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Stewart's Shops Navigating Rough Economy

Renovating older stores vs. opening "excessive" new locations
SARATOGA SPRINGS, N.Y. -- Gary Dake said "not falling prey to excesses" has helped convenience store chain Stewart's Shops generate healthy profits even during tough economic times. "We try not to get too far out on the limb," Dake, who has been Stewart's president for the past six years, told The Daily Gazette.

Some businessesStarbucks, for examplebuilt too many shops in recent years and had to start closing some of them because they were losing money, he told the newspaper. "In the last two or three years, we have opened very few new shops," he said. "The [real [image-nocss] estate] market is overpriced."

Instead, the Saratoga Springs, N.Y.-based company, with 327 Stewart's Shops (270 with gasoline dispensers) in upstate New York and southern Vermont, has been renovating some of the company's older stores. "We stay in the mode of 'we do what we want to do, not what we have to do'," Dake said. "We address problems early."

Dake, 48, said being honest with people has served him well since he became president of Stewart's Shops. "We have a tendency to be upfront and candid," he said of Stewart's corporate culture. Dake said telling employees and business associates what he really thinks is sometimes a "greater kindness" than beating around the bush. If he feels someone is not doing a job well, he tells that person directly.

"We work in small groups," Dake said. Only about a dozen people work at an individual Stewart's Shop, three or four on a shift. This means everyone knows the strengths and weaknesses of the other employees.

The employees work hard, in part, because many of them are involved in the company's profit-sharing program, said the report. The employees own one-third of the privately held company. Stewart's Shops generate about $1.2 billion in sales each year. Some $50 million of that is revenue for the company. Even in difficult economic times, the company does well, generating double-digit growth each year, the report said.Click herefor previous CSP Daily News coverage of Stewart's Shops.

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