automation or no automation? - temple mis
TRANSCRIPT
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
2
Nhi Michelle Owen Juliann
PwC
Industry Analysis
• 0.3% increase from 2016-2017
• 55% increase, over 3 decades.
3
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
4
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
7
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
PwC
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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