If filling the tank with gas and picking up some snacks is something you want to do in hurry, Speedway supports that. A subsidiary of Marathon Petroleum, the company (formerly Speedway SuperAmerica) owns and operates about 1,465 combination gas station/convenience stores under the Speedway banner in seven states in the Midwest. The stores offer Marathon brand gas, naturally, as well as fresh coffee, fountain drinks, hot dogs, pastry, sandwiches, and other grab-and-go food. Frequent Speedway customers can participate in Speedy Rewards program, which allows them to earn points for fuel and merchandise purchases. Points are redeemed in-store for gift cards or free merchandise. Speedway was formed in 1997.
Ohio is Speedway's largest market, home to a third of its stores. The convenience store chain operates about 300 stores each in Indiana and Michigan. Smaller markets for the retailer include Illinois, Kentucky, Wisconsin, and West Virginia.
In addition to its retail store operation, Speedway is one of the largest wholesale suppliers of gasoline and distillates to resellers in its market.
Speedway's revenue increased 6% in 2012 versus 2011, to $14.2 billion, primarily due to higher gasoline and distillates sales volumes and selling prices, which averaged $3,54 per gallon in 2012 compared with $3.44 in 2011. Higher merchandise sales (excluding cigarettes) also contributed to sales growth. The acquisition of about 120 convenience stores in 2012 and 2011 also contributed to higher fuel and merchandise sales.
Income from operations increased $39 million in 2012 compared with 2011, primarily due to increases in gross margins on merchandise and gas and distillates, partially offset by higher operating costs related to the increased store count.
The fourth-largest company-owned-and-operated convenience store chain in the US and #1 in the Midwest, Speedway has strong customer recognition and loyalty in the Midwest. The company is growing in its established markets through a combination of organic growth and an active acquisition schedule. In 2012 the chain acquired nearly 100 new stores.
With fluctuating gas prices cutting into its customers' discretionary spending and nontraditional competitors, such as drugstore operator Walgreen, moving into its market, Speedway launched its rewards program to foster customer loyalty. Food service, including grab-and-go meals and beverage offerings, have also become a focus for the company. Before the name change 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 has pipeline and distribution networks.
Mergers and Acquisitions
In July 2012, Speedway acquired 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. In May of the same year it purchased 87 convenience stores throughout Ohio and Indiana from GasAmerica Services, Inc.
Previously, Speedway acquired 23 convenience stores in Indiana and Illinois in 2011.
Speedway is owned by petroleum refiner Marathon Petroleum.