Wednesday, April 4, 2012

Are gas stations the next Whole Foods?


At Sam Odeh's Power Mart in west suburban Elmhurst, big-screen TVs showcase ESPN while shoppers browse packages of cherry tomatoes and a respectable wine selection.
Mr. Odeh is widely viewed as an innovator in turning grungy, grab-your-Snickers-and-run convenience stores into aesthetically pleasing, shoppable minimarts.
This upscale transformation is critical to the success of the $624 billion convenience retail industry, according to a new study slated to be presented in Chicago today by the Association for Convenience and Fuel Retailing and the Coca-Cola Retailing Research Council.
"Price and value are still paramount, but our theme is really how to broaden the appeal of the average convenience store," said Bill Bishop, the association's research director and chairman of Willard Bishop, a Barrington-based retail consultancy.
He pinpoints five ways that stores can do this, including adding more fresh food and making stores a realistic coffee-shop alternative by creating attractive seating areas with magazines nearby.
Mr. Odeh, who owns several Power Marts in the area, has hit on many of the key recommendations already. "He actually has a little in-store bakery which addresses the freshness issue," Mr. Bishop said. "He has a little corner of the store with an interesting, if not extensive, wine selection. You really get the experience of being entertained while you're there."
Finding new ways to lure time-strapped consumers — who increasingly pay for gas at the pump and never enter stores — requires a sizable investment from the owners of the 1,000 such stores in Chicago.
But, Mr. Bishop said, you'll likely be increasingly surprised by what you see at your local gas station in coming years.
 

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