retail news in context, analysis with attitude

The Cincinnati Post reports that Kroger Co. is operating 75 percent more fuel centers at its stores at the end of 2002 than it did a year ago, having added 150 of them to the fleet this year.

In addition, close to two-thirds of the Costco units in the US sell gasoline.

These gasoline stations are being installed for convenience and traffic, not profit. Most of the companies getting into the gas business today are doing to siphon off customers and low-margin dollars from c-stores, which have traditionally used gasoline to generate margin and profit.
KC's View:
Which is why so many c-stores are looking into loyalty marketing and meal solutions as potential sources of new marketing gusto…though only if they do them better than most practitioners in the supermarket industry.