Thursday, January 9, 2014
Insider's View: Growth Initiatives & Strategic Moves (Part 3 of 3)
Retailers expanding into new markets, bankruptcies and a look at 2014
Source: CSP Daily NewsBy Dennis L. Ruben, Executive Managing Director
SCOTTSDALE, Ariz. -- Beyond mergers and acquisitions, convenience store industry growth and transition come in many forms—new construction, market focuses, bankruptcies and more. Here's a look at the major activity from 2013 in those area.
Several major industry players have continued their growth strategies in both existing and new markets.
- Wawa Inc. announced the grand opening of its 18th store in the greater Orlando, Fla., market, marking its 27th store to open in Florida. Wawa planned to open 25 stores in Florida in 2013 and intends to open 25 stores in each of the next two years; it projects that it will open 100 stores in Florida within the next five years.
- Wawa, QuickChek and 7-Eleven are all targeting northern New Jersey for expansion. QuickChek and Wawa are aggressively seeking prime locations in Bergen and Passaic counties.
- Kum & Go LC continues its expansion in existing and new markets, and it recently opened a new store in Bentonville, Ark., bringing the total number of stores in that state to 42. Kum & Go operates 420 c-stores in 11 states.
- Casey's General Stores Inc. is also continuing its expansion strategy and has stated that it will build or acquire 70 to 105 stores in its fiscal year, which began May 1. Casey's also plans to replace 20 stores and complete 25 major remodels. A significant number of the new stores will be in new markets in Arkansas, Tennessee, Kentucky and North Dakota, and it will also "fill-in" locations in existing markets.
Divestiture of Nonstrategic Assets
- Publix Super Markets Inc. sold its PIX fuel and c-store chain. The chain, consisting of 14 stores in Florida, Georgia and Tennessee, was sold to two buyers. Circle K Stores Inc. purchased the 13 stores located in Florida and Georgia, and Max Arnold & Sons of Hopkinsville, Ky., purchased the Tennessee location. NRC Realty & Capital Advisors LLC served as financial adviser to Publix in connection with the sale.
- Mutual Oil Co. Inc. sold 19 gas station and c-store wholesale assets to multiple buyers so that it could focus exclusively on its wholesale business. The purchasers included a subsidiary of Global Partners LP and various regional jobbers and individual store operators.
Getty Realty Corp.
Getty Realty Corp. continued the process of successfully repositioning the remaining propertie