Growing Differently, Together

MIAMI – This year’s invitation-only NACS Leadership Forum, held in Miami, Feb. 12-14, kicked off with a panel of industry experts who discussed their different paths to growth in the convenience store industry.

The cost of growing a c-store business, which continues to face headwinds and constant disruptors, has never been higher, according to NACS President and CEO Henry Armour, who moderated the panel. “Despite all challenges, our industry continues to grow like no other brick-and-mortar channel,” he said.

For Cumberland Farms CEO Ari Haseotes, growth happens organically, through building new stores. Each store maintains increasingly high standards as Cumberland continues to evolve into a more fresh food-centric business model.

The retailer’s growth strategy can be boiled down to four key tenants, according to Haseotes. The first is full adoption of a mission-, vision- and values-based culture within each Cumberland Farms store. “Our corporate culture is a critical part of our brand and corporate strategy,” said Haseotes.

He also stressed continued capital investment in its store base, as well as the deployment of food and beverage offerings, which for Cumberland Farms, is fueled by a central distribution center and is a “strategic weapon” in terms of cost, flexibility and fresh food.

The company also strives to enhance the customer and team member experience while increasing efficiency. “If we can deliver a great team experience, we can deliver a great experience for our customers,” said Haseotes.

Glenn Plumby, senior vice president and COO, at Speedway, LLC, says Speedway has grown its organization through acquisition—18 over the past 45 years. “Returns come faster with the acquisition of stores than building new-to-industry stores," said Plumby.

Plumby also noted four pillars to successful growth by acquisition, which includes leveraging scale to drive value creation, capturing integration opportunities, high value growth and enhancing the customer experience. “There’s no right answer [to growth]. You have to have a multifaceted approach,” he said.

He also expressed the value of having a strong brand, backed by an even stronger operational team. “We rebranded 1,300 stores in less than 24 hours. You have to have an outstanding team to do that,” said Plumby, referring to the company’s Hess acquisition.

But what happens if you are the convenience store brand being acquired? That’s the type of growth and change experienced by Sonja Hubbard, former CEO and president of E-Z MART, Inc. “Some of the best things that happen to us are obstacles, and they become opportunities,” said Hubbard.

A family-owned business started by her father in 1970, E-Z MART recently sold to its 273 stores to GPM Investments, a decision that was not easy for Hubbard. “No matter what your position is, you have to take a good internal look at where you are where you plan to be,” she said.

Hubbard emphasized conducting self-evaluations or have someone else complete an audit of the business for you. We grow together by learning from each other, said Hubbard. “As we look at this industry, the cost is high. But I think in general we all like work, and I think it’s worth it.”