When second-generation operator Jeff Miller set out to reinvigorate the Norfolk, Va.-based Miller Oil Co. brand, he reflected on the unique needs of his Mid-Atlantic marketplace. CSP spoke with Miller, president of Miller Oil Co. and a former NACS chairman, about what we can expect from the new store experience.
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Q: Can you share a brief history of the company and how long it has been operating convenience stores?
A: Miller Oil Co. Inc. began in 1977 when my father, Gus Miller, purchased the Tidewater Virginia Home Heating Oil business from Exxon. Throughout the late ’70s and ’80s, the company acquired more than 15 heating-oil companies. This aggressive acquisition strategy placed Miller Oil in the Inc. 500 fastest-growing companies list three times during the 1980s.
In 1981, we made our first acquisition that involved retail locations. And over the next decade, through other deals, we were firmly entrenched in the convenience channel.
We started out as Miller’s Food Stores, but it wasn’t until 1997 that we initiated a formal branding program. Joe Bona and Gerry Lewis, then of CDI, helped create Miller’s Neighborhood Markets with an updated, modern image both inside and out. In 2014, we undertook a re-evaluation of our branding and image and decided it was time to evolve to a newer and more current offering. Miller’s Neighborhood Market was shortened to Millers and the color scheme was simplified—more of an evolution as opposed to a complete rebranding.
Q: Tell us about your latest design: square footage, location, key differentiators? What makes your concept stand out?
A: We operate 26 stores and distribute to more than 100. Our current store sizes range from 3,500 to 4,500 square feet based on the inside offering. We market from Northern Virginia south to Richmond and east to Virginia Beach. We are working on co-branding all of our stores with nationally branded QSRs, the majority of which are either Dunkin’ Donuts or Subways. We also have a Huddle House and DQ Grill & Chill. Our new concept focuses on refreshment and fresh food. The focus upon entering the store is on the fountain area with fresh food offerings flanking the aisles.
Q: How does your newest prototype advance your brand and existing models? How will it help you compete in the Mid-Atlantic market?
A: We operate in markets dominated by aggressive independents. For the past 38 years, we have been primarily branded marketers in an area that has seen tremendous growth of independent marketers. This really helped change the consumer’s attitude toward gasoline in our area. To that end, we began testing Millers-branded gasoline, with very encouraging results. Not only are we able to be more competitive on the street, but it also helps with our store branding. No longer does the consumer have to look beyond the major-oil-company sign to see our name on the store.
Q: Does your new model embrace any loyalty programming or social media? Is there anything about the new approach that ties to millennials and/or Generation Z?
A: We have just begun our reimaging program. Once we are further along, we will address loyalty. We just felt that trying to launch a Millers loyalty program at sites with Shell and BP loyalty programs would be an uphill push. We are active with social media, with more than 40,000 fans on Facebook. We are now looking at our strategy with Instagram.
Q: Who are your core customers, and how will your newest design grow or differentiate your base?
A: One of our biggest challenges is building our customer count. We have good brand recognition in the market due to our longevity and high profile in the community. So while we have a very loyal following, we also have the challenge of living in a very transient area. Norfolk is the center of East Coast naval operations and has one of the largest military populations in the country. Consequently, we are focusing on broad appeal items and trends: refreshments, fresh food and nationally recognized food programs.
Q: Which design firm did you contract for your redesign?
A:Bona and his team at CBX have created our new designs for both the inside and outside. To date, we have completed four forecourts and one interior. We are in the evaluation phase to see how they do, and then we’ll make a few tweaks and begin the rollout to the rest of the chain.
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