Matthew Lane, General Manager at Night 'n Day
Matthew Lane, general manager of Night ‘n Day, said the recent announcement for policy changes around tobacco reform was a relief for convenience stores across New Zealand, allowing retailers to move forward with greater confidence and search for innovative opportunities to promote business growth and development, without having to look in the rearview.
Looking towards the new year, Night ‘n Day aims to deliver more value for customers by expanding grocery options. However, achieving a reasonable scale to be genuine competitors against the duopoly isn’t possible within the current wholesale environment.
With global trends of convenience stores adapting to provide consumers with a one-stop shop consisting of grocery essentials and convenient snacks, Night ‘n Day isn’t asking for much when it comes to a fairer playing field.
“For convenience stores internationally, customers will go and grab a basket, walk around and grab a handful of grocery essential items and supplies they need. We are looking at providing better value, and with supply chain fragility shoring up with a spotlight on it, we will ensure that it's a healthy environment,” said Lane.
Lane continued that while this innovation wasn’t likely to solve the changing market fear of the grocery industry, it was poised to serve as a choice.
Having owner-operators on the ground also allows the Night ‘n Day franchise to customise its stores based on each community's needs, selling and serving products from local suppliers and businesses tailored to meet consumers’ growing desire to support local. Night ‘n Day Arrowtown is a prime example, with its range of tourist supplies and boutique chocolates crafted with New Zealand flavours and more.
“That wouldn’t sell in a suburban Dunedin store, so it’s about finding the right products to suit different local areas.”
Lane said that the Night ‘n Day franchise felt fortunate, as its ability to remain open during the pandemic has meant that the business has avoided some of the challenges other retailers have faced. Moving forward, convenience stores like Night ‘n Day will need to adapt and innovate to meet consumer needs and values, which involves breaking free from the restrictive notion that convenience stores are merely a destination for essential items like bread and milk.
Creating a higher-quality and appealing customer shopping experience is at the forefront of Night ‘n Day. This involves building on their existing pillars of hot food, barista-made coffee, and milk bar, incorporating a wider range of grocery needs, and expanding their reach to consumers by providing the convenience of having essentials available via DoorDash, Deliver Easy, and Uber Eats.
“Customers are looking for clean environments and want a more modern feel when they walk through the stores.”
Continued adaptation of store layout and offerings is essential to remain market-relevant. Lane explained that businesses operating with the same operation models as three, four, or five years ago will be left behind in the market.
Over the last four years, the look and feel of Night ‘n Day stores across the country have been elevated with updated interior and exterior elements ranging from improved in-store layouts, refreshed colour schemes, and updated exterior signage.
Technology has been integrated into Night ‘n Day’s business operations behind the scenes to increase efficiency and cohesion across its franchise, including providing self-serve options to enhance customers' experiences and reduce wait times for simple transactions.
An obstacle faced by Night ‘n Day was the limited off-the-shelf self-serve options available, resulting in the required investment to create a bespoke offering for their group. Their self-serve has been rolled out to select stores throughout the network, providing additional convenience to customers looking to pop in and out quickly.
Technology and continued investment are crucial to maintaining a competitive advantage. Lane emphasised that a forward-thinking and open-minded approach was imperative for growth and success in the new year.
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