Dive Brief:

  • GPM Investments is leaning on its loyalty program to navigate a tougher operating climate, executives said during parent company Arko Corp.'s second-quarter earnings call last week.
  • Arie Kotler, president, CEO and chairman of Arko, said that in Q2, loyalty members spent more than twice as much as non-members, with visit frequency and basket sizes roughly 50% higher. This came as consumer sentiment during the quarter touched "historic lows," Kotler added.
  • The company's fuel promotions proved especially effective. Kotler noted that a 10-cent-per-gallon discount launched in June lifted Tuesday gallon sales by double digits.

Dive Insight:

Arko has intensified its loyalty program offers to attract shoppers who are cutting back on spending amid persistent economic pressure.

Fas Rewards members can earn fuel discounts of up to $2.50 per fill-up (capped at 20 gallons) by making in-store purchases. Kotler said this benefit "has saved our enrolled members more than $4 million since inception."

He also emphasized that fuel-focused promotions are central to the company's strategy for winning over price-conscious consumers.

"The number one item that is very expensive and … puts a lot of pressure on every household is fuel spending right now," Kotler said.

Arko is also leveraging its expanding foodservice offering by providing value meals exclusively to rewards members, according to Kotler.

Fas Rewards membership grew roughly 5% quarter over quarter and almost 10% year over year, reaching about 2.6 million members in Q2. Enrolled sales growth and enrolled margin each improved by 30 basis points quarter over quarter, Kotler said.

The company also rolled out its refreshed Fas Rewards mobile app during the first quarter, according to its latest 10-Q filing with the U.S. Securities and Exchange Commission. That marked the second update to the loyalty app since the start of 2023.