Fuel-Store Link
There is a clear and established relationship between fuel volumes and store traffic and it varies by site. The extent of this Fuel-Store relationship at a given site dictates how fuel pricing strategies can be used to drive incremental store traffic and deliver increased store sales. Quantifying how fuel pricing strategies impact both fuel and store performance is the first step toward managing your networks in a more integrated fashion so as to optimize the contribution from every site.
KSS has a proven methodology that can be applied to your existing data to uncover unique insights into the Fuel-Store relationship, by site. Together we can highlight opportunities to adjust fuel pricing strategies across your network to increase store traffic at sites where there’s a significant Fuel-Store effect, or drive fuel margin where a sites’ Fuel-Store relationship is weaker. Identifying and closely monitoring this balance of site-specific strategies will yield significant overall sales and profit growth.
Service Description
We will apply our unique, FSL methodology to your data, to establish the nature and relative strength of the relationship between fuel volumes, fuel price sensitivity, store traffic and sales (by category) for each of your sites. We will then segment your sites to allow evaluation of appropriate fuel pricing strategies consistent with your goals for both fuel and in-store merchandise performance.
In parallel to the data analysis, we will review your fuel and store business to define a process for monitoring performance by site and segment, to highlight further opportunities as well as the nature and timing of any corrective actions that may be required.
Benefits:
- Unique insight into fuel-store dynamics – by site and store category
- Opportunities to increase store traffic by adjusting fuel pricing strategies
- Evaluate revised merchandise price/promotion strategies to capitalize on increased store traffic
- Identify sites where fuel margin growth can take place without impacting store performance
- Deliver incremental sales by forward-planning for local events or seasonal demand patterns
Features:
- Set budgets for fuel and store that will maximize integrated margin, by site
- Manage progress towards budgets via dedicated screens, reports and trend analysis
- Adjust retails fuels pricing tactics to grow overall network profitability
- Continuously monitor fuel-store relationship, together with store and fuel performance, highlighting exceptions for further analysis
- Market-basket analysis to identify which categories are fuel-customer driven
To find out more about how Fuel-Store Link could help grow overall site profits contact your local KSS office or send an email to info@kssg.com
