Latest news with #3BigNumbers
Yahoo
17-05-2025
- Business
- Yahoo
3 Big Numbers: Taking a closer look at new store designs
This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. 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. Recommended Reading Murphy USA's new store design was the star of Q1
Yahoo
26-04-2025
- Business
- Yahoo
3 Big Numbers: Examining major changes for QuikTrip, Walmart and 7-Eleven
This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. 3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry. Parkland's tumultuous 2025 got more contentious this month as its largest shareholder not only put forward a competing set of board nominees, but also said quickly replacing CEO Bob Espey is one of its top priorities. Espey is stepping down by the end of the year, but his tenure could be cut much shorter if Simpson's nominees win. Whoever's in charge for the rest of the year will need to handle not just the search for a new CEO, but also an extensive strategic review, which could result in a sale of the company. We've covered that kerfuffle extensively. And while that's been going on, several larger retailers shared their own big plans for growth or changes in leadership. In today's '3 Big Numbers,' we look at QuikTrip adding a new state to its footprint, Walmart planning big inroads into the c-store space and Seven & i's board leadership succession plan. The total number of QuikTrip locations as of its debut in Indiana. There's been plenty of talk about the expansion plans from Wawa, Buc-ee's and Casey's General Stores. But QuikTrip has been quietly expanding its reach as well. As of its first opening in Indiana this month, there were 1,149 QuikTrip locations in the U.S. That's an increase of more than 10% from a little over a year ago, according to NACS and NielsenIQ data. From 2023 to 2024, QuikTrip's footprint grew nearly 7%. Besides Indiana, QuikTrip's nationwide expansion over the past couple of years has included opening its first convenience stores in Ohio and Nevada in 2024, as well as upcoming debuts in Kentucky, Florida and Utah. The expected growth of Walmart's c-store footprint from December 2024 to the end of 2025. QuikTrip managed about 10% store count growth in over a year, which is phenomenal. But Walmart is no slouch, either. In December, Walmart opened its 400th fuel station. By the end of this year, it hopes to have about 450, for a gain of 12.5%. There are a few reasons that a c-store boom from Walmart might be concerning for other convenience retailers. First, the big-box retailer has nearly unparalleled buying and bargaining power. That allows it to offer the same everyday low prices inside its convenience stores as it does in its big-box locations. Walmart also has an advantage when it comes to location. While it may need local approvals to put in fuel tanks or for other changes, it doesn't need to find and purchase sites. With more than 4,600 Walmarts in the U.S., the retailer has plenty of real estate already at its disposal where it could add c-stores. The number of years that Seven & i's new executive chairman, Junro Ito, has worked for the company. Seven & i, parent company of 7-Eleven, has had a wild 2025 so far. It came into the year weighing a takeover bid from Alimentation Couche-Tard, parent of Circle K. Since January, it has also announced a CEO shift, the planned IPO of its North American operations and a veritable conga line of board changes. Among these changes is vice president and representative director Junro Ito taking on the role of executive chairman. In that position, Ito 'will focus on fostering relationships with broader stakeholders, including employees and franchisees,' as well as working closely with incoming CEO Stephen Dacus, according to a letter from Seven & i on the change. Ito is new in the position but has a long history with Seven & i. He's a member of the founding family and has worked in and around 7-Eleven since 1990, according to his bio on the company website. While much of his career has been with 7-Eleven Japan, he's been a director of Seven & i since 2009. All that institutional knowledge should be helpful as Seven & i's first non-Japanese CEO takes the wheel. Recommended Reading QuikTrip opens first Indiana store Sign in to access your portfolio
Yahoo
19-04-2025
- Business
- Yahoo
3 Big Numbers: NACS highlights foodservice progress
This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. 3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry. Foodservice is big business for c-stores. Some retailers are adding new items to their menus while others, like Onvo or Refuel, are adding entire programs. So it's no wonder that foodservice was the topic of discussion at the NACS State of the Industry event in Dallas earlier this month. But there's more to it than just fresh meals. From packs of beer to a candy bar at the checkout, c-stores run on all things food and drink. In today's '3 Big Numbers,' we look at how much of c-stores' inside sales come from food and beverages, as well as how customers view these menus alongside QSRs. The percentage of in-store sales at c-stores that come from foodservice. Foodservice makes up more than a quarter of sales at c-stores, NACS reported. This category includes prepared food, commissary and — though it might seem counterintuitive — hot, cold and frozen dispensed beverages. Packaged beverages are separate, and we'll get to them in a moment. While foodservice made up 28.7% of overall inside sales in 2024, it accounted for almost 40% of in-store gross margin dollars, meaning the category offers stores above-average margins. Prepared food accounted for the largest share of foodservice sales at 68.4%. The percentage of customers who believe c-stores are just as capable of offering fresh, quality prepared food as fast-food restaurants. While more and more people are willing to eat at c-stores as retailers shake off the 'gas station food' reputation, there's still a ways to go. Case in point — only 18% of people believe c-stores are just as capable of offering fresh, quality prepared food as QSRs, according to a presentation by Chris Costagli, vice president and food insights lead at NIQ. What can c-stores do to bridge the gap? In addition to keeping quality and value in mind, retailers can leverage messaging around nostalgia, trustworthiness, convenience and health benefits to draw in more diners, Costagli said. Limited-time offers also can help. Costagli noted that 80% of QSR shoppers said it's very important to them to see LTOs on the menu. The percentage of in-store sales at c-stores that come from nonalcoholic packaged beverages. Now let's look at nonalcoholic packaged beverages, which made up just under 18% of in-store sales last year. While these beverages aren't as profitable as foodservice, they nonetheless made up 21.2% of gross profit dollars last year. But these sodas and energy drinks aren't just strong on their own. They also offer synergy with other categories inside the store. Over a third of customers who purchased packaged beverages bought prepared food during the same trip, according to the NACS Convenience Voices program. The average c-store sells 335 types of packaged beverages, according to separate NACS data. This could give c-stores an easy way to boost value, tying that huge variety of drinks already on site to value meals. Recommended Reading 10 notable c-store foodservice launches this past month Sign in to access your portfolio
Yahoo
12-04-2025
- Business
- Yahoo
3 Big Numbers: Digging into 7-Eleven's earnings
This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. 3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry. Seven & i Holdings, parent company of 7-Eleven, released its fiscal Q4 and full-year earnings on Wednesday, and there was a lot to talk about. CEO Ryuichi Isaka likely presided over his last earnings report at the helm, operating income took a big hit and analyst questions focused on the retailer's upcoming IPO of its North American operations, 7-Eleven Inc. When we looked specifically at the North American data for this column, there were a few numbers that jumped out, from hundreds of millions in cost savings to the 104 million 7Rewards and Speedy Rewards members on the books. But since 7-Eleven is banking on its food programs to steady the ship, we decided to focus on its gains in that area. In today's '3 Big Numbers,' we look at how private label goods, hot food and proprietary QSRs are playing a role as 7-Eleven hopes its renewed food focus can boost sales. The number of 7-Eleven stores expected to have QSRs by the end of fiscal 2025. While many customers might associate c-store QSRs with the likes of Arby's or Subway, 7-Eleven has spent years developing its own restaurants, including Raise the Roost Chicken & Biscuits and Laredo Taco Company. 7-Eleven already has QSRs in 1,080 stores, but it plans to reach a total of 1,130 in fiscal 2025, according to the earnings presentation. The benefits are clear. On average, 7-Elevens with QSRs see around 400 extra customers per day, which helps those stores earn more than $2,000 more in daily sales than stores without a restaurant, according to the presentation. Margins are slightly higher for stores with QSRs as well. Seven & i also is looking to streamline SKUs and use meal deals and special offers to boost its food sales, according to the earnings presentation. The average same-store sales increase per day for stores with a modernized food and beverage program. 7-Eleven has been working on its food and beverage modernization program for years. This food refresh includes enhanced grab-and-go areas, bakery items and an updated coffee program, according to the earnings presentation. And according to that presentation, stores that have the full modernization are earning $135 more per day, on average, than they did before the updates. About 563 7-Eleven stores have the full food program, while 1,583 sites have portions of it. Another 423 stores are expected to get a total or partial modernization in the Q1 2025. As the program spreads, this should boost sales and the bottom line. 7-Eleven's profit margin on private label goods. One of the great things about private label items is that, when done well, they keep customers happy while putting more money in the company's coffers. 7-Eleven, for example, noted in its Q4 earnings report that the profit margin on its private label items was 51.3%. National brands, meanwhile, had a 33% profit margin. That's a more than 18 percentage point difference. The retailer plans to press its advantage in fiscal 2025. After adding 215 new private label items in 2024, it's hoping to debut roughly the same amount this year, including launching eight new categories. Recommended Reading 3 Big Numbers: How new tech is paving the way for c-stores
