If filling the tank with gas and picking up some snacks is something you want to do in hurry, Speedway supports that. As a subsidiary of Marathon Petroleum, the nation's second-largest owner and operator of gas station/convenience stores boasts around 2,750 locations under the Speedway, Hess, Wilco, and Rich banners in 22 states (mostly in the Midwest). The stores sell nearly four billion gallons of Marathon brand gas per year and $3.5 billion-plus in merchandise including fresh coffee, fountain drinks, hot dogs, pastry, sandwiches, and other grab-and-go food. Formed in 1997, Speedway boasts some 36,500 employees and is also one of the largest wholesale suppliers of gasoline and distillates to resellers in its market.
Speedway operated 2,746 stores across 22 states in 2014. Ohio is Speedway's largest market, home to nearly 490 of its stores. The convenience store chain operates around 300 stores each in Indiana, Michigan, and North Carolina, and another roughly 250 stores each in Florida and New York. Other top markets (with 100-plus stores) for the retailer include Illinois, Massachusetts, New York, Kentucky, and Pennsylvania.
Sales and Marketing
Frequent Speedway customers can participate in Speedy Rewards program, which allows them to earn points for purchases to be redeemed in-store for gift cards or free merchandise. The company's successful loyalty program, started in 2004, had more than 4.2 million active members as of 2015.
The company captures and analyzes member-specific transactional data through its Speedy Rewards loyalty program, which it then uses to push member-specific discounts and promotions based on their buying patterns.
Speedway continues to expand on its firm grip in the Midwest into new markets through a combination of organic growth and an active acquisition schedule. Its 2014 acquisition of 1,245 retail locations from Hess Corporation expanded its reach into 15 states (up from just seven states in the Midwest previously) and nearly doubled its store count, making it the second-largest chain owner and operator of gas station and convenience stores in the US (up from its 4th place rank prior to the acquisition). In 2013, Speedway acquired nine convenience stores located in Tennessee, western Indiana, and western Pennsylvania.
During 2012, Speedway acquired 100 new stores, including 87 convenience stores throughout Ohio and Indiana from GasAmerica Services, Inc. and 10 convenience stores located in northern Kentucky and southwestern Ohio from Road Ranger LLC in exchange for cash and a truck stop location in the Chicago metro area. Previously, Speedway acquired 23 convenience stores in Indiana and Illinois in 2011.
Before its name change from Speedway SuperAmerica in 2011, the company had consolidated all its stores under the Speedway banner and created a unified look, including remodeling acquired stores to conform with the rest. It also sold stores in noncore markets to focus on its business in the Midwest, where its parent company had pipeline and distribution networks.