Arko deepens transformation strategy

The company plans to convert nearly 40 locations into dealer-operated sites, aiming to enhance traffic flow and profitability across its network.

Arko Corp., the parent company of GPM Investments, is advancing its transformation strategy by converting approximately 40 stores into dealer-operated sites.

The decision was announced by CEO Arie Kotler during a recent earnings call, according to a report by C-Store Dive. A food-focused pilot program is also planned for launch at seven separate locations starting in the fourth quarter. 

This initiative is part of Arko’s broader plan to enhance traffic flow and profitability across its store segments. 

Arko anticipates that converted sites will be more profitable by focusing on collecting rent and fuel supply agreements, allowing the company to allocate capital expenditures more effectively to its remaining stores. Several store conversions have already been completed, with the remaining expected to be finalized by the end of the third quarter, as stated in the company's second-quarter earnings report.

Additionally, the company expects to open three new builds in the third quarter.