October 19, 2009 -
With traditional petroleum demand peaking and decreasing, successful industry retailers are preparing to build various fuel options within their system, said Joe Petrowski, president and CEO of Gulf Oil, during the keynote presentation of Convenience Store News' Future Forum Virtual Conference & Expo. Understanding fuels and diversifying the entire fueling spectrum is of the utmost importance now for the channel, he said.
From 2009 to 2016, Petrowski predicts a 22-percent decrease in gas stations, with the survivors being single-store operators and large chains of 70-100 stores.
"We are a unique industry, we have a lot of single-site operators, and I don't think they'll be as challenged moving forward," he said. "They have a lot of unique characteristics that will allow them to survive -- some tailor products and presentations to their local communities and local site, something large chains cannot do especially as tobacco is being increased in price."
Meanwhile, the large chains "have the wherewithal to survive," he stated. Chains with 70-100 stores have "the right concentration for getting a distribution of economics."
The ones he sees threatened are chains "somewhere in the middle -- they're not big enough to get the economics of promotion advantages" nor are they able to narrow down too keenly to the local level.
Interactive educational sessions were also held during the day-long virtual conference, on topics including technology, foodservice and retail format innovation.
During the session titled "Tomorrow's Technology Today," CSNews Executive Editor Tammy Mastroberte cited figures from the 2009 CSNews Technology Study, which found convenience store retailers increased technology spending in 2008, but funds went more to needed investments than "wanted" ones, and similar results were expected for 2009.
Also speaking during the panel discussion was Lee Holman, with global research and advisory firm IHL, who detailed some of the emerging technologies that will play a role in convenience retailing going forward, such as self-service and small-footprint self-checkout, cash recycling devices and mobile commerce devices.
During the foodservice session, Dean Dirks, consultant with Dirks & Associates, discussed the options available in foodservice programs.
"Full-touch programs offer the opportunity for promotions, discounting and couponing," he said, and warned retailers not to "learn their lessons the hard way and jump right in."
Providing an example of a completely full-touch operation, Jerry Weiner, vice president of foodservice at Rutter's Farm Stores in York, Pa., spoke about the company's foodservice operations.
"Consumer research is how we started developing our new prototype," he said, noting this included customer intercepts and focus groups -- both with Rutter's customers and those who did not shop the stores. It was out of this research that the company determined what was most important -- clean stores, clean restrooms and a lot of choices for food.
Wrapping up the session, Grant Demers, product director at McLane Co., offered advice to retailers looking to develop a foodservice strategy, along with five areas of importance: convenience, quality, safety, value and selection.
Future Forum also included a session on store design, during which CSNews' Associate News Editor Mehgan Belanger; Roy Strasburger, president, International Division, Strasburger Enterprises; and Mike Griswold, vice president of retail for AMR Research, presented examples and insights into retail format innovation, including areas such as meeting customer needs, eye-catching curb appeal, cost-effective construction techniques and green initiatives.
The 2,000-square-foot Quix store, which won the 2008 CSNews Best New Store Design award, was highlighted during the session as a store that uses cost-effective construction techniques. The store is a modular building consisting of four modules put together onsite.
"By doing so much preconstruction in a warehouse, there are no weather delays, and construction costs are lower due to centralization," Strasburger said. "Construction can begin before site work is done."
This year is special for Convenience Store News, as it marks the 40th year of publication, making it the longest continuously published news source for the convenience store industry.
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