SCG London Page 1

Convenience Stores Trends and Benchmarking

December 2012

SCG London Page 2

Key Market Trends Smaller, Closer, Faster

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Customer Trends — Convenience

• Smaller,morefragmented household• Lesstime(foranything)• TheINternet INconvenience• Moreeatingout/on the move • SeekingValue• Location(nearyou)

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UK Trends

• Growthinnew forecourtsstatic- consolidation• Growthin multiples+2.4%• Growthinsymbol chain+5.2%• Co-opmovement+5.3%• Conveniencemarket 2011-2012=£34bn• 20%ofallgrocery sales•Symbolgroups increasedby5.1%to takeover40% of market

SCG London Page 5

Lesstime-food

• SmallerStores- Topupfoodshopping

•Quickerservice

• Specialisationby multiples

• ONLINESHOPPING

• Peopleonthemove •car/petrolstation •railway •airports

24Hours

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Newcustomertrends-Specialisation

• Stations• PetrolStations• Ticketoffices• Kiosks• Freshfoodonthego

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Newcustomertrends-Specialisation

• Communities,cafe/food• Highqualitytopup food• Seatingandsocialising• Value• Localindependents/ symbolbrands

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Theinternet=convenience

• Local- butinyourpocket

Servicebasedoffers• Order/Pickup-foodtickets,mail, services,fulfillment,gamesetc... • Freenewspapers

• Onlineretailand media

• Interfaceofdigital

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FromValuetoQuality

•Symbolgroups Independence Value Variety

•Multiples Cityspecialists Brandquality

Drivenby:QualityCommunicationDisplayLocalneeds

SCG London Page 10

“Foodtogo”Brand-Ownbrand

•Ownlabelcontrol•Specialists•Establishedbrands•Brandauthority•Symbolgroups-Value andindependence•Qualityin communicationand display=Valueandcare

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Newtrends

• Frozenhealthy/ nutritious•Qualitymerchandising•Qualityservice

Frozen, taste & qualityPicard

Farm Foods Concept Development - August 2011 - Page 10

Competitor benchmarking

PicardPicard Surgeles is France’s leading frozen foods specialist. Company operates as both a manufacturer and a distributor, with a network of more than 500 retail stores throughout most of France

The company also operates an e-commerce capable web site and off ers home delivery services. Picard’s revenues gives it a market share of more than 12 percent of the total French frozen food market. Picard has distinguished itself through a commitment to high quality and innovation. Some 95 percent of the

more than 1,000 products on off er are company’s own brands which include a line of prepared exotic meals under the Cuisine Evasion brand; ice cream, sorbets, and other frozen desserts under the François Théron name; Formule Express, for microwaveable meals; and Le Soleil, for Mediterranean dishes.

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UK - EuropeanConvenience store benchmarking

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UK-European-Conveniencestorebenchmarking

Quality — Fresh food & service

Value — Price - convenience & service

Local — Traveling, work & home

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• Largemultiples• Segmentation• Localtopup• Delicatessens Cafes freshproduce delivery• Primelocations Qualitydisplay

Quality—Value

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•Zabka•AlbertHeijn•Carrefour• Sainsbury’sEtc...

Quality—Value

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• Fromqualityto discount•LargeMultiples•Targetedcategories•Cleardefinedbrands•Promotionandcommunications

Quality—ValueCasino/Carrefour

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• Innovative• Compact• Clear

Quality—ValueALBERTHEJN

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• Quality•Upscale• Individual• Social

Quality—ValueMONOPRIX

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• ExpandingSector•Control/supplychain/ Authority• Independentvariety• Local value innovative responsive

Co-ops&symbolgroups

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• Independentwith mainbrandinput•Spaceplanningsuport•Clearmixdefinition• Localretailers

Co-ops&symbolgroups

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•Bestinclassonly•Qualitybranding•Qualitydisplay•Authority

Cafe’s,FoodtoGo

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Spar-Walthamstow

•Localpizza•LocalRetailer•Clearcategories•Instantauthority•...

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PlanningClear, quick and simple

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•Makespacework- easy•Integrateintightquick corners•Useallwalls•Segment&focus categories•Bright&appealing graphics& communications

Planning/Environment

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PEREKRESTOK BRAND & STORE DESIGN PRESENTATION 3 . JANUARY 2010 . PAGE 21

Perekrestok Express - Entrance

•Condensedcategories•Heros-butwhere customers need them•Easycirculation•Clearcommunication•Simplecolour&frieze unification

Plan/Benchmark

PEREKRESTOK_ BLUE EXPRESS_ 220MSQ/100MSQ. SCALE: 1.100@A3

BLUE EXPRESS_ 220MSQ

FRUIT &

VEG

.

DAIRY

GRAB

& G

OBE

ER /

JUICE

FISH

SALADDELI

COOKEDMEAT

BWS

GROCER

Y

EXIT

ENTRANCE

BAKE

RY

DELIPROMO

DELIPROMO

DAIRY

DAIRY/

CHEE

SE

SNACKS

/ C

AKE

S &

CONFEC

TIONER

Y

GROCER

Y

GROCER

Y

GROCER

Y

JUICE/

WATER

PROMO PROMO

HOT

sna

cks

or C

HILL

EDdr

inks

BASKETS

BAGUET

TES

/PASTRIES

FRESH MEAT

FRUIT /VEGDISPLAY

FRUIT /VEGDISPLAY

BAKE

RY

BWS

GROCER

Y

DAIRY

PREP

ARED

FOOD/ S

ANDW

ICHES

/ D

ELI

SALA

D/ C

HEE

SE

EXIT

DRINKS

& S

NACKS

BASKETS

KIOSK

FRUIT AND VEG

MAGAZINES

/ N

EWS/ C

DS

GRAB 'N' GO

ENTRANCE

CIGARETTES, HIGH VALUE ESSENTIALS & ALCOHOL

BLUE EXPRESS_ 220MSQ

GROCER

Y

MAGAZINES & NEWS

KIOSK

CIGARETTES, HIGH VALUE ESSENTIALS & ALCOHOL

SCG London Page 26

NarvesenPlans

PLANNING PROPOSALS PRESENTATION BY SCG LONDON | NARVESSEN PAGE 10

Monetu Option 1

MONETU STOREGA OPTION 1

ENTRANCE

BACK OFHOUSE

900

FOOD & SNACKS

DRINKSDRINKS

FRUIT &VEG

DAIRY

ALCOHOL

SNACKSSNACKS

HIGH VALUEALCOHOL

PROMO

850

SALADIMPULSE IMPULSEHOT & COLD

SERVEBAKERY SALAD

900

800

COFFEE BAR

DOTTED LINE INDICATES LINE OF BULKHEAD

COFFEE

FULL HEIGHT DISPLAYFULL HEIGHT DISPLAY

CASH 1 CASH 2

PROMO1200

PLANNING PROPOSALS PRESENTATION BY SCG LONDON | NARVESSEN PAGE 6

Gogola Option 1

ICE CREAMDAIRY

BASK

ETS

BRANDSIGNAGE

BASK

ETS

ALCOHOL

BACK OF HOUSE

FRESH1350

BAKERY

AMBIENTFOOD

1250

12001100

MEDIA &MAGS

POSSIBLE SERVE-OUT

LOW

ICE

CREA

M

SNACKS

DRINKS

REFRIGERATORDISPLAY

SELF SERVESALAD

MEDIA & MAGS

1500

MAIN ENTRANCE FROM STATION - 'ASSUMED' HIGHER FOOTFALL

CAR PARK/EXTERNAL ENTRANCE - 'WALK' THROUGH TO STATION

FRESHPRODUCE

GONGOLA STOREGA OPTION 1

HOT SERVEBAKERY BAKERYAMBIENT

AMBIENT

SNACKS COFFEE & HOTSNACKS

BUILT IN CORNER

1200

CASH 2 CASH 1

IMPULSE

IMPULSE BELOW

NEW HOT & CHILLED SERVER OVER COUNTER, WITH SERVERY TOP

COFFEE BAR TO WINDOW, WASTE ETC BELOW

FULL HEIGHT REFRIGERATORS

1600 HIGH REFRIGERATOR1600 HIGH REFRIGERATOR

FULL HEIGHT DISPLAY

1000

PLANNING PROPOSALS PRESENTATION BY SCG LONDON | NARVESSEN PAGE 7

Gogola Option 2A

CHILLEDFOOD

BACK OF HOUSE

MEDIA & MAGS

LOW UNIT BELOW WINDOW WITH 'MARKET' FEEL & VIEWED THROUGH GLASS

CAR PARK/EXTERNAL ENTRANCE - 'WALK' THROUGH TO STATION

ALCOHOL

BAKERY

CASH

1CA

SH 2

1500

BAKERY

AMBIENT/GROCERY

FRUIT & VEGDISPLAY

DRINKS

MEDIA & MAGS

860

PROMO

BASKETS

GONGOLA STOREGA OPTION 2A

1300 1500

1900

1900

CHILLED

ALCOHOL

PREP AREA

ICE CREAM

HOT SERVE

SALAD

IMPU

LSE

IMPU

LSE

COFFEEDRINKS

CHILLED

CHILLEDICE CREAM

AMBIENT

HOT OR COLD SERVE OVER

GRILL

PREP AREA

1600 HIGH REFRIGERATOR1600 HIGH REFRIGERATOR

FULL HEIGHT DISPLAY

FULL HEIGHT DISPLAY

PLANNING PROPOSALS PRESENTATION BY SCG LONDON | NARVESSEN PAGE 8

Gogola Option 2B

GONGOLA STOREGA OPTION 2B

CHILLEDFOOD

BACK OF HOUSE

MEDIA & MAGS

LOW UNIT BELOW WINDOW WITH 'MARKET' FEEL & VIEWED THROUGH GLASS

CAR PARK/EXTERNAL ENTRANCE - 'WALK' THROUGH TO STATION

ALCOHOL

BAKERY

CASH

1CA

SH 2

BAKERY

AMBIENT/GROCERY

FRUIT & VEGDISPLAY

DRINKS

MEDIA & MAGS

860

PROMO

BASKETS

ALCOHOL

PREP AREA

ICE CREAM

HOT SERVE

SALAD

IMPU

LSE

IMPU

LSE

COFFEEDRINKS

HOT OR COLD SERVE OVER

GRILL

PREP AREA

1600 HIGH REFRIGERATOR1600 HIGH REFRIGERATOR

FULL HEIGHT DISPLAY

FULL HEIGHT DISPLAY

FRES

H

FRES

H

FRESHSNACK

FRESH

FRES

H

FRES

H

FRESHSNACK

FRESH

1300

1600

1200 1500

1400

•Howweappliedtheseprinciples....

SCG London Page 27

UK petrol forecourt audit

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Total–Spar

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Total–Spar

Bright,fresh,communicatestheoffer ‘Healthy,chilled,fresh’ Everydayessentialscommunicatedathighlevel Prominenteye-catchingpromotions

Prominenteye-catchingpromotions Bright,fresh,communicatestheoffer Selfservice&servedfood-Colour&materialscreateanambientarea

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Shell–Select

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Shell–Shop&Select

‘Healthy,chilled,fresh’ Integratedpurchase&fueloffer

Shelfedge-clearcommunicationofcombinedoffer

StrongaisleendoffersOrganised&welcoming

Stand-outpremium&cohesiveselfservicearea

Highlightedareas

Compactandintegratedproduct andoffers

BP–M&S/WildBeancafe Premiumconvenience

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BP–M&S/WildBeanCafe

Strongcommunicationofcoffeeofferoutside Exteriorclearlyzonedbetweenbrands&offer

Offerclearlycommunicatedatentrance Sophisticatedambientgraphics,appealingproductdisplay Zonedflooringfromshoptoservice

SCG London Page 34

BP–M&S/WildBeanCafe

Snacks&impulseimaginativelydisplayed Crosssellingbakeryunit‘Igogreatwithcoffee’

Strongbranding

Stylish&appealingphotography

Perchseatingincoffeearea

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BP–M&S/WildBeanCafe

Multibuy&seasonalpromotions Consistentlanguage

EveryareautilisedtopromoteEngagingbackwall&ambientcolour/texture Consistentfriendlygraphiclanguage,cross-selling

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Esso – On the RunEsso–OntheRun

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Esso – On the Run

Strongbranding&communicationsheirarchy Zones clearly delineated Floorzoning

Bold promotions & product categories

Ambientperimetersignage

Attractiveandvariedmid-foorunits&promotionalpallettes Marketleadingcoffeebrandoffer

Esso–OntheRun

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Texaco – The Co-operativeTexaco–TheCo-operative

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Texaco – The Co-operative

Attractive&welcomingentrances Strong promotions Self service Costa Express

Clear & clean product departmentImpulsepurchaseaisle Marketleadingcoffeebrandoffer

Texaco–TheCo-operative

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