SAVANNAH, Ga. -- While other retailers laid low during the height of the recession, Greg Parker of The Parker Cos. took the opportunity to break the piñata--to borrow money, build new stores and expand his food-first convenience-store model.
"Land values were down. Inspection times were less," the Savannah, Ga.-based retailer said. "Unemployment was up, so it was easier to hire good people. Cash was readily available. It was crazy cheap to borrow."
CSP magazine editors delved into the topic of what falling gas prices would mean to consumers and more specifically for c-stores in its upcoming April issue. In an assessment of the potential incremental income, Wall, N.J.-based OPIS/GasBuddy predicted that consumers will have as much as $140 billion more in discretionary income this year.
To capitalize on the potential, some retailers are reviewing their in-store strategies--everything from marketing to merchandising, loyalty to digital coupons. But others like Parker have prepared for the potential upswing in a more substantial way, amassing resources and building more stores.
Here's what's happening with Parker:
- Plans to open 11 stores in 2015, growing from 36 now to 47.
- Borrowing at less than 1% interest rate to slightly above 1%, generally lower than the LIBOR floating rate (a London-based, interest-rate metric) at slightly over 1%.
- Doubling earnings before interest, taxes, depreciation and amortization (EBITDA) in four years, surpassing a five-year goal.
- EBIDTA was up well over 30% last year.
- Hiring new talent and bringing in a business coach to instill greater entrepreneurship and a sense of urgency.
- Picked by Inc. magazine for its list of Top 500/5000 fastest-growing companies for the past three years.
- In January, gas sales were up 37% over January 2014 and store sales up 23%.
- Annual store sales were up 19% and gas sales were up 21%.
For more on CSP's cover story on the economy, click here.
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