Chris Long has always looked at the center store as incredibly important.
Long (pictured right), the director of category management at the Greater Houston Retailers Cooperative Association, spoke in a Retailer Talks session Sept. 10 at CSP’s inaugural Center Store Forum in Schaumburg, Illinois.
- Also at Center Store Forum: Dollar-Conscious Consumers Hurt C-Store Center Store Unit Sales.
“‘I want that Snickers because it’s right there.’ It’s all about impulse, and it also gives us the competitive advantage through increased consumer choice and pairing options,” said Long, whose cooperative, which has 2,200 stores and 1,000 members, was founded as a buying group. It celebrates 25 years in 2025.
The snacking occasion has gotten huge, Long said. “I love that there’s something for everybody. No matter the diet or mood, center store is doing a great job of providing whatever you’re in the mood for,” including healthy options.
Regarding challenges, Long said, “I’m really worried about price increases. I think it’s absolutely ridiculous that I see Tostitos for $7.99. They’ve gone from ‘need to haves’ to ‘nice to haves.’ My house, we don’t even purchase chips unless they’re on sale.”
Some customers no longer can afford products such as this, he said, adding, “This is one of the things killing center store.”
Another challenge, and one of the most consistent complaints he hears in his 10 years in retail, is inconsistent service levels in the center store. “It’s beyond frustrating. ‘This guy didn’t show up’ or whatever. It really hurts the small guys who don’t do a lot of volume.”
Innovation
C-stores must continue to innovate, he continued.
“I believe center store is the most ripe for disruption,” he added, noting the array of products, such as “silly little toys” you put on your finger. “Someone ordered 30,000 and they sold out in two weeks. That’s center store to a T.”
Focus on improving the consumer value proposition, he said. “Aim to offer products and services better than what’s available now. We have to focus on this.”
A strong consumer value proposition should address the customer’s pain points, show the value they will receive, and differentiate the business from competitors.
“How can I get your attention without giving you a price discount?” he asked.
There are six points to the proposition, he said:
- Identify the target audience. Who are they are why are they interested? What are their needs and wants, issues and aspirations?
- Describe the audience’s context, issues, needs and wants. The solution might be simple, such as a more refreshing drink or a more convenient IT solution.
- Select two unique, compelling benefits that differentiate you. What are the differentiators? How is it better or different? What are the few unique benefits being offered?
- Explain how you offer these benefits/features better than anyone else. What are the unique products, services or processes that enable these benefits to be unique and deliverable?
- Determine how much a customer will pay—10% more than market average? As much as market leaders?
- For internal use, understand the competition to address it. What are the tradeoffs for customers? Is your proposition available in fewer stores or in limited color and range?
Importance of Planning
When it comes to remodels and new-to-industry stores, convenience-store retailers must be nimble and prepared to help things go as smoothly as possible.
That’s the advice from MJ Simons (pictured left), lead retail category manager at Brentwood, Tennessee-based Delek convenience stores, who was the other speaker in the Retailer Talks session.
“Plan, plan, plan—yourself and your team,” said Simons, who has been at Delek for two years. Delek’s retail operations are being sold to Monterrey, Mexico-based Fomento Económico Mexicano SAB de CV (FEMSA). “Think about what you want to get out of it before meeting with others. Brainstorm. I knew exactly what I wanted. You’ll go back and forth, meet with others, share notes.”
After a first round, plan again, Simons said. “What’s in the budget, what can we ask for? If I do my a, b, c, who doesn’t get to do their a, b, c?”
- Delek US Holdings is No. 31 on CSP’s 2024 Top 202 ranking of U.S. convenience-store chains by store count.
“After the first round, we went to the store and reviewed what we did right and wrong,” he said. “No matter what, when you make plans, be ready to make changes.”
“Completed” is not the goal, Simons said. “We completed the first part, but what now? Get feedback from customers. If customers say they don’t like what you did, ask why did you do that, do we have answers for them, such as why we picked certain colors, etc.—and can we go back and fix what customers said we did wrong?”
In their project, Simons said, “One of our main goals was flexibility. “We wanted a very clean and neutral look.”
He said they included uranium blue in their color scheme “because we wanted to stand out.”
“Be flexible in your life, be flexible in your professional life, and carry that over in how you work with your teams because you don’t know who you’re working with,” he said.
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