Murphy USA planned to add 45 new-to-industry stores in 2023; however, challenges with permitting, supply chain and labor have set it back.
The El Dorado, Arkansas-based convenience-store chain still plans on opening 27 to 30 new stores by the end of 2023, though, with another 10 expected to open at the start of 2024, Murphy USA CEO Andrew Clyde said Thursday during the company’s third-quarter earnings call.
- Murphy USA is No. 4 in CSP’s 2023 Top 202 ranking of U.S. c-store chains by store count.
“We expect these conditions to largely continue into 2024, impeding our ability to grow as fast as we would like next year,” Clyde said. “Nevertheless, we maintain a robust land pipeline and an ambitious build schedule, and expect at least 30 to 35 new stores to open in 2024 with activity expected to accelerate in 2025.”
Murphy USA also has raze-and-rebuild and renovation projects underway.
The chain converted 33 kiosk stores into 1,300-square-foot stores in 2023, Clyde said. And it’s in the early stages of renovating its 2,800-square-foot stores.
“Early results from nine pilot stores suggest customer uptake is strong, and we are committing capital to renovate up to 50 stores in 2024,” he said.
The redesigned stores feature improved food and beverage sections and improved store layout. One change includes the grab-and-go food section being moved to the back of the store. When the grab-and-go section was in the front of the store, windows had to be tinted to help control the temperature, Clyde said, but customers didn’t like the window shadings.
In moving the grab-and-go food items to the back, stores can have lighter windows and there is a larger food preparation area, Clyde said. More people are using microwaves as there are now two on top of a counter rather than one down low, he said.
The stores also added queuing lanes, which were first trialed at Murphy USA’s QuickChek stores, that provide an opportunity to sell more impulse items, Clyde said.
The company saw momentum in food and beverage sales in third-quarter 2023, partially driven by its partnership with the New York Giants, where it developed signature subs at QuickChek locations, Clyde said. Sales of co-branded frozen beverages, like the limited-time offer for frozen Prime Energy, also helped lead to food and beverage growth.
“In total, these efforts grew food and beverage sales and contribution dollars for the quarter by 6.1% and 5.7%, respectively,” Clyde said.
Murphy USA’s total store count as of Sept. 30 was 1,568 c-stores, which includes the Murphy USA, Murphy Express and QuickChek brands. Murphy USA operates gas stations in 27 states primarily in the Southwest, Southeast, Midwest and Northeast. Most of Murphy USA's sites are located adjacent to Walmart stores.