A Fast Track Into the Future

Jayne Rice, Yesway

seen and recognizable by the customer. Both manufacturers and distributors can be helpful partners for retailers when it comes to category planograms.

“Planograms and product assortments should be reassessed quarterly, and operators should be willing to delete slow items whenever they find them,” Nolan advised. “Every month or two months, take a clean look at your product assortment, whether it’s energy drinks, water, salty snacks or candy, and make sure the 20 percent of your inventory that is making up 80 percent of your sales never runs out of stock. The only way to do that is with good data.”

In some cases, technology can enable operators to break down sales by square foot in the store to see which spaces are selling the best and help retailers design their store in a way that is most profitable, said Chalberg, noting that this is an option with the KORONA POS system.

“I wouldn’t be surprised if in the future there will be a technology that would easily create planograms and space-tosales projected planograms for a store, where all the retailer needs to do is look at it and move things around to fit their locations — overlaying their own information so they create a template of what is already selling and where they can do better,” Nolan said.

In some cases, single-store operators or small chains may not have the technology suite or the budget necessary to fully analyze their data and performance, and this is another area where distributors can often assist. For instance, Core-Mark offers a SmartStock Program specifically aimed at this market to help smaller operators make better inventory decisions.

“Once a store signs up for the program, they receive planograms with evaluated assortments that showcase the best of the best in the convenience channel,” said Weaver. “These planograms are built using the same data and in-depth category review we would use for chains, alongside our vendor community using consumer insights and trends.”

Participating locations also receive weekly visits from a dedicated business consultant to evaluate categories for product rotation, accuracy of shelf tags, and inventory levels. Planograms are available on-demand through the company’s partnership with Repsly. “It allows operators to feel comfortable in their decisions through the credit processing capabilities through Core-Mark’s ordering platform, 100 percent guaranteed product sell-through on selected product and vendors, as well as a spoilage allowance for qualifying SmartStock perishable goods,” Weaver explained.

Scan-Based Trading

When it comes to stocking a convenience store’s shelves, some categories carry more uncertainty than others in terms of what will sell and what will flop. Some categories seem to have an ever-changing variety of new products coming through. One way retailers are responding to this is with scan-based trading (SBT), where they stock products but don’t pay for them unless they sell.

“If a category is restrictive, volatile and has uncertainty, it is perfect for scan-based trading,” said Kalva, whose company C-store Master offers SBT to retailers, specializing in the tobacco and beverage categories. “[SBT] offers an opportunity for chains to experiment and tailor products to their customer base, and if something isn’t working, we exchange it and bring something else in.”

The only stipulations are that the retailer is responsible for shrink and they can’t put the SBT products next to a direct competitor that is not on consignment.

Another important piece to SBT working is scan accuracy, meaning if someone buys three things and it’s buy two/ get one free, the cashier can’t scan the same item three times; each item must be scanned individually to track it all.

“This is ideal for items like vapor products, which some chains have not even touched. Now, they can have the confidence to try them and find out what the right products are for their stores, and there is zero downside,” Kalva said. “We have had some chains go through four sets of products before they find the right one for their market, but once they do, they generate millions of dollars of product just through vapor alone.”

While not a lot of companies offer SBT, Nolan echoes that it is a great way to bring in new products without the high risk because operators only pay for what they sell. Novelty items, such as flashlights, toys and other general merchandise items, would be an ideal category to work with SBT, he said.

“If you are just paying the vendor back on what you sold, that is a great opportunity to try new things and take some risks,” he noted.

Technologies available to assist with inventory management continue to evolve in ways that make the job easier and faster, so category managers and marketing departments can spend less time analyzing and pouring over data and more time on other aspects of their jobs, said Nolan.

“They can spend more time thinking about the innovation, pricing opportunities and promotions that will meet the needs of the customer and develop loyalty,” he concluded. CSN

Jayne Rice, Yesway

The 2019 TWIC Woman of the Year believes it is important for women to be open to all opportunity, not just vertical advancement

By Linda Lisanti

NOW IN ITS EIGHTH YEAR, the Convenience Store News Top Women in Convenience (TWIC) awards program has recognized more than 300 of the best and brightest women making a positive impact on not only the companies they work for, but also the entire convenience retail channel.

TWIC is the only program that recognizes exceptional female leaders, rising stars and mentors among retailer, supplier and distributor firms in the convenience store industry, from the C-suite to the store level to the independent entrepreneur.

In TWIC Talk, our quarterly Q&A series, we interview a past TWIC winner about what it’s like to be a female leader in the convenience store industry today — the opportunities, the challenges — and get their words of wisdom for up-and-comers seeking to blaze their own trail.

This month’s TWIC Talk subject is Jayne Rice, managing director and director of institutional sales, marketing and investor relations for Brookwood Financial Partners LLC, the private equity firm behind Yesway convenience stores. Rice is a member of Brookwood’s and Yesway’s Executive and Investment Committees. In 2019, she was one of the five women celebrated by TWIC as Women of the Year.

CSNews: How would you describe the current state of affairs for gender equality in the convenience store industry? How does this compare to 10 years ago?

I would say the current state of affairs for gender equality in the c-store industry is mixed. I have not been in the industry that long, but what I have observed is very encouraging. I know Yesway is committed to ensuring that gender is irrelevant when it comes to promotions, hiring or compensation. It does not impact our decision making.

However, given the historical evolution of this industry being predominantly male, the senior positions across most firms are still held by men. And their way of doing business — on the golf course, over drinks at NACS, or even on hunting trips — is both habitual and successful. It is sometimes hard for women to break into or feel comfortable in those environments, and our way of networking and building relationships often differ. As women continue to take on a larger percentage of senior executive c-store roles, the way in which business is conducted, including how relationships are formed and leveraged, will also continue to evolve.

THE 2021 CONVENIENCE STORE NEWS TOP WOMEN IN CONVENIENCE PROGRAM IS SPONSORED BY:

Founding & Presenting Sponsor:

Platinum Sponsor: Gold Sponsors:

Silver Sponsors:

CSNews: What is the most positive change you have personally witnessed?

I have been impressed by the Top Women in Convenience recognition events, and believe the work of this group is making a meaningful impact on the role and prevalence of women in the c-store industry. I was honored to be recognized, and what has been terrific to see is the continued outreach being made to all of the women who have been part of this initiative. TWIC is continually soliciting our opinions, publishing our stories, and enabling our voices to be heard. That is inspirational, not only for the women being recognized, but for all of the other women working hard in this industry who now have a growing group of mentors and role models to help support their careers.

CSNews: Along your career path, did you personally experience gender bias or inequality? If so, how did you overcome?

Of course, yes; especially given that most of my career has been spent in maledominated industries. I know few women who would say otherwise.

I am comfortable in challenging environments. I think, in part, because I grew up as an athlete, have three older brothers who were all athletes, and learned how to take setbacks in stride. I am comfortable competing, and have also had some success using my gender difference to my advantage. I can say unequivocally, however, that this is not the environment at Brookwood or Yesway, where there are many women in senior positions. Their voices and opinions matter and are valued.

I have always been involved in and heavily supportive of organizations that support women in business, not only for networking purposes and to help develop my own career, but also to help with the development and support of other women’s career paths.

CSNews: What barriers to advancement do you see still existing in the c-store industry?

I do not see barriers. What I do see is a really dynamic industry that is changing rapidly and full of opportunity. For example, what seems like just a few years ago, there was a very funny commercial that highlighted how buying sushi at a gas station was a bad idea. Now, you can actually buy very good sushi and all kinds of other fresh, award-wining food at gas stations. As the industry continues to evolve, so too will its related opportunities, and with that will come new voices that will lead this sector going forward. It is no longer an industry that does not cater to women.

There will continue to be an even greater need for women’s voices at the senior levels of the industry to better understand how to meet this consumer base that maybe in the past had been underrepresented. On the Yesway executive team: Ericka Ayles, who was recognized as a TWIC Senior-Level Leader, is chief financial officer; Jen Fermano serves as senior vice president of finance, and was recognized as a TWIC Senior-Level Leader; and Lisa Ham, Yesway’s senior category manager of center store and beer, was a TWIC Rising Star.

CSNews: What is your advice for other industry women looking to rise to higher ranks?

I read the following quote from Sheryl Sandberg a while ago, but it still resonates with me because of my own career decisions: “Treat your career like a jungle gym, not like a ladder.”

In my experience, it’s important to be willing to explore going sideways or even climbing down a rung to get to your ultimate career objective, as opposed to looking at your career path as a one-way ladder. I intentionally left a very good job at a large Fortune 200 company to seek out an opportunity where I could be in an entrepreneurial, fast-paced environment and be involved in the running and development of multiple cross-functional and firmwide initiatives.

Never would I have guessed that by working for a private equity real estate investment firm, I would be recognized as a woman leader in the convenience store industry because of the work we have done over the last few years in creating a new brand from scratch.

It is important to keep your eyes open for opportunity, which may not necessarily mean a direct promotion. It could be changing fields; it could be stepping down into something with less responsibility, but of more interest, that’s going to create greater opportunity going forward. It is important for women at all levels of an organization to be open to all opportunity, as opposed to being narrowly focused on vertical advancement.

It is also important to have experience that is broadbased, especially in an industry that is as dynamic as this one. The c-store sector is experiencing both a tremendous amount of consolidation and evolution. In dynamic industries, the people who tend to succeed the most, whether man or woman, are those who can best adapt to change, learn new skills, and wear multiple hats. The more you can juggle multiple roles, and the greater number of skillsets you can develop, the better. CSN

A Fast Track Into the Future

GPM Investments embarks on a remodel initiative armed with a bold, new store prototype

By Danielle Romano

At a Glance

fas mart

Size: 1,838 square feet Location: 2758 Virginia Ave., Collinsville, Va. Unique features: The first of 10 new concept stores planned for 2021 as part of an extensive remodel program; an enhanced overall customer experience through design, assortment, navigation and layout; a beer cave; bean-to-cup coffee; expanded roller grills

OVER THE PAST DECADE, GPM Investments LLC, a wholly owned subsidiary of Arko Corp., has been focused on acquiring regional brands to gain scale in the convenience store marketplace. After achieving sizable growth via multiple acquisitions in the last 10 years, the company made a strategic decision to embark on a remodel initiative, armed with a new, bold convenience store prototype that puts its forward-thinking practices in front of the consumer.

As part of the extensive remodel program, GPM recently began welcoming customers to the first of 10 new concept stores planned for 2021: a fas mart store located in Collinsville, Va.

“We have been working on this prototype over the last year and are very excited about the extensive remodel program and the benefits it will bring to our existing customers, as well as new customers who will be drawn in by the fresh, new look. Our remodeled stores will feature an expanded offering with grab-and-go prepared food, beer caves, frozen food, an enhanced drink lineup, and much more,” said Arie Kotler, CEO of GPM and Arko Holdings Ltd.

“Over the past few months, we have had the opportunity to take learnings from our customers’ shopping behaviors, as well as the changing consumer environment, and implement key updates to our remodel program and in-store offering to provide an enhanced customer experience emphasizing the local regional brand,” Kotler continued.

Bold, New Offers

Designed to cater to a broad customer base, the goal of the new store prototype is to improve the overall customer experience and ultimately drive more trips and higher baskets, Michael Bloom, executive vice president and chief marketing and merchandising officer at GPM, told Convenience Store News.

“The remodeled store features a fresh look from the inside out, including an easy-to-navigate format and expanded food and beverage offerings,” he noted.

The remodel initiative will be spread across all of GPM’s convenience store brands, including fas mart, E-Z Mart

“The remodeled store features a fresh look from the inside out, including an easy-to-navigate format and expanded food and beverage offerings.”

— Michael Bloom, GPM Investments LLC

and Scotchman. The program focuses on enhancing the overall customer experience through design, assortment, navigation and layout.

Prior to its transformation, the Collinsville fas mart had been closed for more than a year due to a fire in 2019, leading GPM to deem it the perfect location to debut its new look.

The store is significantly smaller than the average convenience store in GPM’s portfolio, but despite its lesser stature, the remodeled location is now big in aesthetics and offers. Among the new elements featured at the Collinsville site are a beer cave, freezers for frozen food, grab-and-go premade sandwiches, expanded roller grills, a bakery, expanded cold beverage doors, and bean-to-cup coffee.

As part of a grand-opening celebration held June 10, GPM offered exclusive, limited-time promotions to its fas REWARDS loyalty program members from June 9-23. At the same time, the retailer offered a number of promotions for all customers, including 49-cent fountain drinks (all sizes), a free value hot dog, and a free small bean-to-cup coffee. Customers could also enter a sweepstakes to win prizes from Monster Energy, Coca-Cola and Keurig Dr. Pepper.

The Road Ahead

GPM plans to use its new prototype design for remodels and raze-and-rebuild stores. The company anticipates investing approximately $360 million over the next three to five years to unify its stores in design, while maintaining the local well-known banners in each area. The initiative will encompass roughly 360 of GPM’s 1,400 company-operated locations across the country.

The Richmond, Va.-based retailer — the fifth largest convenience store operator in the United States — intends to continue “fine-tuning” the prototype design throughout the initial rollout of remodeled stores this year, according to Bloom.

GPM’s remodel initiative focuses on enhancing the overall customer experience through design, assortment, navigation and layout.

Over the next three to five years, Arko/GPM expects that the remodel program will generate approximately $72 million in incremental EBITDA.

“In addition to our other strategic initiatives, including our continued core acquisition strategy as well as synergies from the recently acquired Empire business, this aggressive remodeling program underlies our confidence in our ability to continue to drive strong and consistent growth and returns for all our stakeholders,” Kotler said. CSN

Kiosk Pre- Paid Services