The Canadian Convenience Stores Association

This year as emphasized how fierce competition has become across different types of retail channels in Canada.

Convenience store growth indicates that the market has matured and subsequently the impact is being felt by operators across the board. To achieve profitability goals is more challenging today than ever. There is ongoing pressure to control costs at the same time boosting marketing effectiveness to generate increased traffic, and from that to generate increased sales from every visit.

The traditional dependence on gasoline and tobacco products is changing for a variety of reasons. Shrinking demand has been caused by a number of reasons. People are buying more efficient automobiles and are more cost-conscious than ever to increase taxes. People also buying contraband tobacco products to such a significant degree that many independent C-store operators have been driven out of business, at the same time as more and more people are not smoking. Combine this with such things as the impact of credit card fees and C-store operators are losing a big part of their annual revenues and profits.

Nothing much is helping combat weak growth in gasoline consumption. Huge fluctuations in prices at the pumps just adds to the vendor competition and customer loyalty is fickle at best. So what is an operator to do to survive?

We have to change the definition of what it is to be a “convenience retailer”. We have to work hard to generate value-added in-store sales to stabilize the unpredictability of gasoline sales particularly. And this can be done by the sale of food service, fresh produce, prepared meals, snacks and various products for immediate consumption. Product offerings and selections must be tailored to meet the needs of the local market. This requires close cooperation and careful planning with wholesalers-distributors who also are being directly challenged by these changes in market trends.

C-store operators can no longer rely on their location just to bring him the business. Product offerings must be expanded and improved in order to reinforce the relationship between the retailer and their customers. The basic operating model for a successful convenience store is still sound but it is not enough to rest on those laurels. The impact of a number of extenuating circumstances, such as contraband tobacco, is not going away for example. Nevertheless our industry faces tremendous opportunities to grow both sales and profits. It's not going to be easy and yet by doing the “basics” very well, listening to our customers and providing them with choices and services above and beyond their expectations, this industry will continue to change, grow and prosper.