What’s up in convenience? Hot topics, influencing convenience retail

1961 2100 50 1600 NACS – Advancing Convenience & Fuel Retailing Founded on August 14, 1961… Selected international retailer members 2100 … representing over 2100 retailers… 1600 … and over 1600 supplier companies… Global Supplier Council 2017 50 … with members operating in over 50 countries worldwide NACS in numbers

Hot topics, influencing convenience retail ACT Algorithms & mobile technology  enabling targeted promotions Next generation fuel-dispenser  maximizing impulse purchase opportunities Consumer eating habits  offering ample opportunity for foodservice New service offers  making c-stores a destination not a stop-over Alternative fuels  providing options again, to be “the first” REACT Millennials’ value system  creates the need for employer/employee engagement Progress acceleration  gives the need for ever faster change management Home Experience  increases competitive pressure cross-channel Regulation  stirring up the “classic” c-store model Healthy living  pushing retailers into unknown territory WATCH OUT Driverless cars  new opportunities for the on-the-go experience Summary

Algorithms & mobile technology Algorithms enable targeted promotions to drive frequency and loyalty e.g.: Narvesen app by Liquid Barcodes

Algorithms & mobile technology Mobile-ordering In-store ordering Digital shelf Electronic epos system, enables full potential of serving the consumer

Next generation fuel-dispenser Fuel dispenser advertising increases communication for impulse purchase offers e.g.: GSTV, America’s # 1 pump-video network

Consumer eating habits Blurring of foodservice and convenience creates “food-venience” e.g.: Centre Street Kitchen, Stoughton, MA Planned by Joe Bona Design Lab

New service offers Amazon locker, banking, ice machine, tailoring service, drycleaning, Pokemon-Go- Pokestop, … creating a “full-service”-station and transform the c-store to a destination, not a stopover

Alternative fuels Ethanol, Bio, Gas, Hydrogen, Electricity… a whole new fuel range to cover. And an opportunity to innovative and “the first one” to differentiate from competition.

Millennials’ value system Work is… Millennials (1981-2000) A means to an end Fulfillment Flexible Work Arrangements Generation X (1965-1980) A difficult challenge A contract Just a Job Baby Boomers (1946-1964) An exciting adventure A Career Work and then Retire Traditionalists (1900-1945) An obligation. A Long Term Career.

Progress acceleration Accelerated change in demand and consumer lifestyles, combined with accelerated development of new technology drives the need for accelerated business planning.

Fully stocked recipe boxes reduce need for emergency purchases. Home Experience Fully stocked recipe boxes reduce need for emergency purchases. e.g.: hellofresh in the UK

Regulation Core categories for c-stores are tobacco, alcoholic beverages and confectionary. Current and coming regulation of nicotine, alcohol and sugar means retailers need to re- focus on the right categories.

Healthy living The ever growing trend of a healthy lifestyle, from eating via exercising to grooming. The demand for healthy, sustainable, fresh drives a need for change in assortment, presentation and image.

Driverless cars means hands-free drivers… New opportunities for offering eat, drink & entertain on the go to the mobile consumer of tomorrow.

& Hot topics, influencing convenience retail ACT Algorithms & mobile technology Next generation fuel-dispenser Consumer eating habits New service offers Alternative fuels REACT Millennials’ value system Progress acceleration Home Experience Regulation Healthy living WATCH OUT Driverless cars Looking for more knowledge, connections and advocacy? Become a member of NACS and join our Convenience Community Europe Join us at our annual Conveniencesummit in London And in 2017: Pre-summit store-tours in Zurich Get in touch with our partners &

Backup – Food Trends

FOOD TRENDS

Snack Nation: Grazing is the New Normal --Traditional day parts for meals has changed. --People are utilizing meal bridges and standins --Some people are completely replacing meals with snacking. Source: The Hartman Group

Foodservice Sales Growth Presented at the NACS State of the Industry Summit, Sepil 14, 2010 Foodservice Sales Growth Prepared Food 138 Commissary 132 Trailing 36mos, Jan 2013 = 100 Total Foodservice 129 Cold DB 123 Frozen DB 110 Hot DB 109 -Now back to some numbers - Total Food Service Sales up 29 points in this trailing 36 month graph, and food did all the work! -A few years ago, Dispensed Beverage was driving sales in this category, but Prepared and Commissary is now doing the work. Source: CSX Copyright 2010, NACS. This document may not be reproduced in whole or in part in any form without written permission from NACS.

More “Better for you” items Better for you items can be found throughout food retailers – for both humans and pets. 21

More Healthy Food Marketing

Sweet Temptations never disappear… But don’t forget that indulgent products can still be winners. 23

More Sustainable Packaging

More typographic brands

More Bold Colours

Showing more product

More unique products

More unique shapes

More on-the-go / travelpacks

More „Food on the stick“

More 3D Printed food

More complex vending