NACS SHOW REWIND: Retailers Share Lessons Learned From Remodels & New Builds
LAS VEGAS — There are many reasons why convenience retailers embark on remodel initiatives or decide to build new stores. Upgrading older stores to meet today's changing definition of convenience or starting from the ground up for those sites that can't meet those needs are among those reasons.
Two retailers shared their experiences and recommendations on how to manage construction costs and meet consumer needs most cost-effectively at an educational session, "Learning From Your Peers: Common Pitfalls in Remodels and New Builds," during the 2024 NACS Show in Las Vegas.
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Gabe Manning, director of operations at Waycross, Ga.-based Friendly Express, operator of 47 stores, and Richard Cashion, chief operating officer, of soon-to-be two-store Curby's Express Markets, discussed how their respective companies aim to increase sales, enhance the customer's experience, create loyal shoppers, and make their employees' jobs easier and safer when they embark on a remodel or new build project.
Some of Manning's suggestions were:
- Consider parking and ease of access. "When you look for land, make sure there's enough not just for the store itself, but also plenty of parking," he said, noting that one of Friendly Express' busiest stores sits on an acre and a half of land, and "I wish we had found a larger parcel."
- Location of foodservice within the store matters. Friendly Express operates 12 full-size and 11 smaller deli's in its stores. "We used to have foodservice and merchandise in separate areas, but now we keep them closer together. Foodservice is now right beside the register. We keep them together and can cross-train our people to work both areas," he noted.
- Hurricane-proof your stores. The recent devastation wrought by Hurricane Helene throughout the southern United States is proof of the importance of having back-up power. "Our mini-truck stop in Waycross has a built-in generator. We were the only retailer open after the hurricane struck. We were a lifeline to residents of Waycross," Manning pointed out. The store did more than $100,000 in sales for the three days after the storm because it had power from a generator.
- Look into adding customer amenities. Dog parks are a big hit, especially at interstate and highway locations. Also consider an upscale coffee bar, adding seating for indoor and outdoor eating, using paper towels in restrooms, and, where legal, gaming machines.
- Get the latest technology. Friendly Express added self-checkout to its busiest locations for customers' convenience. New Anthem pumps at two locations allow the retailer to communicate with the fuel customer at the pump to advertise foodservice and push loyalty. The chain is also in the midst of launching mobile ordering with Vroom, and is testing artificial intelligence with camera to monitor stock levels in the store, and temperature sensors for freezers, hot bins and other key areas.
Manning also pointed out some of the pitfalls that Friendly Express encountered during some of its expansion projects.
"Make sure you have sufficient lighting," he advised. "People want to see the merchandise." He also noted that the company needs to expand the food area. "You need sufficient space for your kitchen and food storage area in order to add new menu items," he said.
Finally, Manning said that it seems like restrooms are never big enough and that smart retailers will install the infrastructure for electric vehicle charging units even if they don't intend to install EV chargers immediately.
Cashion told the audience that the Lubbock, Texas, independent retailer is putting the finishing touches on its second store and first outlet that also sells gasoline. Curby's focuses on selling pizza, a wide range of beverages and fresh grab-and-go. "The challenges I encountered were being able to include an adequate product mix in just 4,200 square feet," he said.
Among the pitfalls Cashion came across when designing a new store are:
- Poor store layout and traffic flow. Prioritize efficient store design, he advised.
- Lack of technology integration. Retailers need to have a good tech stack. "You need the right API's and to be fully integrated in POS," he said. "We saw a 5% labor improvement in three months just through technology."
- Don't ignore competition from outside the industry. Be mindful of how other retailers, such as quick service restaurants (QSRs) and dollar stores, are marketing to your customers.
- Consider a drive-thru. Fifty-six percent of Curby's business is via the drive-thru.
"At what point does a convenience store compete with a QSR?" he posed. "Curby's is a QSR inside a convenience store."
Cashion suggested that before building, a convenience retailer should do a 3D rendering of the proposed site. "Ensure you have enough space that gives you the ability to expand growth areas such as smokeless tobacco and fresh grab-and-go," he advised.
Also, offer niche products that the larger chains can't replicate. He cited Curby's 18-inch, jumbo New York style pizza pie.
"I believe the c-store industry is in a true transformation stage," concluded Cashion. "But there is still a hesitancy among many of the smaller operators to embrace strategies outside the traditional industry norms. C-stores must adapt to evolving consumer preferences and leverage emerging technology trends if they are going to be successful."
The 2024 NACS Show took place Oct. 7-10 at the Las Vegas Convention Center. The 2025 NACS Show will be hosted at Chicago's McCormick Place Convention Center from Oct. 14-17.