17 minute read
The 2022 Technology Hit List
from CSN-0122
by ensembleiq
Frictionless checkout, all things digital, data management and labor optimization are the biggest priorities c-store operators have for technology implementation this year
By Tammy Mastroberte
DESPITE BEING ALMOST two years into the COVID-19 pandemic, its aftermath is still having a huge effect on all aspects of retail, including convenience stores and the industry’s technology priorities. Many retailers pivoted quickly when the pandemic hit with technologies initially on the backburner, or part of a five-year plan, moved up the list to priority status.
Touchless and frictionless technology, enhanced digital experiences, online ordering and delivery suddenly became must-haves, and the convenience channel jumped in headfirst to keep up with the changing consumer preferences. “Safety is a key driver for customers in the convenience channel, and the pandemic brought a new awareness to safety concerns, accelerated consumer adoption of e-commerce, and increased interest in frictionless shopping,” Deb Hall Lefevre, executive vice president and chief technology officer at Alimentation Couche Tard Inc., the Laval, Quebec-based operator of more than 7,230 Circle K stores in the United States, told Convenience Store News.
As the company focused on personal protective equipment (PPE), enhanced cleaning and plexiglass shields at the point-of-sale — along with other measures to demonstrate its commitment to safety — Circle K also worked to accelerate the testing of technology solutions such as touchless checkout options, and scaling on-demand home delivery, curbside pickup and click-and-collect — both as its own solutions and third-party relationships.
continue to learn more about what works best for our customers,” Lefevre said.
The same is true at Kwik Trip Inc., based in La Crosse, Wis., and operating more than 800 convenience stores. The pandemic pushed the company into partnerships with third-party delivery services, carryout and curbside options. Kwik Trip is still learning and evolving these options into 2022, according to Tom Colbert, director of IT for the chain.
“We are integrating these options into our current system to try to alleviate any additional labor concerns to execute,” he explained.
Frictionless checkout solutions — whether traditional self-checkout machines or mobile app options — are something that exploded during the pandemic, changing the trajectory for this technology substantially as COVID-19 accelerated its adoption, noted Patrick Thomas Raycroft, a partner with W. Capra Consulting Group, a firm based in Chicago.
“Consumers figured out through COVID that they don’t see a lot of value spending time at a register, whether because of contact with someone or time,” said Raycroft. “A lot of checkout solutions were implemented with the pandemic — a lot more than I would have anticipated pre-COVID — and now, a more autonomous checkout is here.”
— Deb Hall Lefevre, Alimentation Couche-Tard Inc.
Frictionless Fever
For many c-store retailers, their top priorities for 2022 when it comes to technology implementation include frictionless shopping and checkout; all things digital; optimizing labor; and data collection, integration and analytics.
Building out a frictionless self-checkout solution is top of mind for a lot of the major c-store chains, with some already testing a variety of options and others already in full rollout. This includes visual and artificial intelligence (AI) technology like what is used in Amazon Go stores — although there are still issues to work out when it comes to imaging and foodservice, according to Gabe Olives, chief information officer at Impact 21, a consulting company based in Lexington, Ky.
“Everyone is looking to install self-checkout in one form or another, whether it’s allowing people to use their own device as a scanner, traditional self-checkout where one employee monitors several of them, or the imaging model like Amazon Go,” Olives said. “But while visual tech works great for an item on the shelf or in a cooler, it doesn’t for food encased in a bag or Styrofoam, so people still have to scan a barcode.”
Circle K stores are testing Grabango checkout-free technology, which allows customers to shop while it tracks the items they pick up, and then they scan the code in the Grabango app to pay for their items. Several other c-store retailers are piloting Grabango. GetGo, the c-store arm of Giant Eagle Inc., based in Pittsburgh, Pa., and operating 266 locations, retrofitted four stores in the Pittsburgh market in September 2021, while BP announced the rollout of Grabango to 10 Amoco and ampm sites in California and Pennsylvania in December 2021.
“At our retail lab store on the campus of McGill University in Montreal and in seven stores in Arizona, we are testing several fully frictionless store experiences that use computer vision and AI to enable customers to shop and pay while skipping the line, and carefully looking at how this drives customer satisfaction, shopper behavior and sales,” Lefevre said.
Circle K is also continuing to focus on a countertop self-checkout solution that’s currently in more than 300 stores and automatically identifies, prices and totals items placed on a platform. “We are excited about the impact it’s having on checkout speed,” she said.
Additionally, the chain is testing frictionless technology at the forecourt in all Circle K locations in Sweden, and will be expanding its pay-byplate option into new markets, according to Lefevre. This option uses license plate recognition technology so that drivers need only pull up, pump their fuel, and then pull away without even having to take out a wallet or phone.
One hurdle with frictionless checkout that many retailers will be diving into, including Circle K, is how to handle age-restricted products. This is something the industry is already working on, especially since these types of products make up a large amount of c-store purchases.
“It’s promising to see momentum building for a common age verification platform that can be used industrywide,” Lefevre said. “Platforms currently under development in partnership with NACS can help ensure that as an industry, we continue living up to our shared
commitment to responsible sales of age-restricted products as the technology continues to evolve.”
Digital Experiences & Data
The continued migration and integration of digital experiences into the c-store is another big trend that will continue in the new year. This includes delivery, said Raycroft.
“With COVID, many stores launched a lot of things because they had to, and many opted for third-party delivery. But a huge problem is these delivery companies own the customer, so now many chains are going to spend the next year or two figuring out how to claw back the experience and the data to make it more efficient as part of their own operation,” he noted.
One option is for c-stores to leverage third parties for what they don’t want to do internally, which is often the actual delivery and fulfillment. However, Raycroft said they should aim to own the checkout experience, payment, loyalty, and everything that leads up to it.
“The big conversations c-stores are starting to have are around data infrastructure and creating a core set of data integrations, so they can function and react quickly to new technology,” he explained. “It’s about a data foundation of common ways to extract, normalize and store data, so they can quickly bring in new technology into stores, including new digital experiences.”
Master data and Internet of Things (IoT) will be focal points for Kwik Trip in 2022 as many of the devices in its stores are “becoming smart devices that can provide us data that will help make smarter decisions,” said Colbert. “Because of our vertical integration, we have a large software stack, and Master Data management will help put rules around the critical business data.”
In fact, Colbert believes data should be top of mind for all c-store operators, because there are now so many data collection points available to them through their technology systems running in the store — from point-of-sale to loyalty and more.
“We need to be able to decide what is important to consume and make better decisions and predictions with this information,” he said.
— Patrick Thomas Raycroft, W. Capra Consulting Group
Optimizing Labor
Convenience store operators are always looking for ways to free up store staff so that they can be more available to customers, while also saving on labor costs. This is one of the benefits of more advanced technologies like frictionless checkout, as well as other autonomous options.
“Automation robotics is something a lot of retailers are looking at for inventory receiving and for tracking inventory using smart shelving — things normally done by staff members,” Raycroft pointed out. “Selfcheckout also reduces the amount of time store associates spend behind the counter and gets them closer to the buying experience, helping customers.”
In addition to its focus on data in the new year, Kwik Trip is looking for technology that can help save labor at the chain’s stores, according to Colbert. And this is a focus for Circle K, too.
“With a stable and secure tech foundation, we are shifting more of our tech spend to drive the growth and transformation of our business to meet the evolving needs of our customers and team members,” Lefevre explained. “This means more investment in technology and capabilities that enhance the experience for our customers, both in-store and on the forecourt, while also freeing up our store teams and giving them resources they need to deliver great service to our customers.”
Circle K has been testing technologies to automate inventory management and food safety compliance, so it can “reduce the strain on our store staff and free them up to spend more time engaging with customers,” she said. The chain also will be keeping an eye on how autonomous driving and robotic automation will affect operations and impact the work experience for team members — both at the forecourt and in-store with tasks such as cleaning and food prep.
“[The industry] should watch for how these technologies enhance supply chain operations such as picking, loading, and other tasks at warehouses and distribution centers,” she said. CSN
Utilizing Allyship in the Workplace
A recent Convenience Store News webcast explored why allyship is important and how c-store industry companies can join the movement
By Danielle Romano
THE BUSINESS BENEFITS of diversity and inclusion efforts vary by company, but globally, industries understand they cannot afford to squander opportunities to do right through implementing effective DEI (diversity, equity, inclusion) practices.
One key part of the DEI equation is tackling the subject of allyship — the importance of getting non-minority leaders on your side to successfully implement an authentic and meaningful diversity program at your company.
A recent webcast hosted by Convenience Store News and the CSNews Diversity & Inclusion Advisory Board explored the critical components of allyship, including what actions companies can take to advance the effort, how to recruit allies to effectively promote allyship, and how to foster productive conversations about differences.
Allyship in Action
All companies are not at the same place in their DEI journey.
At Alimentation Couche-Tard Inc., the parent company of Circle K, Chief People Officer Ina Strand acknowledges that the retailer began its journey a little late. Strand was brought into her role four years ago to advance gender equity. She immediately helped establish an executive advisory board. Comprised of 50 percent men and 50 percent women, the board pledged to support DEI efforts across the company and set forth an internal mission for Couche-Tard to look more like the communities it serves, as well as its workforce.
Then, last March, Laval, Quebec-based Couche-Tard announced that its President and CEO Brian Hannasch had joined the CEO Action Pledge, a coalition of CEOs committed to advancing diversity and inclusion within the workplace. Couche-Tard became the first c-store retailer to join the initiative. To go along with this pledge, the retailer launched an internal global campaign titled “Together we make a difference,” where all employees had an opportunity to join Hannasch and make their own personal “I ACT On” pledge.
“I took the pledge,” said Strand, whose native country is Norway. “What I’ve seen in Europe and North America is that if you really want to create change, you have to have everyone involved and represented. As an ally, it’s about engaging, listening, and trying to learn.”
In the distributor realm of the convenience channel, Elmwood, La.-based Imperial Trading Co. LLC has made sure to involve the younger generations in its DEI efforts.
For example, Imperial Trading President and CEO Wayne Baquet approached Marketing Manager Stacy Matthews with an initiative called the “Sun Shines For All,” which focuses on minority groups. Members of the task force were comprised of the executive team’s children who are currently in the workforce.
“The idea behind this was twofold: One, they work for progressive companies to benchmark ideas; and two, we learn how much influence the younger generation has on those at Imperial and ultimately who are the allies that we desire to have work for us,” Matthews explained, noting that Imperial has two Black executives in leadership — Baquet and Chief Marketing Officer Emile Cantrell; no other wholesaler in the industry has this unique makeup.
Building Inclusiveness
Technology can be used as an enabler of diversity and inclusion, Steven Kramer, co-founder and CEO of WorkJam, a frontline digital workplace platform, noted during the CSNews webcast. According to the executive, WorkJam has a diverse workforce based in Montreal, which is a diverse city. As part of the company’s DEI efforts, it builds inclusiveness into the organization’s values, flowing this mission from the top down.
“We take a stand on issues. For example, we send companywide emails reaffirming values on inclusiveness. We also built collaboration software to use internally to keep channels open between team members to discuss things that happen outside of work to bring them together and build community,” Kramer explained.
“It’s more than members talking to each other who may not have worked together because they work in different departments, but it’s people from all different backgrounds talking about their experiences,” he added. “This builds a sense of community within the organization, and we’re proud to have technology that enables our customers’ frontline workforce to do the same thing.”
iSee Store Innovations, which was “founded by three old white guys,” is likewise evolving the company’s conversations to be more inclusive of culture and ethnicity by listening and learning, according to founding partner and CEO Joe Vonder Haar.
The 28-year Anheuser-Busch veteran noted that when women began joining the iSee executive team, inclusive conversations surrounding childcare and accommodations for mothers became integral. Now, those conversations are progressing.
“We’ve grown from being founded by three old white guys to a team of 18 so, by definition, we’re diverse on age and diverse in gender,” Vonder Haar pointed out. “We’re not quite 50/50, but we have women running operations and marketing, so it’s time for us to purposefully and actively add cultural and ethnic diversity to our company.”
Taking Action
The 36 Lyn Refuel Station in Minneapolis, the city where George Floyd was murdered, sees customers from all walks of life and prides itself on being the “Cheers” of
— Ina Strand, Alimentation Couche-Tard Inc.
the convenience store industry, where every employee knows the guests’ names.
In order for this symbiotic relationship to work, communication is key among the station’s owner, team members, vendors and suppliers.
“It’s fun to engage in discussions with my staff or potential frontline employees, as well as engaging with vendors and suppliers, about issues that are important to me and the industry, and also different groups that we’re collaborating with to identify allies early on and to identify the goals we are trying to accomplish,” expressed Lonnie McQuirter, owner and director of operations for 36 Lyn Refuel Station. “There has to be a level of trust between my customer and me, my community and me, and my staff and me.”
When asked what actions companies can take to advance allyship, the panelists said:
• “Just get started. Don’t be afraid to open your mouth.
You have to start the conversation at some time, no matter how vulnerable you feel. We have to have these conversations to have a better tomorrow.” — McQuirter • “Invest in people at all levels of the company. When employees feel valued, they align their focus with the values of the company. Some of the most effective solutions aren’t even designed with allyship in mind. I find that when initiatives are more organic, you get less resistance because if it doesn’t feel forced, it will increase the likelihood of it becoming successful.” — Matthews • “Be purposeful in what you do and be transparent to create alignment up and down the organization.” — Vonder Haar • “WorkJam technology was designed to bring people together and communicating. We say that communication equals respect.” — Kramer • “Educate. At the end of the day, we think of the word
‘ally’ as more of a verb because it’s something you do, and these are actions that speak more than words.” — Strand CSN
Convenience Store News is partnering with founding underwriter, Altria Group Distribution Co., and supporting sponsors The Hershey Co. and WorkJam, on a new c-store industry initiative around diversity and inclusion. The new platform is a multi-touch digital and print program that will focus on the business case for greater emphasis on diversity and inclusion in the convenience channel, and is designed to be a catalyst for discussion, innovation, engagement and action.
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ADINDEX
Add Systems ......................................17
Altria Group Distribution ................2
A.B. Data, Ltd.....................................23
BIC USA Inc. .......................................5
E-Alternative Solutions....................27
Forte Products...................................32
Furmano Foods .................................29
GlaxoSmithKline Consumer Health Care.....................7
Hunt Brothers Pizza .........................15
Island Lifestyle Importers ...............37
ITG Brands ..........................................44–45
King & Prince Seafood Corp...........11
Liggett Vector Brands .....................31 National Confectioners Association.........................................32
Perfetti Van Melle USA ....................43
Premier Manufacturing....................39
Procter & Gamble..............................35
Republic Tobacco .............................18-19
siffron...................................................24-25
Sugar Foods Corporation ...............40-41
Swedish Match North America ......21
Swedish Match North America LLC...........................8–9
Swisher International, Inc. ..............13
The Boston Beer Company.............84
TransAct Technologies Inc..............61
Universal Merchant Services ..........Polybag
