Iowa Grocery Chain to Roll Out Gas/C-store/Car Wash Combo

DES MOINES -- Dahl's Foods, Inc., a grocery chain based here, will begin selling gasoline in August, when the retailer is slated to launch its first combination gas station, convenience store, and car wash, to be known as Dahl's Fuel, according to a published report. The grocer's headquarters are on the second floor of the store, which is located at Merle Hay Road and Aurora Avenue in Des Moines.

The gas station will feature eight fuel pumps selling premium, regular unleaded, unleaded with ethanol, and the E-85 blend of ethanol, Dahl's president David Sinnwell told the Des Moines Register. The company's goal is greater convenience for its customers, he added.

West Des Moines, Iowa-based retailer Hy-Vee already offers gas stations at 67 of its 198 grocery stores, and at least eight of those stations include a car wash. Some Wal-Mart and Costco locations in the state also sell fuel.

As well as gas, Dahl's Fuel will sell drinks, snacks, and other c-store products. The company says it plans to add gas stations at several of its 11 locations, real estate permitting. A station is already slated to be built next spring at a new store in Ankeny, Iowa, which will open at the end of May. "How fast and how many [gas stations] we build will depend on the success of the first one," explained Sinnwell.

Over one-quarter of grocery stores now offer gasoline, according to a survey by the Food Marketing Institute.
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