A Bigger, Better Nice N Easy

3/21/2011

Upstate N.Y. chain readies new 7,000-square-foot grocery store model, loyalty program launch and more

In the cover story of Convenience Store News' March 22, 2010 issue, Nice N Easy Grocery Shoppes' leaders reflected on the company's 30th anniversary and talked about the work they were doing to keep the chain going strong. Among the projects underway at the time was a research study aimed at uncovering opportunities for expanding product selection; a time management analysis; and several digital marketing activities. CSNews recently circled back with Nice N Easy — now a year older — to get updates on these initiatives and more.

The Canastota, N.Y.-based retailer is busy putting the findings of its research study with Nielsen Claritas into practice. The report showed what the c-store operator could expect in inside sales based on how large a store it builds, as well as which product categories customers in a particular area over-index and under-index on, said Matt Paduano, vice president of category management.

“They [Nielsen Claritas] were even able to drill it down and say 'you're going to have this much money for inventory, so you should have X amount of dollars allocated to candy, X amount of dollars allocated to snacks, X amount of dollars allocated to pet food, etc.,'” he noted.

Based on these insights, Nice N Easy is gearing up to build a new 7,000-square-foot convenience store in Lakeport, N.Y., which will be one and a half times bigger than its current largest store at about 5,000 square feet. The goal is to open this store by Memorial Day.

“We're still a convenience store first, so we're still going to have the core convenience items — 80 percent will be that. But the biggest change will be in the center-store in terms of groceries,” Paduano explained. “There isn't a grocery store within 10 miles of this location.”

The new Lakeport store will have four grocery runs, each 32 feet long, as well as expanded dairy, frozen merchandise and produce sections, and will offer fresh meats. Nice N Easy expects to partner with a small, local grocery distributor to get the center-store supply. Along with this grocery focus, the store will feature an expanded foodservice presence, including more seating.

“We think we've tweaked that 4,500-square-foot store as best as store as best as we can. This is developing a bigger Nice N Easy,” Paduano said, noting this blueprint should work in other communities, too.

In addition to the Lakeport store, the chain's 2011 expansion plans call for razing and rebuilding its existing Brewerton, N.Y., store, and building a new location in Syracuse, N.Y.

Across all its stores, Nice N Easy also had made some changes based on the results of another recently completed research project — this one, a time management study that measured all the traditional tasks done at the company's convenience stores.

While the study validated what Nice N Easy was already doing with its labor budgeting process, the findings highlighted some areas where the chain could better apply labor hours — particularly in shifting hours between retail and foodservice labor.

“We're not saving labor hours, but now we're utilizing them more efficiently,” Paduano explained. “We're applying those labor hours throughout the day and days of the week to when the stores need them most, and where they need them most.”

To entice more customers to its locations, the company this year will roll out a new loyalty program called the Nice N Easy Super Saver Club. This new program will do away with the paper cards the chain has been using and replace them with a club card.

As of early February, Nice N Easy was testing the program at three stores to work out any kinks between its loyalty provider, ValueCentric Marketing Group Inc. (VCMG), and its point-of-sale provider, Dresser Wayne. The hope was to launch the program by the end of the month.

Also driving customer loyalty is the many digital marketing initiatives the retailer has underway. At the time of CSNews' cover story last March, Nice N Easy had developed a Facebook fan page, a text marketing club, a YouTube channel, and was exploring e-mail marketing.

Director of Marketing Jared Sturtevant provided the following updates:

Facebook: The social media site is a great way to have two-way communication with customers, he said. To grow Nice N Easy's fan base — which as of mid-February was at 1,900 — the chain is getting its store employees involved by asking them to “like” the page and share it with their Facebook friends. In the near future, the company will begin offering exclusive coupons and a grand-prize sweepstakes to its fans.

Text Marketing Club: Nice N Easy is targeting its text messages to club members around specific times of the day, and special events and holidays. For instance, at drive time, the company will promote a meal offer such as whole pizza discounts; at lunchtime, the message sent will be an offer on a pizza slice or half-sub. Redemption has been between 2 percent and 8 percent depending on the offer, according to Sturtevant. The club is steadily growing by about 50 members per week and the retention rate is over 97 percent. Even if redemption of the text coupon offer was zero, Nice N Easy is reaching thousands of customers with a positive message and a discount offer, he noted.

YouTube Channel: The chain is currently using this free Web site to host its commercials and training videos, and to embed video on its Web site homepage. However, Sturtevant said he sees a lot of potential in video and intends to do more with it this year.

E-mail Marketing: Nice N Easy signed on with e-mail marketing provider Constant Contact, and added a sign-up form to its Web site and Facebook page. The retailer now has more than 1,000 people enrolled and will soon deploy its first e-mail message.

Social media and digital marketing is “a burning goal for 2011,” according to Sturtevant.

On top of what is continuing from last year, Nice N Easy is now utilizing Foursquare, a location-based mobile app that allows users to “check in” at venues. The person who checks into a venue the most times in 60 days is deemed its “mayor.” Nice N Easy started out by rewarding the mayor of each store with a 16-ounce coffee for just 48 cents every visit. “We have since switched to offers that are unlocked after three check-ins, so more users are able to get the discounts,” Sturtevant said, noting the Foursquare offers change every month.

Also new this year, the company is trying online advertising for the first time. On Feb. 1, Nice N Easy launched its first digital campaign on Microsoft Media Network. The four-month campaign will receive a minimum of 400,000 zip code-targeted impressions per month on hundreds of Web sites, Sturtevant explained. Nice N Easy's ads will change each month and be directed to either the brand's Web site, Facebook page or a landing page with coupons.

The company is advertising on a local radio station's Web site as well. The “Powered by Easy Street Coffee” ads link to a landing page that contains an exclusive printable coupon for a 69-cent Easy Street coffee. (The coupon is available via mobile devices too.)

Additionally, the chain introduced its first-ever mobile Web advertisement on Syracuse.com. The mobile banner ad directs the viewer to a landing page where they not only find mobile coupons from Nice N Easy, but also the address to the closest Nice N Easy store.

With many of these marketing campaigns pointing customers to its other marketing tools to build enrollment, Sturtevant jokingly said, “We are marketing our marketing with our marketing."

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