The first QuikTrip store opened in a small strip center called Tulsa in 1958 by Chester
Cadieux and his college friend, which was funded by a 5000$ loan from cadieux’s father which
then brought the initial investment to 16000$. The store stocked a limited selection of groceries
with high prices with relevance with the others, however he then hoped to reach about 10 stores
in Tulsa area. By the investment of the suppliers, cadieux then was able to collect enough capital
to open additional stores which is quickly exceeded his dreams. In 1962, the sales reached $1
million and the company recorded a net income of $25,000, then they expanded outside Tulsa by
moving into Wichita, Kansas City, and Des Moines. [2]
One of the main empowerment…show more content… The second main
reason for Cadieux success is that he reduced overhead by using vendor jobbers for stocking
inventory. In the early 1970s, Cadieux thought of changing the product selection at QuikTrip by
introducing selling of the gasoline and in 1971 QuikTrip started selling it legally as the other
states legalized self-service stations. [2]
In its attempts to enhance its positioning within the market, QuikTrip decided to review
its inventorying strategy. Cadieux started eliminated slow-moving merchandise from his
inventory as a form to differentiation from others, such as canned vegetable. Not only that he
eliminates the idea of stocking large quantity of items, but also replaced it with priced low sales
in order to increase the turnover rate for items such as the beer, soda, coffee, cigarettes, candies
and also introduced a low-priced, private label beer called QT. This smart move enabled
QuikTrip to turn its inventory faster, thus shortening its cash cycle, and gaining compounding
advantage, and consequently being able to offer lower prices than its industry average, and
eventually benefiting its customers. after that, Cadieux registered the QuikTrip name for…show more content… The machines did not dispense cash, they rather
dispensed scrip, a paper receipt which the customer exchanged for gasoline and store goods, with
the balance of the amount paid to the customer in cash. This type of ATM machine was less
expensive to install and provided QuikTrip with the possibility of impulse purchases. QuikTrip
did not charge a fee to use the ATM, though individual banks did. [2]
Also, QuikTrip began to offer fast foods and fountain beverages at its stores, being the
first convenience store to offer a self-serve soda fountain and a self-serve coffee bar. Although
these new additional services may contrast with one of the four operational choices that
distinguish the model retailers, namely offering less, but they performed in the frame of the
operational excellence of the model retailers in the sense that QuikTrip’s stations were self-
service stations.
QuikTrip has been successful in educating its customers about its culture and in building
a bridge of trust with them when dealing with the customers. For instance, the checkout