Changing the world for better... at least the world of gas stations)

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And you don’t need to go far. Why do customers more often choose “convenience stores”?

These days people are buying at discounters and convenience stores rather than in large format hypermarkets. Nielsen analysts have also mentioned these noticeable changes in the trading formats. 

There is an obvious fact that the market is being changed and the largest Russian retailers are not an exception. The retailers are rapidly reformatting retail shops.

X5 Group announces that the hypermarket market in Russia will be reduced by 0.3 trillion rubles, but the convenience store segment will be grown by 1.5 trillion rubles. Regarding this trend, the retailer has abandoned the Karusel hypermarkets and opened the Pyaterochka convenience store. The Lenta retailer and the Utkonos online retailer have also announced their intention to develop the convenience store segment. 

What’s going on? I propose to consistently find out the reasons for the changes. 

The convenience store is a format that has gotten an increased interest from consumers around the world for a few years. The Russian market is not an exception and the local shops where people can find almost anything they need has become more popular especially during a period of pandemics and restrictions. The main advantage of the convenience store is proximity. Buyers do not want to waste time and money to reach distant hypermarkets and prefer to visit the shops 10-15 minutes away from home. Retailers understand these needs and make changes according to a new trend. 

New compact formats implementation

Large retailers have begun to actively implement the new formats. What are the reasons for these business decisions? I definitely can announce a complex of factors. 

1. Decreasing hypermarket traffic;

2. Pandemic restrictions and the need to shop in the stores with a few visitors.

Bright trends of consumer behavior have been formed and taken by large retail chains. 

1. Rare store visiting and buying for future use

As I have already mentioned above, the pandemic has affected store visiting. 

People do not want to visit large stores where hundreds of customers are in line and choose local stores next to their homes. These days they do not go to the stores often, but make purchases for future use. Retailers are talking about a decrease in-store visits and an increase of the average check by 20%. During the pandemic, groceries, meat delicacies, household chemicals, and cosmetics sales have been increased significantly.

2. Discounts hunt

Consumers tend to save money and look for promotional products. Every second shop visitor check contains discount goods. As a result, we get an increase in private-label goods and promotional goods sales.

3. Cooking at home 

Remote work, pandemic restrictions, and income decrease affect the habits of Russian consumers. People buy stock products more often as well as they cook at home.

 In addition to cooking, people also make cosmetic procedures, do sports at home. As a result of these changes, there is a trend of increased demand for private labels in such categories as grocery, confectionery, dairy products, and household chemicals. 

The retail sphere is being changed as well as the customers

The “poor health” of hypermarkets and changing consumer habits make Russian retail reformat. Retailers are reducing their shop space and opening city-format stores — with an area of ​​less than 5 thousand square meters. 

Convenience stores, discounters, retail outlets are perhaps the fastest-growing format in 2021. The Magnit retail chain plans to open 1–1.5 thousand “convenience stores” annually until 2025. «Lenta» retail chain has launched the first «Mini Lenta» store and as the future business strategy wants to launch small area shops equipped with built-in trade equipment, coffee machines, a grill area, and vending machines.

I am sure that the current trend will be popular. And I mean not only the local retail stores, which are usually located on the first floors of residential buildings but also gas station shops. 

The technological base they are built on gradually turns them into modern complexes of various services and makes them attractive for thousands of consumers. 

You can always rely on the experts when there is a need to launch a successful roadside shop and develop small-format stores.

For many years the Rainblade company has been implementing technological solutions that are efficient to reach high business performance especially in shops with limited space and traffic, and we also know how to make this business meet the latest modern trends.

Neste: Eco-Friendly Gas Station for Future Perspectives

Consumers around the globe are familiar with the Neste Finland brand. The company has been in the list of the most popular gas station chains for almost 25 years. Hailing from Finland, the gas station chain is a part of the Neste Oyj Oil and Gas giant that deals with the full-cycle oil refining. Today, the company has taken the leading position in the niche of renewable fuel production. The new segment is facing a boost today. For this reason, we decided to have a closer look at solutions provided by Neste Finland considering their relevance for many countries across the globe.

IT Solutions for Non-Fuel Business and Gas Station Chains

What does the term «smart gas station» mean? What features it should have? How can IT solutions boost its operation in relying on all aspects of the non-fuel business and gas station chains? These are the question we are going to discuss in this article.

New Business Niche Brings Coffee to the Office

Today, we can hardly imagine a modern office without coffee. It is not just a casual beverage for employees. The drink may influence the level of productivity as well as create a harmonious atmosphere for communication and creativity. On the other hand, coffee may turn a typical office into a beneficiary niche from business perspectives. Is it possible to turn a coffee room into an efficient business model? It certainly is. We will tell you how.

What’s New in the Coffee Cup Economy in 2017?

Coffee is doubtlessly one of the most important products available in the market. On the one hand, it can boast great tonic features. On the other hand, it brings different people from different parts of the world together forming a huge global community of dedicated business professionals. The role of coffee should never be underestimated, as its importance for the global economy is the same as finances, oil or other market-defining products.

Moreover, coffee highlights some extra features such as flexibility and some other resources letting the product change in accordance with the market development and met its expectations in the long run.

McDonald’s Opts for Healthier Food Taking Fast-Casual Direction

Things change, as time goes by. What was created as a symbol of the fast food industry, calories and junk burgers may eventually turn into healthy food provider. McDonald’s tends to change the strategy in the nearest future obtaining a brand new look customers have never witnessed before.

The food giant is about to correct its strategy and focus on a so-called healthy fast food highlighting some fitness diets in addition to a separate food consumption propaganda. The new concept will feature a selection of recipes that can boast an optimal nutrition formula for people aimed at keeping fit. In other words, McDonald’s may turn into 100% opposite concept we are used to introducing some venues of the new healthy concept in different parts of the world. The extended menu includes a range of soups and salads, healthy sandwiches and main courses.

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Cloud-Based Solutions in Logistics

My expert comments given to LogLerney portal appeared to be the fundamental issue for this article. I do consider cloud-based technologies have a huge potential for the entire field of logistics.

Cloud-based solutions and backup have proved to be a better alternative to traditional options. A growing number of applications and management software lets businesses reduce the costs and concentrate on some prior issues and targets. What is the idea of such advanced supply chain managing tools and how can they be implemented in logistics?

Why сonsulting does not always work?

Alexander Kuzmin, RusHOLTS CEO, spoke at the conference «Global and local markets of oil and petroleum products: the analysis, pricing, trade flows«, presenting the report on the non-fuel businesses of filling stations. Development and marketing of modern gas station chain have become relevant and even a prime-time topic for Russian gas station chains, both large and small. Request for an effective program of roadside service comes from the top of the Vertically Integrated Oil Companies’ management which is good. On the other hand it is sad that in the minds of many leaders the level of understanding of the non-fuel business development remained at the 2010 level.

Recently, representatives of the world’s leading management consulting companies have spoken a lot about the need for Russian gas stations chains to develop their potential of non-fuel businesses. In most cases, to the audience’s attention are offered the «best practices» based on the experience of more mature foreign markets with no less than half a century of history. Why are these recommendations still not massively implemented in the Russian conditions?

Is it possible to get the «George Clooney effect» coffee sales at the gas stations?

Let’s talk about the habit of drinking coffee outside the home in Europe, Canada and Russia. Drinking coffee at the gas station, taking a cup of coffee to go on the way to work are the new habits of the modern metropolises inhabitants which change the coffe-drinking traditions in different countries around the world.

Mornings in the establishments of the Canadian coffee chain  in any city of Maple Leaf Country starts in the exact same way. The crowd of visitors sweeps stocks of coffee and pastries in the blink of an eye — the nation is one of the most coffee-addicted in the world, which is confirmed by the impressive figures of consumption and the degree of prevalence of drink among absolutely all categories of citizens in terms of monthly income, place of residence, occupation, etc. .

In 2015, the country has topped the list of 80 countries in terms of coffee consumption, calculated in liters per capita that are bought and cinsumed in catering establishments — mostly in the cafes. In terms of absolute consumption, including the volumes of coffee beverages drunk at home, Canada is the third in the world with 152 liters per person each year. Ahead are only Netherlands and Finland coffee fiends, confirms the authoritative Euromonitor study.

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Fully functional Internet of Things for gas stations is ready to take off

The Russian market of IoT solutions has a pronounced contrast compared to Europe and the United States in terms of ensuring connectivity of networks for M2M-technology devices. Its potential is regarded as a very high one. Therefore, analytical firm J’son & Partners Consulting in its research on the results of 2016 for the market of distributed systems and telemetry, remote monitoring and control services paid some special attention to the Russian Internet of Things market. Non-fuel businesses of filling stations may become the exemplary ones for the whole IoT industry, because the industry has a request for major changes to be made. It’s one thing when startups are looking for new items, and quite another one when such a request comes from the leaders of Vertically Integrated Oil Companies (VIOC).

What exactly J’son & Partners Consulting analysts evaluated?
Both the level of penetration and scale of systems that were examined in the study in the were assessed by the amount of wired and wireless devices in the segment of machine-to-machine (M2M), which are automatically (or with minimal human involvement) produce and transmit data collected by telemetry systems, and execute commands of these systems. Devices with built-in data processing functionality were not taken into account. The main objective of the study was to evaluate the prospects of transformation of distributed telemetry systems in the light of Internet of Things (IoT) future development.

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