BRENTWOOD, Tenn. -- Delek US Holdings' move to a larger store format recently achieved a significant milestone. As of the middle of the year, the company has reimaged or newly constructed a full 50% of its 374 MAPCO Express sites, according to a presentation posted with the U.S. Securities & Exchange Commission (SEC).
The Brentwood, Tenn.-based company has been replacing stores with new "mega" stores designed to drive higher gasoline volume and inside store sales or remodeling them with a greater emphasis on fresh food and other grab-and-go products.
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According to the SEC report, the company has built of reimaged 188 stores since 2006. It also has set a long-term target to build eight to 12 large-format stores per year and has accelerated it store-reimaging program to include at least 20 sites this year.
Another long-term goal: to "create a retail presence in markets capable of being supplied by [our] El Dorado," Ark., refinery. A first step in that goal was taken in late 2011, when the chain opened its first site near Little Rock, Ark.
Other retail elements of the report include news that same-store fuel gallons sold is recovering. The company saw gasoline volumes drop in fourth-quarter 2010 and the first and second quarters of 2011; however, volumes have been up the past four quarters:
- 3Q11 +3.2%
- 4Q11 +4.3%
- 1Q12 +0.8%
- 2Q12 +2.2%
Meanwhile, same-store merchandise sales have remained consistent, up 7.6% in Q1 2012 and up 4.3% in Q2.
Delek US is an integrated downstream energy business focused on petroleum refining, the wholesale distribution of refined products and c-store retailing. The refining segment consists of refineries operated in Tyler, Texas, and El Dorado, Ark., with a combined production capacity of 140,000 barrels per day. The marketing and supply segment markets refined products through a series of owned and third-party product terminals and pipelines. The retail segment supplies fuels and merchandise through a network of 374 company-operated c-store locations operated under the MAPCO Express, MAPCO Mart, East Coast, Fast Food & Fuel, Favorite Markets, Delta Express and Discount Food Mart brand names.
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