Dive Brief:
- Par Pacific Holdings plans to remodel “a handful” of convenience stores in Hawai’i over the coming years as it steps up investments in its retail network, the company said in its annual report last week.
- The remodels will feature “improved merchandising, expanded food and beverage offerings and enhanced site presentation,” according to the report. This comes after Par Pacific remodeled one store in the Pacific Northwest last year that is “generating compelling cash-on-cash returns.”
- Par Pacific said it plans to dedicate $10 million to its retail network in 2026 through remodels and NTIs.
Dive Insight:
Par Pacific's retail business includes about 120 convenience and fueling sites across Idaho, Washington and Hawai’i that operate under the Hele, Nomnom and 76 banners. Although remodeling “a handful” of stores over multiple years may appear small in relation to its entire network, the initiative underscores Par’s intention to invest in c-stores even though oil is its primary business.
It’s not clear exactly what the remodels in Hawai’i will include, although they will use the same merchandising, food and layout enhancements that the Pacific Northwest location did last year. Following the remodel, that location delivered a 7% increase in fuel sales, a 14% increase in merchandise sales and a 54% increase in foodservice sales compared to prior periods, according to the report.
“These projects will follow the same return-driven framework, targeting locations where we see clear opportunities to enhance per-store economics and strengthen long-term competitive positioning,” Par Pacific said in its report.
The company emphasized in its report that retail “continues to be a high-return, capital efficient” part of its portfolio and that “disciplined reinvestment” in its existing retail base remains a priority. Its retail business has quietly been a major success, with EBITDA and inside store gross margins having grown for four and three straight calendar years, respectively, according to the report.
“Our team continues to focus on cost discipline, labor optimization and store-level execution, while advancing a measured pipeline of new-to-industry and redevelopment opportunities across our core markets,” the company said. “Retail growth is pursued deliberately, with strict return thresholds and a clear emphasis on per-store economics, rather than footprint expansion for its own sake.”
