LJT Observations of the Retail Convenience Industry

Systems and Processes:

Few dealers have systems and processes in place to create consistency of operations, to include the following:

  • Policy and procedure guides
  • Employee training programs
  • Recruiting and hiring methods
  • Daily accounting procedures
  • Inventory controls
  • Vendor management
  • Environmental and safety records
  • Business analysis and plans for growth

Accounting and Controls:

Few operators are performing basic accounting functions necessary to identify and control shrink.

Few dealers are taking physical inventories timely and utilize that information to prepare their financial reports including Profit and Loss Statements, Balance Sheets and Cash Flow Statements.

A substantial percentage of dealers are not using Back Office Systems designed for convenience stores that would help them create the needed records.

Limited use of scanning technology and capabilities for the convenience store industry

Little knowledge in selecting an appropriate and knowledgeable accountant to prepare their business records.

Retailing, Category Management, and Merchandising:

Lack retailing skills including product selection, vendor management, inventory management, and merchandising.

Handmade signs, poor displays, and the wrong merchandise in the wrong place costs dealers thousands of dollars monthly in sales and profits.

Under utilization of marketing, advertising, and promotions.

Business Planning, Tracking, and Analysis of business information:

Many dealers have no plan, no method of tracking results and don’t analyze and adjust their operation accordingly

Need a method to identify and implement new strategies

Personnel Management:

Many dealers lack the tools to recruit, motivate, and retain quality employees. Many have not been trained to create a working environment that can substantially reduce turnover and save the associated costs of high turnover. Many dealers don’t understand of Federal wage and hour regulations. Sexual harassment and cultural diversity training is weak Customer Service, including preventing and handling customer complaints: Many dealers believe they deliver good service, but don’t know how to measure it Many dealers don’t realize the correlation of site image to customer service Dealers are weak in prevention and handling of customer complaints

Safety and Security:

  • Many dealers are not following recommended safety procedures.
  • Cash and drop controls
  • Site safety
  • Food safety and expired products removal
  • Vendors
  • Customer and employee theft controls
  • Robbery deterrence

Federal UGST and Environmental issues:

Motor Fuel Records
Health and Safety Data Sheets

Register Now!

Back