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CARBON BUSINESSES WILL CARRY

People in Manitoba, Ontario, Saskatchewan, and New Brunswick will be paying more for gasoline and heating fuel. When the federal government’s announced that businesses will carry carbon tax to begin in provinces that refused to impose their own emissions pricing.

Individuals and families will be getting some money back from the federal government under the new carbon tax scheme that began April 1.

In the shadows of darkness are some vital businesses. These are especially small and medium-sized businesses. Hence, the darkness is on what rebates or exemptions may be available to them if any.

From Ottawa’s “climate action incentive payment”, unlike the individuals who are eligible for annual rebates. No compensations expected in the same way for businesses, definitely not at all.

TRADING HAS BEEN EXPOSED

Especially the ones that are “trade-exposed,” Large companies with certain types of operations. Additionally, those that emit 50k mega tonnes or more of greenhouse gas emissions. Hence, the ones that won’t pay the carbon tax on fuel.

Instead, they’ll be subject to a carbon tax on emissions that exceed certain annual limits. Smaller firms that emit 10,000 mega tonnes or more will be able to apply for the same exemption.

But most other businesses, including smaller ones, have no such exemption. There are exemptions for farmers, some fishers and greenhouse operators.

There are high expectations to pay the taxes for a vast majority of small and medium-sized businesses. However, with little or no rebates or exemptions from Ottawa.

CANADIAN FEDERATION

The Canadian Federation of Independent Business says. They’re still trying to get answers from the federal government. On what kinds of rebates, exemptions or tax credits may be available to their members, if any.

“We still don’t know what these rebates or exemptions are going to look like,” said Jonathan Alward. The CFIB’s director of provincial affairs for Manitoba.

It’s definitely concerning that residents know exactly what’s coming back to them. Even though businesses are footing the bulk of the carbon tax bill and getting pennies on the dollar back. They still don’t know what’s in it for them and largely don’t even know. How the carbon tax is going to be applied? or how their exemptions are going to work?

Handed out to individuals it appears small businesses in the majority of the parts shall be subsidizing the rebates. Returned to the individuals in rebates is approximately 90% of the money from taxation.

The remaining 10% has been earmarked mostly to help municipalities & universities. In addition to these, public schools, hospitals, and small businesses.  Pay for costs like building upgrades to help them become more energy-efficient.

However, whatever does trickle their way will be far less than what they pay out in carbon taxes. The CFIB estimates small businesses. The public sector will together pay about 50% of the carbon tax bill. But it will receive only 7% back in grants and rebates.

Curb appeal and promotions

Curb Appeal for The majority of fuel sold in North America is sold at convenience stores.  However, Gas Buddy noted that, getting motorists to come inside the store. After filling up has been an ongoing challenge for the convenience channel.

Citing State of the Industry data from NACS. It is the US-based association for convenience and fuel retailing. Hence, Gas Buddy noted that a convenience store’s inside sales generated almost three-quarters of all gross profit dollars. However, still, some estimates that a similar number of consumers fill up and drive away. These are consumers who are never coming inside to make additional purchases.

Converting those forecourt customers to inside customers is not impossible. In a new study, Canopy to the Store. The Gas Buddy found that conversion depends on a C-store operator’s ability to meet consumer needs of safety. In addition to safety are cleanliness and hospitality. Additionally, consumers show a “strong interest” in specific strategies and promotions. These are strategies that can move them from the pumps to the store.

First impressions count: Think curb appeal

Gas Buddy released a report summarizing the findings from its surveys conducted in July 2018 and December 2018. Chief among its findings: Curb appeal matters.

Calling the forecourt “the first handshake that welcomes customers to the store”. The consumers are unlikely to go inside a store according to the Gas buddy. This will only happen if they perceive it as dirty boring or unexceptional. Reputation matters as well.

Frequent customers cite the following factors. These are factors as having a strong or moderate influence in their opinion of a store before stepping inside:

• Store design and upkeep (82.54 percent)
• Cleanliness of the fuel area (79.7 percent)
• Quality of lighting (79.6 percent)
• Brand reputation (58.6 percent)
• Opinions of friends and family (55.12 percent)

Moving inside, Gas Buddy found that restrooms matter. According to the survey results. A huge 22.6 percent of consumers said they frequently make a purchase. This purchase is after using the restrooms at a c-store. Another 56 percent said they occasionally make a purchase.

However, the restrooms must be clean. Nearly two-thirds of consumers said they have visited a gas station’s c-store. Hence, with the intention of using the restroom, but decided to leave and go elsewhere.

Related article: DIVING INTO DELIVERY

Top reasons for avoiding a c-store’s restroom are:

The restrooms were found to be dirty, outdated, and poorly maintained. In addition to this, the C-Store restrooms were outdated as well. Precisely speaking, they were found to be poorly maintained. Hence, the restroom required an access code or a Key in more sophisticated terms. Furthermore, the customers didn’t felt safe most of the time, due to the look of the rooms.

Gas Buddy’s report also revealed about quality restrooms. Significantly, it laid emphasis on the cleanliness and quality of rooms. Ironically, it would probably influence nearly 42 percent of consumers. Finally, definitely influence 27.19 percent.

“Every restroom visit is a sales opportunity. It’s a chance to connect with fuel-only customers who would otherwise rarely, never. Wander inside the store. Unfortunately, retailers who provide outdated, dirty, or poorly maintained facilities. They have not equipped to leverage this opportunity.” Therefore, Gas Buddy stated something about the restrooms. He said that they are like a “litmus test for the store’s overall quality.”

Offers and promotions drive sales, Gas Buddy

Beyond the look and feel of a store. Convenience store retailers need to reach fuel-only consumers where they are — on their phones. According to Gas Buddy. More than half of the consumers look at their smartphones. This is while refueling in the Gas station. Therefore, the demographics reveal that 3 out of 4 consumers are between 18 to 34.

“This opens many opportunities to drive in-store sales through relevant offers and promotions,” the report noted.

Fuel discounts can hit the spot. In a recent Gas Buddy study. A huge 65 percent of consumers said gas prices impact their ability to spend money. Ironically, on other items and services due to the huge prices.

Relevant orders also deliver results

When asked which kinds of mobile ads influence their decision to visit a convenience store brand, consumers said:

They are interested in Healthy food options and redeemable coupons. In addition to this, loyalty rewards also for convenience store products. Amazingly, some consumers were highly interested in loyalty rewards for fuel savings.

The Canopy to the Store report also found about a rewards program. It said that nearly 71 percent of consumers surveyed belong to a rewards program. This was for a c-store or gas station. Of those, 48.78 percent use a rewards program very frequently. 34.2 percent somewhat frequently, 12.84 percent somewhat rarely, and only 4.17 percent very rarely.

Minimal savings and discounts on products consumers don’t purchase are among the reasons why they rarely use a rewards program.

A c-store retailer can change consumers’ minds. However, if the program offers consumers the ability to: build up points to spend on what they choose; earn discounts on fuel for in-store purchases, and get discounts on products they purchase daily or weekly.

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Dollarama Inc. is closely monitoring prices in its stores as it looks to boost foot traffic. On top of this also generate growth in an increasingly competitive retail environment. Hence, Dollarama is also focusing its lower-priced items to generate that traffic. Hence, after putting too much emphasis on higher priced items up to $4. This was added by CEO Neil Rossy on a conference call on Thursday.

“I think you know quite honestly, that we did lose sight of it. While, on making sure we had all the traffic drivers needed to balance our higher price points.”

“When you take a business from a pure $1 store> Further, you evolve over the years to multi-price points. Hence, while being very successful in doing so, you’ll learn things,” he added.

The company Dollarama is also constantly assessing prices on merchandise. Hence, with item prices assessed at least every three weeks during restocking, said Rossy.

He said the re balance of price levels and items would help drive sales going forward.

“We have to refocus on foot traffic generating and unit sales. Primarily, because at the end of the day, in bricks and mortar, that’s the bread and butter.”

THE RETAIL SECTOR:

The attention on prices come as the retail sector is in a very competitive retail environment. Therefore, with rising operating costs, noted RBC Dominion Securities analyst Irene Nattel.

She said that Dollarama delivered “solid” results despite the challenges.

Canaccord Genuity analyst Derek Dley, however, downgraded his rating on the company from buy to hold and lowered his price target. This is after the company released lower than expected growth expectations for fiscal 2020.

The company said it expected same-store sales growth of 2.5% to 3.5%. This is for the year, which is below its historical average. Hence, same-stores sales growth target of 4% to 5%.

“In our view, the next few quarters are likely to represent a ‘show-me-story’ to many investors and as a result we are comfortable moving to the sidelines for the time being, as we await a more positive pricing environment and same-store sales acceleration.”

Sales for the fourth quarter totalled $1.06 billion, up from $938.1 million, while comparable store sales grew 2.6%.

Analysts on average had expected a profit of 55 cents per share and revenue of $1.07 billion, according to Thomson Reuters Eikon.

In its outlook for the coming year, Dollarama said it expected to add 60 to 70 new stores as part of its goal of having 1,700 stores by 2027.

The company also launched its online store in January, i.e. about a thousand items for sale in bulk only.

Rossy said it would take some time for the online sales to have an impact that would fill the customer needs.

“Small businesses will find it more interesting to buy their stationary there, or what have you, and people having parties or conferences or whatever it is, will use it because it’s a practical way to get the best price.”

Courtesy: The Financial Post

More than three years after launching its new global Circle K Fuel brand. alimentation Couche-Tard Inc. has brought the new banner to new heights. Taken around the world to 6,800 convenience stores internationally.

In North America alone, more than 4,900 locations now carry the new brand. In Europe, the number of newly rebranded sites top 1,900. As according to Couche-Tard President and CEO Brian Hannasch.

“In Ireland, our last remaining market in Europe. We rebranded nearly 300 locations and are progressing nicely. We are on the plan to have 360 completed by the end of this fiscal year,” Hannasch said. She said this during the company’s third-quarter fiscal year 2019 earnings call.

Turning to the United States with Circle K

In the Arizona Business Unit this fiscal year approx. 120 sites have been rebranded. The goal is to reach more than 200 by the end of the fiscal year. In the Rocky Mountain Business Unit. Couche-Tard has rebranded 240 locations with a target of finishing 300 sites by the end of the year.

“Texas is moving forward to meeting its goal of 400. Hence, we are making some great progress inside that CST network,” Hannasch noted.

The chief executive also reported that the trends in these newly rebranded stores are strong. Furthermore, lifting results across the company’s divisions.

“The key learning is: I should have done it a decade ago. There are just a lot of wins in this space,” Hannasch said. “I will start with the culture. That’s what I have always said was our secret sauce. Having one brand gives us a platform to communicate across 135,000 employees. Hence, what we stand for, what we want to become and the journey we are on.”

Looking specifically at the c-stores

The company acquired from CST Brands Inc. Couche-Tard “saw positive momentum in the regions where the former CST locations have been rebranded. This certainly shows the strength of the Circle K brand and the Couche-Tard programs and operations. As well as their ability to drive sales and traffic,” he explained.

In Europe this fiscal year, a newly designed Circle K layout to 50 new locations. This is the latest development by Couche-Tard. Its target is to have more than 90 open by the end of the year.

“These are newly remodeled stores and are a big step up in terms of the look. Also, the feel of the new offers. They feature wide aisles, inviting decor, attractive lighting and provide new customer experiences. The experiences to grow traffic and basket size,” Hannasch said.

“In many of these locations, we also have our food-to-go offer. Our prepared on-site sandwiches are particularly popular with the customers,” he added.

Circle K Fuel Rebranding 

As part of its global rebranding initiative. The retailer introduced Top Tier Circle K fuel in April 2018. Beginning in Florida, as Convenience Store News previously reported. The number of Circle K Fuel locations has grown. It started initially from the first 20 stores. Now nearly an additional 250 locations across North America as of the third quarter.

The expansion, According to Hannasch, is part of the company’s journey. He added “to provide an easier customer experience both at the fuel forecourt and inside our stores.”

In the third quarter there was a huge step the company took. It brought the Circle K Fuel brand. Further, to its Heartland Business Unit at more than 120 new sites in Missouri and Illinois. In Europe, the conversion is “basically completed” at Couch-Tad’s former Stat oil Fuel & Retail ASA sites, all the former Topaz locations in Ireland, as well its former Shell locations in Europe.

By the end of fiscal 2019

approximately 1,000 sites in the Midwest, Rocky Mountain, Southwest, Gulf Coast and Ontario Business Units will get the fuel brand, according to Hannasch, adding that the company is more than halfway toward that goal.

“Unifying the Circle K brand inside our stores and on our fuel islands is improving the customer experience and making our customers’ lives just a little bit easier every day,” the CEO remarked.

Alimentation Couche-Tard is based in Laval

As of Feb. 3, its network comprised 9,933 convenience stores throughout North America, including 8,662 stores with fuel. Its North American network consists of 19 business units, including 15 in the United States covering 48 states and four in Canada covering all 10 provinces. In addition, through Cross America Partners LP, Couche-Tard supplies road transportation fuel under various brands to approximately 1,300 locations in the United States.

In Europe, Couche-Tard operates a broad retail network across Scandinavia, Ireland, Poland, the Baltics and Russia through 10 business units. The majority offered fuel and convenience products. This is as of Feb 3 when its European network comprised 2,709 stores. However, the others are just unmanned automated fuel stations offering road transport fuel.

In 14 other countries, there are more than 2100 stores under the Circle K banner. These are all under licensing agreements.

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