Arko unveils strategy to transform select c-stores

The company views wholesale dealer sites as a pathway to enhanced profitability.

During its first-quarter earnings call, Arko Corp. disclosed plans to enhance profitability by converting selected retail locations into dealer sites within its wholesale segment.

The company has identified a significant number of locations that are projected to be more profitable as dealer sites. This transformation strategy includes several key initiatives such as focused capital investment in strategic sub-segments of its retail stores, continuing its pilot program to improve customer experience and value proposition, and more active conversion of retail stores to dealer sites.

“Over the past decade, our focus has been acquisitive as we have scaled to become one of the leaders in the convenience store industry. We now believe it is the right time to leverage our unique multi-segment operating model to more fully unlock the embedded value within our retail store network,” said Arie Kotler, chairman, president, and CEO of Arko.

According to NACS, Kotler added that the company will reveal more details on the transformation plan during the company's Investor Day later this year.