Improvement in July Performance
Same-store sales growth for July, excluding cigarettes, was up slightly year-over-year. Total merchandise same-store sales trend for July was 3 percentage points better than for the second quarter, marking the best comp performance in the last 18 months.
Dealerization Program Progress
Since launching the dealerization program, more than 300 stores have been converted, with 200 additional sites expected to convert. The program aims to deliver more than $20 million in annualized operating income benefits before G&A.
New Store Formats and Food Service Concept
Arko introduced new store formats, including a remodel and new food and beverage concept, Fas Craves. Early results show outperformance in key categories and improved customer experience.
Loyalty Program Growth
The Fas Rewards program added over 38,000 new members, bringing total enrollment to approximately 2.35 million members, a 10% increase from the previous year.
Strong Fuel Margins
Fuel margin was strong at $0.45 per gallon for the quarter, with consecutive improvement from May to June and continuing into July.