Consumer Needs, Behaviors Drive Retail Engagement

Engage with customers online and stay relevant, advise panelists from Musgrave Group, Marks & Spencer and Tesco at NACS Insight Convenience Summit – Europe.

June 15, 2015

LONDON – Engaging with customers across all channels and maintaining a relevant offer is integral for the success of all convenience stores. That’s according to retailers interviewed by NACS president and CEO Henry Armour during a “Retailer Roundtable” session at the NACS Insight Convenience Summit – Europe last week.

Shoppers and retailers have pushed digital more than anyone else, said Armour, who asked the panel to share insights on how the United Kingdom is leading these changing dynamics and the market impact. Andy Rowlinson, former operating model director at Tesco, said the younger generation was shopping differently and highlighted the importance of listening to what customers were saying and then trying to respond.

Chris Martin, Group CEO at Musgrave, said more technology was being used to access retail brands and pointed out that middle-aged consumers (age 55 and over) are the fastest-growing segment of online business at Musgrave, with more and more of them accessing the brand via mobile devices.

Jill Bruce, head of food business development and international at Marks & Spencer, said engaging with customers online is just as important as selling online. While M&S does not yet sell food online, other than gifting, within non-food the retailer is pushing the whole agenda of “shopping your way,” she said. This reaches customers where they are and includes providing click-and-collect services. “That’s driven sales of non-food and it brings people into the smaller [Simply Food] stores where they may pick up something,” Bruce said, adding, “The customer who shops most channels spends the most with you … You are answering more of their needs.”

Looking ahead to the next 10 to 20 years, Martin said convenience will be a “very exciting place to be.” Health and wellness would be a huge opportunity and risk, along with omnichannel retailing. “We have to continue to innovate very strongly,” he advised.

Bruce said she was convinced that the convenience sector will still be a strong physical industry in 10 years’ time, but keeping in tune with customers and being relevant will be key. “C-stores that don’t offer fresh food will become less and less relevant,” she predicted.

Now in its second year, the NACS Insight Convenience Summit – Europe brings together convenience and fuel retailing industry professionals from around the world to discuss new ideas and gain new commercial connections. This year’s event kicked off in Berlin on June 7 and ended June 12 in London.

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