Shell is launching a strategy to grow its global convenience retail business and is looking to form long-term partnerships with leading category suppliers to achieve its goal.
The $6bn convenience retail business will unveil its plans at a two-day event in central London in June. The Shell Global Growth Event 2014 will provide a platform for future collaboration with suppliers.
Shell will share its strategy and growth targets in convenience retail and host one-on-one meetings with suppliers on its individual category plans. The event will be restricted to suppliers and will be by invitation only.
Richard Garcia, head of global category management at Shell, explained: “We want to grow faster than the petrol convenience channel in every market and, in order to do that, we are going to challenge every product category.”
Shell is targeting growth from consumers on the move with new, mission-based category management plans. The retail and supplier opportunity will span 6,000 Shell service stations around the world with a Shell Select convenience store.
Shell’s acquisition of the Total network in the UK two years ago provided the impetus for the latest focus on convenience retail, according to Garcia.
The need for rapid transformation meant Shell began to look beyond tactical considerations and started to focus on the business from the customer’s perspective, he said.
“On our journey, we have become more aware of the needs of consumers on the move. While the majority of transactions are triggered by fuels consumption, we have begun to focus on the quality of the offer and how to fulfill the needs of shoppers, on the move and across a week; from providing a cup of coffee on a Monday morning through to a light meal on the way home on a Friday evening.”
Garcia said Shell would look to engage with suppliers to deliver on its plans, adding: “It’s not stating we will have fewer or more suppliers in future but a small group of suppliers that we will have a strategic relationship with and others will complement that. Our strategy is geared towards growth, so it will benefit everyone.
“I don’t believe our customer-led approach to category management is unique to Shell. Suppliers are already advanced in this journey and are looking for retailers to accompany them.”
The Shell Global Growth Event 2014 will take place on 23-24 June 2014 at the Renaissance St Pancras Hotel, London. It is being organised by NACS Europe, the European arm of the international trade association, which serves the convenience and fuel retailing industry through industry knowledge, connections and advocacy; and is designed to be an inclusive event, representative of the product categories sold by Shell.