Arko Corp., one of the largest operators of convenience stores and wholesale fuel in the U.S., reported strong second-quarter results in its Other Tobacco Products (OTP) segment, with sales up 2.6% and margins rising 170 basis points. CEO Arie Kotler credited expanded assortments, better merchandising, and refreshed “back bars” in nearly 1,000 GPM Investments stores.
OTP—including cigars, smokeless tobacco, nicotine pouches, and heated tobacco—now accounts for 10% of store assortment, with margins on par with cigarettes, according to Arko’s executive vice president and CFO Robert Giammatteo.