3 Big Numbers: Taking a closer look at new store designs
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3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry.
Convenience retailers regularly innovate their store designs.
From 7-Eleven planning to implement a new food-forward format at hundreds of stores to local operators that tailor their corner stores to what the neighborhood needs, upgrading both the look and offer inside helps keep up with customer expectations and turn stores into destinations.
In this week's '3 Big Numbers,' we look at the investment Arko Corp. is making in a food-focused format, the size of Kent Kwik's latest location and the operational impact of Murphy USA's updated store design.
The upper end of what Arko is spending on its new locations.
Arko has been teasing its new food-focused convenience stores since last summer. In its latest earnings report, leaders shared that construction on the first of these seven sites has now begun.
These locations will feature Arko's new proprietary foodservice program, Fas Craves, which will include hot and cold grab-and-go foods, baked goods, pizza, roller grill dogs and other fresh-prepared items, Chairman, President and CEO Arie Kotler said during the company's earnings call last week.
Arko isn't skimping on these projects. The company expects to spend between $700,000 and $1.1 million on renovating the sites to accommodate Fas Craves, Kotler noted in the call.
The square footage of Kent Kwik's upcoming food-focused store.
Kent Kwik, which is owned by The Kent Companies, is testing out a new food-focused format, with its latest iteration expected to open next month, according to its website. The location, which is being built in Midland, Texas, will feature a 6,200-square-foot store and a made-to-order kitchen.
The site has more to offer than just food. It will also have a drive-thru, the company's second-ever Kent Dog Wash and a two-bay car wash, according to Kent Kwik's website. Local reporting even notes that a Kent Lube Fast Oil Change Center will be coming to the site.
The difference in merchandise margin between Murphy USA's new and old designs.
Murphy USA has been operating its new stores in some markets for a while. Anyone interested can even take a peek inside via our coverage of its recently remodeled site near El Paso, Texas.
But thanks to a recent earnings call, we can also look inside the books for these stores, too. According to company data, these revamped designs outperform older stores both inside and out.
In the forecourt, stores with the new design are seeing about 20% more fuel gallons sold, CFO Gallagher Jeff said during the call. The difference is even more stark inside, with a roughly 40% increase in merchandise margins.
'These new stores are driving value and winning new customers, which is while we're aggressively working on our new store pipeline,' said Jeff.
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