RICHMOND, Va. — GPM Investments LLC is ready to embark on its remodel initiative, armed with a new convenience store prototype.
The company will use the design for remodels and raze-and-rebuild stores. It expects to remodel approximately 360 in key locations across the country over the next three to five years.
"We have been working on this prototype over the last year and are very excited about the extensive remodel program, and the benefits it will bring to our existing customers, as well as new customers who will be drawn in by the fresh new look," said Arie Kotler, CEO of Arko Holdings Ltd. and GPM.
"Our remodeled stores will feature an expanded offering with grab 'n' go prepared food, beer caves, frozen food, an enhanced drink lineup and much more," he added. "Over the past few months, we have had the opportunity to take learnings from our customers' shopping behaviors as well as the changing consumer environment and implement key updates to our remodel program and in-store offering to provide an enhanced customer experience emphasizing the local regional brand."
According to Kotler, Arko/GPM expects to the remodel program will generate roughly $72 million of incremental EBITDA over the next three to five years.
"In addition to our other strategic initiatives, including our continued core acquisition strategy as well as synergies from the recently acquired Empire business, this aggressive remodeling program underlies our confidence in our ability to continue to drive strong and consistent growth and returns for all our stakeholders," he said.
This remodel program will be spread across all GPM brands, including fas mart, E-Z Mart and Scotchman. It will focus on enhancing the overall customer experience through design, assortment, navigation, and layout. Key highlights to the program include:
- Expanded freezers for frozen foods;
- Expanded grab 'n' go open air coolers for prepared foods;
- Roller grills for hot dogs and Tornados;
- Hot grab 'n' go for breakfast sandwiches and bakery items;
- Walk-in beer caves;
- New checkout experience;
- Essential safety items to include hand sanitizers, pump soap, masks, gloves and wipes;
- Expanded fountain drink assortment with chewy ice;
- Addition of Frazil frozen drinks to 800-plus stores;
- Expanded coolers for water, soda, energy drinks and beer; and
- New bean-to-cup coffee on demand for a fresh cup all the time.
In addition to unveiling a new store design, GPM is rolling delivery via DoorDash to more than 300 c-stores this year. The third-party delivery platform is currently available at 20 sites.
Arko Holdings Ltd./GPM and Haymaker Acquisition Corp. also announced a commitment for an up to $100-million investment in convertible preferred stock from MSD Capital that will be available for growth capital and funding this remodel program.
On Sept. 9, Arko entered into a definitive agreement with Haymaker Acquisition Corp. II, a publicly traded special purpose acquisition company, to form a business combination, pending shareholder approval. The transaction is expected to close before year's end, as Convenience Store News previously reported.
Founded in 2003 with 169 stores, Richmond-based GPM has grown through acquisitions to become the seventh largest c-store chain in the United States with 2,930 locations comprised of 1,350 company-operated stores and 1,580 dealer sites in 33 states and Washington, D.C. GPM operates in three segments: retail, wholesale, and GPM Petroleum, which supplies fuel to GPM and its subsidiaries selling fuel (both in the retail and wholesale segments) as well as subwholesalers and bulk purchasers.
Arko is the controlling shareholder of GPM.