WEST KITTANNING, Pa. -- The former CoGo's stores that sold gasoline under the BP brand in West Kittanning and Ford City, Pa., are being turned into Fueland stores. They will offer CITGO gasoline at discount prices through a grocery loyalty points program at Foodland stores, reported the Leader Times.
The two local CoGo's stores were closed two weeks ago, said the report. The stores will be the first of the newly created Fueland food store chain. The stores are expected to be remodeled and opened by the first week of April.
Milo [image-nocss] Ritton, owner of Pittsburgh-based Superior Petroleum Co., is acquiring the two CoGo's stores to become Fueland stores along with a number of other convenience stores selling gasoline, including Buy'n Fly and Glassmart, with his recent purchase of Mon Valley Petroleum Inc. We're creating a convenience store company that can offer gasoline to loyalty customers of independent grocery retailers, Ritton told the newspaper.
Ritton said Foodland stores will award accumulated discounts off gasoline to customers who buy selected products in their stores. Gasoline discounts will also be added from some purchases made in the Fueland stores, he said. The discounts can then be redeemed for gasoline at Fueland gas station locations.
Foodland won't have to be in the gasoline business, Ritton said. They'll be able to pass along savings to their customers in gas perks.
Ritton's purchase of McKeesport, Pa.-based Mon Valley, as reported in late February by CSP Daily News, includes 21 c-stores under the Buy n Fly Food Stores banner, gasoline supply agreements with about 35 independent dealers, a home-heating business and a fleet of trucks.
The plan, Ritton told CSP Daily News at the time, is just to be an independent redemption center so if there is an [independent grocer] with 10 stores, we can approach [that grocer] and allow their customers to redeem their loyalty points through the manufacturers in our locations. We provide that service to them in our stores. We provide the vehicle so they don't have to be in the gasoline business. This is something that currently they pass along in price, and now they'll pass along in gas perks.
Ritton is hedging his bets in the test with Foodland and hoping to add more stores in other markets the 43-store grocery chain serves. He expects to close on the purchase of nine more stores in the second quarter of this year, and more growth may be in the wings. Depending on how our testing goes in April with Fueland, Ritton said, it gives us an opportunity in probably 30 other municipalities in the [Pittsburgh] metro area, with some in West Virginia and some in Maryland.
Once the Mon Valley deal closes, Ritton's companies will distribute and deal directly with petroleum products for BP, CITGO, ExxonMobil, Marathon and Sunoco. Together, the companies will distribute more than 100 million gallons of petroleum products a year through its network, which includes the Buy 'n Fly and Glassmart Food Store chains, a total of 44 stores. Depending on the test results, all the stores may be rebranded Fueland by the end of the year.
Pittsburgh-based CoGo's Co. operates approximately 76 stores, most with gasoline, in Pennsylvania, with one store in Massachusetts.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.