Plenary session: SttAScott Annan srcg - Open Room PDF
Preview Plenary session: SttAScott Annan srcg - Open Room
Plenary session: SScotttt AAnnan srcgg Categgoryy Managgement v. Sppace Rental: which is better for growth? Fuel retailers strategy changes High SShhooppppeerrss’ mmiissssiioonnss 2012 t cc dd e Company Multi route to a t o e owned & r market L P ooppeerraatteedd 2005 PPrroodduuccttss Low © srcg 2008 f. Fuel retailer profits 2012 y t i SSttoorree nn u t r o Fuel Store Store profits p p Fuel O Franchise fees Tobacco fees Capex reduction 22000055 22001122 Source: Shape of Convenience® 2009 © srcg 2008 f. Store profits 2012 Today’s assortment Today’s assortment y t i n Fresh & Healthyy uu t r o p pp O Fresh & Healthy 22000055 22001122 Source: Shape of Convenience® 2009 © srcg 2008 Major oil retail evolution $/bbl Continuous cost reduction l i OO f o e c i r PP e h T 1987 1997 2007 2017 RReettaaiill EExxppaannssiioonn OOiill CCoo CCoonnssoolliiddaattiioonn CCaappiittaall EEffffiicciieennccyy (cid:131) Stores, car washes, QSR (cid:131) Oil Co mergers (cid:131) Oil Co mergers (cid:131) Specialist retail skills (cid:131) Retail Alliances (cid:131) Capital transfer from Retail (cid:131) Hypermarkets add fuel (cid:131) Hypermarkets add share (cid:131) Hypermarkets add share (cid:131) Convenience entrants (cid:131) Convenience grows (cid:131) Convenience grows © srcg 2008 Global oil retail strategy Market sophistication // shhopper needds Litres /site High Alliances Insert Controlled backcourt Franchise Fuels tie-in Disconnect Low Fuels Total site RRevenue opporttuniitty Source: Shape of Convenience® 2009 © srcg 2008 Global fuel retailers’ with supppplier ‘imppact’ contracts Source: Shape of Convenience® 2009, client programs © srcg 2008 The retail engine Transaction Total # of % transactions Size (# items x Store Sales % Actual Drivers Shopping containing Trips X the Category X $ value per = Value X Gross Margin = Profit item) Total Store Traffic Basket Basket Build Size Profit Strategies Conversion TTransacttiion CCattegory Category % Build Profit Strategies Product • Hi Penetration • Larger sizes • Convenience • Hi Frequency Low volume Space rental • Product affinity • Loyalty Tactics • Hi impact – Low frequency • Complementary • Low price Supplier fees reset products add-ons sensitivity • Day-part © srcg 2008 Business value Key Focus Areas Value Levers Payyments • Macro range & space • Price optimization Convenience • On-shelf availability • Basket size Sales • Customer insight Customer loyalty • Customer retention • Up-selling • Promotions Customer traffic • Customer retention • Up-selling • Advertising BBuussiinneessss OOppeerraattiinngg • CCoosstt ooff GGooooddss SSoolldd Lean Retailing • Site operating costs value Cost • Markdowns • Wastage Better associates • Customer Service • Micro range & space Tailored offering • Store Clustering CCuussttoommeerr •• SSttoorree llaayyoouutt//aaddjjaacceenncciieess Experience Optimized in-stocks © srcg 2008
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