Dive Brief:
- GPM Investments is using its loyalty program to help it weather an increasingly difficult operating environment, executives said during parent company Arko Corp.’s second-quarter earnings call last week.
- Arie Kotler, president, CEO and chairman of Arko, noted that in Q2 loyalty members spent more than twice as much as nonmembers and their number of visits and basket sizes were about 50% larger. This came as consumer sentiment during the quarter reached “historic lows,” Kotler added.
- The company’s fuel promotions were particularly effective. Kotler said that a 10-cent-per-gallon discount the company debuted in June has grown the number of gallons sold on Tuesdays by double digits.
Dive Insight:
Arko has ramped up its loyalty program deals in order to win over customers who are trying to spend less these days.
The company’s Fas Rewards members can make in-store purchases to stack fuel discounts of up to $2.50 on a single fill-up of up to 20 gallons, which “has saved our enrolled members more than $4 million since inception,“ Kotler said during the call.
He also noted that the focus on fuel offers was an important part of the company’s approach to winning over price-sensitive shoppers.
“The number one item that is very expensive and … puts a lot of pressure on every household is fuel spending right now,” said Kotler.
Arko also leverages its burgeoning food program by offering value meals for rewards members, he said.
Fas Rewards membership grew by about 5% quarter over quarter and almost 10% year over year to around 2.6 million members in Q2. Enrolled sales growth and enrolled margin both grew by 30 basis points quarter over quarter, Kotler said.
The retailer also launched its refreshed fas Rewards app in the first quarter, according to its latest 10-Q filing with the U.S. Securities and Exchange Commission. That was the second update to the loyalty app since the start of 2023.
