Maximizing Opportunities in Convenience Channels through Shopper Insights 17 th September 2009

The Convenience Lanscape in Canada 23,435 Convenience Stores in Canada 11% of all retail points of sale $11.6 Billion annual sales (excluding tobacco & gas)

23,435 Convenience Stores in Canada

11% of all retail points of sale

$11.6 Billion annual sales (excluding tobacco & gas)

And drug stores …. Base: Total Trips (9940)

Channel Share of Value by Region Base: Total Trips (9940) East (1038) West (2358) Quebec (2202) Ontario (4342)

Why do people go to Convenience Stores?

Traffic Drivers to Convenience & Gas Q1-Q2 2009 Base: Total Trips (6471)

Understand Traffic Drivers Understand what drives people to the store Retailers need to attract shoppers with traffic drivers by floor pricing and assortment But …. Convenience shoppers on average buy 1.14 additional categories

Understand what drives people to the store

Retailers need to attract shoppers with traffic drivers by floor pricing and assortment

But ….

Convenience shoppers on average buy 1.14 additional categories

Secondary Categories Q1-Q2 2009 Base: Total Trips (6471) More Chocolate & Salty Snacks sold as secondary items than as traffic drivers

Shopper Profile Base: Total Trips (9940)

Convenience Shoppers The Shopper Josh - aged 19 Goes to 7-11 between classes at UBC Usually buys a single serve CSD The Facts 55% of 7-11 shoppers are under 40 37% of 7-11 shoppers are ‘thirsty’ when they visit and leave the store with a beverage The Challenge 30% of 7-11 beverage shoppers only buy one category 7-11 basket value is 24% lower than the average

Convenience Shoppers The Facts 64% of Esso shoppers are male 44% are 40+ 24% of trips are in the morning and 14% are triggered by coffee The Challenge Esso is missing female shoppers Only 4% buy milk at Esso only 7% buy any groceries The Shopper Tim - aged 49 Stops at Esso On The Run Buys coffee in the morning, sometimes lottery ticket

Triggering that secondary purchase

Understanding Category Interaction 24% of Shoppers who visit a store to buy a single serve CSD also buy salty snacks

Need States of Convenience Shoppers

Impulse!

Decision Making on Convenience Trips

Decision Making on Convenience Trips Pricing, assortment & out of store promotion Merchandising, secondary displays and promotion Pricing, merchandising, packaging, out of store communication

Who wants yesterday's papers?

Decision Making on Convenience Trips

Shopper Profile – News/Magazine Buyers Base: Total Trips (9940)

Need State Impacts Brand Decision

So…..

So…. Understand the traffic driver …often beverages – but depends on the shopper Understand the secondary purchases Trigger impulse – note the higher impulse categories Work with retailer to develop strategies around this information that work for everyone

Understand the traffic driver …often beverages – but depends on the shopper

Understand the secondary purchases

Trigger impulse – note the higher impulse categories

Work with retailer to develop strategies around this information that work for everyone

Thank you