Convenience Store News - July 2018 - 14
Casey's Moves Its Value Creation Plan Forward
Fleet card and price optimization initiatives set to roll out in the
retailer's upcoming fiscal year By Melissa Kress
forward on several components of its new
value creation plan in its fiscal year 2018
CASEY'S GENERAL STORES INC.
In early March, Casey's unveiled the plan,
which is comprised of several key programs and drivers, including enhanced
store performance through a new fleet
card program, price optimization and
digital engagement program. The plan also
includes a continuing focus on controlling
operating expenses and capital reallocation.
"We are confident these key initiatives
will drive accelerated sales and profitable growth and, most importantly, increase
shareholder return," Casey's President
and CEO Terry Handley stated during the
company's fourth-quarter earnings call on
The chief executive provided a more
detailed update on the store performance initiatives:
* Fleet Card Program: Since unveiling the
value creation plan, the retailer completed a request for proposals (RFP) and
selected FleetCor as its partner. Casey's
will begin implementing a new fleet
card program in the second quarter of
fiscal year 2019.
14 Convenience Store News C S N E W S . c o m
* Price Optimization: Casey's completed a RFP and
identified the optimization platforms for fuel and in-store.
The retailer will begin testing in the second quarter, with
a planned rollout of fuel optimization and select key items
inside the stores in the third quarter. It will then expand
the price optimization program in the first quarter of 2020
to all remaining categories.
* Digital Engagement: Casey's completed the onboarding
of Chris Jones, new chief marketing officer, who will lead
the digital engagement implementation process. The
retailer also completed the startup and design phase of
its digital transformation, including vendor review and
technology selection. The digital engagement program
will include a new ecommerce platform, marketing automation tools and a customer loyalty program.
In addition to these enhanced store performance initiatives,
the convenience store chain is focused on implementing
ongoing cost-reduction measures and managing operating
expenses. This includes reducing its number of 24-hour
convenience stores and pizza delivery locations. The decision, Handley said, came after "an extensive, hour-by-hour
profitability analysis in an effort to determine the optimal
hours of operation and delivery offering."
The reduction had an adverse impact on same-store
sales in the fourth quarter, but Casey's "achieved a significant and measurable reduction in store-level operating
expenses," according to Handley.
Ankeny, Iowa-based Casey's finished the fourth quarter
with 2,073 stores in 15 states.