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Wednesday, July 21, 2004

Kroger fuel centers multiply



By Randy Tucker
Enquirer staff writer

[photo]
Andrew Turnbull, 17, of Norwood, fills up at the gas station at the Hyde Park Kroger. Kroger opens its 500th fuel center today, this one in Colorado, and has added 193 of them to its stores since 2002. Kroger has 31 fuel centers in Greater Cincinnati and Dayton.
The Enquirer/MEGGAN BOOKER
The Kroger Co., which is rapidly expanding the number of its supermarkets that sell gas as well as bread and butter, will open its 500th "fuel center'' today at a City Market store in Montrose, Colo.

Montrose is where Kroger opened its first fuel station in 1998.

Kroger, which has added 193 gas stations to its stores since 2002, now operates fuel centers in 29 states, including 31 in Greater Cincinnati and Dayton.

Kroger operates more gas stations than any other food retailer in the country except Wal-Mart.

"Gasoline is a natural addition to Kroger's one-stop shopping strategy because it offers our customers tremendous convenience and value," said Kroger spokesman Gary Rhodes. "Fuel centers also allow Kroger to build on our decades of experience in the convenience store business."

Rhodes was referring to Kroger's operation of 794 convenience stores nationwide, most of which sell fuel, under a variety of names including Qwik Stop and Kwik Shop.

When it comes to its conventional grocery stores, Kroger stores that sell gas almost always perform better than stores that sell food and general merchandise alone. That's primarily because the gas stations draw additional customers.

Gasoline sales alone generate thin profits margins, but the trend is growing.

A recent report from the Washington-based Food Marketing Institute showed that 2 percent of U.S. grocery stores added gasoline stations in 2000, 8 percent in 2001 and 16 percent in 2002.

E-mail rtucker@enquirer.com




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