ARKO Corp. Unveils ‘Fueling America’s Future’ Campaign with fas REWARDS®, Slashing Gas Prices Nationwide

Rhea-AI Summary

ARKO Corp (Nasdaq: ARKO) has launched 'Fueling America's Future' campaign, offering unprecedented fuel discounts through its fas REWARDS® loyalty program. Members can save up to $2 off per gallon or $40 per fill-up at any ARKO location nationwide by stacking rewards earned through qualifying purchases.

The program, available across ARKO's 1,350+ branded retail stores, including fas mart®, E-Z mart®, Scotchman®, and others, aims to address rising gas prices and support working Americans. The fas REWARDS® program currently has 2.3 million enrolled members who can accumulate cents-off fuel rewards in their 'virtual wallet' through qualifying purchases.

Positive

• Innovative fuel discount program offering up to $2/gallon savings
• Large potential customer reach with 2.3M loyalty program members
• Extensive retail network of 1,350+ stores for program implementation
• Strategic initiative to drive customer loyalty and store traffic

Negative

• Potential margin pressure from significant fuel discounts
• Program success dependent on customer adoption and engagement

Insights

Marketing & Retail Strategy Analyst

This unprecedented fuel discount program represents a bold strategic pivot that could reshape ARKO's market position and financial trajectory. The scale of potential savings - up to $2 off per gallon or $40 per fill-up - is remarkably aggressive for the fuel retail sector, where margins are typically razor-thin.

Several key strategic implications emerge:

• The program's stackable nature through qualifying purchases indicates a sophisticated approach to cross-merchandising, potentially offsetting fuel discount costs through higher-margin convenience store sales
• With 2.3 million existing fas REWARDS® members, the program launches from a strong base, suggesting significant potential for immediate market impact
• The timing aligns with heightened consumer sensitivity to fuel prices, potentially accelerating adoption and market share gains

However, the program's aggressive discounting raises important questions about margin sustainability. The strategy appears aimed at driving store traffic and building long-term customer relationships, betting that increased volume and in-store sales will compensate for lower fuel margins. This could pressure near-term profitability but potentially create lasting competitive advantages through enhanced customer loyalty and market share gains.

Financial Analyst

The financial implications of this program are multifaceted and potentially transformative for ARKO's business model. Key considerations include:

• The program's structure suggests a strategic shift from margin to volume, with potential for increased market share in a highly competitive sector
• The emphasis on qualifying purchases for rewards accumulation indicates a sophisticated approach to managing margin mix between fuel and higher-margin convenience items
• With 2.3 million existing loyalty members, the program's immediate revenue impact could be substantial, though initial margin pressure is likely

The strategy appears designed to create a virtuous cycle: fuel discounts drive traffic, leading to increased in-store purchases, which generate higher margins and fuel rewards, encouraging repeat visits. This could potentially transform ARKO's customer acquisition economics and lifetime value metrics. However, investors should monitor key performance indicators including:

• Changes in fuel volume and gross margin per gallon
• In-store sales growth and basket size trends
• Customer acquisition costs and retention rates
• Overall impact on operating margins and cash flow

The first-of-its-kind fuel discount program offers drivers nationwide up to $2 off per gallon of gas or $40 in savings per fill up at any ARKO location

RICHMOND, Va., Feb. 11, 2025 (GLOBE NEWSWIRE) -- ARKO Corp. (Nasdaq: ARKO) (“ARKO” or the “Company”), a Fortune 500 company and one of the largest convenience store operators in the United States, and its subsidiary GPM Investments, today has launched its ‘Fueling America’s Future’ campaign, offering customers significant savings at the pump with the long-term goal of slashing gas prices in America. This promotion, which has never been done by any gas station nationwide, can save consumers up to $40 per fill up through the ability to stack discounts earned through qualifying purchases for anyone enrolled in the Company’s free loyalty program, fas REWARDS^®.

This campaign is built on the belief that we must do more to address the needs of working Americans, particularly in mitigating the substantial expense of fuel. With thousands of convenience stores and QSR destinations, ARKO has helped lower costs for everyday essentials, from groceries to fuel, through ongoing promotions and value-driven discounts. In 2025, the Company will prioritize price cuts at the pump in its promotions to do its part in fueling America’s future.

“Gas prices are high, and our customers feel it every time they fill up. It’s putting a strain on families, small businesses, and household budgets,” said Arie Kotler, Chairman, President, and Chief Executive Officer of ARKO. “We’re in a moment of renewed economic awareness, where businesses have a responsibility to support working Americans. Fueling America’s Future is our way of stepping up, helping to ease that burden, and providing meaningful savings at the pump.”

Fas REWARDS^® members are eligible for fuel savings by buying qualifying items and receiving cents off fuel rewards that will go into their "virtual wallet." These rewards can be stacked, allowing customers to accumulate up to $2 off per gallon subject to state restrictions. In addition, they’ll earn points on qualifying purchases, which can also be redeemed for fuel discounts. This unique offer helps fas REWARDS^® members save money at the pump and lower their everyday expenses.

“Fueling America’s Future demonstrates how customer-driven solutions can help lower costs for families, ultimately strengthening the national economy,” continued Kotler. “By reducing fuel prices, we’re putting more money back into consumer pockets and supporting local communities so they can free up spending on other essential goods.”

The above-mentioned promotions are available to enrolled loyalty members across ARKO’s more than 1,350 branded retail stores, including fas mart^®, E-Z mart^®, Scotchman^®, Roadrunner Markets, fastmarket^®, village pantry^®, Handy Mart and Pride retail stores.

As of 2024, the fas REWARDS^® program has approximately 2.3 million enrolled members. Download the free app today to begin saving with better deals. To learn more, visit: www.fasrewards.com.

About ARKO Corp.
ARKO Corp. (Nasdaq: ARKO) is a Fortune 500 company that owns 100% of GPM Investments, LLC and is one of the largest operators of convenience stores and wholesalers of fuel in the United States. Based in Richmond, VA, we operate A Family of Community Brands that offer delicious, prepared foods, beer, snacks, candy, hot and cold beverages, and multiple popular quick serve restaurant brands. Our high value fas REWARDS^® loyalty program offers exclusive savings on merchandise and gas. We operate in four reportable segments: retail, which includes convenience stores selling merchandise and fuel products to retail customers; wholesale, which supplies fuel to independent dealers and consignment agents; GPM Petroleum, which sells and supplies fuel to our retail and wholesale sites and charges a fixed fee, primarily to our fleet fueling sites; and fleet fueling, which includes the operation of proprietary and third-party cardlock locations, and issuance of proprietary fuel cards that provide customers access to a nationwide network of fueling sites. To learn more about GPM stores, visit: www.gpminvestments.com. To learn more about ARKO, visit: www.arkocorp.com.

Forward-Looking Statements
This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, ARKO’s expected financial and operational results and the related assumptions underlying its expected results. These forward-looking statements are distinguished by use of words such as “anticipate,” “aim,” “believe,” “continue,” “could,” “estimate,” “expect,” “guidance,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and the negative of these terms, and similar references to future periods. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to, among other things, changes in economic, business and market conditions; ARKO’s ability to maintain the listing of its common stock and warrants on the Nasdaq Stock Market; changes in its strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; expansion plans and opportunities; changes in the markets in which it competes; changes in applicable laws or regulations, including those relating to environmental matters; market conditions and global and economic factors beyond its control; and the outcome of any known or unknown litigation and regulatory proceedings. Detailed information about these factors and additional important factors can be found in the documents that ARKO files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. ARKO does not undertake an obligation to update forward-looking information, except to the extent required by applicable law.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9988cefb-6aab-4e05-a82d-7c869858dcef

FAQ

How much can customers save with ARKO's new fuel discount program?

Customers can save up to $2 off per gallon or $40 per fill-up through ARKO's fas REWARDS® program by stacking rewards earned from qualifying purchases.

Where can customers redeem ARKO's fuel discounts?

The fuel discounts can be redeemed at any of ARKO's 1,350+ branded retail stores, including fas mart®, E-Z mart®, Scotchman®, Roadrunner Markets, fastmarket®, village pantry®, Handy Mart and Pride retail stores.

How many members does ARKO's fas REWARDS® program have?

As of 2024, ARKO's fas REWARDS® program has approximately 2.3 million enrolled members.

How does ARKO's fuel rewards stacking system work?

Fas REWARDS® members earn cents-off fuel rewards through qualifying purchases, which are stored in a 'virtual wallet.' These rewards can be stacked up to $2 off per gallon, subject to state restrictions.