February 28, 2020
In the highly competitive business of retail fuels, image matters.
That’s why more than 6,000 Phillips 66, Conoco and 76 gas stations across the U.S. are getting fresh looks to match their brands’ sterling reputations as part of a major reimaging project. The project, which started in 2015, hit overdrive in 2019 when more than 1,600 sites were reimaged for the most productive year yet.
“A modern, attractive image helps build loyalty with today’s consumer,” said Mike O’Connor, Brand Image Manager at Phillips 66. “We put the pedal to the metal in 2019, and December was a race to the finish with 263 completions — the most we’ve ever done.”
Consumer loyalty, in turn, drives both volumes and the value of the brands that are integrated with the company’s Refining assets.
“Secure placement of product is vital to our Marketing business,” said Phillips 66 Vice President of Global Marketing Pam McGinnis. “That’s why we're investing in refreshing and reimaging our branded network across the United States.”
The project supports the company’s wholesale branded business, which encompasses some 6,500 sites in the U.S. These sites are independently owned and operated and fly the company’s iconic brands under agreements that require strict adherence to image and product quality control guidelines.
The project has revitalized more than 4,200 branded sites since 2015 and is on target to complete more than 6,000 by the end of the year.
Reimaging is much more than a fresh coat of paint. It includes everything from updating signage — think canopies and pump toppers — to equipment such as the fuel dispensers and even light fixtures.
And it delivers. Reimaged sites in 2019 saw an average of 3.5% volume uplift compared to non-reimaged, and inside-store sales also have gone up.
For sites meeting certain image and volume criteria, Phillips 66 is funding most of the work in exchange for long-term branding commitments.
“This is essentially a win-win-win,” O’Connor said. “The stations win because they draw in more consumers. We win because we push out more product. And the consumer wins because they get a much-improved experience.”