Knight Ridder/Tribune Business News
Sep. 13 -- ALBERTSON'S INC. STEPPING ON THE GAS HERE: The Boise, Idaho-based grocer opened its first Albertson's Express fuel center in Colorado last weeksept. 8 in Pueblo, and Colorado Springs sites are sure to follow.
The Springs got its first glimpse of the supermarket fuel center earlier this year when Cub Foods put up some pumps in a corner of the parking lot at its 4304 Austin Bluffs Parkway store. Cub's customers get a discount on gas if they spend $10 or more on groceries in the store.
The Albertson's fuel center is linked with a 1,700-square-foot convenience store. The first Colorado location is in Pueblo. Albertson's opened its first Albertson's Express fuel center in Idaho two years ago; 41 more have opened in 13 states since then.
Supermarkets getting in on the fuel-center trend aren't doing it to cash in on fuel sales. Instead, most lure grocery customers by discounting the fuel or offering deals on the fuel if shoppers spend in the store. The goal is the same as always: Sell more groceries.
Convenience-store companies have been watching this trend, said Dick Meyer, a Wisconsin-based industry consultant.
'The growth is not catapulting as fast as it was expected,' Meyer said, for several reasons.
Many supermarkets simply don't have the space on their lots for a fuel center. In some cities, neighborhoods have objected to the addition of gas pumps. And selling gas isn't something you can just jump into. Customer service and cross-promotions are tricky. And the investment is steep: Adding pumps can cost $350,000 to $800,000.
Still, there's big potential. Supercenter stores in Europe have taken over gas sales. Their fuel centers now sell 65 percent of all gas in France and 25 percent in the United Kingdom.
If supermarkets are looking to fuel centers as their answer to increasing competition from superstores that sell full lines of groceries, they'd better look again. Wal-Mart's doing it, too. The company has been testing the concept at some of its superstores and Sam's Clubs for three years. And retailers such as Home Depot and major drug-store chains have been studying the idea, too.
WOMEN'S CLOTHING SHOP TO OPEN: Timbuktu Station, a women's casual career-wear store, is scheduled to open downtown at 127 N. Tejon St. within six weeks.
CEO John Seifert of Nederland said the company has been eyeing downtown Colorado Springs for about seven years, waiting for the right location. When Regina Rushing bought the former Blick's Sporting Goods building and moved her Regina's Unique Botique, Casualized and Regina's Shoebox stores there earlier this year, Timbuktu saw an opportunity.
'We were very specific that we wanted to be downtown,' said Seifert, who grew up in the fashion-retailing business (his father founded the clothing chain Seifert's in Cedar Rapids, Iowa.)
'We take a close eye to the surrounding stores, and we like to be in what we call a lifestyle area, as are our stores on Pearl Street in Boulder, the LoDo area of Denver and the Cherry Creek neighborhood of Denver,' Seifert said. 'We tend to stay away from malls; we like to be where people go to have fun, meet friends, have dinner.'
The 13-store chain sells mostly natural-fiber clothing in the European 1-2-3 sizes, which correspond to small, medium and large. The company plans to add five more stores next year.
Jane Turnis covers retailing for The Gazette. Call 636-0235 or e-mail turnis(at)gazette.com
Next week: Joanna Bean on technology.
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