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Friday, September 23, 2016

A NACS Show education session will explain the influence of industry shakeups on your stores

Source: NACS Online

ATLANTA – The convenience store industry has experienced tremendous consolidation over the past few years, with both large and small companies being acquired or merged with other chains. Questions retailers have been asking about this trend include “Will the industry consolidation trend continue, and if so, what effect will that have on the industry in general? What effect will continued low oil prices have on the industry in general and on fuel margins and inside sales in particular?” said Dennis Ruben, executive managing director for NRC Realty & Capital Advisors, LLC.

“While we have all read about the large merger and acquisition (M&A) transactions in the c-store industry in recent years, the industry remains somewhat fragmented,” Rocky Dewbre, director of CST Brands, told NACS Daily. “Of the 152,000 or so convenience stores in the United States, approximately 60% are operated by single store operators. Given this backdrop and the increased productivity many large chains see when they convert acquired sites to their scalable platforms, I see no reason that M&A activity will slow down any time soon.”

That’s one reason why retailers should attend the “Mergers & Acquisitions—Where Will It All End?” educational session at 9:05 am on Thursday, October 20, during the 2016 NACS Show in Atlanta. Dewbre will be joined on a panel with Jeff Kramer, managing director of NRC Realty & Capital Advisors, LLC; Paul Reuter, co-founding partner and chairman of the Midwest Retail Group, LLC; and Peter Tedeschi, chief strategic officer for Midwest Retail Group. Ruben will moderate the discussion.

Tedeschi pointed out that “it is important for attendees to understand what is driving consolidation in our industry and to be able to know whether they should be a part of the story as either a buyer or seller. This decision is not an easy one to make, but one that company leaders are required to face. One must also consider the impact that this decision will have on shareholders, employees, customers and even the future of the brand itself.”

“The November 2016 election results, changing regulations and demographic trends are likely to bring some of the most important impacts on business seen in a very long time,” added Kramer. “How might these changes affect M&A activity in the convenience store/gasoline industry?” is one question we’ll try to answer during the session.

The 2016 NACS Show takes place October 18-21 in Atlanta at the Georgia World Congress Center. Register today!