AT NACS CSA, VALORA GROUP SHARED HOW IT PIVOTED AND FOUND GREATER PROFITS.

For decades, Valora’s core business had been its small, incredibly convenient kiosks outside European transit stations that sold newspapers, magazines and tobacco to on-the-go commuters.

Valora Group seemingly had it all—great locations, great customer traffic and core items that were in demand and sold with great efficiency.

Then, in a matter of a few years, business started to dwindle—and then everything changed in 2020 with the onset of the pandemic.

Yet the company came out of the experience stronger and more profitable.

Valora Group Switzerland CEO Michael Mueller shared learnings from the company’s transformation in a case study presented this week during the NACS Convenience Summit Asia in Tokyo.

Change came quickly, starting with the introduction of the iPad in 2010.

The new device wasn’t initially seen as a threat to print periodicals, but sales of Valora’s periodicals shrank to one-fifth of what they once were.

Then, a decade later, the pandemic disrupted commuter traffic that never fully returned.

Sales in Germany, for instance, fell another 30% while labor expenses doubled because of new government regulations.

To survive, let alone thrive, the company needed a new purpose and economic model. It found it by leaning into foodservice.

Today, customers are reconditioned to seek it out for food and drinks: 60% of consumers think of Valora’s stores as destinations for cold beverages, 32% see them as a destination for baked goods and sandwiches and 23% see them as destinations for coffee.

But challenges have continued. Channel blurring led to new competition, especially from discount grocer Aldi that began to offer prepared sandwiches beyond its standard fare.

How did Valora radically reinvent itself and succeed despite the challenges? Mueller cited a few lessons and best practices for attendees:

• Build out multiple formats for food: What may work for a specific customer at one location may not work at another one. Mueller suggested evolving from focusing on location to having a mindset of offering a range that best fits customer shopping occasions.
• Integrate everything: The company looked at new models for growing its disparate foodservice brands. Kiosks were successful with the previous product line, but the company expanded into selling foodservice in gas stations and on college campuses. At some of its gas station locations, 70% of transactions didn’t involve a fuel sale; customers came to the location for the food—even more so on weekends.
• Focus on fresh and sophisticated: Fresh doesn’t have to mean prepared onsite, Mueller noted. Afterall, the Japanese c-store market is renowned for its foodservice offer, yet very few items are made in the store.
• Focus on training: Selling foodservice requires entirely different skills. Valora focused on upskilling employees, some who had been with the company for decades, to create a foodservice-focused customer experience.

“Ultimately, it comes down to understanding the customer and the occasion,” said Mueller.

The 2025 NACS Convenience Summit Asia took place February 25-27, in Tokyo.

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