GLGi: Convenience Retailing & Petroleum Marketing Industry
Wednesday, July 11, 2007
New York
© 2007 Gerson Lehrman Group Inc., All Rights Reserved
Council Member Biography
Steve Montgomery is currently the President of b2b Solutions, LLC, a premier c-store consulting team that has the capability and resources to provide total solutions to help retailers and suppliers understand and accomplish their goals in the c-store / petroleum channel. Mr. Montgomery has over 25 years of experience that spans top management positions in both entrepreneurial and large corporate business environments. He has served as President and Member of the Board of Directors for Dairy Mart Corporation, and as General Manager for Convenience Stores and Manager of Convenience Retail Strategies and Programs for Amoco Oil Company. Steve is a past member of the Board of Retailer Directors of the National Association of Convenience Stores (NACS) and is currently a Member of its Supplier Board. Steve is a frequent contributor to articles on the convenience / retail petroleum industry and is a frequent speaker at industry functions. He has worked with NACS as a Program Director and Program Moderator on topics ranging from Foodservice to Non-Traditional Competitors.
© 2007 Gerson Lehrman Group Inc., All Rights Reserved
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Randi CulangConsumer Goods & Services Global Research HeadGerson Lehrman Group850 Third Avenue, 9th FloorNew York, NY [email protected]
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Convenience Retailing &
Petroleum Marketing Industry
AgendaAgenda
Overview Of The C-store / Petroleum Industry
Current Structure Changes
Industry Challenges
Major Players– Major Oil Companies (MOC’s)– The Publicly Traded Companies
Industry OverviewIndustry Overview
Change in Retail SalesChange in Retail Sales
Source: US Department of Commerce
2004 2005 2006
Total Retail Sales 6.5% 7.0% 5.0%
Warehouse Clubs/Superstores
12.1% 11.4% 10.3%
Convenience In-Store 13.7% 14.4% 8.3%
Restaurants 6.5% 6.0% 8.0%
Drug Stores 1.6% 4.9% 7.9%
Grocery Stores 5.7% 4.2% 4.1%
Discount Department Stores
0.9% (1.1)% 0.5%
Average Industry Store MetricsPer Month
Average Industry Store MetricsPer Month
Sales 2005 2006 Change
Merchandise $79,458 $84,450 6.3%
Foodservice $10,688 $10,942 2.4%
In-Store $90,146 $95,392 5.8%
Motor Fuel $213,333 $254,658 19.4%
Source: 2007 NACS State of the Industry Survey powered by CSX
Average Industry Store MetricsPer Month
Average Industry Store MetricsPer Month
2005 2006 Change
In-Store Gross Margin $ $26,623 $26,708 0.3%
Motor Fuels Gross Margin $ * $17,675 $13,617 (23.0)%
Operating Income $9,209 $8,250 (10.4)%
Pretax Profit $3,516 $2,783 (20.9)%
* Fuel Stores Only
Source: 2007 NACS State of the Industry Survey powered by CSX
C-Store Industry OverviewC-Store Industry Overview
Number Of Stores – 145,119
Number Selling Fuel – 114,974
Avg. Gross Margin Per Gallon – 14.7¢
Avg. Merchandise Sales – $1,144,704
Avg. In-store Gross Margin – 28.0%
NACS SOI 2007
Changing Business ModelChanging Business Model
Who Sells Fuel?Who Sells Fuel?
Gasoline Is A Zero Sum Game 78% Of All Gasoline And Diesel Sold By C-
stores (2005 NACS Estimate)
2.4%< Of Fuel Locations Owned And Operated By MOC’s (C-Store News, August 2006)
– BP North America: 1,131 stores – ExxonMobil Corp.: 896 stores – ChevronTexaco Corp: 373 stores – Shell Oil Products US: 168 stores – ConocoPhillips Inc.: 150 stores
Revenue / Profit StreamsPer Location / Per Year
Revenue / Profit StreamsPer Location / Per Year
NACS 2007 SOI
Average Sales
% of Total
Average $GP
% of Total
Gasoline $3,055,896 73% $163,404 34%
Store Sales $1,144,704 27% $320,496 66%
Total $4,200,600 100% $483,900 100%
Consumer InsightsConsumer Insights
By The NumbersBy The Numbers
Percent Who Shop C-store At Least Once A Month– Male 78%– Female 75%
Frequent Shoppers (once a week or more)
– Male 65%– Female 55% (main difference in daily frequency – 14%
vs. 8%)
Reason For C-Store TripReason For C-Store Trip
010203040506070
b2b Solutions, LLC
Reason For Store ChoiceReason For Store Choice
39.20%
28.50%
25.40%
24.90%
20.20%
18.20%
17.40%
11.20%
9.90%
8.80%
8.40%
6.40%
GASOLINE AVAILABLE
HOURS OF OPERATION
PRICE OF GAS
FRIENDLY EMPLOYEES
CLEAN BRIGHT STORE
PRICE OF PRODUCTS
SELECTION OF PRODUCTS
NAME OF CHAIN
VARIETY OF SERVICES
OVERALL STORE APPEARANCE
RESTROOMS
FRESH PREPARED FOOD NPD Research
Current Structural ChangesCurrent Structural Changes
Industry StructureIndustry Structure
Independent Refiner
Distributor / Jobber
Distributor Owned / Dealer Operated
On Fuel Commission
Major Oil Company
Distributor Owned / Operated
Distributor Supplied
Company Owned / Dealer OperatedOn Lease Basis
Company Owned /Company Operated
Dealer Owned / Dealer Operated
Distributor Owned / Dealer OperatedOn Lease Basis
b2b Solutions, LLC
Current Structure ChangesCurrent Structure Changes
Major Oil Companies Shedding Stores– Big companies – not good at operating
small boxes– Hard to get senior management attention
» SOTG / never make the rounding» ROI less than alternatives
– Network rationalization» primarily going to jobber / franchise operations» recoup capital / retain fuel volume
MOC’s Disposition FormatsMOC’s Disposition Formats
Shell – Multi-Site Operator (MSO)– Couche-Tard (236 sites)
BP (Auction Process)– ARCO am/pm franchise– BP am/pm franchise
ExxonMobil (On The Run - Franchise) Chevron (Extra Mile - Franchise)
Industry’s Economic ChallengesIndustry’s Economic Challenges
Industry’s Economic ChallengesIndustry’s Economic Challenges Increased Capital Cost Changing Business Model A Challenge For
Smaller Format Stores (Island Marketers) Increasing Complexity Dependence On Limited Number Of Product
Categories Increasing Operating Cost
– Employee turnover– Labor cost (min. wage increasing)
Increasing Capital RequirementsIncreasing Capital Requirements Convenience Based Business
– Easy access to traffic critical– Competition for corners driving up land cost
(especially drugstores)
Increased Size– Stores
» more complex offering» changing expectations
– Land requirements increasing» changing product mix requires more parking spaces» additional profit centers
Increased Capital RequirementsIncreased Capital Requirements
NACS SOI 2002 / 2006
2002 2006
Urban Rural Urban Rural
Land $671,300 $381,200 $836,714 $432,790
Bldg. $513,000 $537,000 $771,199 $557,948
Equipment $562,700 $550,700 $1,132,875 $820,501
Inventory $84,800 $72,600 $113,361 $103,521
Total $1,831,800 $1,541,500 $2,854,149 $1,915,060
Reliance On Selected CategoriesReliance On Selected Categories
Gasoline
Cigarettes
Top Ten Categories
Reliance On - GasolineReliance On - Gasoline
Fuel Is Traffic Driver C-store Sell 78% Of All Gasoline (NACS
Estimate – 2005) C-stores – ⅓ Margin Comes From Fuel Fuel Is Becoming More Of A Commodity
– Government regulation (allows less variation)
– Spaghetti factor– More c-store retailers going “unbranded”
Reliance On GasolineReliance On Gasoline Fuel Profitability Measured On CPG Reported On Gross Basis Reported Based On WAM NACS Reported Fuel Margins
– 2002 – 12.7 CPG– 2003 – 13.7 CPG– 2004 – 12.7 CPG– 2005 – 16.3 CPG– 2006 – 14.7 CPG
Margins Vary By Region / MarketNACS Fact Book 2006
NACS 2007 SOI
Reliance On – GasolineMargin Variation
Reliance On – GasolineMargin Variation
OPIS Presentation NASC 2007 SOI
Reliance On - GasolineReliance On - Gasoline
Impact Of Credit Card Fees– Credit card usage increases as gasoline
prices increase– Consumers urged to use higher fee cards– NACS reports credit card fees have risen
from $3.2B in 2003 to $6.6B in 2006– Credit card fee structure
» Flat rate per transaction» Plus %
Reliance On - GasolineReliance On - Gasoline
Credit Card Alternatives “Discount For Cash”
– Typical 5¢ per gallon– Credit Cards Fighting (CA Lawsuit)
Debit Cards (lower fees) ACH (Automatic Clearing House)
– Flat fees (some as low as 15¢ per transaction)– Linked to
» loyalty cards» drivers’ licenses
Reliance On - GasolineReliance On - Gasoline New Competitors
– Big box (Wal-Mart)– Supermarkets – Membership organizations (Sam’s, Costco, BJ’s)
Changes In Their Business Model– Impact on selling enough fuel to impact overall
sales / margin numbers– Wal-Mart selling its real estate to Murphy– Wall Street demand that they make money– Impact on certain areas of the country greater
than others (Texas vs. North East)
Reliance On - CigarettesReliance On - Cigarettes Model Changing
– Had a sizable profitability component based on purchases / displays
– Now based more on actual sales NACS SOI Data (Short Term Changes Not Dramatic)
– 2007» 34.35% of in-store sales» 21.1% of in-store gross margin
– 2002» 38.7% of in-store sales» 25.9% of in-store gross margin
Reliance On - CigarettesReliance On - Cigarettes % Gross Margin Declining
– 2002 (20.8%)– 2007 (18.0%)– Margin declining, but on higher unit value
$ Gross Margin Increasing (Avg. Per Store)– 2002 ($63,657) – 2006 ($69,742)
Business Moving From Cartons To Packs– 2002 (62.8% cartons)– 2005 (41.0% cartons)
NACS Fact Book 2003 / NACS 2007 SOI / NACS SOI Index Group
Reliance On - CigarettesReliance On - Cigarettes
Data Source: AIM
Convenience / Gas Retailers Five Year Carton Shipments
Cigarette Category Continues To Grow In The Convenience Store Channel
Still Approx. 18.5 Million Consumers Buying Cigarettes In Other Than Convenience/Gas
Premium Brands Continue To Grow In Market Share
Premium Brand Market Share In Convenience / Gas Is 77.6% (Higher Than Any Other Class Of Trade)
Reliance On - Cigarettes
Data Source: McLane Company
2007 Top Ten Categories(as a % of GM$ Contribution)
2007 Top Ten Categories(as a % of GM$ Contribution)
Category % Of In-store GM$Cigarettes 21.1Packaged Beverages 17.0Beer 8.6Foodservice Prepared Onsite 7.9Hot Dispensed Beverages 7.3Candy 5.7 Cold Dispensed Beverages 3.7Other Tobacco 3.7Salty Snacks 3.7General Merchandise 2.6
All Others18.7%
Top 1081.3%
NACS 2007 SOI
Increased Operating Cost - LaborIncreased Operating Cost - Labor
Measured In Terms Of Hours Per Store Per Week Dollars (Per Store Per Week/Month) % Of Sales (Total / Inside) % Of Total Gross Margin Sales Per Man Hour Sales Per Labor Dollar (Foodservice)
Increased Operating Cost - LaborIncreased Operating Cost - Labor
Growing In Terms Of Dollars Stable / Declining As Percentage Of Total
Gross Profit– 2001 (38.6%)– 2005 (35.9%)– Influenced by growth In $GM from foodservice
Impact of Proposed Increase In Min. Wage
NACS 2002/2006 SOI
Increased Operating Cost - LaborIncreased Operating Cost - LaborTurnover – The Hidden Cost
Average Store Has 11.1 Employees– 6.1 Full time– 4.0 Part time
Turnover Rates (NACS 2007 SOI Same Store Sample)
– Store managers (19.7%)– Full time (83.9%)– Part time (79.8)
Turnover Cost– Depends on metrics used (hard / soft)– Potentially greater with larger foodservice offer
NACS 2006 / 2007 SOI
The PlayersThe Players
The PlayersThe Players
The MOC’s
Casey's
The Pantry
Alimentation Couche-Tard, Inc.
Susser Holdings Corporation
Delek US Holdings, Inc.
The Players – The Oil CompaniesThe Players – The Oil CompaniesFuel – Not Store Driven
ExxonMobil BP Chevron Shell Amerada Hess ConocoPhillips, Inc Sunoco CITGO Tesoro
The Players – Casey’sThe Players – Casey’s Headquartered In Ankeny, Iowa Operates Primarily In Rural Markets Operates 1,463 Stores In Nine Midwestern
States Low Cost / Low Sales Utilizes Self-distribution For In-store Mdse.
(90% Of Items Sold) Hauls Most Of Its Own Fuel (~75%) Known For Proprietary Pizza / Doughnuts
The Players – Casey’sThe Players – Casey’s Historically Used Organic Growth
– Purchased 49 Gas N’ Stops January, 2006– 2006 Annual Report future acquisitions likely
Fuel– Generated 70.8% of net sales– 2006 Margin (11.5 cpg) / 2007 goal (10.8 cpg)– Contributed 24.3% of total gross margin
In-Store– Generated 29.2% of net sales– 2006 Margin (31.5%) / 2007 goal (32.2%)– Contributed 75.7% of total gross margin
The Players – The PantryThe Players – The Pantry Headquartered In Sanford, North Carolina Operates In Eleven States In Southeast Operates 1,500 Stores 80% Of Stores Branded Kangaroo Express Operates 197 QSR’s
– Subway– Quiznos
Operates 179 Car Washes Average Store Size 2,600 Sq. Ft.
The Players – The PantryThe Players – The Pantry Fuel Brands (BP/Amoco / CITGO (82%) and Kangaroo –
1,100 locations)
Fuel– Generated 77% of net sales – Gross margin 15.8 cpg– Contributed 35% of total gross margin
In-Store– Generated 23% of net sales– Gross margin 37.4%– Contributed 65% of total gross margin
The Players – Alimentation Couche-Tard
The Players – Alimentation Couche-Tard
Headquarted In Laval, Quebec Canada Operates In Canada (Mac’s) / U.S. (Circle K) Entered U.S. Via Acquisition In 2001 Operates 3,000+ Locations In 28 States Operates Decentralized Structure of Six
Region In U.S. (Max. Preferred 600 Stores) Regional V.P. Of Operations Function As
Business Unit CEO’s 77% Of Revenue Comes From U.S.
The Players – Alimentation Couche-Tard
The Players – Alimentation Couche-Tard
Fuel (U.S.)– Generated 64.2% of net sales– Gross margin 15.4 cpg – Contributed 25.1% of total gross margin
In-Store (U.S.)– Generated 35.8% of net sales – Gross margin 33.2%– Contributed 74.9% of total gross margin
IMPACT Store Upgrade Program (Innovation-Marketing-People-Alimentation-Couche-Tard)
– Designed to target local preferences– Cost of $90-$180MM– ~50% Currently completed
The Players – Susser Holding Corp.The Players – Susser Holding Corp. Headquartered In Corpus Christi, Texas Long Family History In Industry Went Public In October, 2006 Operates In Texas And Oklahoma 320 Stores Re-imaged To Proprietary Stripes Brand
In 1st Qtr. 2007 From Circle K 135 Laredo Taco Company Locations Supplies Fuel To 367 Dealers
The Players – Susser Holding Corp.The Players – Susser Holding Corp. Fuel
– Generated 71.3% of net sales– Average annual gallons 1,243,000– Gross margin 13.6 cpg– Contributed 37% of total gross margin
In-Store– Generated 28.7% of net sales– Average mdse. Sales per store $887,000– Gross margin 32.6%– Contributed 63% of total gross margin
The Players – Delek USThe Players – Delek US Based In Nashville Owned By Delek Group Limited (Israel) Entered US Market In May, 2001 With
Acquisition Of Mapco Express Went Public May, 2006 Operates Texas Refinery Sells Fuel Under Its Own Plus Four Other
Brands– BP– Exxon– Chevron– Shell
The Players – Delek USThe Players – Delek US Fuel
– Generated 76.3% of net sales– Average annual gallons 1,075,000– Gross margin 14.5 cpg– Contributed 37% of total gross margin
In-Store– Generated 23.7% of net sales– Gross margin 30.6%– Contributed 63% of total gross margin
69% of In-Store Merchandise Comes From McLane Company
The Players – Alon USAThe Players – Alon USA Based In Dallas, TX Owned By ALON Israel Oil Co. LTD Entered US Market In August, 2000 With
Acquisition FINA Inc.'s Downstream Operations Went Public July, 2005 Operates
– Four Refineries (Texas, California and Oregon)– 1,200+ FINA brand retail sites– 206 Southwest Convenience Store (FINA and 7-
Eleven)» West Texas» New Mexico
The Players – Alon USAThe Players – Alon USA Fuel
– Generated 55.3% of net sales– Average annual gallons 408,000– Gross margin 16.0 cpg– Contributed 19.1% of total gross margin
In-Store– Generated 44.7% of net sales– Gross margin 32.9%– Contributed 80.9% of total gross margin
55-60% Of In-Store Merchandise Comes From McLane Company
Q&AQ&A
AppendixAppendix
Purchase Value Purchase Value
Value Primarily Based On EBITDA EBITDA Based
– Current store level– Adjustments
EBIDTA Ranges– 4X to 6X fee properties– 1X to 3X non-fee properties
Purchase Value Purchase Value
Sales Lease Back Popular Financing Mechanism
Based On Coverage Ratio (EBITDA After Corporate
G&A Allocations To Rent Ratios) Ranging From 1.75X To 2.0x
Cap Rates Range From 8.5% to 9%
Annual Change in Retail SalesAnnual Change in Retail Sales
Source: US Department of Commerce
2004 2005 2006
Total Retail Sales 6.5% 7.0% 5.0%
Convenience Stores
In-Store Sales 13.7% 14.4% 8.3%
Motor Fuel Sales 18.9% 31.1% 17.9%
Total Sales 17.1% 25.5% 14.9%
2007 Survey Sample2007 Survey Sample
CategoryNielsen Count of
Convenience Stores
SOI Sample
(including CSX)SOI Sample % of
Nielsen Count
A(1-10 stores)
96,639 301 0.3%
B(11-50 stores)
12,529 2,008 16.0%
C(51-200 stores)
10,403 2,885 27.7%
D(201-500 stores)
6,296 2,542 40.4%
E(500+ stores)
19,252 14,282 74.2%
Total 145,119 22,018 15.2%
Source: Nielsen, 2007 NACS State of the Industry Survey powered by CSX
Data Source: IRI/MARLIN
Share Of Total U.S. Cigarette Industry Volume by Major Class of Trade
Share Of Total U.S. Cigarette Industry Volume by Major Class of Trade
Driving Behavior Impacts C-StoresDriving Behavior Impacts C-Stores
■ Consumers Who Said They Are Shopping C-stores Less Are Also Driving Less Than Last Year
■ 41% Of C-store Shoppers Say They Are Driving Less
Source: The NPD Group / Study: Winning Back the C-Store Shopper
Driving Behavior Impacts C-StoresDriving Behavior Impacts C-Stores
Average Hours A Day In Car
3.9
4.5
5.0
4.8
4.3
3.2
Light (1-5)
Medium (6-10)
Heavy (11-19)
Very Heavy (20+)
C-Store Shoppers
NON-C-Store Shoppers
Source: The NPD Group / Study: Winning Back the C-Store Shopper
C-Store Shopping At The Time Of Gas Purchase Continues To Fall
C-Store Shopping At The Time Of Gas Purchase Continues To Fall
72
23
73
22
74
22
75
20
76
19
NO OTHER SERVICE CONVENIENCE STORE
2002 2003 2004 2005 2006
Source: The NPD Group / Motor Fuels Index
Other Services Used at Time of Gas Purchase
C-Store Channel PenetrationC-Store Channel Penetration
63.1% 63.6% 61.8% 60.5%
2003 2004 2005 2006
Source: The NPD Group / Convenience Store Monitor
Penetration = Percentage Of Individuals Who Made A C-store Purchase In An Average 30 Day Period.
-0.8% 0.8% -2.8% -2.1%
Gasoline Is A Zero Sum GameGasoline Is A Zero Sum Game
Bought Gasoline
No Gasoline Purchase Of the adult
population buys gasoline at least once each 30 days
b2b Solutions, LLC
Reliance On – GasolineMargin Variation
Reliance On – GasolineMargin Variation
OPIS Presentation NASC 2007 SOI
Industry Challenges - GasolineIndustry Challenges - Gasoline
Credit Card Fees– Credit card fee structure
» Varies by issuer» Card type
– OPIS numbers (May 28 news letter) – several MOC’s have issued temp drops in fees
– Range for ExxonMobil » MasterCard – 1.90% » AMEX – 2.90%
NACS / Merchants Coalition Fighting – In congress– U.S. has some of the highest interchange rates
Reliance On - CigarettesReliance On - Cigarettes
Data Source: IRI/MARLIN
Convenience / Gas Cigarette Category Five Year Sales
0%
10%
20%
30%
40%
50%
60%
70%
C-Gas Other Pack Outlets CTS Other Carton Outlets
2000 2001 2002 2003 2004 2005 2006
U.S. Cigarette Volume Trends - By Retail SegmentU.S. Cigarette Volume Trends - By Retail Segment
Data Source: IRI/MARLIN
Reliance On - CigarettesReliance On - Cigarettes
C-Store Visit FrequencyC-Store Visit Frequency
6.87 6.92 6.64 6.69
2003 2004 2005 2006
Source: The NPD Group / Convenience Store Monitor
Visit Frequency = Average Number Of Visits Individuals Make To A C-store In An Average 30-day Period.
-5.1% 0.7% -4.0% 0.8%
2007 Top Ten Categories(as a percent of in-store sales) 2007 Top Ten Categories(as a percent of in-store sales)
Category % Of In-store SalesCigarettes 34.4Packaged Beverages 13.8Beer 12.2Foodservice 12.1Other Tobacco 3.8Candy 3.7Salty Snacks 3.2General Merchandise 2.0Fluid Milk 1.9Packaged Sweet Snacks 1.5
Top 1088.5%
All Others11.5%
NACS 2007 SOI
Foodservice Category Analysis(18.4 Percent Of Total In-store Sales)
Foodservice Category Analysis(18.4 Percent Of Total In-store Sales)
FoodPreparedOnsite41.4%
Cold DispensedBeverages17.3%
PackagedSandwiches5.89%
Hot DispensedBeverages31.8%
FrozenDispensedBeverages3.5%
NACS 2007 SOI
The Players – Casey’sThe Players – Casey’s Rural Markets
– 62% of its stores in markets with less than 5,000 – Only 12% are in markets of 20,000 or more
Nine Midwestern States: Iowa, Illinois, Indiana, Kansas,
Minnesota, Missouri, Nebraska, South Dakota, and Wisconsin Product Selection - 1,800 SKU’s
The Players – Casey’sThe Players – Casey’s
Gasoline– Two grades of fuel (regular/mid-grade)– Avg. throughput 802,451 gallons
Uniform Stores – Total Cost $1.3MM – 2,720 sq, ft.
Store Generally Open 16 Hours (6 a.m. – 11 p.m.
The Players – The PantryThe Players – The Pantry Operates In Eleven States (Indiana, Kentucky,
Virginia, Tennessee, North Carolina, South Carolina, Georgia, Alabama, Mississippi, Louisiana, Florida)
Additional Fuel Brands (Chevron and ExxonMobil)
Stores That Sell Fuel – 1,014
The Players – Alimentation Couche-Tard
The Players – Alimentation Couche-Tard
Just Lost Two Key Executives– Regional head (Florida / Gulf Region)– Head of eastern North America operations
Uses Sale Leaseback As Part Of Acquisition Strategy
The Players – Alimentation Couche-Tard
The Players – Alimentation Couche-Tard
Six U.S. Regions (Midwest Region, the Great Lakes Region, the U.S. West Coast Region, Arizona, the U.S.
Southeast Region and the Florida and Gulf region) Operates 300 QSR’s (Incl. Subway, Dunkin’ Donuts,
Noble Roman’s, Quiznos, Blimpie)
Over 62% Of All Locations (U.S. and Canada) Offer Fuel
Goal Is More Proprietary Foodservice Store Size 2,000 – 2,500 sq. ft. New Stores 3,000 Sq. Ft. With 3,200 SKU’s
The Players – Susser Holding Corp.The Players – Susser Holding Corp. Store Locations
– Texas (306)– Oklahoma (19)
Store Open 24 Hours (321) Stores That Sell Fuel (323) Freestanding Stores (98%) Average Store Size (3,100 sq. ft.) New Locations (55 have 4,800 sq. ft.)
The Players – Susser Holding Corp.The Players – Susser Holding Corp. Has Used Sale Leaseback (74 locations /
$170MM)
Offers 2,500-3,000 SKU’s Purchases 40% Of Its Mdse. From McLane
Company Gasoline Brands (Valero – 90%+ / rest Shamrock,
Chevron, Exxon and unbranded)
Avg. Throughput – 1,243,000 Gal. Per Yr.
The Players – Delek USThe Players – Delek US States It Customizes Offer To Local Market 66% Stores Open 24 Hours / Remainder 16
Hours 79% Of Its Locations Are Corners Avg. Store Size 2,360 / 69%> 2,000 Sq. Ft. Same Store Merchandise Sales Up 2.9% 2006 Store Gross Margins 30.6% (Fueled By
Increase In Food And Fountain)
Private Label Products (Water, Bag Candy, Juices, Energy and Soft Drinks)
The Players – Delek USThe Players – Delek US Centralized Management New Offices Opened July, 2006 Operates 394 Stores (87% in Alabama, Tennessee and Virginia,
others in Arkansas, Georgia, Kentucky, Louisiana, Mississippi)
Signed To Purchase 107 Calfee Co. Sites Operates Stores Under Five Brands (MAPCO Express,
MAPCO Mart, East Coast, Fast Food Fuel and Discount Food Mart)
Just Developed New Upscale Format - MAPCO Mart– Expanded proprietary restaurant offer (Grille Marx) with
made-to-order grill sandwiches, premium coffees and walk-in beer caves
– Touch screen terminals at gas islands that allow customers to order food while fueling
The Players – Alon USAThe Players – Alon USA Centralized Management Retail Headquartered in Odessa, TXSigned To Purchase 107 Calfee Co.
Sites Purchase 55-60% OF In-Store MDSE.
From McLane Company Have Rights to License 7-Eleven Name
in West Texas and Majority of Counties in New Mexico
The Players – Alon USAThe Players – Alon USA Installing New POS System