Convenience Store Decisions December 2018 by WTWH Media LLC

Volume 29 • Number 12 • DECEMBER 2018 Business Solutions for Retail Decision Makers

40 under 40

Meet this Year’s Class of Rising Professionals.

INSIDE:

Build Your Foodservice Via Appetizers 2019 Looks Clear for Smokeless Sales C-Stores Combat Human Trafﬁcking

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December 2018

Vol. 29 • No. 12

CONTENTS

40 under 40

EDITOR'S MEMO 8 Creating

an Emotional Connection with Customers

24 COVER STORY

2018 40 Under 40

Some direct small chains and others support large retail operations with major industry clout. Still, the individuals who comprise CSD’s class of next-generation leaders are all committed to delivering excellence and moving their companies forward.

BACK END 58 Product Showcase

FRONT END

60 Quick Stop

10 CSD’s Quick Bites

62 Industry Perspective: Proper Category Management

12 Industry News

14 Convenience Store Solutions: Remove Your

61 Ad Index

Can Drive Performance

Rose-Colored Glasses

16 NAG Draws Retailers to Florida

FOODSERVICE 48 Build Your Foodservice Via Appetizers

CATEGORY MANAGEMENT 52 2019 Looks Clear for Smokeless Sales

OPERATIONS 56 C-Stores Combat Human Trafﬁcking

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THE CSD GROUP Convenience Store Decisions • Leading Through Innovation www.cstore de ci si ons.com Convenience Store Decisions

CStoreDecisions ecisions .com

EDITORIAL

Vice President, Editor-in-Chief John Lofstock jlofstock@csdecisions.com Senior Editor David Bennett dbennett@csdecisions.com Senior Editor/News & Online Erin Del Conte edelconte@csdecisions.com Associate Editor Howard Riell hriell@csdecisions.com Associate Editor Marilyn Odesser-Torpey mot@csdecisions.com

EDITORIAL ADVISORY BOARD

Robert Buhler, President and CEO Open Pantry Food Marts Pleasant Prairie, Wis. Jim Callahan, Director of Marketing (Retired) Geo. H. Green Oil Inc. • Fairburn, Ga. Brad Call, President Colour Du Jour • Salt Lake City Bill Kent, President and CEO The Kent Cos. Inc. • Midland, Texas Greg Lorance, Dispensed Category Manager Cumberland Farms • Framingham, Mass. Billy Milam, President RaceTrac Petroleum Inc. • Atlanta Patrick J. Lewis, Managing Partner Oasis Stop 'N Go • Twin Falls, Idaho Scott Zaremba, President and CEO Zarco 66 • Lawrence, Kan.

OFFICE LOCATIONS

Headquarters 19111 Detroit Rd., Ste 201 Rocky River, OH 44116 P: (440) 250-1583 • F: (440) 333-1892 Editorial and NAG 1420 Queen Anne Rd., Suite 4 Teaneck, NJ 07666 (201) 837-2177 http://twitter.com/CStoreDecisions www.facebook.com/CStoreDecisions www.linkedin.com/CStoreDecisions 6 Convenience Store Decisions December 2018

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Contributing Editors Anne Baye Ericksen Scott McKinney Brad Perkins Jeff Steele

ADVERTISING

Columnists Jim Callahan John Zikias

Publisher John Petersen jpetersen@csdecisions.com 440-250-1583

Creative Director Erin Canetta ecanetta@csdecisions.com Production Manager Barbra Martin bmartin@csdecisions.com

Group Publisher Tom McIntyre tmcintyre@csdecisions.com 440-250-1583

Vice President, Sales Tony Bolla tbolla@csdecisions.com 773-267-1897

Digital Operations Manager Nicole Lender nlender@csdecisions.com

NATIONAL ADVISORY GROUP (NAG) BOARD

Robert O’Connor, Board Chairman O’Connor Petroleum Co. • Hales Corners, Wis. Mary Banmiller, Director of Retail Operations Warrenton Oil Inc. • Truesdale, Mo. Greg Ehrlich, Chief Operating Officer Beck Suppliers Inc. • Freemont, Ohio Doug Galli, Vice President, General Manager Reid Stores Inc./Crosby’s • Brockport, N.Y. Joe Hamza, Chief Operating Officer Nouria Energy Corp • Worcester, Mass. Brent Mouton, President and CEO Hit-n-Run Food Stores • Lafayette, La. Peter Tamburro, General Manager Clifford Fuel Co. • Utica, N.Y. Vernon Young, President and CEO Young Oil Co. • Piedmont, Ala.

SUBSCRIPTION INQUIRIES

To enter, change or cancel a subscription: Web (fastest service): www.ezsub.com/csd Phone: (844) 862-9286 (U.S. only, toll-free) Fax: (440) 333-1892 Mail: Convenience Store Decisions P.O. Box 986, Levittown, PA 19058 Copyright 2018, WTWH Media, LLC

YOUNG EXECUTIVES ORGANIZATION (YEO) BOARD

Bart Stransky, Board Chairman RaceTrac Petroleum Inc. • Atlanta Garet Bishop, Chief Financial Officer BFS Cos. • Morgantown, W.Va. Caroline Filchak, Director, Wholesale Ops Clipper Petroleum • Flowery Branch, Ga. Kalen Frese, Food Service Director Warrenton Oil Inc. • Warrenton, Mo. Alex Garoutte, Director of Marketing The Kent Cos. Inc. • Midland, Texas Sharif Jamal, Corporate Training Manager Chestnut Petroleum Inc. • New Paltz, N.Y. Lindsay Lyden, Vice President, Development Truenorth Energy • Brecksville, Ohio Jeremie Myhren, Vice President, IT Road Ranger • Rockford, Ill.

Convenience Store Decisions is a three-time winner of the Neal Award, the American Business Press’s highest recognition of editorial excellence.

Convenience Store Decisions (ISSN 1054-7797) is published monthly by WTWH Media, LLC., 19111 Detroit Rd., Suite 201, Rocky River, OH 44116, for petroleum company and convenience store operators, owners, managers. Qualified U.S. subscribers receive Convenience Store Decisions at no charge. For others, the cost is $80 a year in the U.S. and Possessions, $95 in Canada, and $150 in all other countries. Single copies are available at $9 each in the U.S. and Possessions, $10 each in Canada and $13 in all other countries. Periodicals postage paid at Cleveland, OH, and additional mailing offices. POSTMASTER: Send address changes to Convenience Store Decisions, P.O. Box 986, Levittown, PA 19058. GST #R126431964, Canadian Publication Sales Agreement No: #40026880. CONVENIENCE STORE DECISIONS does not endorse any products, programs or services of advertisers or editorial contributors. Copyright© 2018 by WTWH Media, LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, or by recording, or by any information storage or retrieval system, without written permission from the publisher. Circulation audited by Business Publications Audit of Circulation, Inc.

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EDITOR’S

Memo

Creating an Emotional Connection with Customers

For any questions about this issue or suggestions for future issues, please contact me at jlofstock@ csdecisions.com.

T’S NO SECRET THAT WE are experiencing unprec- “A well-crafted story helps you create contrast between choices. It edented times across retail. Customers now have access to anything and every- helps prospective customers make thing they want in seconds right from their smartphones. sense of the decision they’re about Delivery is available on demand for everything from a to make.” Champion offered these tips for new car to breakfast sandwiches. Frictionless retail, where customers can walk into a retailers focused on providing outstore, pick up what they want and walk right out—com- standing customer service: Know your characters. All stories have characters. pletely bypassing the checkout counter and those important impulse sales—is not only here, it’s expanding to With inbound marketing, the people are central to the story. When potential customers can get the things they markets around the country. Amazon and Google have developed devices that al- want and see themselves as characters in your story, low customers to reorder products and have them deliv- they’ll be more likely to return to your store. Simply put, ered right to their front doors in a matter of hours with it makes them feel special and when they feel special, the simple push of a button. Scared yet? You should be. you have created a bond that will be hard to break. Resolve conflicts. Once you understand who the When you combine these growing trends with other concerning issues, such as the FDA’s assault on tobacco and customers are and what they want, it’s important to unthe growth of electric cars and alternative fuels, which are derstand the potential conflicts they face. Champion curbing visits to the convenience store, concerns abound. suggested shopping your stores as a customer would. Identify potential problem points and fix them. “You need to understand the buyer’s journey and For retailers, the message is clear: the conflicts they might face at each stage and resolve You must provide an engaging and them,” Champion said. “This shows your customers that you respect their time and value their business.” persuasive offering to pull customers Connect with your customers on an emotional level. into your store. TOMS is a slip-on shoe company that focuses on spreading social good. Here is its powerful story: Everyone needs All hope is not lost, according to Justin Champion, shoes, but not everyone has the money to pay for them. author of “Inbound Content: A Step-by-Step Guide to So, with each product purchased, TOMS donates a pair of Doing Content Marketing.” That’s because customers shoes to a child in need. This strikes an emotional chord respond to emotional connections. That’s why conve- with its customers and compels them to buy. “This is an example of how a shoe retailer created a nience stores must work harder at creating a story for much bigger story that makes their customers feel like your brand that resonates with your customers. “Stories create emotion and emotion is what people they’re changing the world by simply purchasing a pair remember,” Champion said. “They help you engage of shoes,” Champion said. “And they’ve sold more than and, more importantly, remind customers who you are, 75 million pairs of shoes, which means they’ve also given what your values are and why you’re a good business for over 75 million pairs of shoes to children in need.” That is a powerful story and customers are proud to your community.” People are bombarded with messages these days. participate. Remember, people want and need to feel Google processes over 3.8 million searches per minute. connected. If you tell the right story, you can capture That’s a lot of people looking for information. This is hap- their attention, connect with them emotionally and win their loyalty. pening because the way people buy has changed. For retailers, the message is clear: You must provide an engaging and persuasive offering to pull customers into your store. Champion calls this inbound marketing. “Your goal is resonating with people,” Champion said.

“

”

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QuickBites AUGMENTED & VIRTUAL REALITY ARRIVE

Chocolate Tastes Vary

• Nearly 50% of consumers are more likely to shop at retailers that offer virtual or augmented reality.

CHOCOLATE BUYERS SAVOR: 31% unique sweet ﬂavors

• 32% of retailers plan to use virtual and augmented reality in three years.

29% savory ﬂavors

30% trufﬂes with good fats

18% added protein

CHOCOLATE TRENDS

Source: Boston Retail Partners (BRP) “2018 Digital Commerce Survey”

49% of U.S. chocolate buyers would like to see more chocolate in mini-sized bars or bites.

Online Grocery Shopping

Source: NPD Group’s 2017 Checkout, a receipt harvesting research service.

Skyrockets

• Online grocery sales more than tripled between 2013 and 2018, and are expected to quadruple from 2018 to 2023.

49% of U.S. 63% say it’s

75% say

76% of choco-

90% of chocolate buyers agree that it’s okay more money to indulge for premium occasionally in chocolate. chocolate.

chocolate important single-serving late buyers say WHICH BEST DESCRIBES WHY YOUthatBUY AN buyers to limit or bite-sized it’s worth would like chocolate it to pay a little OPEN-LOOP GIFT CARDchocolate FOR YOURSELF? to see more chocolate in mini-sized bars or bites.

• Amazon and Walmart together account for nearly 28% of online grocery sales.

consumption.

are good ways to limit chocolate consumption.

Source: Mintel, “Chocolate Confectionery U.S., April 2018”

Source: Packaged Facts, “Online Grocery Shopping in the U.S., 2nd Edition.”

Holiday Shopping Gets Political Retailer & manufacturer positions on social and environmental issues will impact holiday buying decisions according to:

52%

of overall shoppers, up 3% from 2017

65% 55%

of Gen Z shoppers of Millennials, born between 1981 and 1996 0

20 30

40 50

50 60

A company’s politics will play a role in purchases according to:

47% 49% 48% 47%

60 70

70 80

of all U.S. consumers, up three points over last year of baby boomers, (born between 1946 and 1964) of Gen Z shoppers of Millennials 10

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30 40

20 30

30 40

50 50

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CMY

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INDUSTRY

News

QuickChek Exits Pharmacy QuickChek Corp. is moving out of the pharmacy business, and is transferring its prescription records to CVS Pharmacy. Whitehouse Station, N.J.-based QuickChek has 159 fresh convenience market locations throughout New Jersey, New York’s Hudson Valley and Long Island, including 10 stores with pharmacy and 75 with fuel. The family-owned company will close the pharmacy departments in nine locations and remodel those stores to fit with its current new concept market stores, which are designed to meet the needs of today’s on-the-go, fast-casual and Millennial shopper. The chain plans to focus on its core fresh convenience business while growing foodservice and fuel. QuickChek and CVS Pharmacy are working together to ensure the transition will be seamless for patients and that their access to pharmacy care is not interrupted. To facilitate this changeover, CVS Pharmacy plans to interview QuickChek employees so they may join the CVS Pharmacy team.

7-Eleven Pilots Frictionless Payment 7-Eleven is piloting a new mobile self-checkout feature, Scan & Pay at 14 stores in Dallas. Scan & Pay lets customers skip the checkout line and pay for their purchases using the 7-Eleven app to scan and pay for items while they shop—no checkout line required. Scan & Pay works on both Android and iOS devices and is available for all

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7-Eleven merchandise excluding items that require cashier assistance — hot foods, financial services and age-verified products such as alcohol, tobacco and lottery tickets.

Express Mart Divests C-Stores to Speedway Petr-All Petroleum Consulting Corp., d/b/a Express Mart has divested its 78 convenience retailing and petroleum marketing assets throughout the State of New York to Speedway LLC, a wholly-owned subsidiary of Marathon Petroleum Corp. PetrAll was founded in 1975 in Dryden, N.Y. by the late Francis (Frank) Borer. The first Express Mart convenience store opened in 1989.

Englefield Oil Founder Passes Away Industry leader F. William (Bill) Englefield III, founder of Englefield Oil Co., passed away Saturday, Nov. 3, 2018. Today, Englefield Oil Co. is a third-generation family business that employs more than 1,600 Ohioans companywide, with revenues of over a billion dollars. Englefield was a tireless champion of Ohio’s independent, family-owned petroleum marketers. He served for many years on the Board of Directors of the Ohio Petroleum Marketers & Convenience Store Association (OPMCA), including serving as chairman from 19761978. Englefield was active in the association’s advocacy efforts with the Ohio General Assembly and state regulatory agencies, and played a pivotal role in shaping the strategic

direction of the association, which would evolve to become the modern OPMCA.

Speedway C-Store Foot Traffic Leader GasBuddy released its Q3 foot traffic report, which found that convenience store brands that received the most foot traffic per station in their respective categories retained their top spots from Q2 to Q3, including Ohio-based Speedway (1,000+ locations), Washington-based Costco (250-999 locations), Kentuckybased Thorntons (50–249 locations) and Indiana-based Ricker’s (30–49 locations). Wawa and Pilot tied for the top spot overall in terms of the highest average footfall in the most (five) states in Q3. In Q2, Wawa had tied with Cumberland Farms, who this quarter moved to second place with Costco—each claiming wins in four states. Speedway once again secures a close third with three states.

Fuel Prices Fall Fast

Nov. 12, the national gas price average hit $2.70, six cents less than the previous Monday, 21-cents lower than last month and only 14-cents more than this time last year, according to AAA. The year-over-year price difference has not been this small since the beginning of January. Why the drop in pump prices? AAA pointed to a natural dip given the end of refinery maintenance season. “Prices could plunge even lower, especially if we see a surge in gasoline production after refiners fully restart units from the fall maintenance season,” said Jeanette Casselano, AAA spokesperson. “Also driving down pump prices is the fact that crude oil is selling under $65/bbl, a rare sight this year.”

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CONVENIENCE STORE SOLUTIONS

Remove Your Rose-Colored Glasses Whether we are assessing an individual’s job performance or the operational performance of a store, it’s difﬁcult to gauge accurately without employing hard systems that accurately measure performance. By Jim Callahan

RGUABLY, THE MOST SUCCESSFUL MARKETING campaign ever employed by the Army was “Be All You Can Be.” It was so successful it ran from 1980 to 2001. And though that branch has come up with other inspiring themes since then—“Army Strong” for example, few marketing efforts have captured the imagination of would-be recruits like “Be All You Can Be.” What is it about that slogan that spoke to so many young men and woman during that period? It was the promise that if an individual had untapped potential that was yet to be revealed, the Army would help. By meeting the challenges offered by the military, that individual could learn more about himself or herself while contributing to the mission of the organization. The same might be said for the convenience store industry, which is under the gun against other industries. Of course, our industry is a people business. We serve customers and we rely on our people to make that happen. That’s where assessments come in. From a business perspective, retailers must assess their workers, evaluate the workings of the organization and really determine what kind of job they’re doing every day, from the time that ﬁrst customer comes in each morning to the time that last customer leaves the premises.

THE TRUE YOU Most of us quite naturally are biased and fail to capture the true view of how we really are. Sometimes, we think our organizations are better than they are. Other times, we sell ourselves short by a good margin. You might say our perspective is often altered by rosecolored glasses. It’s a sure thing that until we are able to remove those rose-colored glasses we will never ﬁnd the authentic, honest version. How do you know if you are performing to your potential? How do you know what improvements need to be implemented in order to “be all that you can be?” Whether we are assessing an individual’s job performance or the operational performance of a store, it’s difﬁcult to gauge accurately without employing hard systems that accurately measure performance. And, if a retailer thinks it is doing enough, there’s always a better measuring stick on the market—a better tool to assess employees, 14 Convenience Store Decisions December 2018

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count inventory, churn loyaltybased engagements, control thermostat settings on coolers or ﬁgure out how a mobile payment system can speed up transactions.

Jim Callahan has more than 40 years of experience as a convenience store and petroleum marketer. His Convenience Store Solutions blog appears regularly on CStoreDecisions.com. He can be reached at (678)485-4773 or via email at jfcallahan1160@ gmail.com.

TOOLING AROUND The tools available to convenience operators are tried and usually true and are getting more functional all the time. Of course, there’s a cost involved with using new tools to evaluate your business. There’s also a cost to not looking more closely and measuring how various aspects of your operations are functioning. A piece of the operation might seem stellar, but it might actually be operating on shaky ground. That shiny, highfunctioning component that seemingly is driving proﬁts might really be a threat to be taken apart and looked at more closely. How do you know unless you break out the toolbox and runs some checks? To start your review you must unmask. As the saying goes: “Make yourself smaller and the world bigger” because in the scheme of things, we all are less signiﬁcant than we would like to admit. That’s not to diminish your accomplishments or the importance you have earned but is just a reminder for all of us to strive to do better. The likes of QuikTrip, Sheetz, Wawa and 7-Eleven have all earned high marks for being innovators, but only after each company established a system, enabling it to honestly assess every facet of its operation, implementing changes for self-improvement and monitoring to ensure those changes are positively affecting its overall business model. Many in our great industry are second- or third-generation business owners, which is something that makes it special. Of course, there are also many companies out there that operate today as they have in years past because ‘that’s the way we’ve always done it.’ Sometimes, the old ways are the best ways, but you never know until you take a hard look at what works and what doesn’t. My advice is to set those rose-colored glasses on the counter and determine what you want to accomplish, and the best course to get there. cstoredecisions.com

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NAG Draws Retailers to Florida Industry experts discuss family business planning, artificial intelligence and forecasts for the future. By Erin Del Conte, Senior Editor

Scott Apter, president of Apter Industries, was awarded the NAG Lifetime Award for Convenience Retailing (right). Top from left, Scott Apter, with

he National Advisory Group his wife Ruth; last year’s Lifetime (NAG), an association driven by Award winner, Bill Kent, of The Kent Cos.; and John Lofstock, convenience store retailers and aimed at small, mid-sized and family- executive director of the National Advisory Group (NAG). owned chains, held its annual conference in September at the Ponte Vedra Inn & Club in Ponte Vedra Beach, Fla. In a session titled, “The Machine John Lofstock, executive director of to provide educational scholarships NAG, said the 2018 conference was to spouses and children of fallen or Revolution: Are Robotics Right for Convenience Stores?” attendees the largest event to date. “This year disabled service members. During the days that followed re- learned artificial intelligence is alwe have nearly 70 c-store chains in attendance as well as 22 new-to-NAG tailers attended educational sessions ready here and set to proliferate retail members and speakers from 22 differ- that covered burning issue topics and within the next 10 years. “Technology ent convenience store chains,” he said. had ample opportunity to network is a part of our business you want to deploy and embrace,” said Robert The conference kicked off with each evening. “Bob” O’Connor, president of Jetz a welcome dinner, where keynote Convenience Centers who moderatspeaker Rocky Sickmann, vice presi- BURNING ISSUES The first educational session de- ed the session that featured speakers dent of Folds of Honor, a recent retiree of Anheuser-Busch and a survivor tailed family business planning and Paul Martin, head of retail, UK KPMG; of the Iran Hostage Crisis, told attend- building a corporate culture from the and Marco Mascorro, cofounder and ees of his harrowing ordeal as a hos- top down. Speakers Charley Jones, CEO of Fellow Robots, a Silicon Valpresident and CEO Stinker Stores; ley-based technology company. tage and his eventual release. Retailers also participated in inSickmann served in the U.S. Ma- Steve Loehr, vice president, operarine Corps at the American Embassy tions support at Kwik Trip Inc.; and formation exchanges with other nonin Tehran, Iran in 1979 when Iranian John Peyton, president of Gate Petro- competing chains. The information militants stormed the embassy and leum, each shared their family busi- exchanges are the ‘heart and soul’ of took hostages. Sickmann spent 444 ness journey in creating and imple- NAG and part of what makes it unique. Sandwiched in between the sesdays in captivity. Today, he works with menting a vision that reaches all the sions, attendees had the option of Folds of Honor, established in 2007, way down to frontline employees.

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attending the NAG golf outing or a tour of Jacksonville and local c-stores, which included Wawa, Circle K, RaceTrac, Daily’s and Gate Petroleum.

benefits of an in-bay versus tunnel car wash, driving sales with promotions, water reclamation and more items. In a closing session called ‘Operations Boot Camp’ moderated by NAG’s Lofstock, Brian Unrue, director of operations for Clark’s Pump-n-Shop shared game-changing ideas retailers can take home to boost profitability.

of Directors. O’Connor takes the reigns from Peter Tamburro, general manager of New York-based Clifford Fuel. In this role, he will help oversee the direction of NAG and content for its annual conference. During a dinner at the Surf Club at the Ponte Vedra Inn & Club, Scott Apter, president of Apter Industries was awarded the 2018 NAG Lifetime Award for Convenience Retailing. Remember to mark your calendars for NAG 2019 in Minneapolis from Sept. 8-11.

DESIGN AND FOODSERVICE On the third day of the conference, experts Carlos Acevedo, culinary innovation and research chef, Yesway Convenience Stores; Brad Chivington, senior vice president at High’s of Bal- MORE MEN OF HONOR At the start of the conference, timore; and Jerry Weiner, president of Weiner Consulting Co., shared their Jetz’ O’Connor was introduced as expertise in devising strategies in a the new chairman of the NAG Board session on Igniting the Dinner Daypart. Retailers also learned about identifying the best concepts for their locations in a session on store design and layout. Jacque Hager, retail operations Molo Cos., DBA Big 10 Marts; Danielle Mattiussi, vice president of retail adventures at Maverik Inc.; and Spencer Thomas, brand manager at Southwest Georgia Oil Co.; shared their personal adventures in store design during the session, which was Bill Kent, CEO of The Kent Cos. and last year’s moderated by John Schaninger, presi- Michael Meyer, facility operations officer of Meyer Oil Co. dba Mach1 Stores; was joined by Jim Vernon, NAG Lifetime Award winner, honored this dent of The Schaninger Group. year’s recipient, Scott Apter, president of In another presentation titled, supervisor of operations for Gate Petroleum; and Apter Industries. Hill Peyton, president of Gate Express Wash. “Foodservice: Doing More With Less,” Larry Jackson, managing director Good to Go Markets; Stephanie Mahoney, food services development manager MFA Oil Co.; and John Zikias, former chief operating officer of Holmes Oil Co. shared lessons from their own foodservice journeys. In a special session exclusively for NAG’s Young Executives Organization, Linda McKenna, principal of Convenience Store Coaches Inc., spoke on managing effectively and with authority, including how to prepare for handling an unexpected crisis. The last day kicked off with a session on Building a Better Car Wash. Michael Meyer, facility operations officer of Meyer Oil Co. dba Mach1 Stores; Hill Peyton, president of Gate Steve L oehr (left), vice president of operations support for Kwik Trip; John Peyton, president of Gate Express Wash; and Jim Vernon, super- Petroleum; and Charley Jones, president and CEO Stinker Stores, discuss life in a family business in a visor of operations for Gate Petroleum, session moderated by John Lofstock (right), executive director of NAG. reviewed their car washes, equipment and maintenance considerations, the 18 Convenience Store Decisions December 2018

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Ben Boyd, of Tyson Foods; David Dill of Gate Petroleum Co.; Dennis Guthrie, of Tyson Foods; and Rick Glasgow, of Prarie City Bakery.

Elizabeth Waring and Megan Forcey, of Johnson & Johnson Fuel Inc.

Andrew Burrow, of Campbell Oil Co.; Misty Steinhaur, of J&H Oil Co.; and George Abdoo of S. Abraham & Sons.

Danielle Mattiussi, of Maverik Inc., and Jeff Montgomery, of Jeff Montgomery Associates.

Attendees visited sponsor table top exhibits during networking breaks in between educational sessions.

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Brad and Claire Chivington, of High’s of Baltimore; are joined by Vicki and Ray McIntosh, of McIntosh Energy.

Bill Weigel of Weigel’s, with Steve Loehr, of Kwik Trip.

Jim Emmart, of Emmart Oil Co., and Larry Hogue, of Hit-N-Run Food Stores.

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Attendees take notes during one of the educational sessions, which focused on a range of burning issue topics from family business planning to mastering the dinner daypart.

Theo Hyde, of Pit Stop Convenience Centers; John Zikias of JAZ Enterprises; with Steve and Eileen Kalish B.O.F. Corp.

Adam Sturdivant and Blair Garoutte, of The Kent Cos.

Michael Phelps, of Citizens Convenience and Fuels Group; and Andrew Swedenborg, of Paragon Solutions.

Mary Banmiller and YEO board member Kalen Frese, of Warrenton Oil Co.

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Above: Ruth Apter of Apter Industries; Ron Rutherford of Apter Industries; and Kyle Schrader, of Schrader Oil Co. Top right: Oiliva Beck, of Beck Oil Co.; Kurt Weigel of Weigelâ&#x20AC;&#x2122;s; and Chelsea Carvalho, of Beck Oil Co. Bottom right: Michael Meyer, of Meyer Oil Co;, and his wife, Ana.

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December 2018 Convenience Store Decisions 23

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Cover Story

40 Under 40

2018

40 under 40

ffective and well-trained leaders are invaluable when it comes to formulating and communicating new strategic directions, motivating employees, satisfying customers and partnering with suppliers, vendors and other stakeholders. Today’s economic climate is being shaped by forces that are spurring significant channel blurring—c-stores are becoming quick-service restaurants, drug stores are becoming c-stores, grocery stores are adding restaurants and dollar stores are pushing geographic boundaries at a dizzying pace. Joe DePinto, president and CEO 7-Eleven Inc. recently shared with Convenience Store Decisions in its recent October issue his take on the headwinds and disruption in the c-store and retail environment: “in my opinion, there are no more channels.” This growing sect of next-generation leaders boasts the flexibility and nimbleness needed to succeed in this progressing industry.

CONSTANT CHANGE Just as speed should be one of your biggest priorities in choosing a pointof-sale system (POS)—faster transaction times mean you can process more customers per minute—gleaning the knowledge and new-age perspective the following 40 individuals share. The positions this year include chief financial officer; senior manager of IT retail systems; director of special projects; director of operations; category manager; director of foodservice; community relations & events manager; and CEO. Anyone of these professionals can attest that serving the modern consumer competently requires attention to trends, to detail and to new technology. For example, some U.S. retailers are installing beacons in order to mimic the experience of e-commerce websites by offering loyalty points, coupons and a shopping list reminder to a consumer’s smartphone. It’s a trend that will only increase in frequency and company executives must be on board.

YOUTH MOVEMENT Those who lead by example almost always align with something they’re passionate about. Aside from work, a majority of the men and women profiled here volunteer in their communities, work for non-profits, value precious time with family and friends and participate in various professional organizations. Several belong to National Advisory Group’s (NAG) Young Executives Organization (YEO), a growing group of emerging industry frontrunners keenly focused on education and networking with other next-generation executives in the competitive c-store channel. Once again, CSD and YEO board members tallied the online nominations, crunched the votes and came up with 2018’s 40 Under 40 class. For those interested in nominating your future leaders for the class of 2019 or to join YEO, contact CSD Editor and NAG Executive Director John Lofstock at jlofstock@csdecisions.com. 24 Convenience Store Decisions December 2018

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Joe Albers, 33 Chief Financial Officer

Company: J&H Oil Co. (J&H Family Stores) Headquarters: Wyoming, Mich. Number of Stores: 51 Years with the Company: 5

Being the chief financial officer of the company his wife’s grandfather founded is more than a family affair for Joe Albers. It’s a passion project that aligns with his leadership style and values. “It was founded on the principles of hard work and innovation while remaining family-focused with an unwavering commitment to giving back to the community,” Albers said. Initially, Albers resisted leaving public accounting to join the family business, J&H Oil, which offers high-quality lubricants, fuel, chemicals and other products. Now, he embraces the challenge of making the company an enticing workplace, while balancing his own work and home life. Albers has helped the company’s convenience business, J&H Family Stores, build its brand and differentiate itself from regional competitors. He led an effort to develop an employee retention committee that shows employees that the company values them and different career paths. Albers also built a financial dashboard that enables store managers to run the stores like their own businesses while sharing best practices and ideas. “It’s important to be open to opportunities that ordinarily wouldn’t be considered unless you are surrounded by individuals who share your values and challenge you to operate at your highest potential,” Albers said.

cstoredecisions.com

11/20/18 7:07 AM

Zach Andersen, 31 Senior Manager, IT Retail Systems

Company: Alimentation Couche-Tard/Circle K Headquarters: Laval, Canada Number of Stores: 9,978 Years with the Company: 8

While working on his Bachelor of Science degree in information technology and software engineering at the University of Miami, Zach Andersen began his convenience store career as a summer intern with the Pantry Inc., based in North Carolina. Upon graduating, Andersen worked his way up to manager IT retail systems when Alimentation Couche-Tard, parent of Circle K, acquired the Pantry in 2015. Andersen was a leader in the successful integration of the IT retail systems from the Pantry and Circle K and was promoted to senior manager, IT retail systems. Andersen explained that the industry today can learn from new store offerings that are providing convenience outside of the traditional convenience stores through delivery services, click-and-collect platforms and scan-and-go services. “While the industry has started to gain momentum in providing similar offerings to their customers, there is still a lot of opportunity to learn and apply best practices from digital transformations in other retail channels,” Andersen said. “It’s all about meeting the increased customer expectations across the industry to make it easier for the customer to interact with the convenience store and enhance the shopping experience, while at the same time implementing new payment processing functionality and security.”

Olivia Beck, 29 Branded Fuel Specialist

Company: Beck Suppliers Inc. (FriendShip Food Stores) Headquarters: Fremont, Ohio Number of Stores: 27 Years with the Company: 2.5

As part of the fourth generation of the Beck family, Olivia Beck wanted to join the family company with as much experience as possible. She worked for four years post-college in the marketing departments at Mead, LexisNexis and Speedway. At that point, a position opened at Beck Suppliers Inc., and her father, the late Doug Beck, company president, was diagnosed with cancer. “It was a no-brainer for me to join the family business,” she said. Beck now helps the company navigate an increasingly competitive landscape, with competition from stores such as Circle K, Casey’s and Dollar General. She has a pageworth of initiatives in mind for 2019, including opening a third FriendShip Kitchen store, incorporating remote employees, reducing turnover, building employee engagement and commitment to brand strategy, integrating technology into retail locations and updating the store management incentive program. As a young executive, Beck believes young leaders face unique challenges, with the biggest being developing leadership skills. ”Leaders are accountable and focus on vision,” Beck said, “So, I continually ask myself questions such as: How can I personally grow and develop the family business now, and in the coming years?” cstoredecisions.com

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Garet Bishop, 28 Chief Financial Officer

Company: BFS Cos./BFS Foods Headquarters: Morgantown, W.Va. Number of Stores: 69 Years with the Company: 5

Despite spending school breaks working for the family business when he was young and now working as the chief financial officer of BFS Foods, Garet Bishop acknowledges there’s a lot for him to still learn, especially given the vast portfolio of more 80 locations, including BFS convenience stores, truck stop restaurants, Burger Kings, Dairy Queens, Huddle House eateries and several liquor stores. In fact, one of the challenges he faces is balancing the need to build an in-depth knowledge in his current role as chief financial officer for the Morgantown, WVa.-based company, with a desire to gain experience in many more company areas. “I try to continually evaluate the breadth and depth of my role to provide personal growth and continual learning while also providing value to the company and my co-workers,” said Bishop. Along with his professional growth, BFS is poised to continue expanding. With success, however, comes a few challenges. Although low unemployment signals positive economic conditions, it creates a competitive market for in-demand skills. According to Bishop, the region suffers a shortage of commercial licensed drivers. However, he is encouraged about other business changes taking place. “[I’m excited about] the increasing amount of technology being utilized throughout the industry,” said Bishop. December 2018 Convenience Store Decisions 25

11/20/18 10:46 AM

Cover Story

40 Under 40

Jaquilyn Bohn, 31 Construction & Planning Coordinator Company: Cumberland Farms Inc. Headquarters: Westboro, Mass. Number of Stores: 562 Years with the Company: 5

Travis Booth, 39 Vice President of Corporate Development; General Counsel; Secretary Company: Empire Petroleum Partners LLC Headquarters: Dallas, Texas Number of Stores: 75 Years with the Company: 12

Haley Bower, 32 Director of Special Projects Company: Clipper Petroleum Inc. Headquarters: Flowery Branch, Ga. Number of Stores: 29 Years with the Company: 9

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In both career and work, Jaquilyn Bohn embraces challenges and opportunities. As Cumberland Farms’ Construction and Planning Coordinator, it’s part of her job to work with developers and contractors to get sites fully permitted and stores built in New England, New York, and Florida. “The process of finding a property, obtaining all the necessary approvals and permits and building the store can take several years to complete,” she said. “Expansion in New England can be difficult due to the low availability of prime real estate and the ability to get the parcel permitted for a retail petroleum c-store.” As a young executive, Bohn faced the challenge of growing from a temporary employee in the construction department to her current role by seeking out professional opportunities. “As a millennial, I believe we focus too much on vertical growth but we can gain much value through horizontal career moves, which can introduce us to different aspects of the business, while broadening skill sets,” she said. “That can open doors that lead to vertical growth within a company.” As Cumberland Farms prepares to celebrate its 80th anniversary in 2019, Bohn is enjoying growing with the company, which was recently named one of the “2018 Best Workplaces in Retail” by Great Place to Work and FORTUNE.

Travis Booth has been involved in the c-store industry since age eight, when his father first purchased a gas station in Rockville, Md. “I have been fortunate enough to work in all facets of the industry,” Booth said. “I have worked as a cashier, (doing) midnight shifts, as a manager, have constructed stores, broken down stores, etc.” Today, as vice president, corporate development at Empire, Booth oversees the merger and acquisition function, which includes sourcing of acquisition opportunities, maturation of relationships with sellers, due diligence, closing and integration of acquisitions into Empire’s business, which includes 1,600 wholesale accounts. As general counsel, Booth handles the day-to-day legal functions for the company, from drafting and negotiating to overseeing litigation and corporate structuring matters. As secretary, he manages governance-related matters affecting the expanding business. Ahead for 2019 Empire plans to continue to grow its retail presence, operating more sites in specific markets by building new units—new for Empire—and acquiring c-store chains. “Additionally, we are still looking to grow our wholesale business through acquisition so we will continue to look for new opportunities to increase our presence in existing markets we service and may expand into new markets if sizeable acquisitions are possible,” he said. Haley Bower started working for her family’s business, Clipper Petroleum, during summers when she was 14, shredding receipts and filing papers. After college, she joined the company’s wholesale team full time. Today, as director of specialty projects, Bower works with dealers and helps them with branded programs, branded incentives and training inside and outside of their stores. She’s also a director of the company’s non-profit, the Clipper Petroleum Foundation, plus a franchisee with Cinnabon, Auntie Anne’s and Bojangles’, for which she’s also a unit director. Clipper recently partnered with the national anti-human trafficking non-profit, In Our Backyard, which it plans to advocate for in 2019, especially with the Super Bowl bringing an influx of people to Atlanta. “All 29 Clipper stores have joined in the fight against human trafficking with Convenience Stores Against Trafficking,” Bower said. “Our stores and our team are ready and equipped to be a line of hope to any victim that is being trafficked and we can help them gain freedom.” Clipper is also opening its second ground-up combination Clipper c-store and Bojangles’ in March 2019, and adding Auntie Anne’s and Cinnabon to five sites in 2019. “It is going to be a busy but fun year.”

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12/7/18 4:05 PM

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Cover Story

40 Under 40

Jessica Boyd, 28 Director of Transportation

Company: The Kent Cos. (Express Petro Transportation) Headquarters: Midland, Texas Number of Stores: 45 Years with the Company: 1.5

In her role as director of transportation for Express Petro Transportation—sister business to the company’s Kent Kwik convenience chain—Jessica Boyd remains current on new technological advances that are constantly impacting the familyowned organization. In that vein, new technological tools are on tap for 2019. “We’re planning to launch with a new dispatch software to promote the efficiency of our equipment, and preparing to maximize our drivers’ hours of service,” Boyd said. “Additionally, we’re prioritizing to maintain the viable amount of fuel required to prevent store run outs.” Boyd joined Kent in June 2017, after owner Bill Kent put his faith her abilities. She left Alabama, where she held an executive role at Hunter Livery, and relocated to Midland, Texas to spearhead the formation of Kent Cos.’ new fuel transportation company, Express Petro. Boyd has given considerable thought to the inter-generational hurdles that companies like hers confront. Among the biggest challenges is reconciling the perspectives of long-standing company veterans with what she terms “our Millennial point of view.” The future is likely to be “significantly different than any other era of time we have ever faced,” she said. “This causes tremendous uncertainty among young executives such as myself, [regarding] what our careers and responsibilities will entail.” 28 Convenience Store Decisions December 2018

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Meredith Bright, 29

Director of Corporate Communications and Brand Development Company: The Kent Cos. dba Kent Kwik Headquarters: Midland, Texas Number of Stores: 45 Years with the Company: 7

Even more than the inherent challenges of finding good employees and managing costs, Meredith Bright, director of corporate communications and brand development for Kent Kwik, asserts that perhaps the biggest challenge among cstores is standing out from the competition. “Our consumer base is ever changing,” Bright said. “Consumers know most stores offer the same items. They expect they can get an energy drink, soda, chips or candy anywhere up and down the street. They aren’t easily satisfied with the standard convenience aspects of c-stores with traditional offerings.” Her role includes the task of communicating that Kent Kwik stores are better than the rest—in cleanliness, friendliness, new upgrades and award-winning promotions that catch convenience shoppers’ eyes. The ongoing expansion of the retail operation has also allowed her to take part in redesigning legacy locations and adding technological advantages to the mix. “It’s been an exciting challenge to outfit these stores with the new image, which the team members and guests love,” Bright said. An overarching task has been striking intergenerational harmony among all the members of the company’s operational team—all the while keeping a constant eye on new customers’ wants and needs. “We have to convert the younger generations to become loyal followers of the company brand,” Bright said.

Jeff Bush, 32 President

Company: The Parker Cos. Headquarters: Savannah, Ga. Number of Stores: 54 Years with the Company: 6

As the newly-appointed president of Parker’s, a nationally-acclaimed convenience store company headquartered in Savannah, Ga., Jeff Bush is responsible for overseeing daily operations of all 54 Parker’s stores. In 2012, Parker’s CEO Greg Parker handpicked Bush out of a class at Armstrong State University in Savannah, Ga. Impressed with Bush’s thoughtful engagement and smart questions, he decided to bring him on board to help achieve his goal to grow Parker’s to a $1 billion company within 10 years. During his tenure with Parker’s, Bush has led the company’s District Manager Development Program, spearheaded community outreach efforts and expanded Parker’s stores into strategic markets throughout Georgia and South Carolina. He sees much promise for Parker’s and the industry. “There are ample opportunities for our channel to pivot on current market dynamics and expand what our silos include,” Bush said. “As our industry shifts, young executives need to continue to improve themselves, their team and their organization to ensure they are constantly bringing value to the bottom line.” Bush also has an impressive history of military service. He joined the U.S. Army at 19 as a forward observer, eventually becoming an officer. He has earned the Combat Action Badge and the Iraqi Campaign Medal among other military awards.

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11/20/18 10:47 AM

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Cover Story

40 Under 40 Meg Counts, 39 Community Relations & Events Manager

Company: Pilot Flying J Headquarters: Knoxville, Tenn. Number of Stores: 750-plus Years with the Company: 3.5

Chelsea Carvalho, 25 Special Projects Manager

Company: Beck Suppliers Inc. (FriendShip Food Stores) Headquarters: Fremont, Ohio Number of Stores: 26 Years with the Company: 1

As a child, Chelsea Carvalho always knew she wanted to work for the family business, founded in 1950 by her greatgrandfather, Virgil Beck. Carvalho recalls listening to her father, Brian Beck, sharing his work projects, such as new products or strategic changes in the company, which includes the FriendShip convenience chain. She also recalled going to FriendShip events, hearing how happy the employees were at the family business and working in the stores during summer break. “I remember how passionate my father was talking about the business and thinking that I would like that to be me someday,” she added. Carvalho’s dream has come true and she’s now the fourth generation of the Beck family in the business. She’s currently busy with food projects, including expanding the menu and updating older equipment. Carvalho said she’s faced a learning curve in gaining experience and knowledge to be able to contribute at the level she wants to, but has been fortunate to be working alongside veteran members of the industry. The biggest challenge the company faces is staffing. “FriendShip launched the ‘Great Place to Work Program’ this year to address this obstacle,” Carvalho said, adding that attitude and passion are two important qualities of a FriendShip team member. 30 Convenience Store Decisions December 2018

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As Pilot Flying J’s community relations and events manager, Meg Counts oversees the company’s strategy and execution of all philanthropic efforts across its North American footprint. This year, she helped support Pilot Flying J’s giving campaign for the American Heart Association’s “Life is Why We Give” campaign. This was the company’s first in-store giving campaign across 750-plus stores, raising nearly $1 million. “In 2019, we will be very focused on continuing to engage team members at our headquarters in Knoxville, which we call the Sales & Support Center, in our volunteer services program,” Counts said. “To drive greater participation, we will be doing even more during National Volunteer Week to encourage our team members to get out in the community and involved in the organizations most important to them and Pilot Flying J.” Her team has led the efforts surrounding Pilot Flying J’s $2 million 60th anniversary donation announced in November, honoring its history of giving back and commitment to fueling life’s journeys into the future. One of the biggest issues in the industry is finding motivated and engaged team members who come to work every day excited about their jobs. “We’re also consistently faced with high turnover rates at the store level as many don’t see the convenience store business as a sustainable long-term career,” Counts said. .

Stacey Davis, 25 Marketing Manager

Company: Clifford Fuel Inc. Headquarters: Marcy, N.Y. Number of Stores: 19 Years with the Company: 6

Joining a convenience retailer wasn’t on Stacey Davis’ radar when a colleague introduced her to Peter Tamburro, then general manager of convenience store operations for Clifford Fuel Inc. At the time, she was a marketing and communications intern for the Utica Comets, part of the American Hockey League, and Clifford Fuel was a corporate partner. The way Davis—current marketing manager for the New York State company that includes Cliff’s Local Market c-stores—sees it, both sporting organizations and c-stores provide customers with enjoyable experiences. “Since I joined the Clifford Fuel team, I’ve been working toward being the stress-free cstore,” Davis said. “I want customers to walk in and not be bombarded by a million messages, so they can find what they want and walk out with a positive feeling.” Making customers comfortable means engaging them through various means, including digital. “I’m most excited about what’s coming next with technology, not just on our phones, but in our cars, at the pumps, and any way to make more seamless experiences for customers,” she said. ”I’m excited to use this to our advantage through being able to know our customers on a more personal level and make it an easier experience for them.”

cstoredecisions.com

11/20/18 7:08 AM

Fouad El-Nemr, 27 Executive Vice President

Ryan Faville, 32 Director of Sales

Jacob Forehead, 31 Director of Operations

Company: Nouria Energy Corp. Headquarters: Worcester, Mass. Number of Stores: 116 Years with the Company: 3

Company: Stewart’s Shops Headquarters: Ballston Spa, N.Y. Number of Stores: 338 Years with the Company: 10

Company: Golden Pantry Food Stores Inc. Headquarters: Watkinsville, Ga. Number of Stores: 37 Years with the Company: 3

The Nouria Energy Corp. leadership team, including Fouad El-Nemr, executive vice president, kicked off its rebranding campaign—reconfiguring New England-based c-stores with the brand Nouria in 2018. More will come on line next year. “The main focus in 2019 is the continuation of our rebranding initiative in 30 more locations,” El-Nemr said. “Furthermore, we will be expanding our private-label products in several more categories.” El-Nemr remembers the days spent working in the stores as a teenager. But those earlier experiences helped him learn many aspects of the family business, which includes 47 car washes, and ultimately allowed him to find his area of expertise. “As time passed, I fell in love with the financial aspect of the business and am now responsible for risk analysis, cash management, budgeting and fuel pricing for the chain,” he said. El-Nemr also enjoys seeing the retail landscape change. “I believe the most challenging issue in the c-store business today is the pressure to adapt quickly and retain industry knowledge in order to perform at a high level,” El-Nemr said. “Staying abreast of the latest technologies and trends to be considered a member of the competitive market is, in and of itself, a large part of being the best in the industry.

As director of sales, Ryan Faville oversees a team of category managers and buyers responsible for optimizing the selection of items at Stewart’s Shops. Each category manager wears a few different hats—inventory management, warehouse support, quality assurance, routine category management and other functions with the main objective of providing the best possible mix of products available. “Our goal is to provide our shops and shop partners the items that give them the highest odds of success when it comes to meeting our customers’ needs,” Faville said. Faville has been involved with Big Brother Big Sisters of the Capital Region for several years. When he’s not giving back, Faville thrives to ensure retail offerings are top of mind, looking for the next hot trend or identifying when a product is starting to decline. “We can’t be everything to everyone, but we want to make sure our product offerings are relevant to what our customers are looking for,” he said. Looking forward, 2019 will be an ongoing campaign for Stewart’s Shops to “optimize our merchandising space with the ever-growing list of new and trending products,” Faville said.

Jacob Forehand credits great role models and mentors for much of his early career success. “I’ve had the honor of working for some outstanding families that believed in me and enabled me to be successful,” said Forehand, director of operations at Golden Pantry Food Stores. Forehand has spent a big portion of his career in the convenience industry. “It is all I’ve ever wanted to do. Once it gets in your blood, there is nothing else like it. After meeting the team at Golden Pantry, I knew that their service-centric culture and the way they cared for their customers and employees resonated with my own core values.” The year that just ended was one of accomplishment, he noted. “We have an amazing team at Golden Pantry, and have been making some great strides in investing in our processes and our people. One of our most-proud 2018 accomplishments was our rebranding initiative. We were able to share with our team our new mission: to be your trusted neighborhood store.” Forehand and his colleagues are excited about their new market location opening in early 2019. Challenges, of course, will continue to present themselves. “Consolidation is churning our industry and makes for a complicated landscape,” he said.

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Cover Story

40 Under 40

Kalen Frese, 33 Foodservice Director

Company: Warrenton Oil Co. (FastLane) Headquarters: Warrenton, Mo. Number of Stores: 35 Years with the Company: 1.5

Ryan Fuelling, 34

President and Chief Financial Officer Company: Parent Petroleum Inc. (The PRIDE Stores) Headquarters: Saint Charles, Ill. Number of Stores: 12 Years with the Company: 1.5

Annie Gauthier, 35 Chief Financial Officer and Co-Owner

Company: St. Romain Oil Inc. dba Y-Not Stop Headquarters: Mansura, La. Number of Stores: 15 Years with the Company: 13 32 Convenience Store Decisions December 2018

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2019 is shaping up to be a productive one for Kalen Frese, foodservice director for the FastLane convenience store chain, part of Warrenton Oil Co. Today he’s responsible for sales, profitability and management of all prepared food in the company’s c-stores—including 13 deli locations—a Dairy Queen and a 24-hour diner. Among the foodservices initiatives that Frese hopes to tackle in the coming year are a more in-depth food safety training program, improved limited time offers and to introduce made-to-order food programs to its “non-deli” locations. When it comes to good foodservice, the need to effectively compete has only intensified in the convenience channel, he said. “Everyone has stepped up their games so much, not only in c-stores, but in quick-service restaurants as well, that we really have to stay focused and innovate to retain current customers and attract new ones,” Frese said. When Frese isn’t developing foodservice programs, he revels in following the St. Louis Cardinals and Missouri Tigers and spending time with his family. At work, he’s a fan of dedicated team members—a valued commodity. “Not only do we struggle to find candidates period, we really struggle to find quality candidates that are willing to work with food,” Frese said. As president and chief financial officer, Ryan Fuelling leads the operational and strategic direction of the company’s distribution business, with financial responsibility and oversight across the broader enterprise that is Parent Petroleum Inc. Parent operates The PRIDE Stores, its convenience chain, with three additional sites scheduled to come on line between late 2018 and early 2019. The company’s newest location, to open later this year, will be the first new-build gas station in the U.S. to offer the Amoco brand, since BP’s reintroduction of the brand earlier this year. The PRIDE Stores also appeals to consumers through its three proprietary food concepts: Urban Counter, Taco Urbano and The PRIDE Café. Fuelling said such progress begins with a straightforward premise. “For me, it’s about striking a balance between the preservation of our founder’s legacy, while positioning the organization for continued success,” Fuelling said. “Our people—employees and customers—are at the core of everything we do.” It includes finding innovative ways to cater to ever-changing consumer preferences, maintaining pace with technological advancement and navigating shifts in regulatory compliance. “As young leaders, it is incumbent upon us to establish a culture of collaboration and thought-leadership within our organizations, and in tandem with our industry partners, in an effort to overcome these obstacles,” he said. Family-run businesses remain the backbone of the convenience store industry, even though this important business pool has been shrinking through consolidation the last serval years. With 15 c-stores and counting, St. Romain Oil, operator of the Y-Not Stop convenience chain, a family operation, is pushing back by expanding its operational footprint and growing a loyal customer base. Sharing the helm is Annie Gauthier, who’s responsible for the company’s finance and accounting, risk management, HR, and culture and strategic development. Of course steering any retail operation in today’s economy is as challenging as ever, considering the complexities that the current climate presents. Gauthier said the biggest issue facing c-stores in her region remains a tight labor market. Looking forward, Y-Not Stop is looking at few initiatives to launch in 2018 including proprietary gift cards and charge cards, “Make It Right” customer care program, computer-assisted ordering and a scholarship program. With all the moving parts that young executives must get their arms around, two remain vital, she said. “Time and energy management,” Gauthier said. “There are so many shiny new initiatives in our exciting industry that it can seem overwhelming without a clear focus and good systems to help maintain balance.”

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11/20/18 7:08 AM

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Cover Story

40 Under 40 Jason Klemme, 33 Director of Operations

Company: Ricker Oil Co. dba Ricker’s Headquarters: Anderson, Ind. Number of Stores: 58 Years with the Company: 8

Matthew Hieb, 33 Director of Marketing

Company: Circle K Gulf Coast Headquarters: Pensacola, Fla. Number of Stores: 9,978 Years with the Company: 5

Matthew Hieb thinks that to be ready to meet the industry’s challenges, young directors should surround themselves with great mentors and allow themselves to be coached, purposefully devoting time to learn from those who are great leaders. After six years with Gate Petroleum Co., Matthew Hieb joined Circle K Stores Inc.’s Midwest Business Unit in 2013 as a category manager of packaged beverage. Only one year later he was promoted to the cigarette/tobacco category where he was involved in helping influence the national landscape for overall tobacco sales. Following a stint as category lead, a developmental role bridging the gap between the category manager role and the marketing director, he was named marketing director of the Gulf Coast Business Unit. Along the way, Hieb has relied on direction provided by strong mentors. “I realized early on that you simply don’t know everything, and you can easily learn something new or a better approach every day,” he said. Marketing leaders can also learn a good deal from data, both consumer and sales-based, Hieb said. Data, he noted, is becoming easier to access and leverage to improve decision-making ability. “For my team, the focus is on better understanding our customers in order to enhance the efficiency of the assortment and improve the overall shopping experience,” Hieb said. 34 Convenience Store Decisions December 2018

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It’s been a busy few months for Ricker’s. In September, the company reached a deal to merge with Giant Eagle Inc. A month earlier, Ricker’s partnered with GoSkip Inc. to rollout frictionless checkout technology, which allows customers to pay for merchandise while skipping the checkout line. Jason Klemme is the director of operations for Ricker Oil Co. In his position, Klemme oversees operations for 58 Ricker’s convenience stores in Indiana. He has been with the company since 2010. According to Klemme, Ricker’s will introduce frictionless checkout to all locations over the next 12 months, in addition to launching mobile Web ordering for its foodservice program. As the company enhances its foodservice product mix, customers will also be able to order food in-store from an iPad-based ordering system. “Technology is moving so quickly that you have to ensure that you are investing your money in areas that will help you to stay relevant long into the future,” Klemme said. “Examples include investing in a mobile ordering, self-checkout or surveillance-system based checkouts. It is a challenge to choose the right direction of our industry and customer behaviors when technology is changing so quickly.”

Chris Long, 39 Category Manager

Company: Yesway Headquarters: West Des Moines, Iowa Number of Stores: 150 Years with the Company: 2

After graduating from the University of North Texas in Denton with an economics degree, Chris Long began his career working for Altria and then Anheuser-Busch, growing 15 years of experience on the supplier side of the business. Then, Yesway Convenience Stores made it to his radar. Learning more about Yesway, which was new to the industry at the time, Long saw a great opportunity to work with a fast-growing brand. “The vision and what Yesway was aiming to accomplish got me excited about getting in at the start to help build a brand from the ground up, and put my money where my mouth is in terms of using all that I’ve learned over the course of my career,” he said. Today, Long is a category manager for Yesway, navigating an exciting array of new challenges. “There’s so much disruption going on, and that means that we as c-store operators have a huge opportunity to innovate and pull consumers from multiple channels; and capitalize on the younger generation being all about convenience,” Long said. In 2019, Yeway is focused on greater interaction and engagement with its Yesway Rewards Loyalty Program, Long said. “Private-label expansion is also on the horizon for us, as is partnering with our foodservice teams to offer our customers even greater value and enhanced offerings.”

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Cover Story

40 Under 40

Michael Meyer, 34 Facility Operations Officer

Corey Marceau, 30 Retail & Partnership Marketing Specialist

Ross McKinney, 38 General Manager/Co-Owner

Company: Irving Oil Headquarters: Portsmouth, N.H. Number of Stores: 340 Years with the Company: 8

Company: Dara’s Corner Market Headquarters: Manhattan, Kan. Number of Stores: 7 Years with the Company: 20

Company: Meyer Oil Co. dba Mach 1 Stores Headquarters: Teutopolis, Ill. Number of Stores: 19 Years with the Company: 10

When Irving Oil held on-campus interviews at the University of New Hampshire for a summer internship, Corey Marceau jumped at the opportunity. “While researching that summer, I traveled to over 300 gas stations/c-stores in the Northeast U.S. and another 300plus in Eastern Canada. After a year, that extended internship evolved into a fulltime role where I took on some additional responsibility in analytics.” Today, as retail and partnership marketing specialist for Irving Oil, Marceau delivers value to partners and customers across New England, where he handles retail, sports and partnership marketing. Marceau noted c-stores today are challenged to adapt to the fast changing preferences of consumers around loyalty program options, payment methods, digital/ mobile experience and the growing desire for quality c-store food and beverage. Being a young executive comes with unique challenges too, the biggest being prioritizing what to invest in over the next five years to position your business for success, Marceau said. “We’re working with traditional and alternative ways to fuel vehicles; ride sharing services are established in urban areas and increasingly being adopted beyond; autonomous vehicles continue to evolve; and we increasingly compete with non-traditional businesses (from QSRs to grocers),” Marceau said. “We need to continue to differentiate ourselves and provide reasons to be consumers’ go-to stop.”

When he’s not at work, Ross McKinney is a youth wrestling coach and vice president of the Manhattan Wrestling Club in Kansas. He also tracks his three children, who are involved in numerous sports and other extracurricular activities. As general manager and co-owner of Dara’s Corner Market, where he has worked since he was young, McKinney oversees the retail, fuel and foodservice operations of the c-store chain as well as a small grocery distribution business and a wholesale ice plant. In 2019, McKinney said there will be even more operational undertakings to wrestle with. “We’ll continue to focus on increasing downloads and driving engagement with our new mobile app released earlier this year,” he said. “We’re also committing a lot of energy into a raze and rebuild, which includes a new restaurant that will bring new opportunities as well as new challenges.” Like other c-store retailers, Dara’s Corner Market faces the pressing challenge of finding qualified workers, especially in an era bolstered by advancing technology. “Technology presents some of the greatest opportunities in all aspects of the retail industry. Analyzing all the information collected, managing how the systems work together and keeping up with the rapid rate of change and training, will continue to require an increasing amount of resources,” McKinney said.

Like many convenience retailers that pour over the details until they have a sure course of action, Mach 1 Stores contemplates its future steps carefully. The result has been a progressive c-store operation with a growing reputation for satisfied customers. Part of Teutopolis, Ill.-based Meyer Oil Co., Mach 1 operates 19 locations throughout central and southern Illinois and Indiana. The retail business began in 1989 and is a branded supplier for Marathon and ConocoPhillips. Michael Meyer, the facility operations officer for the family-owned company, said foodservice is a big part of the company strategy heading into 2019. “Our company has been very reluctant to move forward with a prepared food offering in the past,” he said. “With the opportunity of adding several sites in the next couple of years, we have partnered with Little Caesar’s Express, added a foodservice director, and we plan to add a proprietary food offering at key locations. We anticipate this will become an additional platform for our sites to continue to become the primary destination for our customers.” Meyer said that today, it’s imperative for young executives to recognize what makes their company unique, and “be flexible enough to stay competitive in today’s environment.”

36 Convenience Store Decisions December 2018

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Cover Story

40 Under 40

Julia Miller, 31 Director, Business Growth, Development Company: Blueox Corp. Headquarters: Oxford, N.Y. Number of Stores: 10 Years with the Company: 8

Dana Moloney, 30 Director of Transportation

Company: Warrenton Oil Co. (FastLane) Headquarters: Warrenton, Mo. Number of Stores: 35 Years with the Company: 5

Daniel Moran, 33 Category Manager

Company: Robinson Oil Corp. dba Rotten Robbie Headquarters: Santa Clara, Calif. Number of Stores: 34 Years with the Company: 1.5 38 Convenience Store Decisions December 2018

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Serving a rural region presents unique obstacles for Blueox, according to Julia Miller, who has been involved with the family business since she was 14-years-old. Miller originally worked in the energy business component of Blueox, but has since transitioned to its convenience store arm. There, she has contributed to the company’s long-term strategic efforts, including a rebrand of the Blueox Neighborhood Market chain, which began this past year. However, nothing in convenience comes without challenges. “The most challenging piece is figuring out how to be all things to all people. We live in a rural area that isn’t as technologically motivated as other parts of the state or country,” she said. “We know we need the technology to survive and cut costs, but it’s hard to drive tools and experiences that aren’t always relevant to our customers.” Miller said while some of Blueox’s long-time customers still don’t use email, Millennialaged customers only shop because Blueox has an app, which means ensuring that their marketing strategy is broad enough to capture various demographics. Other tasks include in-depth training required for new hires and dealing with local minimum wage mandates. “It’s hard for a small company to adapt and change strategic direction to absorb the expense, while still growing the business,” Miller said. Dana Moloney is the director of transportation for Warrenton Oil Co., which operates 35 FastLane convenience stores in Missouri. The family-owned business also owns nine car washes and three hotels. The company was founded by R.G. and Betty Baker as First Capitol Oil in 1972. In 1984, R.G. and his eldest son, Wayne purchased Warrenton Oil. In 1993, the company expanded westward when it bought the Columbia, Mo. operations of Davis Oil. Now, all eight of R.G. and Betty’s children are actively involved in the company. Moloney has gained experience at the company holding positions including foodservice director and strategic workforce partner, before being promoted to director of transportation earlier this year. Inherently, she said, there is a lot of pressure on next-generation executives when they are trying to fill the shoes of successful past leaders. The key is to continue learning the industry and carving your own path with employees and customers. “I’ve been able to learn from industry veterans, and been given the freedom to make my own decisions. I’ve also been introduced to several trade organizations and encouraged to take an active role,” said Moloney, who also served for four years on the Young Executives Organization (YEO) board.

As category manager, Daniel Moran knows the importance of location in his marketing and merchandising initiatives. “Being in Silicon Valley, we’re at the forefront of retail disruption. Electric cars, autonomous vehicles, frictionless retail…this is ground zero,” Moran said. “We face these shifts in tech and distribution before anyone else. My challenge is to stay up to date with new innovation and give feedback to my executive team.” A South California native, Moran was contacted by an executive recruiter from Rotten Robbie, a fourth-generation family-operated chain in the Silicon Valley region. A few phone interviews and an in-person trip later, he realized it was the perfect opportunity to get involved with the marketing and merchandising initiatives of a local chain. One category that has been working particularly well for Rotten Robbie is craft beer. The chain is a few hours from wine country in northern California, so Moran plans to expand its wine portfolio while attracting a similar customer to its craft beer offering. On a personal level, Moran is trying to develop his own skills to become a great leader. “Luckily, there are some amazing leaders in the convenience industry that we can learn from,” he added.

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Cover Story

40 Under 40 Rabee Nesheiwat, 33 Vice President

Company: Gas Land Petroleum Inc. Headquarters: Kingston, N.Y. Number of Stores: 112 Years with the Company: 8

Jimmy Nesheiwat, 39 Vice President of Construction Company: Gas Land Petroleum Inc. Headquarters: Kingston, N.Y. Number of Stores: 112 Years with the Company: 11

Jimmy Nesheiwat serves as the vice president of construction for Kingston, N.Y.-based Gas Land Petroleum Inc. He has been with the family business for the past 11 years. Gas Land Petroleum is a truly integrated company. The company was founded as a single-store operation in 1979 by Nesheiwat’s uncle, Majed “Mitch” Nesheiwat, under the Powertest brand (now Getty) and has grown to 112 stores across the Hudson Valley in New York. As the store count increased, so did its reach in the fuel industry. Today, Gas Land is also a fuel distributor to locally-owned fuel marketers through its Gas Land Trucking subsidiary. It also has a construction subsidiary, Nesheiwat Builders, which is overseen by Nesheiwat. The construction group develops, builds and renovates stations. Stores are designed individually based on the architectural standards of the community, so there is no singular company c-store brand, Nesheiwat said. Instead, locations identify with the fuel brand, with the majority either Shell, Gulf or Sunoco. In 2019, the company is planning to add five new-to-industry locations, three of which are currently contaminated and abandoned properties. “With the completion of these sites we would be able to introduce new concepts and products that customers in this market are looking for every day,” Nesheiwat said. 40 Convenience Store Decisions December 2018

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Assuming a leadership position in the family business requires Rabee Nesheiwat to wear many hats and understand all aspects of the operation. “A lot of people assume you have a lot of perks working in a family business, but there is no clocking out and you need to be prepared to get your hands dirty at any given moment. That is a mentality my brothers and I inherited watching my father at a very young age,” said Nesheiwat, vice president of Gas Land Petroleum Inc. Established in 1979 by his father, Majed “Mitch” Nesheiwat, the retailer operates 112 stores in New York’s Hudson Valley. That unit count is expected to go up in 2019, when Gas Land aims to finish five new-to-industry locations. According to Nesheiwat, the most challenging issue facing young executives in today’s industry is maintaining a work/life balance—also a challenge in a family business. “Separating your personal and professional lives without allowing one to encroach upon the other is not only important for your overall health, but also it can increase performance and productivity,” he said. Nesheiwat also sees a balance between the performance and productivity of Gas Land, especially as it bolsters its positon in the convenience store industry.

Matthew Redmond, 31 President

Company: Raymer Oil Co. (Fast Phil’s) Headquarters: Statesville, N.C. Number of Stores: 30 Years with the Company: 8

Raymer Oil can trace its roots back to 1945 and remains a family enterprise. As a result, Matthew Redmond has been in and around c-stores all his life. His parents, who were single-store operators, first introduced him to the business. Today, as the president of Raymer Oil Co., Redmond’s role includes identifying growth opportunities, looking for exciting new products, new initiatives and overseeing operations. Raymer Oil Co. operates 30 c-stores—a majority under the Fast Phil’s banner—in addition to 10 free-standing restaurants. “I am very fortunate to have a great team surrounding me,” Redmond said. The c-store industry continues to face evolving challenges, which Raymer Oil has seen firsthand. The biggest issue Redmond sees in his region is the ongoing tightness in the labor market, contributing to the company’s ongoing effort to find suitable employees. Looking ahead to 2019, expanding its retail footprint and foodservice initiatives are among some of the items on the docket. “We are still focusing on growing the number of company-operated stores while also trying to add deli operations to as many stores as possible,” Redmond said. “(We’re also) embracing available technology to continue to automate in areas that make the most sense.”

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Cover Story

40 Under 40

Dayna Reed, 38 Executive Director of Reporting and Insights

Nathan Richardson, 39 Vice President of Real Estate and Development

Company: RaceTrac Petroleum Inc. Headquarters: Atlanta, Ga. Number of Stores: 747 Years with the Company: 9

Company: Parker’s Headquarters: Savannah, Ga. Number of Stores: 54 Years with the Company: 1

As the executive director of reporting and insights for RaceTrac, Dayna Reed leads a team that aids the retail division in making strategic business decisions through data insights. “Our department has a market research arm that focuses on the consumer, competitors and industry and a business analysis arm that focuses on our sales, margin, pricing and financial metrics,” Reed said. Reed first began her career in consumer product sales after graduating with a marketing degree from Clemson University. “I sold consumer goods like apparel and beverages to retailers, calling on a variety of retail channels including mass, drug, grocery and convenience stores,” Reed said. After earning her MBA from the University of Georgia, she joined RaceTrac in 2009 as the company’s first brand manager. After six years in the marketing department she was tapped to lead the newly-formed Reporting and Insights Group in 2016. Looking toward to 2019, Reed’s team will focus on revenue management to help support category managers with pricing decisions, as well as using technology to be more consumer driven. “We are facing many issues as an industry, but the biggest is the blurring of channel lines and the changing definition of convenience in the consumer’s mind,” she said.

Nathan Richardson wants to build bridges, both figuratively and literally. As vice president of real estate and development at Parker’s, he has played a central role in the company’s five-year plan to expand across the Southeast. As a young executive, he wants to connect with customers—at all levels and ages. “The most challenging issue facing young executives today is the need to serve as a bridge between generations, connecting senior leadership with the younger, Millennial workforce,” he said. Since he joined Parker’s last year, Richardson has built a leadership capability that capitalizes on individual strengths. He mentors others, preferring his people to own their jobs and their decisions. Before joining Parker’s, Richardson served as the vice president of real estate for Bucky’s Convenience Stores. Richardson also has plans to help expand the company’s footprint beginning with Charleston, S.C. The company plans to open nine stores in the area next year and 11 more in 2020. With expansion, comes the challenge of finding high-quality employees. But with a good economy and plans for growth, Richardson is optimistic. “This is the biggest expansion of our retail footprint to date,” Richardson said. “By any measure, 2019 is going to be a big year for Parker’s.”

42 Convenience Store Decisions December 2018

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Matt Roderick, 34 Senior Category Manager— Beer & Packaged Beverages Company: Enmarket Headquarters: Savannah, Ga. Number of Stores: 123 Years with the Company: 1

If you look at how Matt Roderick approaches his job, the challenge of maximizing the potential offered by the convenience channel is right up this professional’s alley. “I like the challenge of maximizing sales and profits in such a small space,” said Roderick, senior category manager for beer and packaged beverages for Enmarket. “I feel the small format lets us connect better to our customers than a large grocery or bigbox retailer can. Our best stores know their customers by name, and I like that type of connection and interaction in our industry.” While motivated to sell as many units as possible, Roderick focuses on customers’ preferences, including those of Millennials. “Trying to resonate with them and get them into our stores more regularly will be a challenge we’ll need to conquer to be successful in the coming years,” he said. To this end, Roderick, who worked for Anheuser-Busch and Kum & Go before coming to Enmarket, believes young executives can bring unconventional ideas to the table that will help grow the industry. “Not every new idea will be a homerun, but I believe you’ll gain a lot more than you’ll lose in the long run,” Roderick said.

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Cover Story

40 Under 40

Kyle Schrader, 35 Director of Marketing

Company: Schrader Oil Co. Headquarters: Fort Collins, Colo. Number of Stores: 18 Years with the Company: 15

Kristal Searle, 34 Chief Financial Officer

Company: Stinker Stores Headquarters: Boise, Idaho Number of Stores: 106 Years with the Company: 3

Emily Sheetz, 38 Associate Vice President of Strategy Company: Sheetz Inc. Headquarters: Altoona, Pa. Number of Stores: 582 Years with the Company: 11

44 Convenience Store Decisions December 2018

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Community and convenience has been a trademark with the Schrader family since 1937. For four generations, the Schrader Oil Co. has built its business responding to evolving customer demands, said the company’s director of marketing, Kyle Schrader. “We are recognized for our outstanding contributions to the community and dedicated to providing the best service possible,” Schrader said. Today, Schrader operates 18 stores in northern Colorado. It offers Shell-branded fuels, bulk propane and distributes fuel to other stores in the Colorado market. Over the next year, Schrader Oil plans to focus on customer retention and refining its corporate culture. “As we approach 2019, our goals and objectives have shifted direction from previous years. In 2018 we were challenged with developing traffic driving promotions,” Schrader said. “With that in mind we have implemented ‘Schraders Ticket to Savings,’ a partnership between Schrader’s, our vendors and the biggest and best events in northern Colorado. Using digital, social media, radio and community marketing partnerships, the convenience chain has increased top of mind awareness, foot traffic and gross sales. Schrader sees that momentum continuing. “For 2019, we will continue to refine the Ticket to Savings program with a strong focus on profitability and redefining our employee culture,” he said. Kristal Searle, chief financial officer at Stinker Stores, was raised in a farming community in southern Idaho, where she learned the value of the law of the harvest. “If you want crops in the fall, you must plant in the spring, water and weed all summer, and prepare the ground for the next planting after the harvest,” Searle said. “Consistently seeing the pattern of ‘you reap what you sow’ has ingrained in me that good things in life are the result of hard work. I approach each day with the attitude that I am going to work hard and be better today than I was yesterday.” Stinker provides each store manager with a store-level, profit-and-loss statement each month. During 2018, Searle realized that some new managers didn’t know how to read this statement. “Some managers needed a refresher, so I developed and delivered a training on profit-andloss statements for our store managers,” Searle said. “The training was effective, but more importantly it gave me an opportunity to interact with our store managers in small group settings and see Stinker from their perspective.” In 2019, Searle said she hopes to spend some time delving into key processes and identifying ways to simplify them, and to strengthen controls, to allow her team to do more value-add activities.

As the associate vice president of strategy for the successful Sheetz convenience chain, Emily Sheetz is responsible for ensuring strategy development, execution and innovation stay front and center for the Altoona, Pa.-based family business. Sheetz got her first taste of company life at the age of 15 when she interned within the Sheetz marketing department. During college, she continued to work in the stores. She holds a bachelor’s from the University of Pennsylvania and is a graduate of Columbia University law school. Previously, Sheetz served as the director of talent and development for the retailer, where she was in charge of training and leadership. After 11 years of wearing various hats within the company, Sheetz has found the biggest issue in the areas where the company’s c-stores operate is the “onslaught of competition in the convenience space—from grocery and dollar stores to quick-service restaurants and Amazon.” That wave of competitors vying for the convenience space makes innovating for the future a key consideration for the company moving forward. Looking ahead to 2019, Sheetz said, “we will be launching a new approach to innovation as well as continuing our focus on strategy execution.”

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Cover Story

40 Under 40 Dyson Williams, 32 Director of Merchandising

Company: Dandy Mini Marts Inc. Headquarters: Sayre, Pa. Number of Stores: 66 Years with the Company: 3

Derek Thurston, 35 Director of Food Service Operations

Company: Clifford Fuel Inc. Headquarters: Marcy, N.Y. Number of Stores: 19 Years with the Company: 3

After graduating from college, Derek Thurston accepted a corporate position with Subway, which required he visit the fast-food restaurant’s locations within convenience stores, such as those housed within Cliff’s Local Market in New York State. During one of those visits, an operations manager for the c-store approached Thurston with a job offer to become director of foodservice operations. “He told me the business was growing, its foodservice was growing and they needed a foodservice person. We talked, and I made the move,” Thurston said. From his days with Subway, Thurston was well acquainted with the convenience store customer base, but the way the two companies approached the category was very different. “There is so much movement in c-stores. New products come and go so much quicker,” he said. “I enjoy that. I like to move on a dime and be on top of new trends, and that wasn’t a possibility in my other job.” Thurston plans to keep cooking up excitement about the company’s foodservice heading into 2019. “I like to tie in new products with social media and keep the buzz going and build emotional connection with our brand,” Thurston said. 46 Convenience Store Decisions December 2018

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In the last few years foodservice and other fresh product offerings have become a growing part of Dandy Mini Marts. Responsible for evaluating and placing all of the retail items it sells, Dyson Williams, director of merchandising for Dandy Mini Marts, tackles his job with gusto. That includes maintaining close relationships with existing vendors, seeking out new vendors and directing three category managers. The family business, founded by current owner and CEO Randy Williams, seemed like a destination rather than just a workplace. “I returned to my family’s company after finishing college and gaining experience with another firm for several years, said the younger Williams. “I started part time with Dandy when I was 12-years-old working after school and during summer break, and then moved on to various roles at the corporate headquarters during my college years.” Now with 2019 just around the corner, Dandy Mini Marts is also looking to the future by launching a new loyalty program in the coming year. “It will be an extensive offering that will reward our customers and make us more competitive in the market,” said Williams, a Penn State football fan who appreciates spending time with his wife and two children when he’s not work.

Bryan Zeiger, 36 Director of Merchandising

Company: The Spinx Co. Headquarters: Greenville, S.C. Number of Stores: 80 Years with the Company: 12

As director of merchandising at the Spinx Co., Bryan Zeiger has taken the lead in the charge to differentiate the Spinx brand from convenience competitors and provide new ways to attract customers to its store locations. “For example, we recently rolled out a car wash loyalty program where you can wash at any of our sites using a RFID tag,” he said. Spinx is also known for its diesel, E-85 and biodiesel fuel offerings and growing foodservice program. In his previous career as an in-game promotions specialist in the athletic department at a local university, Bryan Zeiger met Steve Spinx, Spinx CEO and a big soccer supporter. When Spinx was filling a vacancy in the company’s marketing department, he suggested that Zeiger apply. Considering the constant challenges that the Carolina marketplace presents, Zeiger noted that staffing remains a consistent issue. “Finding the right people and keeping them is one of our biggest challenges right now,” Zeiger said. Zeiger is never complacent when it comes to the battles that local chains like Spinx face. More and more, those battles are becoming intense. “Channel blurring is a reality and there is more competition than ever before,” Zeiger said. “We have to change the mindset of our industry on what and how we can offer customers products they want.”

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Foodservice

Snacking

Build Your Foodservice Via Appetizers Appetizer-portioned, easy-to-tote foodservice snacks from mozzarella sticks and mini tacos to doughnut holes and downsized cinnamon buns are growing in popularity at convenience stores throughout the country. Marilyn Odesser-Torpey, Associate Editor

Fast Facts: » Consumers crave savory, salty and sweet foodservice snacks all day and night. » Items associated with familiar brands score higher with consumers than unbranded offerings. » There’s a lot of room for growth in this category as younger patrons seek out the c-store segment.

“Retailers are always looking for the n its most recent SCORES reports showing how consumers rank new sweet spot, a combination of uniquefoodservice items introduced at con- ness to set the product apart from venience stores, fast feeders and fast others available on the market, yet familcasual restaurants, Datassential research iar enough to encourage trial,” said company found that bite-size versions Jackie Rodriguez, senior project manager of familiar menu items tend to get high at Datassential. She noted that in addition to servscores, especially when they are associing as between-meal snacks, appetizer ated with a speciﬁc brand. For example, in July, when consum- items give consumers the flexibility to ers were asked how they would rank create their own meal combinations, say new buffalo chicken bites with cheese, chicken wings with tater tots for lunch or respondents ranked them in the 75th dinner or a sweet mini-snack to go with percentile for intent to purchase. When coffee in the morning. Plus, “one perthey learned that this item was being son’s snack time is another person’s meal introduced by QuikTrip, that intent shot time, so these items can ﬁll either role all up to the 95th percentile. With a 99-cent day long,” Rodriguez said. “We see a lot of room for growth for price point, consumers scored the bites in the 99th percentile for value and the this category within the convenience 88th percentile for frequency, whether store segment,” Rodriguez added. As a result of the popularity of appethey would order them all the time. Earlier this year when Speedway tizer-size items at its ordering kiosks, in introduced breadsticks “loaded” with January of 2017 Rutter’s convenience pepperoni or bacon for $1 per two-piece stores rolled out a new snacking concept, order, consumers ranked them in the 96th the hot grab-and-go pouch, according to percentile of new products. Chicken chile the company’s vice president of foodserverde mini tacos scored in the 55th per- vice, Ryan Krebs. For close to two years, centile unbranded and jumped to the 75th Krebs worked with a state-of-the-art, percentile when associated with 7-Eleven. hot-hold packaging supplier to develop And when AM/PM launched double choc- a bag that is breathable, microwavable, olate mini loaves for $1.39 each, the sweet has a handle, is Rutter’s branded and holds heat extremely well. treat reached the 95th percentile.

48 Convenience Store Decisions December 2018

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Foodservice

Snacking

Cheese sticks and other portable snack items are a big hit with customers on the go.

“The purpose of the grab-and-go pouch is to put highly craveable items at the on-the-go customer’s fingertips, eliminating a potential fryer wait for the time-starved customer,” Krebs said. Rutter’s, which has 72 locations in Pennsylvania and West Virginia, offers 15 appetizer-size options in the bags including chicken wings, mozzarella sticks, sweet corn bites and mac and cheese wedges. On the sweet side, via touchscreen kiosks, funnel cake fries with powdered sugar or chocolate, caramel or maple syrup dipping sauces have

been “outrageously successful” since the stores introduced them three years ago. A new hit has been the fried Oreos that Krebs brought into the stores several months ago. The success of these items has encouraged him to seek out new sweet bite-size snacks to add to the stores’ offerings. More than just snacking items for mid-afternoon and evening, grab-and-go products such as hash browns and fries have proven to be additional basket upsells, Krebs said. “A strong percentage of our customers are buying the items along with something else like a breakfast sandwich or burrito from the hot grab-and-go case,” Krebs said. “For snacking, they sell especially well between 2 p.m to 4 p.m., 7 p.m. to 9 p.m. and overnight.”

SAVORY BITES De Lone Wilson, president of Cubby’s convenience stores, with 36 locations in Nebraska, Iowa and South Dakota, emphasized that appetizers have long been a favorite with the chain’s customers. Starting at 6 a.m., they come in for the bite-size grab-and-go items including egg rolls, mini tacos, mozzarella sticks, jalapeño poppers, fried cauliflower, broccoli cheddar bites and mini tacos which

50 Convenience Store Decisions December 2018

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cstoredecisions.com

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OUR #1 SELLING SNACK ITEM they purchase with or as a meal, and sales continue to be strong throughout the day. Cubby’s has a repertoire of about 20 appetizers the stores can choose to feature. Wilson reported that the sweet foodservice snack category is growing. The stores do well with cups of doughnut holes and a few months ago started selling Cinnababies, warm mini cinnamon buns, five to a clamshell. “We’re selling a lot of those starting at breakfast and all the way up to 7 p.m.,” Wilson said. Many of Cubby’s customers are on the road, so the easy portability of these smaller items is most appealing. For retailers, appetizers are an easy way to enter the foodservice category. “Appetizers are pretty simple to execute,” Wilson said. To meet the growing demand for bite-sized items, Fremont, Ohio-based FriendShip Food Stores, with 26 locations in northern Ohio, is expanding its snack menu to include mozzarella sticks, broccoli cheese bites and stuffed pretzel bites in addition to its already popular fried chicken wings and Jojos, its version of French fries, said Ed Burcher, the company’s vice president of foodservice. Burcher noted that he sees the most opportunity for sales of these items between breakfast and lunch and as add-ons to meals of fried chicken, the chain’s specialty. “We see customers adding items like tornados to full meals rather than replacing the meals,” Burcher said. “These appetizer items get customers in front of our warmers, increasing impulse sales.”

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Category Management

Smokeless

2019

Looks Clear for

Smokeless Sales

As regulators target menthol cigarettes and popular e-cigarette brands, the smokeless segment is expected to thrive in the coming year. By Howard Riell, Associate Editor

mokeless remains the larg- Operators should do well by taking ing with product freshness and variety est tobacco category outside advantage of these price/blend/spe- of offerings. Each retailer should work of cigarettes.The combina- cial editions, as consumers have shown with its manufacturer associates to help hone their product assortments. tion of a loyal adult tobacco a strong preference for these items. For the 52-week period ending Oct. The introduction of new and consumer base and strong brands continues to make this product innovative flavors remains a key 7, 2018, smokeless tobacco products category an appealing one for conve- driver of growth, according to notched c-store sales of nearly $7.3 nience store retailers for the long term. ResearchAndMarkets.com. In-store billion, an increase of 8.35% over the This might be more so given last discounts remain effective, of course, same period last year, according to IRI month’s aggressive position by the as does rewarding adult tobacco con- scan data. The overwhelming majorU.S. Food and Drug Administration sumer loyalty. For example, earlier this ity of sales, nearly $6.9 billion, came (FDA), which announced Nov. 15 that year, Copenhagen executed a gift- from chewing tobacco and snuff. The it will seek a ban on the sale of men- with-purchase program that rewarded remainder, just over $395 million, was generated by spitless tobacco. adult dippers for their loyalty. thol-flavored cigarettes. The global snus market is expected In addition, savvy retailers continue The announcement came as the agency officially released a detailed to emphasize the category basics, start- to reach $1.5 billion by 2023 from plan to also restrict the sale of flavored electronic cigarettes. It also wants to ban flavored cigars. In a prepared statement, FDA Commissioner Scott Gottlieb said the » For the 52-week period ending on Oct. 7, 2018, smokeless moves are aimed at fighting smoking tobacco products notched sales of nearly $7.3 billion, an among young people. Flavored e-cigincrease of 8.35%. arettes, menthol-flavored tobacco cigarettes and flavored cigars are all popular among teenagers. » The overwhelming majority of those sales, nearly $6.9

Fast Facts:

SMOKELESS PERFORMS Smokeless continues to provide an excellent opportunity for retailers using manufacturers’ limited offers. 52 Convenience Store Decisions December 2018

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billion, came from chewing tobacco and snuff.

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Category Management

Smokeless

There really weren’t any state legislative “issues on OTP/smokeless this year that were enacted, (and) no tax increases on smokeless. -Thomas Briant, executive director of the National Association of Tobacco Outlets

”

tobacco tax increases nationwide, and those were on cigarettes in Kentucky and Oklahoma. “There really weren’t any state legislative issues on OTP/smokeless this year that were enacted, (and) no tax increases on smokeless,” said Thomas Briant, executive director of the National Association of Tobacco Outlets (NATO). He theorized that could have been because it was an election year. “Generally, in election years legislators do not raise taxes.” As for the year ahead, Briant said there is almost always a potential for excise tax increases, but that FDA has shown more interest in the vapor and flavored cigar categories. “The FDA issued its unified agenda and said they will likely propose a ban on characterizing flavors in cigars in 2019,” Briant said. “But again, that’s cigars, not smokeless. I haven’t heard a whole lot on smokeless otherwise.” Briant sees additional regulation on the local level as a threat,including expansion of local tobacco ordinances that aim to ban flavors, usually including mint and wintergreen. Briant urged c-store retailers to form relationships with their local government officials.“Reach out to them before a restriction is proposed so these officials understand the importance of tobacco sales to the c-store model,” Briant said. Briant continued, c-stores must LOOKING LOCAL Legislatures continue to impose be careful to sell only to adults, who restrictions on tobacco, from tax should have the choice of buying increases, retail sales bans and restric- smokeless tobacco in c-stores. Today’s trends will certainly contions to underage tobacco-use prevention. But while there was plenty tinue, as will adult tobacco consumers’ of tobacco legislation in 2018, none desire for a variety of forms and flavors, of it directly impacted the smokeless including an assortment of smokeless category. Indeed, there were only two products. CSD

$890 million in 2017, reported Ky., which operates 22 Maxfuel and ResearchAndMarkets.com, with a Max’s Convenience Shops c-stores compound annual growth rate of and truck stops, said smokeless 9.29%. U.S. Smokeless Tobacco Co.’s tobacco has always been a strong catCopenhagen remains one of the best- egory for her chain. “We are in western Kentucky,” she selling smokeless tobacco brands. Additionally, its Skoal brand offers pointed out, “so there is a lot of alternatives to traditional dip with fla- tobacco out here. Literally a mile and vor blends and manageable forms a half from our office is U.S. Tobacco, so we really do well in this area with such as Skoal Snus. One important ongoing trend the snuff and those products.” Max Arnold’s smokeless purchaswithin the smokeless tobacco category, as in a great many categories, ers are primarily male, but encompass has been a growing consumer pref- a wide age range. “The age group is erence for new flavors and forms. In probably from 19 up,” McGregor said. October, was Swedish Match’s launch “It could be a 19-year-old buying it; it of Thunder Xtreme in the U.S., a could be a 60-year-old buying it.” In-store marketing includes disproduct line featuring three varieties (Original, Original Strong and Red counts—customers can save $2 when Strong), two flavors and two strengths. they buy five cans. Management also makes sure The cans, easily identified by premium packaging with a large “X” and sub- stores do not experience out-oftle flair, contain 24 one-gram pouches. stocks. Personnel keep close track of C-stores are also aware some what sells, such as wintergreen-flavor tobacco companies are turning to and long-cut straight products. The year ahead, said McGregor, heated products as smoking rates decline, calling them less risky than con- should be much like the one just ventional cigarettes because they warm ending when it comes to smokeless tobacco until it is hot enough to release tobacco. “I don’t foresee anything nicotine but not to cause combustion. new, just a continuation, although Philip Morris International, for exam- there is a coffee now and it’s doing ple, has unveiled two new versions of pretty good in some of our locations. its smokeless tobacco device, iQOS, in It’s called Grinds, and you just put in more than 40 markets. The device heats your mouth as you would snuff.” tobacco instead of burning it.

TOBACCO FLAIR More than some other categories, smokeless tobacco’s fortunes often rise or fall based on the region in which they are sold. Karen McGregor, director of convenience store operations for Max Arnold & Sons LLC in Hopkinsville, 54 Convenience Store Decisions December 2018

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Operations

Community Safety

C-Stores Combat Human Trafficking More retailers are becoming a safe harbor for victims of this vastly unreported crime. By Erin Del Conte, Senior Editor

onvenience stores are real- Stores Against Trafficking (CSAT). The izing the power they have in Georgia Association of Convenience joining forces to fight human Stores and the National Association of Convenience Stores, among othtrafficking. “The business community, like ers, have also partnered with the government and churches, has only organization. “The partnership is free for any recently started to take on the effort. It’s wonderful from a comprehensive retailer in the country. They send free standpoint because we need all eyes stickers and signage to put in restroom and ears possible,” said Bill Cronin, stalls,” said Haley Bower, director of commissioner at the Pasco County the Clipper Petroleum Foundation, the Commission on Human Trafficking in chain’s non-profit arm. That’s because the only time trafficking victims are Florida. Cronin noted traffickers and vic- often alone is in a stall, so it’s a key tims often frequent c-stores. Red place to provide information for help. In Our Backyard also provided a flags might include someone repeatedly buying large orders of first-aid training video for employees on what kits, tampons or food orders, or a big to watch for, and what to do if trafgroup of women who come in to eat ficking is suspected. Clipper is also placing posters in the windows and daily, but don’t talk. Selling single cigarettes, drug par- providing flyers to start conversations aphernalia or single cold beers can with customers. The chain is ramping inspire traffickers to set up shop near up efforts ahead of the Super Bowl in your store and use it for food and sup- Atlanta in 2019. Bower and Cronin both noted the plies, Cronin said. “The trafficking industry is very transient. They will go taboo around talking about human where it’s easiest to make money and trafficking is lifting. “One-hundred girls are already sold has the least amount of obstacles.” If it’s harder to find the items/envi- a night in Atlanta. When big events ronment they need, the activity will be like conventions or the Super Bowl displaced. “If somebody has to drive a happen, trafficking goes up by 20%,” little further, they might not go to rape Bower said. “They’re not only exploita girl today. The more obstacles we ing children, they’re exploiting our create, the bigger net we create. You convenience stores. can do that through surveillance, sharing information. C-store video feeds ANTI-TRAFFICKING TOOLS can be the missing puzzle piece for The transportation industry and many cases law enforcement are work- NATSO—which represents America’s ing,” Cronin said. travel plazas and truck stops—have been fighting human trafficking for many years. Moreover, the Department IN OUR BACKYARD Clipper Petroleum, based in Flowery of Transportation’s ‘Transportation Branch, Ga., has partnered with the Leaders Against Human Trafficking,’ national anti-human-trafficking non- includes all areas of transportation— profit, In Our Backyard, which has from buses and taxis to airlines and developed the program Convenience truck stops. 56 Convenience Store Decisions December 2018

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NATSO offers online training and resources to teach the industry about human trafficking and what to do if trafficking is suspected. “The goal is to be a partner in helping the entire transportation sector prevent human trafficking that happens along the interstate highway system,” said Tiffany Wlazlowski Neuman, vice president of public affairs for NATSO. States have different requirements for businesses on whether posters on trafficking with hotline numbers are required by law and what information is mandatory to include. Through a partnership with the Department of Homeland Security, NATSO has co-branded posters that meet state requirements. This October, NATSO also introduced a tool kit to help members implement an anti-trafficking program at their locations. “As part of that tool kit, there is a 50-state chart detailing each state law regarding whether or not you must hang a poster in your business, what you’re required to post and the penalties for non-compliance,” Neuman said. “I would challenge the convenience store industry, to come together in a multi-state approach (much like the transportation industry has) to share information, and put systems in place so we can make the net a little bigger,” Cronin said. Gulfcoast Software Solutions’ non-profit arm, Gulfcoast Children’s Charitable Foundation, is offering plug and play data-mining software free to any c-store for the exclusive purpose of tracking purchase behaviors that often point to human trafficking. Email Tim Lindblom for information tlindblom@gulfcoastsoftware.com.

cstoredecisions.com

11/19/18 3:11 PM

The convenience store industry’s young executives and next-generation leaders face unique challenges as they grow their businesses in the fast-paced, competitive convenience store market. The National Advisory Group’s (NAG) Young Executives Organization (YEO) was formed specifically to addresses these challenges and help the industry’s leaders of tomorrow identify solutions with others in their age group. YEO exists to serve as an effective conduit for getting young professionals more involved and prepared for leadership positions both in their companies and in the broader convenience store industry. YEO membership offers next-generation leaders a network of other young leaders in similar positions. The group meets twice annually at the YEO Conference in the spring and the NAG Conference in September.

For information on joining YEO contact NAG Executive Director John Lofstock at jlofstock@csdecisions.com. THANK YOU TO OUR 2018 YEO CONFERENCE SPONSORS:

YEO_NAG_2018_7.18.indd 1

6/22/18 5:15 PM

PRODUCTShowcase Cajun Sausage Johnsonville is introducing a new, on-trend Ultimate Cajun Sausage to its line of Ultimate Sausages. Johnsonville’s new Ultimate Cajun Sausage is inspired by the flavors, traditions and culture from Louisiana, with a flavor profile featuring onion, garlic and a trinity of spices: black pepper, white pepper and red pepper. This crowd-pleasing, mildly spicy sausage was developed to maximize menu offerings during breakfast, all-day breakfast, lunch, dinner and snacking dayparts for c-store operators. Johnsonville’s Ultimate Cajun Sausage’s innovative regional flavor can also boost roller grill and made-to-order programs in c-store foodservice. Like all Johnsonville Sausage products, Johnsonville Ultimate Sausages are made with the operator’s convenience in mind, frozen for storage convenience and available 10 pounds to a case.

Blueberry Lemonade Coca-Cola’s Herbert’s Lemonade is introducing new Blueberry Lemonade nationally on Feb. 4, 2019 in a 16-ounce bottle. Hubert’s Lemonade is one of the fastest growing sugarsweetened lemonades in America. Hubert’s is NonGMO Project verified, preservative-free and has no artificial flavors, colors or sweeteners. The refreshing lemonade is made with real juice and natural ingredients—the perfect balance of sweet and tart. Hubert’s has vibrant flavors and colors delivered through premium ingredients, flavor variety and joyful personality. The brand’s core customers are 13-to-24-year-old social trendsetters (or fun-seeking sharers). In addition to the soon to launch Blueberry Lemonade, Hubert’s offers 16-ounce Original Lemonade and Strawberry Lemonade, along with many other flavors.

Company: Coca-Cola Co. www.coca-colacompany.com/

Company: Johnsonville

(800) 837-5391

Improved Butterﬁnger The Improved Recipe BUTTERFINGER will continue to deliver on the crispety, crunchety, peanut-buttery ﬂavors consumers love, along with better ingredients, better packaging, improved freshness and increased advertising support. The Improved Recipe BUTTERFINGER will be available in January 2019. Suggested retail prices are as follows: 1.9-ounce single for $1.29, 3.7-ounce share pack for $1.99, 3.5-ounce Bites (CONC) for $1.99, and eight-ounce Bites stand up bag for $4.79.

Company: Ferrara Candy Co. www.ferrarausa.com

On-the Go Dog Leash & Bowl Beau Dacious has developed a leash and expandable food and water bowl for dogs. The dog leash is strength tested for maximum safety and is suitable for dogs up to 50 pounds. It has a ﬁrm, secure and squeezable grip that provides support for arthritis and carpal tunnel. It is tough, durable and reliable. The SRP is $9.99. The travel food and water bowl for dogs has a ﬂat, foldable design and clips onto a leash, backpack or waist. It holds up to 1.5 cups of food or water and is quick and easy to clean. Beau Dacious is proud to support the ASPCA and its mission to save lives. SRP is $5.99. Beau Dacious is a brand from CVP (Consumer Value Products), McLane’s private label products subsidiary. CVP believes that quality products don’t have to be expensive, and works to ensure its goods deliver variety and value.

Company: McLane www.beaudaciousbiscuits.com or www.cvpproducts.com

58 Convenience Store Decisions December 2018

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cstoredecisions.com

11/19/18 3:11 PM

PRODUCTShowcase Fresher Breath

Double Brand Candy Bar Offers Different Taste Hershey’s Milk Chocolate Bar with Reese’s Pieces Candy– the No. 1 and No. 2 chocolate franchises have united for a sweet collaboration. Introducing NEW Hershey’s Milk Chocolate Bar with Reese’s Pieces candy. The bar combines two iconic favorites—a smooth Hershey’s Milk Chocolate Bar infused with Reese’s Pieces candy—to create the ultimate mash up. Hershey’s Milk Chocolate Bar with Reese’s Pieces candy became available nationwide beginning late November 2018 in a standard bar (1.55 ounce) and king-size bar (2.55 ounce).

Company: The Hershey Co. www.hersheys.com/cstore

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New Birthday Cake Flavor Mars Wrigley Confectionery’s 3 MUSKETEERS brand is releasing the first new flavor in six years—Birthday Cake. The candy bar features vanilla-flavored nougat and colorful sprinkles covered in rich milk chocolate. Available this month at Walmart, the product will roll out nationally in January 2019. 3 MUSKETEERS Birthday Cake will be available in a Share Size bar (2.14 ounce) and Miniatures Stand Up Pouch (8.4 ounce, approximately 28 pieces).

Company: Mars Wrigley Confectionery www.mars.com

Sophisticated Design Concept New, super-stylish Curtis ThermoProX Brewer makes a great “fresh impression.” The new ThermoProX Brewing System is the latest in the line of innovative, style-forward products from one of the world’s leading manufacturers of coffee brewing equipment, the Wilbur Curtis Co. Engineered with all the advanced features of the renowned Curtis ThermoPro brewing system, the new ThermoProX offers a new, sophisticated design and styling that adds immensely to the counter appeal of any operation. It has modernistic rounded corners, an elegant sloping top, slender side panels, plus a textured honeycomb front panel that will truly turn heads. Stainless-steel, vacuum-insulated servers keep coffee fresh, ﬂavorful and at the perfect serving temperature without using external heat.

Company: Wilbur Curtis www.wilburcurtis.com cstoredecisions.com

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December 2018 Convenience Store Decisions 59

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Classifieds /Ad Index Apothic Wines www.apothic.com

www.freshmarx.com

www.blucigs.com

800.776.8834 / www.cdlatm.com

www.calicobrands.com

www.clickitinc.com

Avery Dennison Blu

Cash Depot

Calico Brands Click It

E-Alternative Solutions

13, 39

888.727.1841 / www.LeapVapor.com

Gulfcoast Software Solutions, Inc. 727.449.2296 / www.gulfcoastsoftware.com

Home Market Foods

800.367.8325 / www.rollerbites.com

800.290.6097 / www.krispykrunchy.com

Krispy Krunchy

John Middleton Co.

877.968.5323

KT&G

5, 7, 9

www.ktngusa.com

Lancer

877.734.2194 / www.lancercorp.com/twinpour

516.693.7367 / www.RogueNicotine.com

866.481.4604 / www.nynab.com

800.338.5122 / www.pcbakery.com

www.EngageTradePartners.com

314.592.9350 / www.savealot.com/own

www.stryvebiltong.com

NicoGen Pharma Solutions North American Bancard Prairie City Bakery R. J. Reynolds Save-A-Lot Stryve

Swedish Match

800.367.3677 www.smna.com www.whiteowlcigar.com

53 33,43

800.874.9720 / www.swishersweets.com

17,64

Swisher International

2019 Tobacco Plus Expo www.tobaccoplusexpo.com

800.682.7272 / www.tysonconvenience.com

Tyson Convenience

SAVE THE DATE

For more information: SUPPLIERS should contact RETAILERS should contact John Petersen at 440.250.1583 John Lofstock at 201.837.2177 info@nagconvenience.com

jlofstock@csdecisions.com

2019

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61_Ad index.indd 61

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11/16/18 11:26 AM

INDUSTRY

Perspective

Proper Category Management

Can Drive Performance

Category management can improve overall sales and profit performance. Like most principles of category management, quite a bit depends on the particular retailer’s market position and roles of each individual category. By John Zikias

hile the practice of category management has been discussed by many retailers and implemented at thousands of stores in the convenience store industry over the past several decades, many still struggle with implementing this principle properly. Category management when executed properly always focuses on the needs and wants of the consumer. This focus ensures that retailers have the current and new products that consumers are looking for when visiting retail locations. CATEGORY MANAGEMENT While this approach appears straightforward, I continue to be asked questions about rebate funds, new item inclusion, category captains and how to best delete slow selling SKUs. While each of these areas is up to each individual retailer, there are guidelines to follow to help ensure that category management is properly implemented in your retail chain. First, at the core category management is an analysis of SKUs in a subcategory or category. This can be viewed in several ways depending on the role of the category. For example, if your category has a role of profit generator, then you may review data showing profitability; however, if the role is sales driver, then you may focus on retail and unit sales. While it’s important to look at your data, be sure to work with a supplier to assist in providing market data. Your top 10 items may be different from the market and provide insight to opportunities. Also keep in mind when working with a supplier that they provide market and competitive data that’s reliable. The supplier should provide factual information and an objective point of view when identifying items to delete and add. Forget names such as category captain and instead just work with a supplier that helps best manage and analyze your data. Another area to review is rebate funding. While rebates are an important part of the gross profit equation,

62 Convenience Store Decisions December 2018

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keep in mind that they are “just a part,” not the sole reason for stocking a particular item.

John Zikias is president of JAZ Enterprises and has more than 35 years of experience in the convenience store industry implementing category management, marketing principles, supply chain and reviewing organizational effectiveness. He can be reached at jzikias@outlook.com, or on (602) 315-9139.

CHECK UP FRONT This becomes difficult to review with one’s manager. It is always “safer” in some folks’ minds to accept a “big” check up front and book this to profits. When this happens rarely are the lost sales from having the wrong assortment ever discussed. In addition, many retailers fail to break down the rebate to the SKU level and then determine the additional items sales needed to exceed this rebate. In many cases I have found this to be just a few items a week. Don’t get me wrong, rebates are important. However, get the assortment right first and then work on the rebate program. You may still end up making one or two product decisions in a large category such as beverages or candy to get the best overall cost of goods, but this should be the exception versus the rule. Like most principles of category management, quite a bit depends on the particular retailer’s market position and roles of each individual category. DRIVING PERFORMANCE New items are another area to drive performance. This is where retailers need to blend art and science. Use past product launches as a guide to predict new item performance from a particular supplier. In addition, don’t wait until most other retailers have added the item for you to add to your assortment. Doing so you will have missed out on all the introductory allowances and promotion. If you find after a few months that a new item isn’t selling, look at options from changing the position to liquidation. No one ever made a profit watching an item fail to sell on his or her store shelves. Category management can improve overall sales and profit performance by taking a fact-based, strategic approach to managing assortment and promotions.

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11/15/18 9:28 AM

SOLID MARGINS

800.874.9720

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3X MORE SALES*

100% FRESHNESS GUARANTEE

MADE IN THE U.S.A.

*Than leading manufacturer: MSAi database â&#x20AC;&#x201C; 13 wks ending 5/19/18

11/16/18 10:53 AM