IRVING, Texas -- The difference between success and failure at store level can be summed up in four syllables: execution.
Without top-notch people executing on promises from all sides of the retail equation"store level, supplier, wholesaler"good intentions will crumble under the weight of the system, said retailers and suppliers at last weeks Advantage Sales & Marketing Retail Forum hosted by Advantage Sales & Marketing LLC, Austin, Texas, and CSP Information Group, Oak Brook, Ill.
It boils down to two key words: economics [image-nocss] and commitment, said John West, director of sales and merchandising for Southwest Convenience Stores LLC, Odessa, Texas. In execution, those are the only two pieces that always have to work. When Red Bull hit, it was the hottest thing in a new category, so everyone was committed to it.
Attendees of the three-day event analyzed the convenience-store industry to identify retailers seen as best in class in terms of consistent execution to learn how to fix whats broken. QuikTrip Corp., Tulsa, Okla., which had two corporate sales managers at the meeting, was held up by many as one of the industrys best"the direct result of hiring and retaining good people who care. Another standout: 7-Eleven Inc.
7-Eleven has a good process from A to Z, shipping product on time and having it in 17 different shipping points to make sure its in the stores, said Harold Gould, broker-manager for convenience and convenience stores at Johnson & Johnson, Slower Mound, Texas. Theyre holding the hands to the fire, saying, You have to have this product ready to go by this date. They have a lot of checks and balances along the way, whether its for the manufacturer, the wholesaler or the broker. That to me is a successful process, and the real value is in the turn.
For some operators, however, effective execution hinges on factors that are outside of their immediate control. In many ways, the industry remains imbalanced; its marked by haves and have nots in terms of store size and, as a result, importance in the eyes of the wholesaler and supplier community.
When it comes to the independent, its a whole different game, said Terry Lambert, senior vice president of business development for Consolidated Buying Co. LLC, Westmont, Ill., and president of a two-store chain in Illinois. I see new products in the chain stores; thats the only way I know some companies have new products sometimes. So then I have to go back to my wholesaler and ask for it. By the time I get it in my stores, its not a new product anymore.
Some weaknesses in the system pertain to store-level issues and the fact that every single person does more and has less time in which to complete his or her responsibilities. Such problems are further complicated by intense competition for the customers share of wallet. Technology has alleviated the problem"but has also enabled it.
It just seems like everyone is doing a little moreand the follow-through isnt always there, said Larry Hauck, director of marketing for Garb-Ko Inc., Saginaw, Mich., a 7-Eleven licensee with more than 100 stores. Overall, I think [industry execution] is not quite as good as it has been in the past. Back in the day, before we had e-mail to stores, you had to take time communicating things in writing. Now, I find myself sending e-mails, but the more important things you still have to back it up in writing.
Execution shortcomings often arise because different cogs in the wheel"retailer, supplier, distributor, etc."measure success differently. Setting expectations on all sides may be one way to improve the situation, according to Nick Mihnovets, senior manager of strategic business development for Advantage Sales & Marketing.
The question is systematically: Are we all working in the same direction? he asked. Sometimes I think were allrewarded on different things. We have all these layers of reward, and systematically were not all on the same page.
More than 30 retailers, suppliers and guests attended the three-day meeting, including Advantage Sales & Marketings team and key executives from Advantages affiliated client companies: Ansell Healthcare Inc., Dale and Thomas Popcorn, Energizer, General Mills, GlaxoSmithKline Consumer Healthcare (Wayne Allen, pictured), Johnson & Johnson, Mad Croc Brands Inc. and MarketFare Foods Inc.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.