In preparation for the NACS Convenience Summit Europe, which will be held in Berlin May 31 to June 2, 2022, I visited the city in September 2021, to look for best practices and innovation to share during the summit’s store tours. After having been in a pandemic hiatus for almost 18 months, I was keen to see how the city’s convenience and fuel retail industry had fared and how much food for thought the summit delegates will find in June. To summarize my thoughts after everything I saw and learned into one word: “Wow!”
Berlin has it all: a thriving foodservice scene from street-food entrepreneurs to grown-up convenience startups to all the big players—from grocery to fuel retailers—with their latest formats. And there are even some brand-new, world-first store design concepts from big energy company brands. I left the city with more amazing store locations on my list than we could ever accommodate on our store tours and with more groundbreaking ideas to talk about than we could ever cover during our conference.
Cover image: From grocery to food to go: Berlin supermarkets increasingly serve hot food to go, leveraging their fresh produce competence, like this Hit Supermarket. L to R: Growing herbs directly in the supermarket for later on-site harvesting and sales reduces supply chain emissions. Moving impulse zones to where the impulse consumer is—for example, to the self-serve coffee machine—is seen with Total’s new store concept.
Technology will define the future of retail, and Berlin shows some of the latest innovation already in action.
While the logistical challenge of making sure that our delegates can get the most out of their time is now up to me, I thought I’d share a few things I saw and learned in Berlin that highlight the key trends of where our industry is heading.
Convenience-Plus
In a global trend during the pandemic, convenience retail has expanded its offer —from emergency purchases to planned purchases, from impulse to weekly shopping, from top-up to full basket and from packaged and ambient to deep into the fresh and chilled categories. And this effect can be seen all over Berlin: petrol stations selling loads of freshly baked bread, small grocery stores expanding ready-to-eat options (far beyond the German-typical in-store bakery) and foodservice providers entering the convenience space through a mix of fresh produce and some packaged food and beverage items. Some of this is a holdover from the COVID-19 lockdowns when everything else was closed or no one wanted to shop at far-away hypermarkets. And as it seems, this is a trend to stay.
Retail technology
The acceleration of retail technology can be found in nearly any store in the form of more cashless payment options (keep in mind that many Germans still prefer cash over card), self-checkout systems and fully integrated POS solutions.
One solution that stood out is an in-store cigarette dispensing system. Cigarette sales call for an abundance of attention: needing to secure sales to eligible customers only, accommodating ever-increasing advertising restrictions and dealing with shrinkage. One German tobacco wholesaler, tobaccoland, is offering an innovative cigarette dispensing system called EWA-Wall. It is akin to an in-store vending machine, fully operated by the cashier, with a huge display surface and options to return products into the machine if, for example, chosen wrongly.
Technology will define the future of retail, and Berlin shows some of the latest innovation already in action.
From top down: From stylish bathrooms at Total to fully automated and shrinkage-reducing cigarette in-store vending machines to a bistro vibe at Shell, Berlin is all about the experience. A local favorite is the Berlin Currywurst (or “Hotdog with Currysauce” for nonlocals).
Self-service coffee
Years ago, we talked a lot about the “Fast-Laner” petrol customer who had no intention to shop, browse or be tempted with impulse items. Just in, pay, out. The discussion was how to offer them the fast lane without compromising the upselling to other customers. Today, a new Fast-Laner is emerging: the coffee customer. While petrol stations increasingly become destinations for foodservice, the “Express-Espresso-Customer,” who might not even have fueled, just wants coffee without queuing, without waiting in line to pay.
And increasingly petrol stations are answering this by introducing coffee stations in the center of the store with a direct way from the door to the coffee machine and back. Contactless payments at the machine are thereby the preferred quick-pay option.
And some retailers have now discovered that among these Fast-Laners some impulse-buyers are hiding. And the solution to that is introducing self-service impulse around the self-service coffee machine. Smart.
Toilets
Even though those keys with the attached empty oil canisters that open the questionable facility on the rear of the petrol station still exist (fast decreasing, though), the opposite end is now booming. Think luxury toilets with mirrors with perfect lighting, clean and well-smelling and with a modern design. In Berlin, I must say it was a pleasure “having to” use the toilet at any petrol station I visited.
Delivery
The pandemic has accelerated the need of consumers to get grocery items delivered. And 10-minute delivery companies have emerged, as well as financed startups that are trying to monetize from that massively acquired customer base. Two of Germany’s biggest grocery delivery startups are based in Berlin: Flink and Gorilla’s.
This shows the energy that is in Berlin’s market, driving innovation and pushing boundaries. The city is a thriving, multicultural brewing pot for new business ideas, technological innovation and an example of the positive power of competition when multinational retailers clash with an abundance of startups and produce retail formats that we all can learn from. I am very much looking forward to going back.