INVER GROVE HEIGHTS, Minn. -- Cenex brand owner CHS Inc. has identified 45 locations slated for renovation featuring a sleeker, more modern Cenex brand identity. These will be a starting point for a sweeping renewal initiative aimed at giving a new face to as many as 500 locations per year, according to Doug Dorfman, manager of brand, product and marketing.
There were a couple reasons why this was the right time, Dorfman told CSP Daily News in an exclusive interview. Our current image was probably dated in looking at what consumers were requiring from [image-nocss] a modern convenience store, and also considering what the competition had done in last five to seven years. We did this with a fresh look toward what the consumer wants.
As reported yesterday in CSP Daily News, the renovation projectdubbed Generation Image Renewaldictates that each of Cenex's 1,600 convenience stores will undergo a major renovation to reinvigorate the Cenex brand, increase consumer appeal and support the company's growth plan. CHS has been drafting plans for the ambitious, three-year project for nine months or more. The rollout officially began this week.
The rollout follows the successful testing of three freshly converted Cenex locations: one in Menomonie, Wis.; another in Northfield, Minn.; and a third in St. Cloud, Minn. There, the company tested different color schemes, different paint types and other key changes, all while gathering first-hand customer feedback before and after.
We got some great feedback, Dorfman said. It's a brighter, cleaner look. We approached everything from the consumer's perspectivethe canopy facia, the canopy lighting, the exterior lighting, the island bollards and island pads. The response back on some of the testing from consumers was a lot more positive than even we thought it might be. From this point forward, we're moving toward a more aggressive schedule to reimage 450 to 500 locations each year.
Changes to the Cenex identification at each site will include a new look for the canopy, signs and pumps. Additionally, most sites will receive brighter paint colors, new lighting and digital signage. The new lighting was added for several reasons, with enhanced visibility, attractiveness and safety chief among them, according to Dorfman. Some locations will benefit from more efficient lighting to provide operators with cost savings.
On average, the renovation process should take three days per site, and CHS will assume 100% of incurred costs, including all the image elements and labor. Dorfman could not confirm the reimaging costs per site, but he did say that costs would be largely determined by the size and volume of each location.
We didn't approach this from the aspect that it could increase revenue, he said. It's about upgrading and supporting the brand, to bring more value to the brand.
In addition to the renovation project, Cenex also announced an aggressive growth plan to grow by more than 500 stores over the next four years. Most of the growth will occur in core Cenex markets in the middle of country, according to Dorfman, from the Dakotas to the north end of Texas, east to Illinois, and as far west as Spokane, Wash. He also said there would be additional growth opportunities in markets where major-oil companies are pulling out.
We have a group that's dedicated just to growth, he said. And we've been out there for three years now, focusing on growing the brand. We have the ability and the corporate structure in place to support the brand.
Inver Grove Heights, Minn.-based Cenex is the largest member-owned petroleum brand in North America, with more than 1,600 local cooperatives, independent retailers and Cenex-identified c-stores from the Great Lakes to the Pacific Northwest and from the Canadian border to Texas. Cenex is a brand of CHS Inc., a company providing grain, food and energy resources.
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