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Fuel Customers Seek Savings

While keeping an eye to electric vehicle charging (EVC) and other alternative energy solutions, convenience retailers are fi nding new ways to keep fuel customers happy in 2022, as gas prices remain high.

Temple, Ariz.-based Circle K has rebranded close to 3,000 sites to its Circle K fuel brand in the past three years — about half of its U.S. stores, said Melissa Lessard, head of North American marketing at Circle K.

To celebrate, the retailer announced a new promotion: Through April 25, customers can enter to win free fuel for a year, with one winner every week. In addition, it’s offering cents-off-gallons coupons via mobile for customers who enter to win the grand prize.

Other fuel offers include Circle K’s Easy Pay card that gives customers a 10-cent-per-gallon rebate on every fi ll, Lessard said, as well as its ‘Premium Thursday’ promotion.

“Circle K premium fuel offers double the cleaning detergents, which means you’ll clean your engine while you drive, boost your engine performance and lower emissions,” she said. “We know customers are curious about our Premium Fuel in general, and we are happy to make it easier to try our best fuel each Thursday by offering 20 cents off per gallon at participating stores.”

Westborough, Mass.-based EG America also offers fuel savings to customers across its Loaf ‘n Jug, Certifi ed Oil, Fastrac, Kwik Shop, Minit Mart, Quik Stop, Tom Thumb and Turkey Hill c-store locations. Last month, SmartPay app users received an extra 10 cents off per gallon of fuel, for a total of 20 cents off per gallon, which EG America Director of Brand Strategy and Advertising David Heilbronner said led to an increase in enrollments of SmartPay as well as an increase in the average number of gallons using SmartPay.

SmartPay Rewards mobile app users also receive additional gallon rewards, fl ash sales and more. The rewards program recently reached over $4 billion sold in fuel and $200 million saved by its users.

Heilbronner said the retailer is now considering another savings program for the summer months and notes an overall fuel industry trend: “Gas discount programs appear to be growing.”

In 2022, consumers are hyper-aware of not only what the fuel they’re using costs, but also what types of fuel they’re selecting at the pump.

“Customers are more and more interested in what they are putting in their cars,” confi rmed Lessard, “so we established a quality guarantee customer journey.”

For Circle K, this means a guarantee to customers that its fuel is of “a highgrade quality that meets all U.S. Environmental Protection Agency (EPA) standards.”

“We only use fuel sourced from responsible refi neries and terminals that use quality cleaning detergent additives,” Lessard said. “This means lower vehicle emissions and maintenance of optimal engine performance.”

Future of Fuel Prices

As the economy recovers, fuel prices remain high. Still, the U.S. Energy Information Administration (EIA) expects gasoline and diesel prices to lower in 2022 and 2023 as demand growth slows.

Car Wash Offers a Growing Revenue Stream for Retailers

Consistently across the U.S., car wash construction is currently at a historic pace, according to Eric Wulf, CEO of the International Carwash Association (ICA), and “the performance of the industry amidst the pandemic was nothing short of remarkable, with estimated sales upwards of $13 billion — a record high in 2021.”

“We estimate that 600 new (car wash) stores are being built annually,” he continued. “The reasons all relate to consumer preferences and proliferation of the subscription model, whether monthly or annual.”

Benny’s Car Wash & Oil Change has nine tunnel car washes in Louisiana, three of which are co-located with its three B-Quik convenience stores. Benny’s Owner Justin Alford credited several factors that helped his car wash business successfully navigate the pandemic.

“People drove around more and stayed local on their vacations,” said Alford. “The average age of the cars on the road is 12 years, so people are, more than ever, taking care of their vehicles.”

Ride share drivers also accounted for a good share of the business because many wash their cars frequently, he continued. Contactless pay stations made customers feel safe.

TECHNOLOGY ADDS AN EDGE

The transition from identifying unlimited plan customers by scanning an RFID code on the windshield to snapping a photo of the license plate and comparing it with membership information is a good move for car washes and has the potential to increase plan sales, Alford said.

“We can track how many times customers go through the car wash and target non-members with offers to enroll in an unlimited plan,” he said.

Alford said he would like other technology to catch up to the needs of car wash owners.

“In some ways, we’re lagging,” he noted.

For unlimited plan customers, Alford said he would like to have the membership information saved to the cloud rather than the older, big databases that are available now, so they could be accessed on iPads or other wireless pads. Also on his wish list is the technology that would allow customers to purchase car washes from their cell phones.

To promote car washes at Benny’s, Alford used to do a lot of paper couponing in newspapers and Valpak mass mailings. Now, he said, nobody reads their mail, so he relies on digital and social media avenues such as Google, Facebook and geofencing, which makes an ad pop up when the consumer enters a particular geographic area.

“Digital has its downside, too,” he pointed out. “In the ‘90s, if we would send out 1,000 coupons and get 500 back, we knew our promotion was working. It’s harder to track digital marketing efforts.”

Car washes are also suggested at the gas pump at the company’s B-Quik Convenience Stores.

Car Wash Market Size Expanding Domestically and Globally

U.S. MARKET TRENDING UP

• The U.S. car wash service market size was valued at $14.21 billion in 2020. • The U.S. car wash service market is projected to grow at a compound annual growth rate of 4.8% from 2021-2028. • More than 72% of U.S. drivers opt to use professional car wash services.

Source: Grand View Research’s “U.S. Car Wash Service Market Size, Share & Trends Analysis Report By Type (Tunnels, Roll-over/In-bay, Self-service), And Segment Forecasts, 2021 - 2028”

GLOBAL GROWTH CONTINUES

• The global car wash services market size is expected to reach $37.6 billion by 2028. • The global car wash services market is predicted to grow at a CAGR of 3.8% from 2021 to 2028.

Source: Grand View Research’s “U.S. Car Wash Service Market Size, Share & Trends Analysis Report By Type (Tunnels, Roll-over/In-bay, Self-service), And Segment Forecasts, 2021 - 2028”

Renewable Energy, LED Upgrades Abound

Renewable energy plans and the continued turn toward LED lights marks an ongoing shift for retailers toward a higher focus on lighting and energy efficiency goals.

Jackson, Ky.-based Go Time, which operates seven stores in Kentucky, has built six new stores since 2016, all of which incorporate LED lights. Go Time is currently building its eighth store in Corbin, Ky. “We want the highest efficiency lights we can buy,” said Scott King, owner of Go Time.

Go Time’s new builds use narrow, long LED lights in the interior suspended ceilings. LED lights are also used in the exterior soffits and in the canopies. Additionally, pole lights with double or triple LED heads are used at Go Time.

The original store also uses LED bulbs in the interior, with “CFL (compact fluorescent lights) around the exterior soffit, and the old metal halide lights in the canopy,” King said. Two advantages to the store’s energy efficiency initiatives are its financial savings and that, with LED lights, “you can replace the drivers, and the lights are not out, as in a bulb fixture.”

Go Time uses the highest Seasonal Energy Efficiency Ratio-rated HVAC units along with gas heat and gas appliances. It also provides a high R-value — which is the level of resistance to heat flow of an insulating material — by using spray insulation in all stores.

COMMITMENT TO RENEWABLE ENERGY

Altoona, Pa.-based Sheetz, which operates over 640 stores in Pennsylvania, West Virginia, Virginia, Maryland, Ohio and North Carolina, has also taken the initiative to focus on energysaving solutions.

As with Go Time, LED lighting has been implemented at Sheetz locations. Sheetz also uses high-efficiency HVAC units, alternative refrigerants and advanced Building Automation Systems at new and existing locations.

Recently, in an effort to power 70% of its Pennsylvania facilities with renewable energy,

LED Facts

ACCORDING TO THE U.S. DEPARTMENT OF ENERGY:

• The majority of lighting installations are expected to use LEDs by 2035. • Energy savings from LED lighting could surpass 569 Terawatt-hours (TWh) annually by 2035. That would equal the annual energy output of more than 921,000 megawatt power plants.

• A good-quality LED bulb lasts longer. LEDs can last three to five times longer than a compact fluorescent light (CFL) and a whopping 30 times longer than an incandescent bulb. • LED performance is improving, and prices are dropping. Today,

LED lamps can affordably replace 40, 60, 75 or 100 Watt incandescent bulbs. • LEDs emit very little heat compared to other bulbs. Incandescent bulbs release 90% of their energy as heat, while CFLs release about 80% of their energy as heat.

Source: U.S. Department of Energy, “Energy Saver,” via Energy.gov/energysaver/led-lighting

Sheetz entered into a long-term renewable supply agreement with Constellation, a supplier of power and energy services.

The company’s commitment to renewable energy supports Pennsylvania solar projects, which will provide a total of 55 megawatts of renewable energy. Of this, Sheetz will receive approximately 110 million kilowatt hours of energy per year.

Sheetz will avoid nearly 78,000 metric tons of carbon emissions that are associated with its energy use annually.

Neon Marketplace, which currently operates four stores with 20 more under development and 150 opening within the next five years, also attests to the growing popularity of LED lights.

It is using LED technology in both the interior and exterior of its stores, including ceiling lighting, emergency lighting, canopy lighting and area lighting fixtures.

Additionally, Neon is working with TPG Construction to use products that have earned the Energy Star by complying with EPA Regulations.

Neon has realized over $3,000 in Energy Star rebates.