Convenience stores pop up everywhere in Germany these days. Not every shop however is able to stand up to the strong competition. Many store operators overprice their items and in doing so, price themselves right out of the market. This is why eight large wholesalers have joined forces and are now helping smaller companies. The MCS Group does not just supply numerous convenience stores; it also supports them with individual, sales-promoting concepts. Managing Director Torsten Eichinger tells us who his company’s customers are.
Mr. Eichinger, what is the MCS Group and who are its members?
The MCS GmbH is an association of eight regional big wholesalers that are spread all over Germany and service approximately 15,000 customers, ranging from bakeries, kiosks, gas stations, stores at train stations and airports all the way to smaller-sized grocery stores – the entire spectrum of the convenience market.
What advantages does this network offer its members?
It primarily provides different synergies. By grouping, partners that are medium-sized and still compete against the big companies receive better conditions.
We also develop sales-promoting concepts together. It is definitely easier for members to divide costs by eight than to bear all costs by themselves. What is also important for us is the input by different experts. We have accomplished this with our sales associates that keep us informed.
How closely do MCS members work together?
The eight members of the group meet regularly and discuss all business affairs – particularly if new products are to be introduced into the market. Speed and innovative products shape the convenience market. This is why we see each other very frequently and discuss which products we would like to add to the product lineup. The best example for this: shortly before the Champions League final, we decided to add an energy drink from both clubs and to market it accordingly. This way we made it possible for our clients to benefit from this big finale overnight.
In what aspects does MCS GmbH support convenience stores in Germany?
We primarily offer strong support in the area of consulting. Eighty sales representatives support our customers in their choice of the latest variety of products. They also make recommendations for their placement and tackle the appropriate concepts with the customers. We also support our clients in the implementation of sales promotion measures. Ultimately, we benefit from their strong sales. We are equal partners during the consultations. Our clientele predominantly consists of medium-sized convenience stores. We are not corporate-driven and only have medium-sized partners that are active in individual regions.
A majority of the customers the network is servicing are in the food trade. What significance do grocers have in the convenience sector these days?
If they want to be around in the future, the traditional mom-and-pop stores will develop more and more towards a convenience store concept. We support grocery stores with their respective range of products, but also in their processes and communication with the customers, so they are able to meet the demands of the convenience customer of tomorrow.
What role does regionalism or nationwide business play for the MCS network?
Regionalism plays a big role. Our local partners are very committed to their region – particularly in the traditional grocery stores. It is very important for them to offer regional products by local suppliers in their product selection and to transport them. The MCS partners take sustainability literally in this case.
Nationwide business on the other is important, so the demand of wholesale clients is being met. Our prospective major customers, like smaller oil companies or chain stores at train stations for instance do not adhere to the constraints of the individual wholesale company and the individual MCS partners. MCS in Offenburg takes over as the coordinator for nationwide business transactions.
What are the three most important rules a successful convenience store should follow?
First, it should constantly check its price structure. Convenience stores are repeatedly suspected of being too expensive. To some extent, that is a bias, but in some instances, it is true. This is often because the store operator is not dealing enough with price structures and thereby potentially prices himself/herself out of the market.
On the other hand, just like anywhere in the retail sector, staff is essential. It is important to include your staff into the active sales process. One classic scenario would be when a customer orders a cup of coffee and the sales assistant asks him/her whether he/she would also like to add something sweet to eat to his/her order, or vice versa. This is a simple way of generating additional revenue.
Innovations are just as important. Innovative products shape the convenience market, and the shop operator should be open to continuously add new products to the portfolio and offer customers something new all the time.
What goals does the MCS GmbH have for the future?
It is very important for us to assist the shop owner in his/her daily business. We are not just mere logisticians, but we are also already distinguishing ourselves through consulting, and we will even increase this aspect in the future. We want to be the quality supplier for the convenience market that supports our clients with our own academy for instance. We make sure that the client generates more sales and is able to convert the qualitative aspects over into quantitative ones. This is the only way for us to maintain continuous growth.
Interview: Michalina Chrzanowska, iXtenso.com
