“operate convenience stores under the name “Casey’s General Store” in 11 Midwestern states, primarily Iowa, Missouri, and Illinois. [that explains why I’ve never heard of them]
stores carry a broad selection of food (including freshly prepared foods such as pizza, donuts, and sandwiches) [wonder how fresh]
all Casey’s stores offer gasoline for sale on a self-service basis.
1,699 stores in operation
corporate headquarters in Ankeny, Iowa
Approximately 59% of all our stores are located in areas with populations of fewer than 5,000 persons
We seek to meet the needs of residents of smaller towns by combining features of both general store and convenience store operations. Smaller communities often are not served by national-chain convenience stores. We have succeeded at operating Casey’s General Stores in smaller towns by offering, at competitive prices, a broader selection of products than does a typical convenience store.
revenue primarily from the retail sale of gasoline and the products offered in our stores
In warmer weather, customers tend to purchase greater quantities of gasoline and certain convenience items such as beer, soft drinks, and ice [but the hard drugs sales (cigarettes) are remarkably consistent]
typically carries over 3,000 food and nonfood items. Many of the products offered are those generally found in a supermarket. The selection is generally limited to one or two well-known brands of each item stocked. Most of our staple foodstuffs are nationally advertised brands. Stores sell regional brands of dairy and bakery products, and approximately 88% of the stores offer beer.
products with higher gross profit margins… added various prepared food items to our product line over the years, facilitated by the installation of snack centers, which now are in the majority of stores. The snack centers sell sandwiches, fountain drinks, and other items that have gross profit margins higher than those of general staple goods.
the Company was selling donuts prepared on store premises in approximately 98% of our stores in addition to cookies, brownies, and Danish rolls. The Company installs donut-making equipment in all newly constructed stores.
made-from-scratch pizza … is available in 1,654 stores (97%) … Although pizza is our most popular prepared food offering, we continue to expand our prepared food product line, which now includes ham and cheese sandwiches, pork and chicken fritters, sausage sandwiches, chicken tenders, popcorn chicken, breakfast croissants and biscuits, breakfast pizza, hash browns, quarter-pound hamburgers and cheeseburgers, and potato cheese bites. The newly constructed stores and many of the remodeled stores now offer made-to-order sub sandwiches. [holy shit, obesity in the heartland]
retail sales of nongasoline items have generated about 29% of our total revenue, but they have resulted in approximately 74% of our gross profits. Gross profit margins on prepared food items averaged approximately 62% during the three fiscal years ended April 30, 2012—substantially higher than the gross profit margin on retail sales of gasoline, which averaged approximately 5%. [5% is high… this is true of nearly all convenience stores, gas is sort of a loss leader … worst customers are the ones who buy gas and nothing else (me)]
The most recent store design measures 39 feet by 92 feet with approximately 2,300 square feet devoted to sales area, 500 square feet to kitchen space, 400 square feet to storage, and 2 large public restrooms. ’
Each new store typically includes 4 to 8 islands of gasoline dispensers and storage tanks with capacity for 30,000 to 50,000 gallons of gasoline.
The merchandising display follows a standard layout designed to encourage a flow of customer traffic through all sections of every store. [lol, must wind your way through the aisles to get to the cash register to pay for gas… PAY AT THE PUMP, ALWAYS]
open at least sixteen hours per day, seven days a week
operate 352 stores on a 24-hour basis.
It is our policy not to install electronic games or sell adult magazines on store premises. [NO GAMBLING OR PORN PLEASE, THIS IS IOWA]
Where there is no competing store, we can often operate profitably at a highway location in a community with a population of as few as 400 [with no competing store they can probably operate profitably with a population as few as 40 :) ]
73% of Casey’s total revenue for the year ended April 30, 2012 was derived from the retail sale of gasoline.
Average gross profit margin per gallon
(excluding credit card fees)
15.35¢ with gas at $3.45
4.4% gross profit margin [normal, and crappy … need to force ‘em down the aisles where they’ll pick up some Beef Jerky or best, one of their terrible “made-from-scratch” pizzas]
Food, including prepared foods, and nonfood items similar or identical to those sold by the Company are generally available from various competitors in the communities served by Casey’s General Stores. We believe our stores located in smaller towns compete principally with other local grocery and convenience stores, similar retail outlets, and, to a lesser extent, prepared food outlets, restaurants, and expanded gasoline stations offering a more limited selection of grocery and food items for sale. Stores located in more heavily populated communities may compete with local and national grocery and drug store chains, expanded gasoline stations, supermarkets, discount food stores, and traditional convenience stores. Convenience store chains competing in the larger towns served by Casey’s General Stores include Quik Trip, Kwik Trip, and regional chains.
specialty retailer of health and wellness products, including vitamins, minerals and herbal supplement products (“VMHS”), sports nutrition products and diet products.
focused on high-margin, premium, value-added nutritional products, is sold under our GNC proprietary brands, including Mega Men®, Ultra Mega®, GNC Total Lean, Pro Performance® and Pro Performance® AMP, and under nationally recognized third-party brands. [once again, pushing the store brand hardest]
our network of domestic retail locations is approximately eleven times larger than the next largest U.S. specialty retailer of nutritional supplements
the nutritional supplement consumer often requires knowledgeable customer service
As with our Rite Aid, Sam’s Club and PetSmart partnerships, we believe we have the opportunity to create additional streams of revenue and grow our customer base by leveraging the GNC brand through corporate partnerships outside of our existing distribution channels. [now a strong enough brand to do that]
large customer base includes approximately 4.9 million active Gold Card members in the United States and Canada who account for over 50% of company-owned retail sales and spend on average two times more than other GNC customers.
our shoppers tend to be gender balanced, relatively young, well-educated and affluent. [not meatheads?]
the leading global specialty retailer of health and wellness products within a fragmented industry
Our retail stores generally offer over 1,800 SKUs across multiple product categories.
a transportation fleet of over 100 delivery trucks and trailers [don’t outsource shipping, eh?]
well-trained sales associates, who offer educated service and trusted advice.
Retail rev by product: sports 44% VMHS 39% diet 10%
our websites, GNC.com and LuckyVitamin.com
December 31, 2011, we operated 3,046 company-owned stores
stores are between 1,000 and 2,000 square feet and are located primarily in shopping malls and strip shopping centers.
With the exception of our downtown stores, virtually all of our company-owned stores follow one of two consistent formats, one for mall locations and one for strip shopping center locations.
Internet purchases are fulfilled and shipped directly from our distribution centers to our consumers using a third-party courier service. To date, we believe that most of the sales generated by our website are incremental to the revenues from our retail locations. [not cannabilizing retail sales]
In August 2011, we acquired S&G Properties, LLC d/b/a LuckyVitamin.com and What’s the Big Deal?, Inc. d/b/a Gary’s “World of Wellness” (collectively referred to as “LuckyVitamin.com”), an online retailer of health and wellness products. [what were the terms? d/b/a means “doing business as”]
December 31, 2011, there were 2,514 franchise stores operating
Our franchise stores in the United States are typically between 1,000 and 2,000 square feet, and approximately 90% are located in strip mall centers.
domestic franchisee renewal rate of 92% between 2006 and 2011. We do not rely heavily on any single franchise operator in the United States, since the largest franchisee owns and/or operates 12 store locations.
New franchisees in the United States are generally required to pay an initial fee of $40,000 for a franchise license. Existing GNC franchise operators may purchase an additional franchise license for a $30,000 fee.
Once a store begins operations, franchisees are required to pay us a continuing royalty of 6% of sales and contribute 3% of sales to a national advertising fund. [there’s the rake]
At the end of the initial term and each of the renewal periods, the renewal fee is generally 33% of the franchisee fee that is then in effect.
franchisees in the United States receive limited geographical exclusivity
As of December 31, 2011, we had 2,125 Rite Aid store-within-a-store locations. Through this strategic alliance, we generate revenues from sales to Rite Aid of our products at wholesale prices, the manufacture of Rite Aid private label products, retail sales of certain consigned inventory and license fees. We are Rite Aid’s sole supplier for the PharmAssure vitamin brand and a number of Rite Aid private label supplements.
Sales of our proprietary brands at our company-owned stores represented approximately 56% of our net retail product revenues for the years ended 2011, 2010 and 2009. [surprised it’s not higher]
Consumers may purchase a GNC Gold Card in any U.S. GNC store or at GNC.com for $15.00. A Gold Card allows a consumer to save 20% on all store and online purchases on the day the card is purchased and during the first seven days of every month for a year.
Overall, GNC-branded proprietary products constituted approximately 82% of our VMHS sales in 2011. [wow]
Our GNC-branded proprietary products, including Pro Performance® branded products, represented approximately 37% of our sports nutrition product sales in 2011. [lots more competition there]
In 2011, company-owned retail sales from diet products accounted for approximately 10% of sales, down significantly from 27% of sales in 2001. Overall, we estimate that GNC-branded proprietary products constituted approximately 31% of our diet product sales in 2011.
In 2011, we estimate that GNC-branded products generated more than $975 million of retail sales across company-owned retail, domestic franchise locations, GNC.com and Rite Aid store-within-a-store locations.
The Dietary Supplement Health and Education Act of 1994 (“DSHEA”)
The Dietary Supplement Labeling Act of 2011
The Dietary Supplement Safety Act (S 3002)
n May 2009, the FDA warned consumers to stop using Hydroxycut diet products, which are produced by Iovate Health Sciences, Inc. (“Iovate”) and were sold in our stores.
current Good Manufacturing Practice (“cGMP”) regulations
In 1984, the FTC instituted an investigation of General Nutrition, Incorporated (“GNI”), one of our then existing subsidiaries, alleging deceptive acts and practices in connection with the advertising and marketing of certain of its products. [still relevant]
“Salon operates The Well, a subscription member-only discussion community. As other online communities and social networks emerged over the years, The Well’s subscriber base dwindled to 2,693, which did not bear financial promise.”—Probably couldn’t even pay the electric bill.