GHRA In Action - May 2014 - Greater Houston Retailers Cooperative

MAY 2014
The future of
Cigarettes Sales
Page 6
What Influences
Gasoline Prices? pg. 11
Improving Retail Retention
pg. 13
GHRA Partners
Alcoholic Beverages
Budwieser
Miller Coors
Republic National Distribution
Beverages
Coca Cola Refreshments
Dr Pepper Snapple Group
Jack Hilliard (Xyience/ BSN/ Evamor/
VPX Redline/ Nestle)
Monster
Pepsi Bottling Group
Red Bull
Rockstar Energy Drink
Financial Services
World Pay
Universal Merchant Processing
Transnet Enterprises
ATM Link
Ice Cream
YUMI Ice Cream
Coffee
Boyd Coffee Company
Community Coffee
Global Coffee Company
Royal Gourmet House
Snacks
Barcel
(Intelligent Mexican Marketing)
(Pete Dimas Enterprises)
Frito Lay
In-Time Distributors
Synder's-Lance
Saman Distributors
Sweet & Sour
Milk
Borden Milk
Oak Farms
Wholesale Supply
Grocery Supply Company
Huntsville Wholesale Grocers
Services
Pinnacle Propane Express
Alert 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
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 precaution 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
2
GHRA BOARD
President’s Notes
Dear GHRA Members,
Please join me in congratulating our re-elected board members and the New
Rahim Momin
Executive Committee members for the year 2014. Many hours of volunteer
President
service have gone into the projects we are currently working on and these
Zulfikar Maknojia
for your attendance at the General Body meeting; your commitment to voting
Senior Vice President
members will be an integral part of their success. I would also like to thank you
and your continuous support of the GHRA board.
Rafique N. Ali
Negotiation - Chairman
Vice President
Ahmed Hasora
Honorary Secretary
Mahemood Momin
Treasure
Lehjatali Momin
wa
W rehouse Chairman
Shamsuddin Maredia
Director
Asif Davwa
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.
Director
Sherali Haiderali
Director
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.
Rahim Maknojia
Director
Tajddin Momin
Director
Best Regards,
Rahim Momin
Mubarak Dhukka
Director
Zulfiqar Kurjee
Director
OFFICE
12790 South Kirkwood
Rd., Stafford, TX 77477
Ph. 281.295.5300
Fax. 281.295.5399
www.ghraonline.com
3
In Balance
H
ello
Members!
I hope you
are enjoying
this months
In Action
Magazine.
The end of
Mike Thompson
this month
Chief Executive Officer
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
4
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!
Director’s Notes
From the Desk of the Senior Vice President
Zulfikar 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.
Sincerely,
Zulfikar Maknojia
From the Desk of the Vice President - Negotiation Chairman
Rafique N. Ali
Thank you for your support throughout the month of April on our cooler resets. Please continue to support this effort 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.
Sincerely,
Rafique N. Ali
From the Desk of the Honorary Secretary
Ahmed 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 advertisements, plan-o-grams, presentations and more. Please use the portal often and be sure to designate your authorized
representatives. Thank you for your support.
Sincerely,
Ahmed Hasora
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
Sincerely,
Mahemood Momin
5
Feature
SOI Category Focus:
Cigarettes Continue to Decline
Challenges & opportunities to selling the No. 1 in-store product
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.
6
• 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. 
Food Service
Restaurants feeling the heat from
retail competition
C
hannel 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
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
chains are aggressively challenging
storeswant to get their share of stomach.
retailers on price."
Steve says " While manufacturers,
Retailer Meal Solutions (RMS) Examples
retailers
and restaurants worry about
In Technomic's Retailer Meal Solutions
choice
overload,
consumers have
Segment Study - 2012 Update here are
embraced
their
new
choices and show no
several examples of restaurants launching
signs
of
returning
to
the old ways. This
menu options to compete with supermarket
fight
is
taking
place
in
what is called the
meal solutions offerings:
grocerant
niche."
- Mimi's Cafe rolled out a Family Meals
Why is Channel Migration in Food
To Go menu with 10 meal options serving
Important to Food Entrepreneurs?
four to five for $24.99. Each meal comes
Steve sums it up better than I can: "Why
with a choice of soup or salad; additional
should you care if Walgreens is selling
family-size sides can be added for $3, $4
fresh prepared ready-2-eat and made-2or $5.
- Bob Evans' 10 Under $20 Family Meals order sandwiches ? Why should you care
if Whole Foods, Trader Joe's, Safeway
To Go include an entree, a large side and
fresh-baked bread for three to four diners. and Wegmans are selling ready-2-eat and
The meals are only available for takeaway. or heat-N-eat fresh pizza? Why should
you care if Coinstar is selling Seattle Best
- Wienerschnitzel promoted several
Coffee at 1,000 locations for $1.00? You
Family Combos for $9.99. Initially offered
should care because they are selling it,
last month, the meals are available at
and you are not!"
participating locations for a limited time.
I hate to use the overused phrase…
- In April, Buona Beef invited e-club
members to try its new Family Meals for a the new normal. Having been in the food
business for over 30 years, today's food
special limited-time price of $13.95.
business is far more complex than it was
Channel Migration Blurs the Lines of
just 10 years ago. Big players with lots
Grocery and Restaurant
of money of resources are more nimble
Steve Johnson, our Grocerant Guru
and innovative than ever. There is only so
recently wrote an article for me where he
much space on the shelf and only such
points to
much "stomach" you can achieve.
the line between restaurants and food
Remember… if you are NOT selling IT…
retailers is growing ever thinner . The fight
someone
will! 
for America's food dollars continues to
intensify as consumers find fresh prepared
7
Technology
Consumer facing technology
(is it for you)
C
onvenience
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 concumerfacing 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.
8
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. 
Saftey
How to Do a Safety Inspection for a
Convenience Store
By Bob Haring | Demand Media
G
overnmental 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 1
Read 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 2
Ask 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 3
Make 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 4
Check 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 5
Observe 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. 
9
Education
What Influences Gasoline Prices?
R
• 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.
Ownership and Supply Arrangements
• Volume: As in virtually every other
Unlike a few decades ago, when
business, retailers may get a better
the major oil companies owned and
deal based on the amount of fuels that
operated a significant percentage of the
they purchase, whether based on
fueling locations, today only 0.4% of
volume per store or total number of
all convenience stores selling fuels are
stores.
owned by one of the major oil companies.
Even within a specific company,
About another 4% are owned by a refining stores may not each have the same
company like Valero, Sunoco or Hess.
arrangements, since companies often sell
Instead, the vast majority — about 95%
multiple brands of fuels, especially if they
of stores — are owned by independent
have acquired sites with existing supply
companies, whether one-store operators or contracts.
regional chains. Each of these companies
Crude Oil Prices Most Affect Retail Prices
have different strategies and/or strengths
No matter who owns the station,
in operations, which can dictate the type of
retail fuels prices are ultimately affected
fuel that they buy and how they sell it.
by four sets of costs: crude oil costs,
There are four broad factors that can
taxes, refining costs and distribution and
impact retail prices:
marketing (which accounts for all costs
• Fuel type: Typically, stores that sell
fuel under the brand name of a refiner after the fuel leaves the refinery).
Crude oil prices have, by far, the biggest
pay a premium for that fuel, which
covers marketing support and signage, effect over retail prices. Crude oil costs
as well as the proprietary fuels additive are responsible for about two-thirds of
the cost of a gallon of gasoline. In 2012,
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.
etail 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.
10
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 Gasoline
Given 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 Price
Fuels 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
Education
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.
(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. 
Wholesale and retail gasoline prices
track oil prices
(Source: OPIS "Retail Fuel Watch"; U.S. Energy Information
Administration)
Retail Profitability Measured Over Time
The 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
11
Human Resources
Improving Retail Retention
In a down economy, employees have fewer job opportunities, but retailers would be
remiss to overlook company morale simply because employees have fewer options.
By Marc Sheridan| Westfair Online
W
e 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.
12
• 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.”
• 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
Human Resources
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 Tomorrow
Branding 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
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.”
THE SALIENT POINTS OF ONBOARDING INCLUDE:
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.
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
3. First week. At the end of the first and employment anniversary cake once
week, ask the same questions and more. a month. A personal note of appreciation
they can share with family or a small
4. First paycheck. Deliver the first one token of appreciation works well too.
in person. If the new hire is not working
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
13
Industry News
Convenience Stores Hit Record
In-Store Sales in 2013
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 instore sales have seen rapid growth over
the last decade, as consumers seek out
more food and beverages on the go. Instore 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
14
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
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 instore 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. 
Industry News
Warehouse
Industry News
Updates
Bob Sliger | General Manager
H
ello 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.
Featuring
WE’RE ONLINE
WWW.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.
GHRA ONLINE
CLASSIFIEDS
WWW.GHRAONLINE.COM
Under Other Services
Absolutely FREE for
GHRA members.
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
Members can now
list businesses or
equipment for sale on
the GHRA Website!
15
New Member Introductions
welcome
MEMBERS
On behalf of the board of directors and staff at GHRA,
please welcome our newest members as of March 2014:
MUKHTIAR A. KHUWAJA
Owner of GHRA Location #3472
Cool Stop • Beaumont, TX
INAYAT J. KHOJA
Owner Of GHRA Location #3481
Food Mart #1 • Orange, TX
NOORUDDIN Q. KARADIA
Owner of GHRA Location #3490
Angels In Town • Baytown, TX
MAHAMADRAFIQ DHUKA
Owner of GHRA Location #3473
Qwik Stop • Houston, TX
INAYAT J. KHOJA
Owner of GHRA Location #3482
Food Mart #2 • Orange, TX
SAIYAD S. MOMIN
Owner of GHRA Location #3491
American A M Market • Houston, TX
SANTOSH NEPAL
Owner of GHRA Location #3474
Burnie Mart • Houston, TX
IRFAN A. SUNESARA
Owner of GHRA Location #3483
In & Out Food Mart • Baytown, TX
ZULFIKARALI N. MAKNOJIA
Owner of GHRA Location #3492
Fuel Maxx #6 • Tomball, TX
ANIL A. MOMIN
Owner of GHRA Location #3475
Zip In Zip Out • Rosenberg, TX
NOORDDIN B. SATYANI
Owner of GHRA Location #3484
Perry Food • Houston, TX
KARIM M. MAREDIA
Owner of GHRA Location #3493
Kwik Mart #23 • Houston, TX
NOORUDDIN R. KHAWJA
Owner of GHRA Location #3476
US Mart #1 • Houston, TX
ZULFIKAR R. MOMIN
Owner of GHRA Location #3485
Champion Food Mart • Houston, TX
SALEEM M. KHATANI
Owner of GHRA Location #3494
Speedy Express • Houston, TX
NOORUDDIN R. KHAWJA
Owner of GHRA Location #3477
US Mart #2 • Houston, TX
MAHENDI N. MAKNOJIA
Owner of GHRA Location #3486
Fuel Maxx #7 • Conroe, TX
AMIN M. ALI
Owner of GHRA Location #3495
CW Express Food Mart • Houston, TX
HAJARAT M. KAREDIYA
Owner of GHRA Location #3478
Stop N Joy • Missouri City, TX
PERVEZ T. ALWANI
Owner of GHRA Location #3487
Speedy Express • Alvin, TX
PERVAIZ ALI
Owner of GHRA Location #3496
Fuel Depot #35 • Houston, TX
NOORALI K. ALI
Owner of GHRA Location #3479
Baytown Mart • Baytown, TX
INAYATALI S. MAKNOJIA
Owner of GHRA Location #3488
Beacon Bay Food Mart • Livingston, TX
ALTAF KARMAALI
Owner of GHRA Location #3497
Rosharon Food Mart • Rosharon, TX
RAFIQ S. MAKNOJIA
Owner of GHRA Location #3480
Baker Lane Market • Baytown, TX
NAUSHAD DHANANIOwner of
GHRA Location #3489
Icebox 4453 • Houston, TX
BARKAT B. MAREDIA
Owner of GHRA Location #3498
24 Seven #11 • Houston, TX
16