Many convenience-store chains are quite content adopting a cookie-cutter approach to their stores—all to allow customers to find everything they need at any given store at any given time at their fingertips.
At the Power Group Cos. (PGC), Oak Brook, Ill., leadership prioritizes this brand of shopping ease too but with a wrinkle. While it might be labor-intensive, store customization is at the root of the Power strategy, all to stand well apart from larger local competitors such as Thorntons and Speedway.
Indeed, Power-branded stores might have some cookie-cutter similarities, but one thing is for sure: “We never want any two stores to be the same, no customer experiences the same,” said Melissa Galasso, director of operations for Power Group of Illinois.
Sam Odeh, president and CEO of Power Group of Illinois, which previously operated as Power Mart Corp., added, “We have to capitalize on our competitive advantage as an independent, and that means leverage our ability to be nimble—and then implement site-specific merchandising programs on the fly. We have the ability to do it without an ‘act of Congress’ like chains and larger indies.”
The retail endgame, said Galasso, is establishing “pillar” profit drivers and customer experience enhancers that can’t be duplicated elsewhere, perhaps with the exception of mom-and-pop stores. There are currently a modest five Power-branded stores in northern Illinois that are part of the Illinois operating unit. They are made up of three unique formats: Powmaro’s, offering chef-inspired food; Power Fuel at the forecourt; and Power Market, a general store format.
Power Group Cos. actually has a few operating divisions, including a prominent footprint in the Southeast, including Florida. It’s known for its vision for allowing regional leaders to implement unique, customized retail strategies, where no two stores are exactly the same. System-wide, Power Group offers 28 Power Markets across the country, with just three Powmaro’s and growing.
Growth Mode Ahead
In addition to its five company-operated sites in the Chicagoland suburbs, Power Group of Illinois is eager to expand its dealer fuel supply and co-branded site network—and recently did from 35 dealers to 53, with more contracts to come.
Looking ahead, Galasso envisions 25 additional retail sites to go live over the next few years, reflecting both company-ops and dealer-run, within its Midwest footprint.
Power Group also plans to focus heavily on Power Fuels advantage by taking a stake in biofuels, such as Unleaded 88 (or E15, which contains 15% ethanol) and other grades. Biofuels are viewed as a boom to Midwest farmers, which some customers appreciate, and for being environmentally friendly, as E15 and similar biofuel grades have fewer carbon emissions.
No doubt, local competition on the biofuels front is felt by smaller retailers taking a stake.
The Power team cited an aggressive push by Bucky’s Convenience Stores in the DuPage and Will counties of their territory. Bucky’s is now owned by Ankeny, Iowa-based Casey’s General Stores, which initially added E15 to a handful of locations in 2019 following U.S. Environmental Protection Agency (EPA) approval of year-round sales for the blend.
Power Group plans to dive headlong into biofuels, and to build a loyal fueling-customer base while also leveraging the strength of its inside merchandising offers.
Meantime, Galasso and Odeh spoke about the ambitious commitment to its foodservice strategy as well as commitment to burnishing its profit centers and customer experience advantages to a large degree:
About the food: Three of five company-owned stores have the “Powmaro’s” name affixed to stores—all have unique foodservice cuisine. Odeh says that with the name Powmaro’s, “we, in essence, ‘Italianized’ the brand. We wanted to establish a name that translates to ‘food.’ In our neck of the woods, everyone knows about Portillo’s. Powmaro’s mimics that in a way,” said Odeh.
“Our strategy at PGC is to offer unique food brands at each of our five stores, and have hired what we call ‘chef entrepreneurs’ to operate each one,” Galasso said. In what was a culinary coup, the Downers Grove Powmaro’s features chef Jerry Navarro, renowned locally for his D'Capos Authentic Italian Cuisine. “In Downers, we’re placing an emphasis on upscale Italian with a flair. In Elmhurst, Nicole Battaglia runs NaNa’s, a Chicago-style-specific menu of beef, hot dogs, sausages, burgers and more,” she said.
In Palos Heights, Frank Battaglia mans AWG (American Wood Grill)—what Galasso calls “an ‘American to Go’ burger joint with emphasis too on barbecue. Our Chicago Cermak store features Juan Guerrero’s ‘Mex to Go’ with burritos, tacos and enchiladas, while Homer Glenn [Illinois] features Ozzie’s Powmaro’s Deli, complete with sub sandwiches and soup. (Ozz Haleem is a chef known for his DuPage County, Illinois, deli.)
In addition to proprietary food, the five Power-branded stores integrated such food marks as Del Taco, Flamingo Burrito, Torpedo Subs and more. To add more daypart volume potential, Downers Grove’s Powmaro’s is in the process of opening a drive-thru window, to debut late in 2023.
On key profit center drivers and customer experience advantages: “Our Downers Grove forecourt and inside store merchandising plan complement each other well, and have helped us enter a new era of retailing,” said Galasso. “Our state-of-the-art facilities and media entertainment arena with a lounge and seating is a comfort zone that has proven to be a destination-driver.”
Power Group’s “One Stop Shop” strategy tied back to core store categories “is a huge win for us to serve our customers with all their needs, and there are a host of new consumer habits that all retailers have to stay on top of. The ease of parking, quick-pay option, spirits, beer and wine selection—they are all draws,” said Galasso.
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