LONDON – Several European retailers took the stage this week at the NACS Insight Convenience Summit – Europe to offer event participants from around the world a look at their respective company’s innovation, strategies and goals within the convenience landscape.

Alimentation Couche-Tard Inc.
Jacob Schram, group president, European operations at Alimentation Couche-Tard, touched on the company’s aspiration to become the world’s preferred destination for convenience and fuel, a goal the company set out to create with its new global convenience brand Circle K, launched September 22, 2015, to replace existing Circle K, Statoil, Mac’s and Kangaroo Express branding on stores and service stations across Canada, the United States, Scandinavia and Central and Eastern Europe.

Schram described the two-year process as highly emotional, with the blood, sweat and tears leading to a new and refreshed Circle K brand and a new brand competence, “Let’s make it easy.” He also shared the company’s platform moving forward: what’s our dream, what’s our business idea, what’s in our DNA, and what do we want to be famous for?

“Our dream is to be world destination for convenience and fuel—that’s what everyone knows; it’s motivating,” he said, noting that his company’s DNA is based in its pride, people, results, improvement, development and entrepreneurship. “If you have common DNA, you’re on family of merchants,” Schram said. The business idea, he said, is the mission: “If it’s shared with the customer, it’s a mission,” he added, noting that the company is in the process of protecting the “golden minutes” consumers want to spend in Circle K stores to relax, refresh and refuel.

Euro Garages
Euro Garages, one of the U.K.’s fastest growing forecourt operators, is poised to expand in Europe, following its deal with London-based private equity firm, TDR Capital, in 2015. Ilyas Munshi, commercial director at Euro Garages, said TDR’s investment gave it access to 1,100 forecourt sites across France and Benelux. “Our aspiration of becoming an international player has become a step nearer,” he said. “We have a train set from Europe that we can play with now.” He said plans were in place to merge the U.K. and continental operations next year and to roll out its unique model of partnering with major fuel, foodservice and convenience brands, which include BP, Shell, Esso, Starbucks, Subway, Burger King, Spar and Greggs.

Accepting the 2016 NACS Insight International Convenience Leader of the Year Award, Mohsin Issa, co-CEO Euro Garages, said the business was entering an exciting new phase of development. “We plan to build on what we have successfully executed at a UK level and take that to a global scale,” he commented, adding, “Nobody does this true branded proposition on an international scale. The international brands will travel and we will bring in local brands to fill in the missing pieces.”

Issa revealed how Euro Garages’ strategy for asset transformation, aggressive partnerships and a focus on people had driven the company’s success. The company’s focus was to create destination locations, which customers will visit for more than one shopper mission. This ambition is aided by time-starved shoppers, the consumer trend to shop little and often at smaller stores, ample car parking, plus 24-hour access.

In terms of foodservice, Issa said Euro Garages was not a brand but an ambassador for leading global brands and it aimed to outperform those brands. “Customers should not recognize Euro Garages is running those brands,” he said. “Success is when a customer has an experience that is equally as good, if not better than the brand owners.”

A strong focus on people has been a cornerstone to Euro Garages’ growth journey and will continue in future. This includes developing home grown talent, as well as attracting the best people through the company’s vision and fresh international strategy. One employee that runs Euro Garages’ Starbucks business today started as a night time cashier, for instance. “People have got to positions they never thought they’d get to,” said Issa. “We also need to attract a few more people to deliver future international growth, but I’m sure we will find them along the way.”

Musgrave
Ray Kelly, marketing director at Musgrave Retail Partners, shared a case study about its Centra convenience store brand, and how the company is striving to be the No. 1. brand in Ireland’s convenience market. 

Kelly talked specifically about the remodeling of a Centra store on O’Connell Street in Limerick. The store is redefining the convenience store offer in Ireland with foodservice innovations, a massive rebranding strategy and its focus on health and wellness in a country that struggles with obesity, yet has an emerging health-focused population.

Perception in Ireland is that convenience stores are not a destination for healthy options, making Centra’s offer less relevant to the emerging health-conscious consumers. Kelly outlined the company’s “four quadrant approach” to building the brand at Centra:

1. Its People: “They only do what they believe, and they only believe what they discover,” said Kelly, noting that the company embarked on intense training to help Centra employees excel at foodservice and new offers inside the store.
2. Products & Services: Centra brought more healthful and relevant offers to its product mix that cater to different dayparts, as well as the store’s enhanced coffee offer. Selections include salads, a reworked deli offer with healthier options at breakfast and hot take-home meal solutions for dinner.
3. Communication: Consumers experience the fresh and modern colors and branding inside the store, along with new food photography highlighting the offers and clear signage that is quick and direct.
4. Environment: Increasing the size of the store is driving more foot traffic. Grocery space was cut in half, but sales actually went up 30% for grocery items. Digital signage and menu boards change throughout the different dayparts, and the updated seating area goes hand-in-hand with the high-quality food and coffee offers. 

The results? Customer traffic has increased by 30%, more females are now shopping the store and total sales are up by more than 40%. As for what’s next for the Centra brand, Kelly said Musgrave is taking the O’Connell store format to more sites across its convenience offer. 

The 2016 NACS Insight Convenience Summit – Europe wrapped up on June 9 with an evening reception and the awarding of the International Convenience Retailer of the Year Award. Look for full coverage of the event in the August issue of NACS Magazine.