Esso Thinks Global, Acts Local

Exxon Mobil, the world’s largest publicly traded international oil and gas company with 32,500 branded fuel stations and 6,000 convenience stores, is leveraging its global business systems to sell more products in Ireland.

Speaking at the Insight NACS Global Convenience Benchmarks event in Dublin in March, David Richardson, Exxon Mobil’s global convenience retail networks manager, said: “We are taking on Ireland’s toughest convenience challenges by thinking global but acting local.”

Richardson told delegates Esso, which has been operating in Ireland since 1898, was one of the most recognised brands in the Irish market today. It operates a chain of 140 service stations and has a 13% market share.

On the Run, Exxon Mobil’s global convenience store format, is represented in the Greater Dublin area with more than 30 stores.

According to Richardson, On the Run in Ireland attracts up to 750,000 customers per store per year with two thirds of customers buying from the shop, generating a total Euro60m in c-store sales.

Despite the strong figures, Richardson said the company’s strategy for Ireland was to “sell more stuff”.

It has invested in Him’s Convenience Tracking Programme (CTP) in Ireland to understand shopper behaviour and missions.

Richardson told delegates: “This revealed that food for now is a key mission but Esso Ireland faces highly evolved convenience and food-to-go competition.”

Compared with the UK, Irish shoppers visit convenience stores more often and they spend more too.

Richardson said that was benefiting key categories including confectionery, soft drinks, alcoholic drinks, crisps and snacks and milk. However, there were opportunities to sell more newspapers and magazines, chilled products, chocolate bars, wine and bread.

“There is also an opportunity to improve the service and the upsell opportunity is huge – we need to sell more stuff,” he said.

Richardson revealed how the shopping missions and their importance has evolved since 2005. Today, fuel pricing and value for money are the top priorities for Irish shoppers versus three years ago when speed of service and staff friendliness were ranked more highly.

Richardson said Exxon Mobil was leveraging its global business systems to analyse transactions by store type and geography and conducting basket analysis by category and sub-category.

As a result, bespoke fast-lane confectionery and snacking merchandising equipment developed in the UK has been deployed in Ireland in the first quarter of 2009.

Similarly, the company has reviewed the implications for a dark tobacco market with Esso Canada and is developing its Irish strategy accordingly.

Thirdly, multi-pack beverage displays that have been successful in driving growth in North and South America and Asia Pacific are being evaluated for roll out in Ireland.

“The Irish challenge today is to deliver value, target opportunities for growth and leverage our strengths,” Richardson concluded.