Arko Corp. Puts First Year as a Public Company in the Books

Investments in food, electric vehicle charging and loyalty are on the agenda for year two

By Angela Hanson

ARKO CORP., parent company of GPM Investments LLC, closed out its first full year as a public company with positive financial results and growth in both store count and in-store initiatives, which it intends to continue through 2022.

The Richmond, Va.-based company made significant additions to its portfolio last year through GPM, including its acquisition of the 60-store, Midwest-based Express Stop chain in May, and its purchase of 36 Handy Mart stores in November. GPM acquired a total of 97 sites in 2021.

Throughout the year, Arko also saw positive results stemming from its acquisition of Empire Petroleum Partners’ fuel distribution and retail locations, which closed in October 2020.

As of Dec. 31, 2021, Arko had 1,406 retail sites and 1,628 wholesale sites. The company’s dual convenience and wholesale model is delivering excellent results, according to Arko Chairman, President and CEO Arie Kotler.

“Our in-store initiatives, merchandising strategy, scale at wholesale and M&A capabilities are working together as an engine for growth in this environment,” Kotler said during Arko’s fourth-quarter 2021 earnings call, held Feb. 23. “The rapid integration of Empire exceeded our expectations, with notable cost synergies and incremental growth, showing once again we are capable of dealmaking at any scale.”

Successful moves last year included a strategic pivot into grab-and-go and frozen foods, which was “a hit” with customers and saw considerable margin growth. Arko also grew its retail fuel margin during the fourth quarter, despite rising fuel prices.

The company is already on a growth path for 2022 with its pending acquisition of Quarles Petroleum Inc.’s fueling cardlock and fuel distribution business. The deal is expected to close in the second quarter of this year.

Arko’s 2022 agenda also includes several store remodels, a new-to-industry store in Atlanta late in the year, and the opening of more Dunkin’ locations.

Additional areas of focus are pizza, based on extremely positive feedback to the company’s partnership with Sbarro; bean-to-cup coffee; and its fas REWARDS loyalty program, which will see the launch of a redesigned mobile app.