automation or no automation? - temple mis

Country’s Best Evaluation:Automation or No Automation?

Robin Hood Team

PwC

Overview

Industry & Competitor Analysis

Cost Breakdown: Fuel and Credit Card

Methods Comparison

Costs and Benefits Analysis

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Nhi Michelle Owen Juliann

PwC

Industry Analysis

• 0.3% increase from 2016-2017

• 55% increase, over 3 decades.

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2018 NACS/Nielsen Report on Convenience Industry Store Count

=> Healthy Industry

PwC

Competitor Analysis

Analysis:

• Similar trends

• Currently maintain and manage assets well

=> Expect similar results

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Direct Competitors:

• Casey's General Stores

• 7-Eleven

• Kum & Go

• Mom and Pop shops

Source: Casey's General Stores Annual Report 2016

Country's Best's Website

PwC

Country's Best Cost Breakdown

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Fuel Cost: 67.3%

Country's Best Percentage of Average Cost

Source: Country's Best Website

PwC

Fueling Growth

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PwC

Increased

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20%

40% 60%

vs

Source: Country's Best Website

PwC

Consistent Profit Margin & Demand

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RetailerGross Margins

Americans who drive to

work

85%

(19.7 cents per gallon)

2,000Annual spending

on gas

Source: 2016 NACS Retail Fuels Report

PwC

In-Store Sales

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41%also go inside the store

75%purchase food/beverages

Source: 2016 NACS Retail Fuels Report Source: 2015 NACS Retail Fuels Report

PwC

Limiting Use of Credit Cards

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2.75%Fee per swipe

For purchase <$5

Source: Institute for Local Self-Reliance

PwC

Demographics Comparison

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Our Customers Cash-Only Users

Small to mid-sized purchases

Low income

50%

Buy <10 items

Low income

50%

Source: Infoscout Source: Creditcards.com

PwC

Average Customer Credit Purchase

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6.5%

PwC

Cost Savings: $2.7 million

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Total Revenue - 2016 $7,620,632,000

40% of Total Revenue –

Food Goods$3,048,252,800

50% of Sales –

Credit$1,524,126,400

6.5% of Credit Sales –

Under $5$99,068,216

2.75% -

Credit Card Fees Saved$2,724,376

PwC

Easy Implementation

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PwC

Recap & Refocus

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PwC

Our Solution

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Convenience

Community

Cost-Savings

PwC 17

Original Design

PwC 18

Innovated Design

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Candidate Solutions – Compared

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Criteria Convenience Community Cost-savings

Full Automation

Efficient & easy to

integrate

Greater customer service

Very profitable over time

Minimal Automation

Time saver yet hard to integrate

Potential for better

interactions

Low cost yet limited savings

Zero Automation No changeMaintains

current interactions

No extra expenses yet no savings

PwC

General Projection of Net Income

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PwC

Costs: No Automation

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Automation

No Automation

PwC

Automation/Renovation Costs

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$62,500

$31,496

One-Time Costs

Annual Savings

$100,000

Source: MIT Research

Source: National Conference of State Legislatures, ShopKeep

Source: TCT Construction

PwC

Net Profit Comparison

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Cumulative Gain in 2018 – 2024 $23,873,074

Cumulative Gain in 2025 – 2034 $138,662,095

Automation

No Automation

PwC

Country’s Best Outcome

NET INCOME GROWTH: $166 MILLION

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CONVENIENCE COMMUNITY COST-SAVINGS

PwC 25

`

PwC

Thank you for listening

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