Saturday, June 1, 2013

Kum & Go + CNG in Tulsa = Increased store sales

OnCue and Love's have figured out what CNG can do for their convenience store sales.  OnCue has CNG dispensers at 13 stores; Love's has 12 locations and adding more.

Fortunately for Kum & Go, neither of these operators has stores in the Tulsa metro area.

But... Kum & Go's huge problem in Tulsa is QuikTrip.  My unscientific study determined that Kum & Go stores experience 25% or less of the store traffic that QuikTrip locations enjoy.

Kum & Go has a great opportunity to change this at a few of their Tulsa area stores by being the first to offer CNG refueling.  Unlike OKC, Tulsa does not yet have any CNG refueling at convenience stores.  CNG users in Tulsa can only refuel at standalone, unattended locations.  Except for the Apache CNG station at I-44 & Yale, all Tulsa CNG stations are not easily accessible from interstate highways.

Notice how the Kum & Go locations in South Tulsa match the lack of CNG refueling stations. (Green icons are existing CNG stations; Red icons are existing Kum & Go locations.)


View Tulsa CNG in a larger map


The best location for Kum & Go to experience an immediate boost in store sales is the location at Riverside Dr. and the Creek Turnpike.  This location has plenty of space for the CNG equipment installation, easy on/off access to the Creek Turnpike with a dedicated traffic signal for eastbound traffic. That section of Creek Turnpike is now the most highly traveled of all the Oklahoma Turnpikes (26,000 vehicles per day each way).  This Kum & Go location is easily viewed by travelers on Creek Turnpike and the tall price sign would catch a lot of attention with a $1.39 CNG price displayed.



This is just the first and most promising Kum & Go location for CNG dispensing.   More blog posts to follow with location analysis.  [UPDATE: The red stickpins in the Google Map above show the other promising Kum & Go locations - Hwy 75 & 81st St, 111th St & Memorial in Bixby, Lynn Lane & 71st St in Broken Arrow.]


10 comments:

  1. Great analysis! This would certainly go a long way in getting CNG into the sights of the typical Tulsa daily commuter. If Kum & Go would incorporate CNG fueling dispensers into their business model, then the Tulsa commuter who wants inexpensive fuel, convenient refueling locations AND access to a refreshing soft drink & snack would begin to take note and inquire about CNG fueled vehicles. Keep up the diligent efforts, it takes time & pressure!

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    1. Yes, stankdawg, CNG is very much hidden from the typical Tulsa driver right now. Unlike the OKC metro area, there are no roadside convenience store signs proudly displaying the low $1.39/gal price of CNG. Tulsans could save enough fuel on ONE gallon of CNG to buy two Kum & Go soft drinks!

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  2. Kum & Go responds on Facebook - http://screencast.com/t/ajZrgUx1BjI

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  3. In addition to the 50 cent/gallon federal tax credit, Oklahoma tax credits for installing CNG refueling infrastructure amount up to 75% of the equipment and installation cost. Also, the Oklahoma legislature just extended the vehicle income tax credits for another five years.

    It would seem to be a great time to use these incentives to use CNG refueling as a draw for more convenience store traffic. Standalone CNG stations don't have an associated revenue driver.

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    1. Anonymous, you bring up an excellent point, CNG refueling equipment can be installed in Oklahoma for a fraction of the cost. For more detail on the tax incentives for CNG, click on the "Incentives" tab on this blog.

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  4. According to Kum & Go's website, they have stores in other states that support CNG - Arkansas, Colorado and Wyoming.

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    1. Anonymous (wish folks had real names), I plan to highlight other key Kum & Go locations where CNG would scratch two itches in future blog posts. The one at Riverside and Creek Turnpike is such an obvious location, that I was unable to focus on others initially.

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  5. Noticed on Kum & Go's careers website that they are currently looking for a VP of Business Intelligence. Are you applying for that position? Kum & Go is in desperate need of something to get a leg up on QuikTrip. While the CNG driving community is still quite small, it is growing dramatically in Oklahoma - look what it's doing for Love's and OnCue! To have a big price sign that says "$1.39" next to a highway will draw in peeps that don't even use CNG!

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    1. Kim, I'm not privy to Love's and OnCue's sales volumes are in CNG stores, however, they are rapidly expanding their CNG installations....

      And, no, I'm not seeking employment with Kum & Go. However, this concept could certainly assist some existing Kum & Go employee in landing that VP position.

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  6. It was painful to watch last fall. A new state of the art 5000 sq ft LEED certified Kum and Go being built right at I 35 exit 94 (25 min from Kum and Go headquarters). Touted as enviromentally friendly, lots of new features inside and out but....no GNG. If only Kum and Go would see it like KWIK TRIP/KWIK STAR. If only KWIK TRIP would expand south!

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