Marathon CEO: Speedy Rewards, In-Store Growth Make Speedway Great
MIAMI BEACH, FLA. -- Speedway LLC's Speedy Rewards loyalty program and tremendous in-store growth equals a bright future for the convenience store chain, Marathon Petroleum Corp. President and CEO Gary Heminger said this morning during an investor conference.
Heminger, speaking during the Bank of America Merrill Lynch 2011 Global Energy Conference at the Fontainebleau Resort here, said that more than two million customers walk into the 1,375 Speedway stores daily. Those customers want to make return visits to the stores for many reasons, including Speedy Rewards, he said.
"We are in the top quartile in every category among public c-store operators," Heminger said. "Two-thirds of our gross margin comes from inside the store. We have tremendous growth there."
The company also operates 5,100 Marathon-branded locations. Heminger said the company has a tremendous competitive advantage because the petroleum provider is always certain that 63 percent of the gas it provides will be sold to its c-stores.
Talking more broadly about Marathon Petroleum during the event, Heminger said the company wants a strong credit profile and liquidity. He added he was very pleased with all of the company's assets -- including its retail division -- and would consider merger and acquisition activity in the future.
Marathon Petroleum was one of many energy companies to speak during the conference, which is still ongoing.
Heminger will again speak publicly during Marathon Petroleum's Investor Day, scheduled for Nov. 30 at the St. Regis Hotel in New York City.