MAY 2014

The future of Cigarettes Sales

Improving Retail Retentionpg. 13

What Influences Gasoline Prices? pg. 11

Page 6

2

GHRA Partners

Alcoholic BeveragesBudwieserMiller CoorsRepublic National Distribution

BeveragesCoca Cola RefreshmentsDr Pepper Snapple GroupJack Hilliard (Xyience/ BSN/ Evamor/ VPX Redline/ Nestle) MonsterPepsi Bottling GroupRed BullRockstar Energy Drink

Financial ServicesWorld PayUniversal Merchant ProcessingTransnet EnterprisesATM Link

Disclaimer: GHRA In Action is a monthly publication that brings helpful business information to GHRA members. The article in this newsletter represents the view of the authors and not necessarily those of the publisher. While every pre-caution is taken to ensure that information is represented is accurate, the publisher does not assume responsibility for the origin or correctness of the information supplied to us or the quality and performance of the products advertised herein. For comments and concerns, please contact the GHRA office at 281-295-5300

Ice CreamYUMI Ice Cream CoffeeBoyd Coffee Company Community Coffee Global Coffee Company Royal Gourmet House

SnacksBarcel (Intelligent Mexican Marketing) (Pete Dimas Enterprises) Frito Lay In-Time Distributors Synder's-LanceSaman DistributorsSweet & Sour

MilkBorden MilkOak Farms

Wholesale SupplyGrocery Supply Company Huntsville Wholesale Grocers

ServicesPinnacle Propane ExpressAlert USA Security Services Arrest- A-Pest Cintas Corporation Cintas Corporation - Beaumont Area Geo Environmental Consultants P&L Maintenance and Services Public Utilities Broker Waste Management

3

President’s Notes

GHRA BOARD

Rahim MominPresident

Zulfikar MaknojiaSenior Vice President

Rafique N. Ali Negotiation - Chairman

Vice President

Ahmed Hasora Honorary Secretary

Lehjatali MominaW rehouse Chairman

Shamsuddin MarediaDirector

Asif DavwaDirector

Sherali HaideraliDirector

Rahim MaknojiaDirector

Tajddin MominDirector

Mubarak DhukkaDirector

Zulfiqar KurjeeDirector

OFFICE12790 South Kirkwood Rd., Stafford, TX 77477

Ph. 281.295.5300Fax. 281.295.5399www.ghraonline.com

Please join me in congratulating our re-elected board members and the New Executive Committee members for the year 2014. Many hours of volunteer service have gone into the projects we are currently working on and these members will be an integral part of their success. I would also like to thank you for your attendance at the General Body meeting; your commitment to voting and your continuous support of the GHRA board.

The selling season is upon us and the warm weather has already helped boost sales. The travel season is quickly approaching and as we discussed with you last month, being prepared for it is important to your business. Margins get tighter at this time of the year but being savvy is the key to winning during the summer. There are certain categories that drive summer sales. Certainly beverages and beer are top of mind during the summer so tweaking your prices on these items vs your competition will be important. Consumers are making a choice on where to stop based on these known value items. Of course, once you’ve set those prices you can adjust some of the other pricing in the store so that you can maximize your margins. It is definitely an art but one that is very important to your business.

Our work on the warehouse continues. We appreciate your support on this project and look forward to updating you more in the months to come.

Dear GHRA Members,

Rahim MominBest Regards,

w

Mahemood MominTreasure

4

Hello

Members! I hope you are enjoying this months In Action Magazine. The end of this month

starts the busy summer

season with the first high volume Holiday – Memorial Day. As we prepare for this selling season, I want to take a moment and ask that everyone think about

In Balance

store and employee safety. Recently, Houston area stores including our own GHRA locations have experienced increased criminal activity. Because every convenience store is at risk for criminal activity, I urge you go to the GHRA website and download the safety information, watch the videos and evaluate your store(s) with the available evaluation guide in the safety booklet. Talk to your employees about the need to stay aware of what is going on inside and outside of the store at all times. Make certain your video surveillance equipment is

in working condition. Clear all unnecessary signs or obstructions from windows and be sure to have a clear view of the entire sales floor. You can’t stop a criminal from committing a criminal act but you can be effective in deterring them from targeting you. Stay focused on safety! Remember to buy your holiday quantities early in the month so that you can be sure to have the product at the end of the month for Memorial Day weekend. Have a great selling month. The future is bright for GHRA!

Mike ThompsonChief Executive Officer

5

Director’s Notes

From the Desk of the Senior Vice PresidentZulfikar Maknojia

If you or one of your employees missed the deadline for ObamaCare you still have options for obtaining health insurance. If you missed the ObamaCare enrollment you may qualify for a special enrollment period which can extend the time you can use the marketplace. If you missed the ObamaCare enrollment deadline on March 31st, 2014 you will incur a fee for each month you go without health coverage (unless you qualify for an exemption) and not be eligible for cost assistance or marketplace insurance (unless you qualify for an extension), but you still have options. To avoid the penalty make sure you have coverage that starts by May 1st, 2014. Insurance purchased before the 15th of each month starts on the first of the following month after you have paid your premium. Thank you for your support.

Zulfikar MaknojiaSincerely,

From the Desk of the Honorary SecretaryAhmed Hasora

The Web Portal is a secure communication platform that offers you the information you need when you need it. There are business forms, GHRA specific forms, price lists, an electronic copy of the GHRA In Action promotions and adver-tisements, plan-o-grams, presentations and more. Please use the portal often and be sure to designate your authorized representatives. Thank you for your support.

Ahmed HasoraSincerely,

From the Desk of the Vice President - Negotiation ChairmanRafique N. Ali

Thank you for your support throughout the month of April on our cooler resets. Please continue to support this ef-fort by holding to the schedule as our teams are working very hard to complete the process before the Memorial Day weekend. Again, we’ve included a Plano-o-gram allocation and sign up form in this edition of GHRA in Action. Please fill it out prior to the reset team arriving and give it to your set captain before the reset begins. Thank you for your support.

Rafique N. AliSincerely,

From the Desk of the Treasurer Mahemood Momin

Our first quarter ended on a healthy note, with 1718 members registered with GHRA. Our company continues to perform financially and we look forward to further growth through the opening and development of our warehouse operations. Thank you for your continued support

Mahemood MominSincerely,

6

Feature

ROSEMONT, Ill. -- Concern about sagging cigarette sales continue to dog the convenience store industry. Dollar sales dipped 3.5% in 2013, and unit sales dropped 2.1%, according to preliminary NACS State of the Industry (SOI) survey figures.

Still, predictions that the sales of other tobacco products, led by electronic cigarettes, will overtake cigarettes in coming years have a long way to go. The average convenience store sold $44,751 in cigarettes per month, according to the preliminary NACS State of the Industry (SOI) data, while OTP sales averaged $6,479 per month, $457 of that coming from e-cigs.

However, the sale of premium cigarettes, which account for more than 80% of all cigarettes sold in c-stores continued to lag in 2013, according to Nielsen data cited during the SOI Summit.

• Dollar sales of premium cigarettes dipped 1.0%, while unit sales dropped 1.5%.

• Branded-discount cigarettes (14.5% share) saw dollar sales up 1.4% and unit sales up 1.7%.

• Sub-generic/private-label cigarettes (4.8% share) grew 4.7% in dollar sales and 1.1% in unit sales.

• Fourth-tier cigarettes, meanwhile, dropped 2.4% in dollar sales and 0.8% in unit sales.

While taxation remains the biggest challenge to selling cigarettes, growing as high as $6.16 per pack in Chicago, Kevin Smartt, CEO of Kwik Chek Food Stores, who presented the category numbers during the summit, noted two other challenges:

• Dollar General “betting on tobacco to generate traffic and sales.”

• The number of cigarette/tobacco outlets grew by nearly 11,000 units in 2013, up 5.6% year over year.

There are a couple of opportunities, as well:

• CVS drug stores will give up $2 billion in tobacco sales as it gives up the category.

• Military exchanges are considering a ban on tobacco sales, possibly as soon as Oct. 1, 2014.

While this is good news for locations around CVS stores and Military bases, in the short term, long term planning of the cigarette category is a must for all c-store operators. The convenience store class of trade may benefit from the immediate opportunities but the category itself is in decline and operators must be attentive to those declines, even in the midst of increases within the channel. “Enjoy the immediate rewards but plan for the future by developing other categories, in particularly food service, to replace those margins once they go away” says Bill Pitocco, GHRA Vice President of Procurement.

SOI Category Focus:

Cigarettes Continue to DeclineChallenges & opportunities to selling the No. 1 in-store product

7

Channel Migration is a trend to watch for retailers and foodservice brands.

What is channel migration? This is where brands entrenched in foodservice launch new products in retail and vice versa. Julie Hall of Schneider Associates was recently interviewed for Foodservice Brands & Migration Marketing - Launching products at the supermarket , where we see that Olive Garden is launching salad dressings and IHop is launching syrups.Restaurants and retailers have a long history of competing over consumers' share of stomach.

That competition becomes particularly intense late in the day, when busy families must decide what's for dinner. If money is tight, retailers often win the family dinner battle by offering appealing ready-to-eat center-of-plate options, easily paired with sides.

Ron Paul, President of Technomic said "It's true that the economic conditions of the past two years shifted a lot of business away from restaurants," Technomic is a research and consulting firm that has extensively studied key players and developments in the Retailer Meal Solutions (RMS) segment.

"Many restaurants need to adjust the value equation back in their favor," says Paul. "Even though retailers are increasingly successful at matching the quality of restaurant food, some restaurant

chains are aggressively challenging retailers on price."Retailer Meal Solutions (RMS) Examples

In Technomic's Retailer Meal Solutions Segment Study - 2012 Update here are several examples of restaurants launching menu options to compete with supermarket meal solutions offerings:

- Mimi's Cafe rolled out a Family Meals To Go menu with 10 meal options serving four to five for $24.99. Each meal comes with a choice of soup or salad; additional family-size sides can be added for $3, $4 or $5.

- Bob Evans' 10 Under $20 Family Meals To Go include an entree, a large side and fresh-baked bread for three to four diners. The meals are only available for takeaway.

- Wienerschnitzel promoted several Family Combos for $9.99. Initially offered last month, the meals are available at participating locations for a limited time.

- In April, Buona Beef invited e-club members to try its new Family Meals for a special limited-time price of $13.95.Channel Migration Blurs the Lines of Grocery and Restaurant

Steve Johnson, our Grocerant Guru recently wrote an article for me where he points to

the line between restaurants and food retailers is growing ever thinner . The fight for America's food dollars continues to intensify as consumers find fresh prepared

ready-2-eat food options at a wide and growing array of outlets"

Today food is everywhere: WaWa and Sheetz convenience stores have product offerings that rival and exceed those at their QSR competitors. Chain drug stores, such as CVS and Walgreens want to be your C-Store and are adding significant space to fresh prepared foods and perishables . Restaurants, grocery stores, club stores, vending and now dollar storeswant to get their share of stomach.

Steve says " While manufacturers, retailers and restaurants worry about choice overload, consumers have embraced their new choices and show no signs of returning to the old ways. This fight is taking place in what is called the grocerant niche."Why is Channel Migration in Food Important to Food Entrepreneurs?

Steve sums it up better than I can: "Why should you care if Walgreens is selling fresh prepared ready-2-eat and made-2-order sandwiches ? Why should you care if Whole Foods, Trader Joe's, Safeway and Wegmans are selling ready-2-eat and or heat-N-eat fresh pizza? Why should you care if Coinstar is selling Seattle Best Coffee at 1,000 locations for $1.00? You should care because they are selling it, and you are not!"

I hate to use the overused phrase… the new normal. Having been in the food business for over 30 years, today's food business is far more complex than it was just 10 years ago. Big players with lots of money of resources are more nimble and innovative than ever. There is only so much space on the shelf and only such much "stomach" you can achieve.

Remember… if you are NOT selling IT… someone will!

Food Service

Restaurants feeling the heat from retail competition

8

Technology

Convenience store

retailers placed an emphasis on technology in 2013 and say will continue to do so this

year. But plenty of opportunities still exist for c-stores when it comes to concumer-facing technology, according to a convenience store news 2014 Technology study.

Take mobile apps for example. Just 29% of the c-store retailers surveyed have chosen this method of reaching consumers directly, with almost 71% reporting they have not yet done so.

Among the retailers that do offer mobile apps, all indicated their apps contain a store locator, and 60 percent offer coupons to be redeemed in store.

Consumer facing technology (is it for you) By Brian Berk

Other top app features include customer feedback, loyalty programs tie in’s, limited time specials and fuel prices.

Loyalty programs are another place where opportunity knocks. Nearly 56% of the stores surveyed offer a loyalty program but more than 44% do not.

Among C-store retailers with such a program, more than 93% utilize a points based or other reward based system. More than 68% offer a proprietary loyalty program, 12 percent have a program tied to a major oil brand and 19% offer both.

Although social networking is becoming a more mature technology, it is yet another avenue some c-store retailers have yet to take. Approximately 1/3rd( 32%) of those surveyed still do not use social networking to connect with customers.

For the two thirds that so have a social media presence, Facebook is used by nearly all (94%), followed by twitter,

Foursquare, Instagram, GooglePlus, My Space, Pinterest and Tumblr. When posting to these sites, more than 80% of c-store retailers place an emphasis on promotions and events, with contests and questions for members also being a strong focus.

According to this year’s CSNEWS Technology Study, 91% of the retailers surveyed spent money on technology/automation upgrades last year, with the average spend reaching an impressivce$1.425 million per company and the median spend around $100,000.

For 2014, nearly half of those surveyed (49%) said they expect to spend more money on technology this year compared to the prior year. Meanwhile, 29% said they will spend the same amount and nearly 22% plan to cut their year-over year spending.

9

Governmental agencies inspect convenience stores for various safety

aspects. A health department inspects for food handling safety. A labor department checks for employee and customer physical safety. A law enforcement agency inspects for security and public safety. Other agencies may inspect for such things as safe handling of gasoline and related products. A wise small business owner, either within a corporate franchise or an individual with several stores, will perform his own inspections to avoid expensive and embarrassing failures of safety inspections by authorities, which in some cases could include closing a store.

Here’s 5 quick steps to getting ahead of safety inspections:

Step 1Read Occupational Safety and Health

Administration rules on workplace safety and security and see how they apply specifically to the convenience store you are inspecting. Check U.S. Department of Agriculture and Food and Drug Administration regulations and state and local health department rules on storing and handling food.

Step 2Ask local public safety agencies

about rules for fire and burglar alarms, occupancy restrictions and traffic regulations for both vehicles and pedestrians. Include provisions for safe handicapped parking and access, including walkway ramps or self-opening doors where appropriate.

Step 3Make a visual inspection of the store

and its surroundings to look for such safety violations such as lights burned out or fire or security alarms not turned on. Inspect any gasoline pumps or storage tanks for leaks. Make sure propane tanks, motor oil and similar materials are properly and safely stored and appropriate warning signs are posted.

Step 4Check the temperature of coolers

where soft drinks, sandwiches or other foods are stored. Make sure foods like pastries or fruits and vegetables are in enclosed cabinets. Look at the condition of stored foods for any signs of damage or spoilage. Address how employees

should handle foodstuffs when stocking items, removing outdated merchandise or handling foods being sold; make sure gloves are worn when appropriate in any food preparation.

Step 5Observe the total operation. Are floor

spills cleaned promptly? Are any carts stored safely? Are aisles kept clear? Are all exterior doors unlocked, working properly and not blocked in any way? Are there fire extinguishers and first aid supplies available for emergencies?

Act as an official looking for safety violations; note any problems and correct them before an official inspection.

Saftey

How to Do a Safety Inspection for a Convenience StoreBy Bob Haring | Demand Media

10

Education

Retail gasoline prices are among the most recognizable price points in

American commerce, yet they are among the least understood. What goes into the price of a gallon of gasoline? Here is a primer on what causes prices to go up or down and vary from store to store.

Ownership and Supply ArrangementsUnlike a few decades ago, when

the major oil companies owned and operated a significant percentage of the fueling locations, today only 0.4% of all convenience stores selling fuels are owned by one of the major oil companies. About another 4% are owned by a refining company like Valero, Sunoco or Hess. Instead, the vast majority — about 95% of stores — are owned by independent companies, whether one-store operators or regional chains. Each of these companies have different strategies and/or strengths in operations, which can dictate the type of fuel that they buy and how they sell it.

There are four broad factors that can impact retail prices:

• Fuel type: Typically, stores that sell fuel under the brand name of a refiner pay a premium for that fuel, which covers marketing support and signage, as well as the proprietary fuels additive package. These branded stores also tend to face less wholesale price volatility when there are supply disruptions.

• Delivery method: Retailers who purchase fuels via "dealer tank wagon" have the fuel delivered directly to the station by the refiner. They may pay a higher price than those who get their fuels at "the rack" or terminal. Usually, smaller companies opt for this method of delivery. In addition, whether a retailer contracts with a jobber to deliver the fuel to his stations or operates his own trucks will influence his overall cost.

• Length of contract: Even if they sell unbranded fuels, retailers may have long-term contracts with a specific refiner. The length of the contract — which can be 10 years, sometimes longer — and associated terms of that contract can affect the price that retailers pay for fuels.

• Volume: As in virtually every other business, retailers may get a better deal based on the amount of fuels that they purchase, whether based on volume per store or total number of stores.

Even within a specific company, stores may not each have the same arrangements, since companies often sell multiple brands of fuels, especially if they have acquired sites with existing supply contracts.

Crude Oil Prices Most Affect Retail PricesNo matter who owns the station,

retail fuels prices are ultimately affected by four sets of costs: crude oil costs, taxes, refining costs and distribution and marketing (which accounts for all costs after the fuel leaves the refinery).

Crude oil prices have, by far, the biggest effect over retail prices. Crude oil costs are responsible for about two-thirds of the cost of a gallon of gasoline. In 2012,

crude oil costs were 66% of the retail price of gasoline. While there may be slight variations in the costs of refining or distributing and retailing fuels, crude oil prices can experience huge swings.

Costs in a Gallon of GasolineGiven there are 42 gallons in a barrel,

a rough calculation is that retail prices ultimately move approximately 2.4 cents per gallon for every $1 change in the price of a barrel of crude oil. While this is not an exact calculation and ignores a variety of influencing factors, it helps demonstrate that as crude prices change, so does the price of retail gasoline.

Taxes are largely per gallon, although some areas have sales taxes on fuels, and those taxes increase as the price increases. There sometimes are significant tax disparities between stations that are in the same market area but in different cities, countries or states. For instance, New Jersey has a gasoline tax of 32.9 cents per gallon, while neighboring New York's gas tax is 69.0 cents per gallon.(Source: U.S. Energy Information Administration, cumulative 2012 monthly averages)(Figures do not add up to 100 percent because of rounding.)

Sales Strategy Also Impacts the PriceFuels retailers face the same question

that all retailers face: sell at a low profit per unit and make up for it on volume, or sell at a higher profit per unit and expect less volume?

But there also are many more complications in setting fuel prices that retailers of other products don't face.

1. Wholesale price changes: Gasoline is a commodity, and its wholesale price can have wild swings. It's not unusual to see wholesale price swings of 10 cents or more in a given day. Competing retailers in a given area may have very different wholesale prices based on when they purchased their fuel when there

What Influences Gasoline Prices?

11

is extreme price volatility. They may not adjust their price until their next delivery. Depending on sales volumes and storage capacity, retailers get as many as three deliveries a day or as few as a delivery every three days or so. In other instances, retailers may adjust their prices when the competition adjusts prices, even without themselves having an imminent shipment.

2. Contracts: Retailers sign long-term contracts (10 years is the norm) and these contracts may dictate the amount and frequency of your shipments. When supplies are tight, retailers with long-term contracts may have lower wholesale costs than retailers who compete for a limited supply on the open market, but they may also face allocations (a maximum amount of fuel that they may obtain) on the amount of fuel they receive. How retailers buy fuel can play a significant role in pricing strategy.

3. Brand: Branded retailers often pay a premium for fuel in exchange for marketing support, imaging and other benefits. Branded retailers typically have the least choice in how they obtain fuel, or at what price, but that is offset by the many benefits that a brand provides. From whom retailers buy fuel ultimately affects pricing strategies.

Each of these factors adds complexity to a retailer's pricing strategy. They also can create unusual market dynamics. There are times when the retailer with the highest posted price in a given area actually may be making the least per gallon, based on when, how and where the fuel was purchased.

No matter what their pricing strategy, retailers tend to reduce their markup to remain competitive with nearby stores when prices go up. This can lead to a several-day lag from the time wholesale

prices rise until retail prices rise. Likewise, when prices go down, retailers may be able to extend their markup and recover lost profits, with retail prices dropping slower than wholesale prices.

Despite extreme volatility, retail margins for fuel are fairly consistent on an annual basis. Over the past five years, the annual average retail mark-up (the difference between retail price and wholesale cost) has averaged 16.9 cents per gallon. Ultimately, retailers set a price that best balances their need to cover their costs with the need to remain competitive and attract consumers, who are very price sensitive and will shop somewhere else for a difference of a few cents per gallon.

Wholesale and retail gasoline prices track oil prices

(Source: OPIS "Retail Fuel Watch"; U.S. Energy Information Administration)

Retail Profitability Measured Over TimeThe pattern of retail profitability is the

opposite of what most consumers think. Due to the volatility in the wholesale price of gasoline and the competitive structure of the market, fuels retailers typically see profitability decrease as prices rise, and increase when prices fall. On average, it costs a retailer about 12 to 16 cents to sell a gallon of gasoline. Using the five-year average markup of 16.9 cents, the typical retailer averages about 2 to 3 cents per gallon in profit. (Retailer costs to sell fuel include credit card fees, utilities, rent and amortization of equipment.)

Over the course of a year, retail profits

(or even losses) on fuels can vary wildly. In some cases, a few great weeks can make up for an otherwise dreadful year - or vice versa.

Retail fuel margins experience wild variations over time

With its extreme volatility, fuels retailing is not for the faint of heart - or for those with limited access to capital. Perhaps that is why that since 1994, while overall fuels demand in the United States has increased, the overall number of fueling locations has decreased from over 200,000 to less than 160,000 sites.

Education

12

We live in a 24/7 stressful society, filled with uncertainty in the job

market, the economy, competition, etc. A large percentage of employees admit to being unhappy with and psychologically disengaged from their jobs.

Recent research shows that among the least happy and least engaged employees, the annual per-person cost of lost productivity due to sick days is more than $28,000, versus only $840 among the happiest and most engaged employees.

Furthermore, job stress alone is estimated to cost U.S. industry at least $300 billion a year in absenteeism, diminished productivity, employee turnover and direct medical, legal and insurance fees, according to Dr. Jack Singer, a sports psychologist who also specializes in training retail CEOs and HR professionals, in addition to world-class athletes.

For example, Singer said, consider the case of Matt, a retail manager for 16 years. Although his employees seem satisfied with their compensation, surveys conducted with them consistently show that their job satisfaction and morale are low and their stress levels are high.

Matt has been well trained, but seems at a loss regarding helping his employees to feel more engaged or happy with their jobs. Because he feels helpless to change the job situation for his employees, Matt, himself, is stressed at work and is unhappy in his supervisor role.

Can Matt regain his passion for his profession? “He sure can,” Singer said.

Below are five tactics for enhancing employee morale and job performance.

• Provide employees with empowering goal setting strategies. People are 11 times more likely to reach a goal when they write it down, as opposed to just thinking about the goal.

“Have regular meetings with your work team where, in addition to encouraging them to discuss their areas of discontentment, join with them in writing down short- and long-term goals that are specific and action-oriented,” Singer said.

For example, over a period of one month hold weekly meetings to design and implement a new plan for developing a psychologically healthy workplace. Have each employee bring one new idea to each meeting.

“Next, ask your people to visualize themselves feeling wonderful once they have accomplished that goal,” Singer said. “But also ask them to write down ways they can sabotage themselves. Encourage them to be honest with themselves about the kinds of self-talk or self-defeating behaviors they have unfortunately engaged in before, which contribute to not accomplishing their goals.”

Improving Retail RetentionIn a down economy, employees have fewer job opportunities, but retailers would be remiss to overlook company morale simply because employees have fewer options.

Human Resources

• Provide employees with a sense of control over their jobs. Psychological studies of jobs are filled with examples of how important it is to give employees a genuine say in how to conduct their jobs Not only does the perception that management truly cares about their feelings have a powerful impact on morale and degree of job engagement, but giving workers some control over their own work-hour schedule (such as flex time) and how to approach their work tasks, dramatically reduces job burnout, absenteeism and turnover.

“Have frequent meetings with your employees directed at genuinely listening to their issues and allow them to suggest resolutions,” Singer said “Encourage workers to determine their own specific strengths and put them to use on their jobs. When this is done, employees are six times as likely to be engaged in their jobs and three times more likely to report an excellent quality of life at their workplace.”

• Provide growth and development programs for employees. Most employees desire the opportunity to gain

By Marc Sheridan| Westfair Online

13

new skills and knowledge, so they don’t feel stagnant in their jobs.

Information provided by outside experts, which will help them on their jobs and in their lives can serve these needs.

“Scheduling lunchtime seminars and workshops on such topics as stress mastery, anger mastery, enhanced wellness, communications skills, as well as cross-training them with other job skills enhances organizational effectiveness and improves work quality,” Singer said. “Providing free college credit courses in your company headquarters is a wonderful, often overlooked, benefit you can offer employees.”

• Provide planned and spontaneous recognition events for employees. “It’s a no-brainer for companies to provide world-class service for their customers, but they often forget that their most important assets—their employees—need the same,” Singer said. “By acknowledging their efforts—not just their productivity—you can increase employee satisfaction, morale and self-esteem.

• Offer a warm, accepting and fun workplace. Help employees look forward

to Monday mornings, by providing an atmosphere of fun, teamwork and camaraderie.

“Acknowledging employee needs and allowing talent and creativity to flourish will keep employees motivated and happy,” Singer said.

Managing the Employees of TomorrowBranding and corporate identity are

just a few of the buzzwords folks in the marketing department use to describe the basic building blocks of a comprehensive business development plan.

What these terms have in common is that they’re all about communications. Store operators believe everything they do melds into a cohesive whole that communicates the character of their business.

“While most retailers understand how important branding, identity and image are to winning and keeping customers, many have yet to realize that the same principles also apply to how an organization attracts and keeps quality employees,” said Mel Kleiman, president of Humetrics Inc. in Sugarland, Texas.

Onboarding is a fairly new term that

1. First hour. Be on time to greet the new hire enthusiastically. Assign a mentor or friend to be their “go-to” person until mainstreamed. Most importantly, make it clear how and why their job is important to the organization so they can justifiably take pride in their work.

2. First day. At the end of the new hire’s first day, be there to ask how it went. Find out if there were any problems and get the new hire’s first impressions.

3. First week. At the end of the first week, ask the same questions and more.

4. First paycheck. Deliver the first one in person. If the new hire is not working

THE SALIENT POINTS OF ONBOARDING INCLUDE:out, this is the perfect time to cut your losses. If the new hire is working out, tell them how pleased you are and ask how they are feeling about their new job. Put younger employees and teens at ease and let them know how you feel about their performance.

5. First anniversary: This is a big deal to most every employee, especially teens. “Be sure to acknowledge it in some way,” Kleiman said. For example, some employers have a combination birthday and employment anniversary cake once a month. A personal note of appreciation they can share with family or a small token of appreciation works well too.

was created to encompass all the various steps and interactions that take place following a job applicant’s first contact with an organization. Onboarding includes the entire recruiting, selection and hiring process as well as orientation, training, and even the first days, weeks or months on the job.

“The key to successfully managing the onboarding period is to recognize that first impressions are lasting and that what happens during this time correlates directly to how long new hires stick around,” Kleiman said. “Onboarding recognizes the fact that all applicants and new hires draw conclusions about your organization, both formally and informally, based on factors as diverse as how efficiently and courteously job applicants are handled to the way the interview is conducted, how the offer is extended, and how relevant orientation is.”

Human Resources

ALL rebate information is now accessible via the web portal. Please

go in and create your unique I.D. today and delegate authorities to your store manager of

choice.

WWW.GHRAONLINE.COM

14

Industry News

CHICAGO – U.S. convenience stores reached record in-store sales in 2013, with sales climbing 2.4% to $204 billion. Combined with motor fuels sales of $491.5 billion, overall convenience store sales were $695.5 billion, according to figures released today by the National Association of Convenience Stores (NACS).

The industry’s 2013 numbers were announced at the NACS State of the Industry Summit, a two-day conference that reviews and analyzes the industry’s key economic indicators.

The convenience store industry’s in-store sales have seen rapid growth over the last decade, as consumers seek out more food and beverages on the go. In-store sales in 2013 were led by continued growth in foodservice (2.4%), driven by prepared food and commissary.

Motor fuels sales also hit new highs on a per-gallon basis, with sales climbing 0.9% to 132,029 gallons per store per month. While fuels sales per store increased on a unit basis, a 2.9% decrease in gas prices led to an overall 2.1% decrease in fuels sales.

Although the industry again realized strong sales, store-operating costs increased at a faster rate than sales and led to a decrease in industry pretax profits, which fell from $7.2 billion in 2012 to $7.1 billion in 2013.

The biggest increase in costs was wages and payroll taxes. The industry saw a dramatic 19.5% increase in employees, a function of the industry’s continuing embrace of foodservice, which requires more labor to manage.

The link between fuels and convenience retailing continues to grow. Overall, 83.7% of convenience stores (126,658 total) sell motor fuels, a 2.7% increase (3,369

hot dispensed beverage gross profits that were 7.3 times greater than those of the bottom quartile; prepared food gross profits 3.0 times greater than the bottom quartile; cold dispensed beverage gross profits 3.9 times greater than the bottom quartile; and packaged beverage gross profits that were 2.4 times greater than the bottom quartile.

Of major interest to retailers this year was the breakout of industry numbers into regional benchmarks, allowing them to compare key metrics against more companies in their respective markets.

Here’s how in-store sales were broken down in 2013:

• Tobacco (cigarettes and other tobacco products): 37.0% of in-store sales

• Foodservice (prepared and commissary food; hot, cold and dispensed beverages): 18.0%

• Packaged beverages (soda, alternative beverages, sports drinks, juices, water, teas, etc.): 15.5%

• Center of the store (candy; sweet, salty and alternative snacks): 9.9%

• Beer: 7.9% • Other: 11.7% Meanwhile, foodservice was the

category that drove profits, accounting for 29.1% of gross profit dollars. Packaged beverages were second, accounting for 19.6% of gross profit dollars. While tobacco products constituted 37.0% of in-store revenue dollars, they accounted for only 18.7% of gross margin dollars.

The industry’s 2013 metrics are based on the NACS State of the Industry survey powered by its wholly owned subsidiary CSX, the industry’s largest online database of financial and operating data. Complete data and analysis will be released in June in the NACS State of the Industry Report of 2013 Data.

stores) over 2013, according to the 2014 NACS/Nielsen Convenience Industry Store Count. The U.S. convenience store count increased to 151,282 stores as of December 31, 2013, a 1.4% increase (2,062 stores) from the year prior.

Convenience stores also account for 34.3% of all retail outlets in the United States, according to Nielsen, which is significantly higher than the U.S. total of other retail channels including drugstores (41,378 stores), supermarket/supercenter (37,459 stores) and dollar stores (24,853 stores).

Beyond sales, convenience stores are an important part of the economy. They employed 2.2 million people and generated $174.5 billion in federal, state and local taxes in 2013. Overall, convenience stores sales represent 4.0% — or one out of every 25 dollars — of the entire $17.4 trillion U.S. gross domestic product.

“Our industry numbers demonstrate that convenience and fuel retailing continues to grow, despite economic and retail environment challenges,” said NACS Chairman Brad Call, vice president of adventure culture at Maverik Inc. “These numbers show that we continue to meet the needs of our diverse consumers throughout the United States.”

Motor fuels continued to drive revenue dollars, but in-store sales drove profit dollars. Overall, 70.7% of total sales were motor fuels, but motor fuels only accounted for 35.6% of profit dollars. Motor fuels gross margins were 18.5 cents per gallon before expenses, or 5.3%.

The industry’s bifurcation also continues, with a considerable difference between top quartile and bottom quartile performers. Top quartile performers had

Convenience Stores Hit Record In-Store Sales in 2013

15

Industry News

Hello everyone. I want to communicate the latest update on our warehouse

project. The first phase of our construction is the removal of the existing interior offices. The bids for this are in and that work will be completed by the end of April. Architectural plans are being completed and will be going out for permitting within a couple of weeks. Once the permitting is approved we will review all general contractor bids for an

immediate construction start up. My contact information is bob@

ghraonline.com and my office number is 281-295-5359. I will be spending most of the day at the site and will reply to all questions or concerns daily.

I want to thank all of you again for allowing me to be a part of your outstanding organization and community.

Thank you for your continued support.

Warehouse

GHRA ONLINECLASSIFIEDS

WWW.GHRAONLINE.COMUnder Other Services

Absolutely FREE forGHRA members.�Members can now list businesses or

equipment for sale on the GHRA Website!

WE’RE ONLINEWWW.GHRAONLINE.COM

All GHRA announcements and publications will be

posted online.

Members are encouraged to visit

the GHRA website on a regular basis for up to date information and

latest publications.

UpdatesBob Sliger | General Manager

Industry News

Featuring

We take pride in offering our GHRA customers a great selection of products to meet your market needs. Please call us today - 323-786-7865

16

MEMBERSMUKHTIAR A. KHUWAJAOwner of GHRA Location #3472Cool Stop • Beaumont, TX

MAHAMADRAFIQ DHUKAOwner of GHRA Location #3473Qwik Stop • Houston, TX

SANTOSH NEPALOwner of GHRA Location #3474Burnie Mart • Houston, TX

ANIL A. MOMINOwner of GHRA Location #3475Zip In Zip Out • Rosenberg, TX

NOORUDDIN R. KHAWJAOwner of GHRA Location #3476US Mart #1 • Houston, TX

NOORUDDIN R. KHAWJAOwner of GHRA Location #3477US Mart #2 • Houston, TX

HAJARAT M. KAREDIYAOwner of GHRA Location #3478Stop N Joy • Missouri City, TX

NOORALI K. ALIOwner of GHRA Location #3479Baytown Mart • Baytown, TX

RAFIQ S. MAKNOJIAOwner of GHRA Location #3480Baker Lane Market • Baytown, TX

On behalf of the board of directors and staff at GHRA, please welcome our newest members as of March 2014:

INAYAT J. KHOJAOwner Of GHRA Location #3481Food Mart #1 • Orange, TX

INAYAT J. KHOJAOwner of GHRA Location #3482Food Mart #2 • Orange, TX

IRFAN A. SUNESARAOwner of GHRA Location #3483In & Out Food Mart • Baytown, TX

NOORDDIN B. SATYANIOwner of GHRA Location #3484Perry Food • Houston, TX

ZULFIKAR R. MOMINOwner of GHRA Location #3485Champion Food Mart • Houston, TX

MAHENDI N. MAKNOJIAOwner of GHRA Location #3486Fuel Maxx #7 • Conroe, TX

PERVEZ T. ALWANIOwner of GHRA Location #3487Speedy Express • Alvin, TX

INAYATALI S. MAKNOJIAOwner of GHRA Location #3488Beacon Bay Food Mart • Livingston, TX

NAUSHAD DHANANIOwner of GHRA Location #3489Icebox 4453 • Houston, TX

New Member Introductions

welcome

NOORUDDIN Q. KARADIAOwner of GHRA Location #3490Angels In Town • Baytown, TX

SAIYAD S. MOMINOwner of GHRA Location #3491American A M Market • Houston, TX

ZULFIKARALI N. MAKNOJIAOwner of GHRA Location #3492Fuel Maxx #6 • Tomball, TX

KARIM M. MAREDIAOwner of GHRA Location #3493Kwik Mart #23 • Houston, TX

SALEEM M. KHATANIOwner of GHRA Location #3494Speedy Express • Houston, TX

AMIN M. ALIOwner of GHRA Location #3495CW Express Food Mart • Houston, TX

PERVAIZ ALIOwner of GHRA Location #3496Fuel Depot #35 • Houston, TX

ALTAF KARMAALIOwner of GHRA Location #3497Rosharon Food Mart • Rosharon, TX

BARKAT B. MAREDIAOwner of GHRA Location #349824 Seven #11 • Houston, TX