Ready For The Future

QT grows in store count and gears up for the future of c-store retailing with its Gen 3 design

At the start of 2012, QuikTrip Corp. announced it would open more stores during the year than ever before. The convenience store chain did that and more. The company entered North Carolina for the first time in April, continued the expansion of its large-format Generation 3 prototype and partnered with local grocers to offer gas rewards.

The Tulsa, Okla.-based retailer is currently in 11 states and operates 639 c-stores, with no signs of slowing down any time soon. During its last fiscal year, which ended April 2012, the chain added 46 stores — all new builds — and plans to add even more by this April, Mike Thornbrugh, QuikTrip's manager of public and government affairs, told Convenience Store News.

"The Carolinas division will have the bulk of the new builds for us," Thornbrugh said, explaining that this division includes both North and South Carolina. "We currently have 21 stores in the division, 16 [of which are] in South Carolina."

Since the company already had a large distribution center and a QT Kitchens commissary in Georgia, as well as stores in Atlanta, the Carolinas was a "natural fit," Thornbrugh said. "People had an idea of who we were because of our presence in Atlanta, and we felt there was a lot of great land opportunities there," he added.

As of press time, 15 stores were under construction in the Carolinas division. The chain plans to have them all open by April. All new stores are new builds, as acquisitions are not something the company participates in, according to Thornbrugh.

FOCUS ON FRESH FOOD

QuikTrip announced plans for its Generation 3 prototype stores in 2011, and today has more than 50 locations in operation sporting the design. The format is larger than its previous models, at 5,700 square feet, and places a huge emphasis on fresh food.

"A lot of the concept is to get us ready for the future and where we are headed," said Thornbrugh. "Going forward, the new builds will all be Generation 3."

The design features a larger food area with a touchscreen for customers to place orders for hot and cold specialty drinks, made by a store barista, as well as smoothies and soft-serve ice cream.

"It's been well received by customers, employees love it and the design gives us a lot of options in the future, including the expansion of fresh foods," Thornbrugh noted.

Additionally, while a typical store has an entry in the front and the back, the Generation 3 model has two front entries, plus entries on both sides. This helps traffic move through the store and makes it easier to get in and out of the lot, he explained.

When it comes to introducing new fresh food items, QuikTrip is taking its time creating offerings in its QT Kitchens, although the retailer has recently changed its deli sandwiches, salads, fruit cups and pastries.

"We are not in a hurry to throw a product out there because if it's not good or satisfactory, then you lose that opportunity," Thornbrugh said. "We take our time."

EXPANDING REWARDS

Fuel rewards is another area where QuikTrip is focusing. It launched a QT Rewards card at Wichita-area stores this past summer, allowing customers to earn points for merchandise and gasoline purchases at company locations. For every $2 spent, customers earn one point, and the points can be redeemed for 1 cent off per gallon of gas.

A couple of years ago, the company tested a partnership in Kansas City with PriceChopper grocery stores that offered customers cents off gasoline at QuikTrip locations. In 2012, it partnered with two new supermarkets in a similar way.

"When we partnered with PriceChopper, it went over well for all parties involved — consumers loved it, so did we and so did PriceChopper," Thornbrugh said, pointing out that QuikTrip likes to work with privately held chains. "Typically, they are family owned and we know them, their past and where they are headed."

In May, QuikTrip teamed up with Reasor's, an Oklahoma supermarket chain, to form Reasor's Rewards. The program offers savings on fuel at QuikTrip locations and Lil' Reasor's fuel centers for purchases made at Reasor's Supermarkets. Then, in November, QuikTrip formed a partnership in Des Moines, Iowa, with grocery store chain Dahl's.

"They have all done well," Thornbrugh reported. "Lines are becoming more blurred with grocery stores and big-box stores getting into gasoline, so we looked at it as an opportunity to expand our offer."

As the chain nears the end of its 2013 fiscal year this April, it plans to continue opening stores in its current states, and possibly new markets. This growth allows it to offer employees more opportunities to grow within the chain.

"It's full throttle ahead," Thornbrugh said. "We have been very fortunate with a lot of tremendous growth in store counts, and we will be focused on the new markets for a long time."

For comments, please contact Tammy Mastroberte, Contributing Editor, at [email protected].