Quote:
Originally Posted by Authentic_City
Who says smaller gas stations are no longer feasible? My local go to gas station is a smaller Husky with maybe 8 pumps and it’s always busy. Same goes for the West End Husky on Ellice and Arlington. These operations seem appropriately scaled for older neighbourhoods. I think there is a corporate preference on the part of Coop to develop huge stations, while the smaller Husky stations may be owner operated franchises. Also, Domo seems to survive with very small stations. I think gas stations can adapt to a variety of forms, including small format.
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Gas stations are a low margin business. The profit isn't in selling gas, but in the extras. The more customers you can churn through your convenience store buying high margin hot rods, windshield washer fluid, chocolate bars, and car washes, the more profitable your location. Yes, there are still 4 pump gas stations that survive, but almost no new ones being built. Dozens of small gas stations, including Domos, have shut down over the past 30 years.