Visitors to any of the nine stores operated by The Convenience Group (TCG) in Washington State are noticing big changes in store design and merchandising tactics—the chain recently began installing multiple in-store video screens as it launches its own retail media network.

With the screens strategically placed in areas ranging from the food counter or drinks fountain to the checkout register, TCG is able to promote its offerings as well as tie in ads from suppliers, driving impulse sales of high-margin items.

“Whether it’s through an app or other digital means, effective merchandising is a great communications tactic,” said Don Rhoads, president and CEO of the Vancouver, Washington-based company. Not only does the digital merchandising approach appeal to today’s young shoppers, but it also helps stores “tell their story,” he explained. “It allows you to work with community stakeholders and spread the word that you’re local and care about the community.”

Retail media networks (RMN) are just one of a number of new approaches c-stores are taking to stand out in an increasingly competitive marketplace. Strategic merchandising programming has never been more important, and executions are necessary in all areas of the store.

“Effective merchandising practices are crucial for driving store sales, increasing customer traffic and building loyalty,” remarked Marcel Friedrich, group vice president, sales and marketing, at the Bruegmann Group, a provider of shelf-enhancing solutions for c-stores, including the Flex Roller and the Bruegmann Evo Rack. “Well-organized, visually appealing shelves attract customers and make it easier for them to find and purchase products.”

Efficient merchandising also reduces restocking time and labor costs, Friedrich added, allowing frontline workers to focus on customer service and increasing the basket.

Digital Universe

Not surprisingly, the most dramatic developments in in-store merchandising have been in the digital realm. “As the industry is evolving, the digital universe is coming more into play,” said Rhoads, a former NACS chairman. The recent addition of an RMN at TCG, for example, enables the stores to promote unique store offers and promotions. “It’s store theater,” he said. Other c-stores, meanwhile, are now employing digital shelf talkers and pricing modules as traditional merchandising practices become more automated.

“Digital out-of-home [ads] continue to be one of the fastest growing segments of the advertising industry, and RMNs stand out because they are strategically positioned at the point of sale,” said Joe Dondanville, chief growth officer at OTT Communications, whose 33 Degrees Convenience Connect is a full-service provider of c-store retail media networks. C-stores are ideal for the networks, he noted, and the programming benefits retailers, advertising and supplier partners, and customers alike. “In-store advertising works really well in a c-store given that everything is in close proximity,” Dondanville said.

It’s store theater.”

Among the 8,000 locations that 33 Degrees services are Circle K stores. “By digitizing limited time offers, Circle K shortens turnaround time to modify offers in the marketplace while also reducing reliance on print,” Dondanville explained of the 10-year-old Circle K Digital Store Network. “And by using the displays to showcase impulse purchases, as well as high-volume, high-margin items, the network positively impacts both revenue and the profit and loss at each store and collectively.”

With the 33 Degrees network, all customized content—whether food menu boards, vendor partner ads that reach customers at the point of sale or store messaging tailored to that location’s clientele—is delivered daily and varies by daypart and location.

Cold Vault Tweaks

Beyond digital advances, c-stores are also seeing merchandising improvements in other areas of the store. In the cold vault, even small tweaks to popular fixtures are driving labor savings.

“Nearly 60% of all c-store shoppers make a beverage purchase, making the cold vault a revenue goldmine,” noted Friedrich. “This destination is worth a strategic investment to further optimize this space.”

iSee Store Innovations’ Apex cooler door rack was recently redesigned to allow for easier installation of point-of-sale materials, Joe Vonder Haar, CEO and founding partner, said. With the improvement, it’s no longer necessary to remove the display from cooler doors to make a price change. “It’s not a huge change, but at the store level, it’s a big improvement,” Vonder Haar said. The Apex vault display—which utilizes iSee’s DisplayLoc suction-cup technology—allows c-stores to add new products to coolers between shelf resets.

Bruegmann introduced its EvoRack, a solution for optimizing space and improving product visibility in cold vaults, at the 2023 NACS Show, and more than 1,200 c-stores have added the fixture to their operations. According to Friedrich, the tight upright hole spacing in the EvoRack allows retailers to add an additional shelf into every other door. Moreover, the Bruegmann EvoRack complements the company’s long-established FlexRoller.

In-store advertising works really well in a c-store given that everything is in close proximity.”

Driving Sales With Displays

Bruegmann also markets ProQueue, a modular queue display fixture that positions products and promotions in previously untapped space to entice customers waiting to check out—driving impulse purchases. “The ProQueue creates new real estate in store,” he said, while merchandising to a captive audience.

“Visual organization and effective department signage programs are also now critical elements to sales success,” remarked Clay Smith, director of marketing and product design at MDI Worldwide, which designs and produces POS displays for c-stores. As an example, he pointed to a contour-cut, LED halo-lit logo panel that expanded into a fully developed graphic wall that MDI recently designed for RaceTrac’s Swirl World ice cream bar. The execution succeeded in providing good sight lines, legibility and cost effectiveness, Smith said.

Store exteriors also serve as key merchandising tools. “The c-store façade plays an important role in setting the tone and messaging that draws customers in,” Smith explained. “This starts with a clean and inviting architectural treatment and extends to lit graphics, window-mounted signage, spanner signs and in-window LED displays.”

‘Unexpected Delights’

C-stores rely on unique offerings to merchandise their stores as destinations. Wally’s—with locations in Illinois and Missouri, and a third planned for Indiana—is known for road-trip-themed novelties, ranging from drinkware to clothing to “road trip glasses.” Some of the store’s proprietary merchandise is displayed in a vintage Winnebago that’s parked inside the stores.

“Merchandising is a vital part of the Wally’s experience and aids our customers in uncovering what we call ‘unexpected delights,’” said Andy Strom, chief experience officer. “We like to extend the road trip imagery to the brand and the merchandise.” Merchandising tactics at Wally’s are “constantly evolving,” Strom noted, and a collaboration with a major lifestyle brand is coming soon.

Seasonal and locally sourced items can also go a long way in garnering a c-store a reputation for unique merchandise. About 10 years ago, Scottsdale, Arizona’s The Thumb began stocking a small selection of giftware that soon became popular with customers.

“We [then] took a lot of the space within the store and devoted it to gifts and specialty items,” said Erica Lassetter, retail manager, including items like the retailer’s Arizona-themed bags, t-shirts, hats and pillows. Many of its customers are snowbirds with second homes in Scottsdale, so The Thumb offers a wide array of home decor items. “When new customers come in, they often say, ‘Whoa, I just came in to pay for my gas, and didn’t expect this,’” Lassetter said. For inspiration on new merchandise, Lassetter and the store’s buyer frequently travel to giftware trade shows in Dallas and Atlanta, in addition to scouting out other stores.

When new customers come in, they often say, ‘Whoa, I just came in to pay for my gas.’”

At Cliff’s Local Market, which has 21 stores in upstate New York, “local isn’t just part of our name, it’s who we are,” said Bill Laraby, buyer for the chain. “Being local is very important to us,” he said, adding that the company eagerly pursues partnerships with other nearby companies and goes out of its way to merchandise locally produced items, including Cummings Farms milk, Ithaca Beer and River Rat cheese.

The retailer aggressively promotes the products both inside and outside the store via radio, television and billboard ads, as well as in-store signage, product giveaways, samples and social media. Feedback from customers and vendors has been “very positive,” noted Laraby, adding, “often, local companies reach out to us to collaborate because they’ve seen our other partnerships.”

Whether it’s local, seasonal or one-of-a-kind offerings, convenience retailers are increasingly finding that in order to stand out in a competitive market, impactful merchandising is more important than ever. In combination with state-of-the art display fixtures, shelving units, signage and digital support, c-stores are proving that they’re paving the way for the merchandising of the future.