ANKENY, Iowa -- Look for larger store footprints and a potential expansion from its current nine-state platform for the 1,450-site Casey's General Stores Inc. The venerable Midwest chain outlined its new store design and elaborated on its near-term growth plans, with Bill Walljasper, senior vice president and CFO, telling CSP Daily News that the chain is more than ready to "move into additional states outside of its core market area."
The company currently operates in nine Midwest states, but Walljasper said the doubling of the capacity if its Ankeny, Iowa, distribution center about two [image-nocss] years ago and Casey's solid financial standing put it in a perfect position to build new stores, remodel and acquire. "We're looking at numerous opportunities in border states," he said.
This month, Casey's opened a store in Greenup, Ill., that represents the chain's vision of the future, with a format that's 1,000 square feet larger than its typical 2,700-square-foot store. The new site is fitted with expanded cooler sets and more space for hot beverages and prepared food.
Here's a rundown of key elements within Casey's new store design:
Expanded cooler sets. Half of the new floor-space will house more coolers, moving from an average set of nine doors to between 14 and 15. Bigger coffee bar. The expanded coffee offer will have more flavor profiles, syrups, creamers and in some cases, coffee grinders. It will also have iced coffee, which through testing done earlier this year has proven successful. Prepared food. Though prepared-on-site, grab-and-go sandwiches were already part of the Casey's offer, made-to-order subs—the result of lessons learned from having acquired a chain with a fast-food franchise—will be part of the new format. Aesthetic upgrades. Design elements, including Corian counters, slate floors and darker wood, play a part in bringing an updated look to the new stores. Dining room. Where demographics and traffic flow are compatible, some stores will accommodate a sitdown eating area."We're increasing the areas that have been getting better traction for us," Walljasper said. "We're focusing on expanding high-margin, fast-moving, fast-turning items in prepared foods and beverages."
In terms of a timeframe, the company intends to open 20 to 25 new stores in this fiscal year, which for Casey's ends April 30. In addition to that projection, the chain will replace another 20 stores with the new design and take 10 additional stores and put those locations through the remodel process. In the end, the chain will have 50 to 55 stores operating with the new look by next spring.
Though refraining from specifics about the markets where these new sites will go, Walljasper said the model fits both in rural sites and its larger markets, but may not be right for smaller towns of, say, 500-600 residents.
The larger goal is to grow the company's store base by 4% each fiscal year, despite today's economic challenges. "We're not necessarily pulling back new-store construction or our search for acquisitions due to the challenges in the economy," said Walljasper. "In the Midwest, we have benefited from a robust economy because agricultural areas have done relatively well."
Ankeny, Iowa-based Casey's owns and operates more than 1,450 convenience stores in Iowa, Illinois, Indiana, Kansas, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin. It operates primarily in smaller communities with populations of less than 5,000.Click the Download Now button below to see a larger image of the store's exterior.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.