Research into what consumers want in a convenience store fueled the design of the new Shell Select in Louisville, Kentucky. “We did a ton of research into what consumers wanted in the store of the future,” said Brian Kuz, head of marketing and innovation for U.S. retail at Shell. “Several years ago, we saw the changing landscape in the United States and knew we needed to make significant changes in order to meet what the emerging consumer—the iGeneration and Generation Z—wants and still stay relevant to our current customers.”
The result is the new Shell Select concept, which opened in August 2018. “We designed this to be a cross between a high-end sandwich shop and a traditional convenience store,” he said. With an emphasis on fresh food made with quality ingredients and an inviting environment, the Shell Select has received a warm welcome from locals and visitors alike.
Total Transformation
Estepp Energy, which operates the Shell Select location, allowed Shell free reign to design the store. Owner Steve Estepp worked closely with Shell on the concept, which included store design work by Bona Design Lab. “Steve is a visionary who understands what the customer needs,” Kuz said.
The store’s transformation began on the outside, which has a very modern feel. An awning shades outdoor seating, while signage invites customers to “Have a Seat and Chill.” Inside, the layout and design complement each other to focus customer attention on the food offerings. Natural dark materials and warm wood tones coupled with LED lighting highlight the clean, understated graphics and shelving solutions.
“We wanted the look and feel of the store to be food-convenient—one that offers the best quality coffee and foodservice that invites people to stay longer than the 2.57 minutes of a usual c-store visit,” he said. “By offering more food options and more socializing opportunities, we’ve expanded beyond our core demographic to reach Gen Z and millennials.”
The company hired an in-store chef to develop a fresh menu that incorporates local favorites, such as Jake’s sausage biscuits made with local sausage. “We still have the fare you expect to see, like Cuban and BLT sandwiches, but also what you might not expect to find on a convenience store menu,” Kuz said.
We’re not running supplier-led promotions but data-led promotions.
A Free Ride
To help educate potential customers about the new store’s menu, Shell Select does a lot of free product sampling, getting the word out through social media and flyers sent to nearby neighborhoods. “We’ve sampled breakfast, lunch, dinner and snack items to bring people in our door to learn about our menu,” he said. So far, the strategy has worked, with those coming in for a free menu item often purchasing additional products.
Shell Select also partnered with sports broadcaster ESPN to do a live broadcast on a regular basis. “They do their entire show from the store, and we give away free products to listeners during that time,” Kuz said. “Because we’re so different from your usual convenience store, we are giving away a lot of food.”
So far, the neighborhood flyers and the ESPN radio show have been the best way to bring in foot traffic to the store. “We’re finding that by not requiring customers to buy anything to get the free sample, we have had good success with getting people who might not normally shop at a convenience store inside Shell Select,” he said.
In addition, the store runs promotions based on customer purchase behavior. “We’re not running supplier-led promotions but data-led promotions,” he said. For example, POS data showed that customers were buying Red Bull energy drinks and breakfast sandwiches at the same time, so the store ran deals on the pair for the morning daypart.
Inside the store. the layout and design complement each other to focus customer attention on the food offerings.
The store is launching the Shell Select Plus app, which will reward customers with instant promotions as they shop. Kuz expects the app to provide even more data for the store to use to tailor promotions and loyalty rewards to customers.
Kuz emphasized that Shell Select’s success is largely based on its extensive customer research. “It all starts with delving deep into what your customers actually want—not what you think they want,” he said. “If we hadn’t done the research, Shell Select might have become a different store—one that might not have resonated with its customers.
Shell has plans to move forward with other Shell Selects or Deli by Shell concepts in the United States. “We want customers to leave Shell Select with the thought that this is the best food or beverage they’ve ever had at a convenience store,” he said. “We want to wow them that much.”