Many national retailers started small and grew their store’s footprint over time. However, as portfolios grow and locations age, the need for maintenance becomes exponential. Over time, this growth and aging exceeds a retailer’s ability to keep up, so they add a head count and consolidate vendors. In this situation, we see that the growth pace outruns the ability to hire, which creates new problems.
As competition rises among convenience stores, retailers have been on the lookout for the perfect opportunity to tie-the-knot with the foodservice industry. Traditional convenience stores may offer a smaller variety of accessible snacks for consumers on the move. However, adding fresh, made-to-order products, ready-to-eat sandwiches and salads to their inventory will give consumers an added reason to shop their brand.
Indirect costs are often overlooked and are not applied back to direct ticket costs because they are less tangible than hourly rates and trip charges. This makes them harder to calculate for the total cost of ownership. However, without evaluating these indirect costs, you lose transparency to accurately calculate the financial impact on your business.