All good stories must come to an end … or do they? Cenex® will complete its four-year initiative to renovate the exterior of all Cenex-branded locations this August. While the exterior part of the program ends this year, Cenex is continuing its in-store loan program for the foreseeable future.

The initiative is called LIFT, which stands for lighting, image and facility transformation, and by the program’s completion it will have transformed more than 1,300 c-stores across 19 states.

LIFT is two-pronged. One portion, dubbed Halo, focuses on refreshing and modernizing the forecourt, and the other focuses on improving the in-store experience for consumers. Cenex, which is the energy brand of CHS, partnered with CHS Capital to provide subsidized low-interest loans for eligible in-store improvements.

“When we first launched this program in 2020, the timing wasn’t right for everybody to take on an in-store renovation,” said Akhtar Hussain, director of refined fuels marketing, CHS Inc. “The Cenex brand is committed to continuing to offer the in-store loan program and really help retailers work through these investment decisions.”

Lifting Up A Community

Convenience stores are facing stiff competition that’s only increasing. Dollar stores, grocery stores and even Amazon could easily be considered direct competitors to c-stores, and these retailers have forced the industry to rethink how they meet the wants and desires of today’s consumer. But competition within the industry has also increased, as c-store retailers level up to engage with these new competitors.

“In order for us to continue to keep the Cenex brand strong and relevant to consumers, we have to meet our retailers where their competition is, which is offering better in-store amenities, better foodservice programs and brighter, more modern stores,” said Hussain. “That is the flexibility that we are looking to deliver through the in-store loan program.”

The Cenex brand is deeply rooted in the communities it serves, especially rural communities. Oftentimes, a Cenex-branded c-store is the only nearby option to get gas or grab a gallon of milk. When retailers partner with Cenex to revamp their interior, the strategy is to narrow in on exactly what that specific community needs. For example:

• In Merrill, Wisconsin, the River Country Co-Op Cenex location sits along the Wisconsin River and near several lakes, so it added a bait shop as one of its in-store upgrades, so that both minnows and a snack are easy to grab on the way to a fishing trip.

• Offering local food vendors was important to the folks at the Synergy Cooperative Cenex location in Cumberland, Wisconsin, and with the help of LIFT, the retailer incorporated four local meat and cheese vendors in addition to locally made maple syrup and honey products.

• The Northern Star Co-Op management team in Grand Rapids, Minnesota, knew that many residents in the community rely on financial assistance, so they chose to implement the Electronic Benefits Transfer (EBT) program, an electronic system that allows a Supplemental Nutrition Assistance Program (SNAP) member to pay for food using SNAP benefits.

“We offer our retailers the flexibility to choose the store improvements and food service offerings that are best suited to their communities.”

“Cenex-branded stores are different based on geography, size and market, so we really needed to develop a program that allows them the flexibility to improve or add the services, amenities and infrastructure that best suits their community and their purpose,” said Hussain, adding that part of that flexibility is the freedom for retailers to partner with local businesses for the interior renovations. “Our only requirement is that the contractors are bonded and licensed,” he noted.

“We are allowing stores to invest in what the communities need most,” said Hussain. “When you’re hiring local plumbers, electricians and other contractors, that broadens the impact that this investment has made. That’s an investment directly in those communities.”

‘A One-Stop Shop’

Throughout the pandemic, dependence on local c-stores increased substantially, so Orton Oil Co. store owner Frank Orton knew it was time to make the changes needed to accommodate customer needs.

The LIFT initiative helped Orton keep pace with evolving consumer behaviors through a series of exterior and interior updates. This included a strong desire for an elevated customer experience and prioritization of safety.

“Within just a few months of finishing our upgrades, we saw a significant increase in traffic and business to our location due to the new Halo image.”

When it came to the interior upgrades, Orton had the freedom and flexibility to make all the updates he deemed necessary to satisfy the needs of his community.

“CHS was a one-stop-shop when undertaking this renovation and really made my dream store become a reality. CHS and the Cenex® LIFT initiative made the process so much easier knowing we didn’t have to worry and could solely focus on building a premier c-store for our town,” Orton said.

Looking Ahead

As the convenience store industry continues to evolve, Hussain sees foodservice and fuel as playing complementary roles in the c-store offering.

“People are not going to come to our stores to buy fuel and then go across the street to a convenience competitor to buy their food. They’re going to go to the place that’s going to allow them to do everything in one stop,” he said. “If our store interiors are places that community members want to visit, we will see the benefit of increased fuels sales in the forecourt.”

Cenex offers its partners foodservice equipment and programs, such as Chester’s Chicken and Godfather’s Pizza, but it’s ultimately up to the retailer to decide what its community needs.

“That’s the difference that we were looking to make,” said Hussain. “We offer our retailers the flexibility to choose the store improvements and food service offerings that are best suited to their communities.”

As Hussain looks ahead for the Cenex brand, he doesn’t see a slowdown any time soon. During its four-year run, the LIFT program saw $150 million in approved capital through the in-store program, and there is approximately $70 million in exterior improvements. Easy laurels to rest on, but not for the Cenex brand.

“As nice as it would be for us to take a breath here after our four years of the LIFT initiative and going out there and transforming so many locations, we’re not slowing down,” he said. “We’re going to continue to tell our stories of success as these renovations are completed and take a deeper look at the impact that these investments have made in the communities.”

Hussain noted that the store loan program is open to new marketers as well as existing Cenex fuel marketers.