General Merchandise/HBC

RBG in 'Fast 50'

C-store sales group sees swfit revenue ramp-up
CHICAGO -- Convenience store sales organization Royal Buying Group Inc., Lisle, Ill., has been ranked No. 6 in the Crain's Chicago Business "Fast 50" list of the fastest-growing companies by five-year revenue growth. That growth has been pegged at 2,517.7%; the company had 2008 revenue of $167.4 million and 2003 revenue of $600,000, according to the report.

RBG tracks sales, negotiates contracts with vendors and develops marketing strategies for about 6,000 c-stores across the country, the report said.

Founded in 1995, RBG originally handled operations for [image-nocss] stores affiliated with Shell Oil dealers. Since then, the company has added other stores, while offering payroll services, insurance, office supplies and whatever else is needed to run a retailer. RBG now negotiates more than 200 vendor programs for its members and the product mix evolves about every six months, president and CEO Michael Zielinski told the magazine.

Once, about half of the programs were related to tobacco products. But federal regulation since 2001 has curtailed tobacco advertising, so RBG has sought replacements. Among the latest trends: coffee service, healthier snacks, energy drinks and hot food.

RBG no longer counts on vendor programs for the bulk of its revenue, the report said. Several years ago, company officials noticed the popularity of phone and gift cards. Now, 90% of RBG's income comes from selling the cards and setting up reward programs.

In 2006, RBG signed an agreement with Shell to handle the marketing and sales of its gift cards. The deal came at the right time, Zielinski said. High gasoline prices made customers reluctant to shop in c-stores, but they were attracted to programs that offered rewards for fillups.

Zielinski projected that the recession will keep revenue flat this year, said the report. RBG will continue to change and add products, he said, knowing that "not all the programs that we come up with are successful, but we have to try all the time."

RBG is a national organization dedicated to maximizing sales and profitability of convenience stores, petroleum locations, college book stores, truckstops/travel plaza centers, auto repair facilities, tobacco outlets and liquor stores. Core service capabilities include negotiating with regional and national suppliers for "impactful and competitive" sales and marketing programs, providing category management services, marketing support, customer service support as well as a variety of additional services.

Click herefor the full "Fast 50" list.

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