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February 2008

News & Media

Thorntons Plan for Success Involves More Than Fuel 
February 13, 2008 

LOUISVILLE, Ky. – Despite selling 475 million gallons of gasoline in 2007, Thorntons Inc. focuses more on what’s going on inside and on the store grounds than the fuel pumps, the Louisville Courier-Journal reports.

Since he took over as CEO from his father in 2001, Matt Thornton has been working to move the company’s profit from gasoline to sandwiches and coffee. Last year, the company recorded revenue of $1.52 billion, more than double the amount generated in 2003.

Part of the strategy to expand offerings beyond motor fuel includes capturing more women and high-income consumers. To that end, Thorntons is building bigger stores with a more airy and upscale design that stock higher-quality products, including fresh salads and cut fruit.

“We want the price of gasoline to be as low as possible, because there is such a thing as disposable income,” said Thornton. “We absolutely see people downgrading. They might buy a few less of an item, or trade down from a Marlboro cigarette to a generic brand.”

Other convenience stores also see the appeal of focusing more on in-store sales, given that the gross profit margin for in-store sales at convenience stores on items reached 28 percent in 2006, but motor fuel only garnered 5.8 percent, according to NACS State of the Industry data.

Thornton said expansion plans include adding eight to a dozen locations each year over the next couple of years.