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OCALA, Fla. -- Fuel distributor and c-store operator Diamond Oil LLC purchased eight Kwik King convenience stores here as part of a larger sale of all 50 Kwik King locations, Diamond stated.
"Our success with both our own stores and our dealers continues to validate our profit enhancement strategy," Jay Patel, Diamond Oil CEO, said in a statement. "Pricing continues to be the determinant factor in driving volume."
As part of the agreement, Diamond will supply fuel to an additional 11 Kwik King locations throughout central Florida. In addition, all 19 stores will be rebranded from Shell to the Diamond Oil banner.
"Oil just hit a $100 a barrel," Patel said. "By providing dealers with competitively price unbranded fuel, we are seeing store volume increase from 20,000 gallons a month to four times that amount and higher. Most dealers are ecstatic when they consider doing that kind of increase in fuel sales."
He added: "The real issue to consider is the effect that kind of jump in fuel volume has on in-store sales -- that's where Diamond provides the extra assistance to our dealers. To compete in this market, you have got to get the customer to the pump. To succeed, you've got to get them in the store."