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About a year and a half after its release $1 billion store renovation initiative, Pilot is moving toward its goal of renovating 400 of its convenience stores. But the retailer still has a lot of work to do.
When Pilot launched the New Horizons initiative in March 2022, the company said it aimed to complete all 400 reconstructions within three years. As of June, Pilot said it had more than 80 stores renovatedand as of October, the company expects to complete its 100th redesign within the “next several months,” Chief Operating Officer Brad Anderson said in an interview during the NACS Report 2023.
Anderson noted that doing all 400 reconstructions will still take “the next several years” to accomplish. In addition to renovating stores, the company also continues to invest new locationsincluding two this summer that feature a combined 600 truck parking spaces as well as showers for its professional drivers.
When asked about the biggest challenges Pilot faces with the New Horizons initiative, he said the company is living through “some problems,” such as having to close certain store areas while they work on them. He said this process is comparable to renovating a house.
“With any remodeling there is some disruption,” he said. “That’s probably the biggest thing in business, just managing through that aspect.”
In response to a follow-up question from Convenience Store Dive about why the New Horizons project is being delayed, the company pointed to disruptions of a different kind.
“While various factors have caused some construction delays, including permitting, supply availability, weather, etc., we are working to complete these projects as quickly as possible,” Allison Cornish, vice president of store modernization, said via email of Pilot.
Pilot’s remodeling project coincided with shortages in the supply chain, high material costs and other challenges that have rocked the construction industry, delays construction and remodeling projects across the country.
Preparation is key
While each remodel varies slightly depending on where it is and its demographics, Pilot has a general plan for what it’s like approaching updates. Generally, the planning process for each renovation begins about 12 to 18 months in advance to get all the permits in order so Pilot can “align labor and supplies” for each store, Anderson said.
The list of possible updates includes adding energy-efficient lighting to the forecourt. brand update; Painting and refitting toilets, showers and laundry facilities. expansion of dining areas; redesigning store layouts to focus on fresh food; installing self-checkout kiosks; upgrading staff break areas and kitchen equipment. and implementation of EV charging stations.
Pilot uses artificial intelligence during the planning phase, Anderson said — using advanced analytics and other data sets to identify the stores it needs to remodel, taking into account things like gallons of fuel sold, placement along freeway routes and demographic information for each location.
Once it selects a location, Pilot then uses its own data sets, such as first-party sales and customer data, to describe the remodel.
“A ton of advanced analytics goes into one, this plan. and two, how do we prioritize which store we do in order as well,” Anderson said.
Another challenge in the design process for Pilot’s New Horizons program is working in stores. Anderson said the goal with any remodeling is to keep the store’s current staff in place. Then the question is how many more should be hired based on the renovations being done.
“If we’re making the store bigger and it’s going to get busier, obviously you need more team members,” he said. “Or if you’re doing a food business, you’re going to need to staff the food business.”
Anderson said a main goal of New Horizons is to make life easier for workers and give them “a better environment to work in.”
“How can everything behind the scenes be made simpler and more efficient for our team members so they can really focus on the guest?” Anderson said