Jacksons Gets Warm Welcome

Customer counts continue to grow at the chain's recently acquired Seattle-area stores

In an exclusive online story this past December, Convenience Store News reported Jacksons Food Stores was entering the Seattle area by acquiring 96 Shell-branded locations through Pac West Energy LLC, its joint venture with Shell Oil Products US. Of the sites, 54 were to be owned and operated by Meridian, Idaho-based Jacksons, while the other 42 would be supplied fuel by the company's wholesale entity, Jackson Oil.

At the time of CSNews' original story, the company-operated sites were being rebranded to the Jacksons banner, and additional enhancements were expected to be completed within 24 months. While in Seattle recently, CSNews met up with Jacksons' Regional Manager Gina Mosier to tour some of the stores and hear how the transition is progressing.

Since taking over the sites, which span from Arlington to Lacey, Wash., the market's response to Jacksons has been overwhelmingly positive, according to Mosier, who worked this region for Conoco Phillips before joining Jacksons in August 2009.

"Jacksons is being received well," she said. "The comment cards we've been getting are positive, and customers are actually thanking us for coming into the market."

One thing Jacksons brings to the Seattle region vs. the competition is consistency in its offering, said Mosier. For instance, the company makes it a point to have the same coffee and fountain offering in every store regardless of its size, as well as the same foodservice offering in those stores that have the space to accommodate it.

"If you see a Jacksons logo, you know you can come in and get a fountain drink," Mosier explained. "In so many other stores, though, it's hit or miss."

Among the first modifications Jacksons made to the acquired stores — previously operated by three different Shell multiple-store operators (MSOs) — was adding fountain and coffee to locations where it was lacking, and adding prepared foods to stores with the necessary space. None of the acquired stores had prepared foods before.

Other changes made to date include new shelving; some remerchandising; all the stores have been painted inside; and extensive landscaping work was completed.

"[Jacksons] is going to give some of the competitors a really good run for their money because we're very in tune with keeping the offering in our stores consistent," Mosier said.

This focus on consistency also extends to cleanliness. Jacksons requires monthly inspections for every store, which are conducted by Mosier and her five district managers. These inspections account for 25 percent of a store's monthly bonus, and the location has to score a 95 or higher to be awarded the full 25-percent credit. Bonuses are given not only at the manager level, but all the way down to the cashier level.

"Jacksons is very into taking care of their employees," noted Mosier.

Since the acquisition, about 80 percent of the existing store employees have stayed on, as have the majority of store managers. To make the transition easier, Mosier said she retained one district manager from each MSO, which has helped her in understanding the history of these stores, and why things were done a particular way.

To learn Jacksons' brand of service, though, the company had all employees from the acquired stores go through a two-day training program. Going forward, all newly hired Jacksons employees will be required to go through three days of new hire training.

The company is revamping a car wash at one of the former Shell stores into a Learning Center for the region. It will include a mock store environment, where new hires will get to touch and feel registers, and go through everyday tasks such as how to card customers. Jacksons has Learning Centers in its other operating areas as well.

"Before they get face-to-face with customers, [new hires] will get three days of classroom instruction and hear a consistent message from the instructor. So once they get out in the field, they will know exactly what needs to be done," Mosier said.

GAINING MOMENTUM

While the transition is progressing well, it has not been without its challenges.

In the weeks leading up to the acquisition, two of the MSOs took their stores down to bare inventory levels and stopped paying their vendors altogether. One store had just three cooler doors with pro duct inside, while the rest were completely empty.

Many of the stores were very run down and neglected, and people had stopped shopping them, so now Jacksons faces the challenge of getting people back into these stores and showing them things are different, Mosier explained. "In the case of many of these stores, it's like bringing them back from the dead," she said.

Rather than do formal advertising, Jacksons is depending mostly on word-of-mouth to get customers back. "Since we've had a lot of the employees stay on, they've done a good job of telling customers that the stores have a new owner," she said. "And it was a big thing when we put the Jacksons logo up on the stores. That signaled the change."

Since taking the stores over, Mosier said they've seen customer counts grow, and the hope is to gain even more momentum during the busy summer season.

Plus, Jacksons is making further improvements to these stores.

Company President Andrea Jackson told CSNews that all the stores have been remerchandised and many other small projects are already completed. The car washes at the acquired stores have had extensive work done, and the installation of new, low-energy canopy lighting at the sites is nearly finished.

The next phase — now under way — includes major remodel and raze-and-rebuild stores.

The depth of work will vary from store to store, and be staggered due to the extended time periods required for permitting, according to Jack son. Each location was evaluated on an ROI (return-on-investment) basis to determine its priority.

"It has already started. We are working feverishly on planning and design, and have several projects already in the permitting pipeline," Jackson explained. "We have some great corners, but many of the buildings need to be refreshed or replaced."

For comments, please contact Linda Lisanti Senior Editor, at [email protected].