Case Analysis Of Quiktrip

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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

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