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| Page 4 | The Sun | Volume 4, Issue 1 |
| A Team Boston Newsletter Motiva Enterprises, LLC 3 Edgewater Drive, Suite 202 Norwood, Massachusetts 02062 Fax: 770-446-6737 ______________________ |
Congratulations Top Hat Ten First Quater 2001
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Hypermarts Will Soon Feed on Each
Other in the Quest for Gasoline Profits
| Want to know what the future holds for hypermarkets? Look
no further than Dallas-Fort Worth. Already the most mature metro market, in the past 18 months Big D has seen the most dramatic growth in hypermarket sales - its 72 hypermarkets currently sell about 13,400 b/d of gasoline and will soon reach 15%-20% of total market share. But therein lies the problem. That number represents a "transition threshold" where the hypermarkets will begin to compete for the same customer. By 30%, they will have reached ultimate saturation point. What happens next remains to be seen, but all eyes will be on Dallas, according to a study by Westminster, Colorado-based Energy Analysts International. It is Costco, however, that presents the toughest competition for other retailers. "Costco appears to create the greatest threat to petroleum marketers due to their pricing philosophy," says the |
study. Although Costco’s store density is not as great
as that of the supermarkets, the company tends to draw from significantly larger market
radius and there is a "very high level of gasoline facility/store interaction with
respect to customer traffic," says EAI. Come Costco sites sell more than 1 million gals/month, with averages across the chain running 500,000-600,000 gals/mo. Prices are nearly impossible to determine and catalog because they are posted inside the store lobby only, according to the 125-page report. Discount chain Kmart’s foray into the world of gasoline and C-Store-fuel ventures in Ohio and Virginia already, marketing under the name of Big K Express. The stores offer snacks, milk, cigarettes and coffee, but Kmart says it plans to tinker with the design to satisfy consumers’ needs. |
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