A Little Weight Loss at the Pumps

U.S. oil prices have dipped significantly from the spring, but the decrease for consumers has not been as significant.

CNN Money recently reported that the cost of U.S. oil has fallen 25 percent since reaching new highs in May. But gasoline prices have only decreased 10 percent.

Motorists will most likely spend less but they should not expect a huge windfall.

Labour Day typically means lower gas prices as North America switches to less-expensive and less refined “winter gas.”

Since Hurricane Irene “under-performed” and activity in Libya also contributed to lower prices, reported the news outlet.

However, analysts are still treading lightly. They said the lower oil prices seen in the United States recently do not truly reflect the actual price of oil in the global market. Plus, demand from the developing world remains strong.

“I’d Like to Thank the Academy…”

by Carter Hammett

C&CC writer Kelly Gray accepts award on behalf of publisher Brenda Johnstone

When Convenience & Carwash Canada  contributing writer Kelly Gray stood up to accept our magazine’s award for Best Editorial Package (B2B Category) at this year’s Manitoba Magazine Publishers’ Association, it marked the culmination of three years of hard work, dedication and a lot of sweat. Oh, and gasoline too.

Our story, “Pump Up the Volume” which ran in the July/August 2010 issue and documents the history of gas pumps, represents a successful collaboration between publisher Brenda Johnstone, who first identified the story idea; a beautiful graphics job by layout designer extraordinaire Doug Coates, and myself, who tortured the words into submission. In a sepia-toned timeline, gas pumps emerge as technological marvels that have evolved alongside the gas stations that serve customers an increasingly precious resource. It was a fun story to produce, a logistical nightmare to assemble and great collaboration between people who have faith in the little publication that grew.

Three years ago in a rather pioneering move, C&CC was started by Brenda Johnstone, who struck out on her own after two decades in the publishing industry. What was unique about the move was the fact that this woman was establishing a firmly rooted place for herself in a marketplace that had been dominated by an old oily boys’ network for a long time. Suddenly there was a new player in town, and a little bit of tension in the air. Three years later, the magazine flourishes, partnerships evolve and the publication has developed a reputation as a respectable go-to source of well written, cutting edge information.

Meanwhile, the Manitoba Magazine Publishers Association has become the voice of Manitoba magazine publishers over the last six years. The Maggies, as they are affectionately known by people in the publishing biz, are an opportunity to recognize the excellence of both consumer and trade publications in a province that has been traditionally left behind in an industry struggling to find its place in an increasingly high tech world. Not quite so cutting edge as trend catching British Columbia, or as solidly entrenched as a communications capital like Ontario, Manitoba, nonetheless should be proud of its diverse, high quality publications that manage to eke out a living for themselves every year. The Maggies honour the best of what the province has to offer and we think that’s pretty significant.

And Convenience & Carwash Canada continues to strive to be the best at what it does. That includes responding to your needs and telling your stories. Little bylittle, we are branching out in non traditional ways, like this blog, our Twitter page and by diversifying our web site. Three years is a short period of time to grow a business and when they said an industry publication like ours wasn’t required, we puff our chests out just a little bit this time and exhale a gentle sigh of pride.

Edward Burtynsky: The End of Oil?

Toronto photo exhibit offers provocative images and asks tough questions

By Carter Hammett

In a new exhibit of stark imagery currently on display at Toronto’s Royal Ontario Museum, photographer Edward Burtynsky asks a question that’s always in the back of many an industry stakeholder’s mind.

Is this the end of oil?

For those who have had their heads in the oil sands too long, Burtynsky is a world-renowned Canadian photographer, subject of the recent documentary Manufactured Landscapes and a shrewd commentator on the rude realities wrought by our over-reliance on fossil fuels. “ Our dependence on nature to provide the materials for our consumption and our concern for the health of our planet sets us into an uneasy contradiction,” Burtynsky states on his web site, and indeed, the entire thrust of his career has been this contrary and uncomfortable juxtaposition.

In 53 landscape-sized photographs, Burtynsky explores three themes surrounding oil: Extraction and Refinement, Transportation and Motor Culture and The End of Oil. The anxious relationship with and contrast between our dependency on oil and the effects it has on our planet, make for uncomfortable viewing at times. The ecosystems in the highways he presents reflect the ecosystems of human bodies and how oil touches almost every facet of our lives. The miles of piles of abandoned cars, tires and oil filters, awaiting their final journey in Hamilton, ON have literally changed the landscape we’re a part of.

While Burtynsky is careful to only imply man’s role in the degradation of the earth, it’s hard not to ask yourself, what emerges from our dependency on oil? How is this affecting the way C-stores and gasoline dealers do business?

Make no mistake: human behaviour has changed with price increases in both gasoline and oil. Drivers are carpooling their way to work and bundling their trips. Multislacking teenagers are walking as much as possible. This behaviour change has impact on your business. Speculative investing in oil markets has driven the price of crude oil, in turn inflating the cost of gas. Fiscal healing also takes into account rising prices. But this also means that US gas prices will hit $4 by summer. Accounts by American C-stores who testify to a dip in local sales are already starting to appear on the landscape. Less gas means less impulse purchases in other channels. This translates into huge losses for the C-store industry. Gulf CEO Joe Petrowski recently affirmed in a TV interview that “the tipping point” for consumers will be the magic $4 figure, adding that he thinks the market is peaking out and that prices will start to drop sooner than later.

But at what point do we start moving towards solutions? Economic cycles will one day drive prices beyond that $4 figure. Scientists suggest that all of earth’s oil will be either be gone in 50 years or so expensive only the very rich will be able to afford it.

And therein lies our great contradiction: our short term thinking goes only as far as the next tank of gas take us to.

Edward Burtynsky: Oil runs until July 3 at the Royal Ontario Museum in Toronto. For more information, visit: http://www.rom.on.ca/exhibitions/special/oil.php

Pay-at-the-Pump, Libya-Style

The revolution currently sweeping across North Africa and the Middle East is having a huge impact on gas prices and is putting strain on shell-shocked consumers, still dusting off the effects of a global recession.

Gas prices have surged to their highest levels since August 2008, rising more than three percent as protests spilled over into Iran. Saudi Arabia too is bracing for further unrest amid concerns that protests in Bahrain and Oman could reach its borders.

Meanwhile, the impact on oil-producing countries has caused a surge in world oil prices up  as much as $17 a barrel with pump prices about 20 percent higher than a mere six months previously. The impact, of course, is being felt on other prices such as food and airfare, never mind the poor belaboured consumer. In Canada, pump prices have hit $1.20 a litre, up from $1.01 half a year ago. In California, gas prices have passed the $4 a gallon mark.

Despite all of this sweeping impact, business still sees Libya as a huge boon. Ever since the country slowly started regaining the world’s trust after surrendering two terror suspects accused in the 1988 Pan Am jet bombing, companies have started seeing the country favourably. During the previous decade, the world seemed to be flocking to Tripoli’s tent flaps for meetings with the Gadhafi family. Indeed, Canadian companies were awarded over $1 billion in, among other things, construction contracts.

Now, with the world on the verge of massive change, again, Canadians have to ask themselves questions. Are the ethical concerns of doing business with sketchy countries in cash-based economies worth it?  What are the implications of using local Libyan workers and resources after gaining exploration rights? And, despite small advances made with smart cars and other energy alternatives, the world still maintains an overreliance on fossil fuels, placing western societies in a state of “energy welfare.”

Some people say that opening business with the west has helped open windows to the current revolution and has therefore been a good thing. While that point remains dubious, it’s clear that whenever corporate greed surfaces over gushing oil reserves, the world groans just a little more loudly as consumers pay for their trickles with ever-shrinking resources.

 

Virginia Carwash Becomes First in US to Achieve LEED Certification

This story was adapted from a story originally published by The International Carwash Association

The Smart Car Wash in Woodbridge Virginia has become the first full-service car wash in the U.S. to receive the internationally-recognized silver Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council. 

LEED certification is granted to commercial and residential buildings that meet certain sustainability guidelines, some of which include water and energy efficiency.

Smart Car Wash General Manager Peter Mason was pleased with receiving the LEED certification.

Over 20 percent of Smart Car Wash was built using recycled materials. Part of their energy-efficient design includes the utilization of natural light with the help of skylights and big windows. The car-washing equipment also uses air compressors instead of the conventional hydraulic devices.

“The air compressors are a little bit louder, but they are much better for the environment [than hydraulics],” Mason said.

The car wash also opted for concrete floors in lieu of carpet to reduce the amount of dander in the air.

Water conservation is a pillar of the Smart Car Wash building design. The building’s roof is slanted inward to allow rainwater to be collected, and used, for future car washes.

The facility also reuses used car wash water. The used water goes through an innovative US Navy-designed water pump that purifies the water for reuse through a process called reverse osmosis.

The car wash also says that their equipment uses 100 gallons of water less than the average person uses when they wash their car in their driveway. Mason says that their water conservation efforts allow them to keep service costs low.

“We are doing a good thing for the environment—saving water, and [we are] passing the savings on to the customer,” Mason said.

Margaret’s Museum: A Brief Moment with Margaret Trudeau

by Carter Hammett

Earlier this year, I had the pleasure of meeting a truly remarkable woman and inspiring Canadian in the form of Margaret Trudeau.

It wasn’t all that long ago when Maggie was the butt of many a joke, better known for her supposedly poor parenting skills, laughable acting career and wild, partying ways.

But that was long before we knew much about bipolar disorder and the havoc it can wreak on people’s lives. In her new memoir, Changing My Mind, Trudeau writes movingly about many things: the deaths of her son Michel and her former husband Pierre; the breakup of her second marriage to Ottawa realtor Fried Kemper and the impact that her own mental health has had on her family. She’s stable now, controlled by drugs and awareness, and frequently travels the country speaking out on mental health issues, as well as on behalf of the non profit organization, WaterCan.

Water was the subject she was speaking about when we met, and after her seminar, a crowd of people flocked around, curious to speak to the former first lady. By the time my turn came, I found her gracious, warm and focused.  During her speech she had implored her audience to drink tap water, stating that bottled water was a waste of time and not necessary. I thought this might be an interesting topic to write about for our magazine, especially since the demand for healthy products is rapidly growing and more and more C-stores are stocking up on bottled water. Alas, she stated she was frequently travelling and finishing up her book, which was just published last month.

Too bad. I would have loved to have spoken to her more, as would a whole slew of other people that day. But I’m grateful for the time we did have to connect and given that her book currently sits perched atop The Globe and Mail’s bestseller lists, it’s obvious people are still curious. In her new role as a mental health advocate, she has much to offer. Like Yoko Ono, people have gradually come to forgive previous behaviours and appreciate the struggles she endured. Growing up in public must surely be difficult at the best of times, but Trudeau has whethered the storm and evolved into an impressive representative of a misunderstood community.

The European C-Store Report

"Tabacs" are numerous throughout France, including this one in Dijon.

Part 1 – Small is the New Big 

By Carter Hammett 

A recent trip to Europe took me across five countries: England, France, Italy, Switzerland and Germany. As the editor of a C-store magazine, I was naturally interested in checking out what the local C-store channels were like; their differences and similarities to the North American market. 

One of the most surprising things was the concept of the automated C-store I discussed in the last blog. But a broader look and a few chats with locals also provided insight into a fascinating marketplace that seems to be constantly—and rapidly—evolving in response to higher oil prices, changing consumer behaviours, the decline of the hypermarkets and a devastating global recession that people are feeling the effects of, still. 

A recent report, “Global Convenience Store Market Analysis” revealed that growth in the C-store market has largely been driven by the UK.  It states that an increased number of vehicle owners are gradually making more visits to C-stores, pointing out that this will obviously result in increased visits to service stations as well and will be mutually beneficial to these smaller sized businesses.

In Europe at least, small seems to be the new big as hypermarkets—big box suburban superstores—are declining. In fact European C-stores are actually outperforming their overgrown cousins  because smaller formats are meeting a demand for more options, grab-and-go foods as well as healthier snacks. However, the market is getting a run for its money with serious competition from both discounters and traditional food markets, both of which are ramping up their own efforts to remain competitive. 

But the C-store channel is also getting a boost from new product line ups, private labelling and store formats that are having a huge impact on the traditional C-store model.    

One example of this is that the Internet is perceived as a form of convenience shopping. In fact its growth is having a huge impact on shopping habits and spending patterns, with major purchases made online and the C-store perceived as a “top up” service in many European localities. 

One of the results of this  is the diversification of the traditional market format and the emergence of interesting concepts in response to changing consumer behaviours. This includes newer ideas like coffee shops in convenience stores  and personal branding, both of which are having a dynamic impact on customer loyalty.

My next blog will offer a more in-depth look at some of these trends. Stay tuned.

The Automated C-Store

 By Carter Hammett 

 Strolling through the humming streets in Strasbourg France recently, I passed by a window that made me do a double take. 

 Staring down at me from a store front was a sign that said, “automated convenience store.” Upon closer inspection, I realized it was actually two, giant vending machines containing everything from baguettes—a natural for the French–to tooth paste to batteries and cigarettes. You enter a code and a robotic arm distributes your product choice to a “check out” line. Payment can be made with cash, debit or credit cards. 

 Hugely popular in Europe, for the better part of a decade now. I learned that over 160 machines had been spread across seven countries with millions in transactions taking place annually. The machines can stock a volume of up to 2000 products.  that vary in weight up to seven pounds, and can be monitored both locally and overseas by the manufacturer if errors occur. 

 This marriage of technology, convenience and robotics has been slowly gaining steam in some United States grocery stores and gas stations—especially notable in Ohio–a few years ago, even if retailers seem to be still adjusting to the concept. 

 One of the major players in the game is Belgium-based Shop24 which has pioneered the concept. One of the interesting ideas behind automated machines is that they increase convenience by “going to you” instead of the other way around. Seizing this concept, Shop24 has collaborated with grocery stores and some college campuses so students and consumers have access 24-7. It’s a recognition of, and response to the fact that shopping patterns are changing. It gives consumer a sense of control and efficiency, offers competitive pricing with most other convenience stores and is low-cost to operate. 

 Another player recently entering the market is France-based B+ Equipment, which earlier this year introduced a new product, the 24 Robomart that holds up to 800 items and can be stationed either indoors or outdoors. It features an automated vending mechanism and payment screen.  Furthermore a POS system can be integrated with a customer loyalty program. The concept can be expanded from traditional C-store items like drinks and cigarettes to include health and beauty products and office supplies as well. 

A variety of products on display behind the protected glass of a giant vending machine.

 If it all seems a tad impersonal, the system has worked quite well in Europe and newer markets like student campuses and train and bus stations seem receptive to the concept. It might be an idea that’s time has finally arrived in Canada.

UKBA Trade Shows Deliver the Goods

Opening Ceremonies at Toronto UKBA show

By Carter Hammett

Over 200 people attended the first trade show hosted by the Quebec chapter of the United Korean Businessmen’s Association (QKBA) in Montreal, April 16.

Suppliers from all over Quebec, Ontario and Korea were on hand to flog their products, network, attend workshops and share knowledge.

Montreal city counsellor and counsellor responsible for cultural communities Mary Deros was on hand to officially open the ceremonies and welcome the business people in attendance.

“One of the goals of such a trade show is to get to know suppliers who will deal with people attending,” she said. “If you buy Old Dutch there might be opportunities to develop all kinds of details. Perhaps a united community can get kick backs among other benefits.”

About 1000 attended the Toronto show

She added the city’s role is to help economic development, facilitate use of city resources and help small businesses broaden their connections.

One resource available is the Program Renovation grant. Retail merchants can apply for a portion of the $22 million earmarked for revitalizing their stores and fixing facades among other perks.

“When you see these businesses you want to work with them and help them understand what the city can do,” said Deros.

QKBA president Dongjin Yoo stated it was learning about programs like the Program Renovation grant that helped “make the show great.

“It’s an open trade show, “ he said. “We want to make people feel comfortable to talk with suppliers.”

He noted that while there were some trade shows for grocers this was the first show specifically geared toward the Korean community.

“We want to build better relations with our suppliers. We’re landed immigrants and have to work hard to make a living. I like to advise other people, share my knowledge and experience so that we can help others build a life and survive in Canada.”

Yoo stated that he perceived this show as building a foundation, and as his presidency wound down he hoped others would build on the accomplishments he has made.

Montreal City Councillor Mary Deros poses with Korea T-Shirt

“We spent a lot of time putting everything into the system,” he said. “I want Koreans to make a good living in Canada and help each other. You know, you’re not the only one living here.”

The almost informal nature of the Montreal show was in sharp contrast to the Toronto show April 13. About 1000 people attended and mingled with the almost 100 suppliers.

UKBA president John Bok noticed a drop in attendance, in part because of several C-Store events in Calgary and elsewhere that coincided with this year’s event.

In recent years there’s also been a drop in the Ontario chapter of the Korean Businessmen’s Association, which is down to about 1500 members from 2500 in the not too distant past.

“The Wal Marts of the world are hunting the small C-stores” said Bok. “So now C-store owners are moving into other businesses: hotels, motels, restaurants.  C-Stores will survive, but they need to bring in new coffee and food programs, especially in Ontario. If it’s just a C-store it will fail.”

UKBA president John Bok

Discussions  are already underway for next year’s show, including the possibility of reaching out beyond the Korean community.

“We need to bring in more suppliers, advertising and ideas” he said.  
     

QKBA president Dongjin Yoo

An App for Nearly Everything

By Carter Hammett

With sales of the much trumpeted iPad hitting 300,000 units on its first day, a new era of computing is upon us.

At least that’s what all the ads say. With all the ink being spilled on this little gadget, you would think it was the second coming of Christ. And it hasn’t even been released in Canada yet.

But what interests this writer is the fact that iPad users downloaded 250,000 books and over 1 million iTunes apps within hours of bringing home their little bundle of joy. That’s a lot of apps.

For those of you still on dial-up, “apps” (short for “application”) refers to software that can run on the Internet, your computer, and, with increasing frequency, on your crackberry or iPhone. Apps, many of which are free,  are used usually low-cost tools used for everything from finding area restaurants to determining what the weather’s going to be like on any given day. And all from a consumer’s phone. 

It’s also proving to be an effective marketing tool; something the C-store channel should think about exploiting to its advantage. Alas, a brief scan yielded nary a blip on the Google radar, which is a shame. With apps being so consumer-friendly, these tools can be used to maintain contact with customers, promote specials, offer discounts and coupons to app users, link to your company’s web site and a plethora of other ideas that will probably be circulating on the Net before this article is completed.

With that in mind, we’ve rounded up some of the few and far between apps we thought were cool enough to serve as models for unsuspecting C-store owners to demonstrate an untapped resource.

One of our favourites belongs to Kuhnsville Car Wash of Allentown, PA. Operating for two decades this family-owned operation clearly has what it takes to stay on top of its game, with a spiffy-looking app that manages to be eye-catching and user- friendly to boot. The app includes coupons that can be used from your iPhone, allows you to check the operating hours, provides directions from your location and one-touch dialling.  Clearly, someone was on top of their game here.

Closer to home, another interesting phone utility app is iLocate Convenience Stores 2.0. Brought to you by Victoria, BC-based Brighthouse Labs, this is a comprehensive searchable database that allows you to pinpoint convenience store locations whatever your location. One touch and users are provided with contact information, maps, directions and more.  You can also scroll through store locations with a “smart” one per line display, making this application a breeze.

Another app we’re fond of, is Gas Buddy. Sexy by app standards, this software claims that gas prices change by as much as 20% within blocks and helps users find the lowest-priced fuel.  Among the seemingly endless list of services on the software are:  a diesel only” view, customized savings calculation and complete information that allows you to check out extra services like car wash or C-Store that are part of the gas station’s offerings.

Creating your app and marketing it are two different things of course. You can offer the best and brightest  app in the world, but if no one is around to use it, why bother? And with literally thousands of cheaper apps available through services like iTunes, good ones are bound to get buried in the pile. To start with, apps  targeted specifically to your unique audience and deliver a message people will respond to, is key. Knowing who your competition is, will also give you an advantage here. 

With the right message and marketing strategy, you can be effective in reaching your target audience.  Used properly, your app can literally become a road map to your door and enable you to find audiences and customers you didn’t know you even had.