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#Written by David Tam, 1999.           #       
#davidkftam@netscape.net Copyright 1999#  
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From tamda@ecf.toronto.edu Mon Jul 12 18:28:46 1999
Date: Tue, 9 Mar 1999 00:22:56 -0500 (EST)
From: David Kar Fai Tam <tamda@ecf.toronto.edu>
To: APS 424S <aps424@chem-eng.toronto.edu>
Subject: #18-03/10/99-"The corner store tries new angles"


The Globe and Mail, Saturday, March 6, 1999.

   This article is about the reinvention of your friendly 
neighborhood corner store. The traditional mom & pop corner store is
a dying breed in today's world. Given the huge buyout of Silcorp's 
convenience stores by Quebec-based Alimentation-Couche-Tard. The
$220 million deal creates the frist cross-country network of 
convenience stores. This type of consolidation is seen as a response
to competition from the large networks of supermarkets, mass 
merchandisers, drug stores, and even gas stations. It also brings
a stronger element of branding to convenience stores.

   Market research reaffirms the dire situation of traditional 
convenience stores. According to A.C. Neilson, Canadians are making
fewer trips and spending less at convenience stores. A recent (1998)
survey found that customers spent an average of $10.07 per trip, 
down from $10.18 in 1996.

   Due to these situations, convenience stores are fighting back
by using new marketing techniques and doing some market research
to find out consumer needs. They are doing a re-packaging job to 
make the convenience store fit into the hectic life of people
now-a-days. This massive repackaging overhaul can be seen in many
areas. For instance, some are packaging fast food restaurants right
into the store. Subway, Pizza Hut, McDonald's, and Taco Bell have 
been recent additions. As well, they are packaged with gas stations
to create the ultimate one-stop-shop.  Other items added include 
freshly prepared meals, automated bank machines, fax machines,
movie rentals, a fresh fruit and vegetable market section, and 
many more.

   As well, convenience stores are doing local market research to 
see how they are fit the demographics of their local community and
increase sales. For instance, in Langford B.C., a suburb filled mainly
with young families, the Mac's convenience store has altered it's
inventory to cater to the younger crowd. They stock more candy for
children as well as larger family-sized servings of prepared foods
rather than individual servings. Hours of opening have alter changed
to meet the needs of customers.

   I think this article serves one of the most important examples
of product placing and packaging. These concepts are very important
to the convenience store industry and we can see that they are
now achieving success. These radical makeovers have boasted sales, 
aroused customer interest, and is slowly winning customers back.

   As well, the corporate alliances and their cooperative effort has
benefitted the industry quite well. It's a sign that the participants
understand the importance of creating value for their customers 
through product packaging. An often eclectic mixture of petroleum 
companies, convenience store chains, fast-food chains, donut shops,
and coffee shops have managed to cooperate and provide winning
results.

  This example also is void of any kind technological saviour and
is based on good old business and marketing skills. We aren't
distracted from the main concepts by razzle-dazzle technological
life-savers, which are common now-a-days.