ARKO / GPM Unveils Plans for its Store Prototype of the Future
Anticipates Remodeling Approximately 360 Stores
Over the Next Three to Five Years
Plans Include Complete Store Interior and Exterior Redesigns, Improved Customer
and Expanded Food and Beverage Offerings
RICHMOND, Va., Nov. 19, 2020 (GLOBE NEWSWIRE) -- ARKO Holdings Ltd. (TASE: ARKO), (“Arko”), whose primary asset is a controlling stake in GPM Investments, LLC, (“GPM” or the “Company”), a rapidly growing leader in the U.S. convenience store industry, unveiled its plans for its store prototype of the future for remodels and raze and rebuilds. GPM currently anticipates that it will remodel approximately 360 of its sites in key locations across the country over the next three to five years. Arko/GPM and Haymaker Acquisition Corp. also announced today a commitment for an up to $100 million investment in convertible preferred stock from MSD Capital that will be available for growth capital and funding this remodel program.
“We have been working on this prototype over the last year and are very excited about the extensive remodel program, and the benefits it will bring to our existing customers, as well as new customers who will be drawn in by the fresh new look,” said Arie Kotler, Chief Executive Officer of Arko and GPM. “Our remodeled stores will feature an expanded offering with grab ‘n’ go prepared food, beer caves, frozen food, an enhanced drink lineup and much more. Over the past few months, we have had the opportunity to take learnings from our customers’ shopping behaviors as well as the changing consumer environment and implement key updates to our remodel program and in-store offering to provide an enhanced customer experience emphasizing the local regional brand.
Mr. Kotler continued, “We believe this remodel program will generate approximately $72 million of incremental EBITDA over the next three to five years. In addition to our other strategic initiatives, including our continued core acquisition strategy as well as synergies from the recently acquired Empire business, this aggressive remodeling program underlies our confidence in our ability to continue to drive strong and consistent growth and returns for all our stakeholders.”
This remodel program across fas mart, E-Z Mart, Scotchman and the rest of the portfolio of brands, will focus on enhancing the overall customer experience and value offering as well as expanding the product assortment. Key highlights to the program include:
Enhanced in-store Experience: The remodel program will enhance the customer experience in each store through new design, assortment, navigation, and layout, including: