The
gasoline retailing industry is crying out for a new and improved
margin experience.
A
new retail philosophy and concept is needed, designed to deliver
what eminent economist Peter Drucker calls innovative
or creative revenue: high, double-digit margins, and
even triple digit returns.
The
c-store phenomenon proved people will buy other things along with
gas, and will even pay high prices for them. Indeed, the c-store
is now the obligatory cost of entry in gasoline retailing.
The next phase of the industrys evolution arrived well over
a decade ago: fast food co-branding. These co-branded sites offer
higher product margins but are more labor intensive to operate
than a c-store, require more extensive management experience,
and can be an expensive proposition. And if a retailer rents out
square footage to a third-party operatorwell, theres
not much creative revenue derived from rental fees.
Combine
all this with the continuing pressures of declining fuel margins,
high real estate cost, and inadequate c-store margins to support
that cost, and its clear that the time is right for a shift
to a new retail philosophy and concept
And
lets face it, no matter how you dress it up, a c-store is
neither environmentally nor economically creative.
So
MOVE OVER c-store.
People
are ready, willing, and eager for a new and improved gasoline
buying experience.