Independent Grocers Embrace Gas Sales

More non-chain retailers are installing gasoline pumps on-site or working with local gas stations on incentives programs.

February 21, 2014

LAS VEGAS – Independent supermarkets have discovered a new way to spur customer sales — gasoline pumps, the Progressive Grocer reports. More independent grocers have installed pumps on-site or have partnered with local gasoline retailers on consumer incentives.

A panel at the National Grocers Association trade show discussed the issue this week. Reed Kessler with Kessler’s Inc., a family-owned grocery in South Dakota, found that the benefits of its fuel program, in which customers can save around 40 cents per gallon, has been worth the cost of running the initiative. He also said the program brings in Electronic Benefit Transfer (EBT) shoppers.

Jay Lawrence with Lawrence Bros. in Texas said the company’s fuel incentive program has become more popular. “Our competitors are Walmart and H-E-B, who are very competitive between themselves, and we’re along for the ride,” he said.

By having a fuel program, these retailers say they are forming strong interactions with customers, as well as being able to hold their own against larger, national chains. Kessler recommended a fuel partnership as the easiest way to launch a fuel incentives program. “The ROI was quick,” he said. “Partnering is a quick and easy way to get into this, and driving grocery sales is how you make your money back.”

Lawrence promotes the program through social media, which has helped the company connect with customers and build long-term loyalty. “We try to differentiate,” with our program, he said.

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