Executive & Classified Advertising Terry Kanganis (201) 855-7615 tkanganis@ensembleiq.com Classified Production Manager Mary Beth Medley (856) 809-0050 marybeth@marybethmedley.com AUDIENCE List Rental MeritDirect (914) 309-3378 Marie Briganti Subscriber Services/Customer Care contact@csnews.com TOLL-FREE: (877) 687-7321 FAX: (888) 520-3608 PROJECT MANAGEMENT/PRODUCTION/ART Creative Director Colette Magliaro (973) 607-1320 cmagliaro@ensembleiq.com Advertising/Production Manager Ed Ward (773) 992-4418 eward@ensembleiq.com Art Director Lauren DiMeo (973) 607-1321 ldimeo@ensembleiq.com

59

CORPORATE OFFICERS Chief Executive Officer Chief Financial Officer Chief Human Resources Officer Executive Vice President, Content Executive Vice President, Production Jennifer Litterick Jane Volland Ann Jadown Joe Territo Derek Estey

CONVENIENCE STORE NEWS AFFILIATIONS

Premier Trade Press Exhibitor

The contents of this publication may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations.

Convenience Store News (ISSN 0194-8733; USPS 515-950) is published 12 times per year, monthly, by EnsembleIQ, 8550 W. Bryn Mawr Ave., Ste. 200, Chicago, IL 60631. Subscription rates: Subscription rate in the United States: $125 one year; $230 two year; $14 single issue copy; Canada and Mexico: $150 one year; $270 two year; $16 single issue copy; Foreign: $170 one year; $325 two year; $16 single issue copy; Digital One year, digital $87; two year, $161. Periodical postage paid at Chicago, IL 60631, and additional mailing addresses. Copyright 2021 by EnsembleIQ. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or information storage and retrieval system, without permission in writing from the publisher. Reprints, permissions and licensing, please contact Wright’s Media at ensembleiq@wrightsmedia.com or (877) 652-5295. POSTMASTER: send address changes to Convenience Store News, 8550 W. Bryn Mawr Ave. Ste. 200, Chicago, IL 60631.