Sales of self-service and convenience stores in Mexico rose by 9.1% in January compared to December 2020, as reported by the Secretariat of Tax Administration (SAT). It is not an isolated case; in fact, the number of transactions of this segment in the United States in April 2021 is higher than in April 2019, according to information provided by NACS (National Association of Convenience Stores).
The greatest challenge of this format is the limited staff who must perform multiple activities to guarantee compliance with the customer experience guidelines. In this situation, the touchpoints become a crucial element, and operational processes and policies can ensure the experience that leads to the long-awaited conversion.
Indicators project positive results for 2021 for convenience stores in sales, average ticket, and transactions. They show an optimistic scenario for new brands and products introduction in more traditional chains.
At Frogmi, we have identified the three key points or moments in the store operation that, if well managed and controlled through checklists, ensure better performance and results in the short and long term.
1. Store opening
Before opening, the store should perform a daily general check of all the critical aspects:
- General condition and cleanliness.
- Shelf stocking.
- Equipment’s correct operation.
- Adequate presentation of the CCP (customer-contact personnel).
- Marketing and merchandising aspects particular to each brand or chain, both for specific activations and permanent standards.
2. Review of means of payment and payment zones
The checkout area has the highest flow in a convenience store. A series of protocols have been defined to reduce contact between customers, and between customers and store employees, due to the global health context. Some physical elements of the store, such as checkouts, have also been intervened. All these new strategies incorporate technology aimed at what is known as “contactless” to a greater or lesser degree.
It is also attractive to incorporate an omnichannel experience at the payment zone through technology, linking the physical store with the brand’s other sales channels.
Ensuring the proper functioning of all these elements is critical to allow fluidity and agility in the payment process.
Another element to consider is the proper implementation of commercial actions in both payment areas and hot zones. Highlighting special promotional items or products in these areas can increase the average ticket
3. Stock review of critical products
The pandemic caused several changes in people, and one of them is in consumption, where food and cleaning products became the best sellers. According to Kantar’s annual Brand Footprint Mexico study, Red Cola, Galletas María, Pétalo toilet paper, and Roma soap are examples of local brands that saw their sales increase the most.
It is an excellent practice to identify a basket of must-have products, i.e., those products with such brand loyalty that if they are not in the store, the customer will not replace them with a substitute and will look for them in another store. This group of products should be physically inventoried daily to ensure their availability.
This basket of products will differ from one store to another since their regular customers define it. For example, suppose the store surrounded by is offices. In this case, probably we will find snacks in small format to take to work, coffee for immediate consumption, and salads for lunch within the infallible products. On the other hand, if the store is located in a residential area, the basket may contain household cleaning products and staples such as rice and noodles.
4. How Technology Helps
Frogmi offers {ShelfManager}, a solution that allows a correct execution of the products in the sales floor through the management of micro-tasks. It significantly improves the service level, ensuring product availability and compliance with commercial actions in the sales floor. ShelfManager can also be integrated with the company’s systems to deliver valuable and flexible data for management and decision-making.
With the right technology, you can control these critical points and, in a simple way, automate the resolution of incidents that regularly occur in the stores’ operations.
At Frogmi, we have seen how our customers have improved their convenience store operations. Their operational teams are more productive, turnovers have decreased, while product availability has increased, exhibiting an overall improvement in their results by implementing our solutions for their critical processes.
