3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry.
Sometimes, timing makes a mockery of us. A few weeks ago, we covered how c-store M&A had actually been pretty quiet lately. Since then, we’ve had four different acquisitions come to light. There were enough moves that we couldn’t fit Stewart’s Shops’ latest deal in our roundup.
In this week’s “3 Big Numbers,” we explore how recent deals have bolstered Mega Saver’s store count, boosted Jacksons’ foodservice ambitions and put more cash in Alimentation Couch-Tard’s pockets.
51%
Mega Saver’s store count growth with its latest acquisition.
Mega Saver is buying 23 Kum & Go stores in Iowa and South Dakota from Maverik.
This is a big deal for Mega Saver, in multiple ways. It will not only grow the company’s footprint by more than 50%, but the deal represents Mega Saver’s first foray into South Dakota, putting it in front of a whole new set of potential customers.
The addition of these locations could bump Mega Saver into the lowest levels of the top 100 c-stores by store count, according to NACS and NielsenIQ data. Depending on what Yesway does with its stores in Iowa and Kansas, Mega Saver could move even further up the rankings in the near future.
16
The number of Redwood Market stores with Aztec Grill foodservice programs.
Jacksons Food Stores announced earlier this week that it had bought Redwood Oil, parent company of the 24-site Redwood Market c-store chain. While the acquisition significantly expanded Jacksons’ presence in California, there was another feature of these sites that weighed heavily on the decision: foodservice.
Redwood Market has developed a Mexican-inspired food program over the years that features customizable burritos and bowls, fajitas, quesadillas, nachos, tortas and taco platters. Jacksons has a grab-and-go program, but this will be the company’s first made-to-order offering.
Jacksons plans to not only keep Aztec Grill in place but also expand the foodservice to other stores in its network. The industry will be watching to see how far the retailer scales this concept.
$2.87 million
The amount Alimentation Couche-Tard made for the sale of two c-stores.
Alimentation Couche-Tard has sold two convenience stores in Baton Rouge, Louisiana, to local real estate agency Nabut Brothers, parent of the Birdies Food & Fuel c-store chain. One location sold for $1.55 million and the other for $1.32 million, meaning Circle K brought in nearly $3 million for the two sites.
It can be easy to get mired in thinking of store sales as a sign that something is wrong, but that’s not always the case. Even the healthiest of companies should always evaluate their business.
We will never know exactly what it was about these stores that made Couche-Tard decide to sell them. What we do know is that the company, which still has more than 200 stores in Louisiana, now has almost $3 million more to put toward other priorities.
