
8 minute read
Pain & Gain
from CSN - 1222
by ensembleiq
AS I LIE here following surgery to repair a torn Achilles tendon, my mind doesn’t stray very far from the leg pain I feel every four to six hours. Which then gets me thinking about a subject raised at a recent Convenience Store News Editorial Advisory Board meeting: What are the pain points convenience store retailers will face in 2023? At least I have some prescription drugs to deal with my pain, but I wonder how retailers will deal with these pain points in the year ahead:
Consumers trading down. “It’s the economy, stupid,” as James Carville said during Bill Clinton’s successful 1992 presidential campaign. That phrase is even more relevant today. Many consumers are hurting. Not all, but certainly the blue-collar consumers that make up the core of the convenience store customer base. Retailers are seeing customers purchasing more generic and private label products, especially in cigarettes.
Unfavorable policies. Government regulation, or over-regulation, touches everything from energy policy to nicotine flavor bans to credit card transaction fees. Anti-petroleum policies that raise fuel prices take money out of consumers’ pockets that they would normally spend in the store. “Credit card transaction fees are my largest single store operating expense,” outgoing NACS Chairman Jared Scheeler said at last month’s convention. ‘Nuff said.
Rising crime. Some retailers can’t keep their stores’ doors open overnight — not because of lack of labor as was the case a year ago, but because of rampant robberies. It’s not worth jeopardizing the safety of an employee in most cases, so brazen criminals are making life hell for many c-store retailers. Among the many recent shortfalls of government, the lack of support for law enforcement is one of the most glaring.
The continued labor challenge. Most retailers have gotten past the worst of the labor shortage, or at least have learned how to operate with fewer hands on deck. Turnover is still huge, though. One popular solution — giving new employees a bonus for staying a certain amount of time — hasn’t worked for all retailers. Many say the program only works until the date at which the employee qualifies for the stay bonus, and then they leave.
Increased inflation and stagnation. As the Fed continues to raise interest rates to combat raging inflation, stagflation is becoming a real threat. Stagflation is persistent high inflation combined with high unemployment and stagnant demand in a country’s economy.
Supply chain shortages. This is another pain point that is not as acute as it was a year ago, yet still lingers for a large variety of needed products, from store fixtures to foodservice ingredients. The best wholesalers are the ones that are honest with their retail customers about expected product delays and that can offer substitute items for missing product.
The new year may bring even more pain points for convenience store retailers to overcome. The prescription, in my view, is to concentrate on providing more value to your customers. Make it worth it to them to spend their time and money with your brand.
For comments, please contact Don Longo, Editorial Director Emeritus, at dlongo@ensembleiq.com.
COVER STORY PAGE 34 30
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FEATURES

COVER STORY
34 Playing the Long Game Hall of Famer Brian Hannasch’s 40-year career in the industry has led him to head one of the largest convenience and mobility companies in the world.
FEATURE
50 Rising to the Challenge The nation’s top c-store wholesalers are helping retailers overcome today’s obstacles. DEPARTMENTS

EDITOR’S NOTE
3 Challenging Times Call for Sound Leadership The industry needs skillful and empathetic leaders more than ever.
VIEWPOINT
4 Pain & Gain What are the pain points convenience store retailers will face in 2023?
12 CSNews Online 26 New Products
SMALL OPERATOR
30 Hungry for Change Hangry Planet seeks to redefine the traditional junk food landscape perpetrated by c-stores with the opening of the first-ever fully plant-based convenience store.
STORE SPOTLIGHT
64 Taking Flight Formerly known as Liberty Travel Plazas, the new Onvo brand aims to provide guests with a fun, friendly and memorable experience.
INSIDE THE CONSUMER MIND
86 The Health of Convenience Stores Six in 10 c-store shoppers are not satisfied with the current selection of better-for-you products.
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16

INDUSTRY ROUNDUP
14 Kwik Trip CEO Don Zietlow Retires
16 Convenience Retailers Prepare to Move Into New Markets
18 Fast Facts
20 Eye on Growth 22 Retailer Tidbits
24 Supplier Tidbits
TECHNOLOGY
62 Technology Takes a Seat at the Table Industry leaders talk all things innovation at the 2022 Convenience Store News Technology Leadership Roundtable. CATEGORY MANAGEMENT
FOODSERVICE
56 Next-Level Foodservice Marketing Whether it’s a brand-new program or new items, c-stores need to get creative in marketing foodservice to grow profits and increase sales in this high-margin category.
TOBACCO
60 Inflation Bears Down on the Backbar How can convenience store operators cater to cash-strapped tobacco customers?
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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 2022 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. POSTMASTER: send address changes to Convenience Store News, 8550 W. Bryn Mawr Ave. Ste. 200, Chicago, IL 60631.


































