Plenary session: SttAScott Annan srcg - Open Room

23 Pages·2009·4.48 MB·English

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