Norway Retailer Manages Rapid Change

LONDON -- Convenience retailers and suppliers gathered last week in London for the 2019 NACS Convenience Summit Europe to share insights and hear from thought leaders. One such leader is Norway’s Deli de Luca.

Deli de Luca is aiming to offer the best convenience concept in cities and on the road, according to Tormod Lier, director at parent group NorgesGruppen Convenience. Lier revealed to Summit attendees how the brand was developing its competency in the convenience retail market.

Founded in 2003, Deli de Luca operates 100 restaurants including 70 sites on Esso forecourts, a partnership that was expanded during 2016-2017. In Norway’s €1.5 billion total convenience retail market, Deli de Luca commands a turnover of €200 million and employs 2,000 people.

Lier revealed why the business was investing money on stores in the fuel market in a country where it’s predicted that 50% of all new cars will be electric in 2019. “We are not an oil or fuel company but a retail company with competency in the convenience market. That’s not a trap for us but an opportunity. In the Norwegian market, traffic increases by around 2% each year—yes with more electric cars but traffic still increases—and hopefully everyone has got a hungry stomach.”

In times of rapid change, Lier emphasized the need to keep pace with time-pressed customers, to provide complete food solutions but also healthy options and free-from alternatives. “If you don’t take the responsibility for healthy alternatives then you will lose the customer,” he said.

Deli de Luca opened its first city convenience store concept at a petrol forecourt in August 2016. According to Lier, with declining fuel volumes, the business needed to give customers more reasons to stop—especially in Norway’s highly competitive food to go market where even soft discounters vie for a share of the pie.

Lier told Summit attendees the 12 best sellers in the city store were broadly similar to those at more rural sites on the road. “There’s not a big difference having a premium convenience concept in the city,” he said. So, to win customers, the retail offer must be innovative, authentic, freshly made every day and with a quick roll out of new ideas.

Lier reported Deli de Luca was focused on three strategic concepts to win customers:

1. On the go (its main focus)
2. Dine in (following its investment at Esso stations)
3. Take home, which has the potential for the highest increase in turnover due to ultra-convenient locations

Speed is also of the essence, Lier stressed. “If you are not fast enough today, your competitors are going to beat you,” he said.

Deli de Luca aims for speed and operational excellence by providing employees with instant access to all KPIs, app-based task management and e-learning. The business is also working to expand to new customer groups and is deploying mystery shoppers, focus groups and research to help it to understand future new customers.

Lier revealed the retailer’s goal to double the food and beverage turnover from 2017 to 2021 would be reached this year and Deli de Luca’s share on food and drink today is 68-70% of the total store.  

Visit here, for information on  NACS Convenience Summit Europe and dates for next year.

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