Dive Brief:
- Casey’s General Stores has agreed to acquire 24 locations from Pak-A-Sak, a convenience store chain in Texas, for an undisclosed amount, a spokesperson from the Iowa retailer confirmed to C-Store Dive.
- Most of the sites are located in the Amarillo, Texas, area, the spokesperson said. Other Pak-A-Saks are in nearby Panhandle cities, including Dumas, Hereford and Pampa, while some are farther south in Lubbock, according to Pak-A-Sak’s website.
- The deal underscores Casey’s continued focus on Texas as part of its ambitious growth plans, less than three years after the retailer entered the Lone Star State.
Dive Insight:
Casey’s has emerged as a competitive c-store threat in Texas since entering the state in late 2023 with its acquisition of the 22-store Lone Star Food Stores chain. A few months later, Casey’s made a major splash when it bought 148 CEFCO locations in the state. Last summer, Casey’s filed with the Texas Department of Licensing and Regulation to build seven new locations in central and eastern Texas.
During the retailer’s annual investor day earlier this summer, President and CEO Darren Rebelez told analysts that the Casey’s brand “has been really well received in Texas,” where the company has stuck to its tried-and-true strategy of targeting small towns and suburbs rather than big cities.
Although Rebelez did not share a specific store count or growth target for Texas, he indicated that Casey’s opportunity in the state could be significant.
“Could we squint and see 1,000 stores, 2,000 stores? Yeah, I don't see any reason why not,” Rebelez said.
The acquisition of Pak-A-Sak marks another step in that direction. Casey’s spokesperson noted that Pak-A-Sak’s store employees will join Casey’s as part of the deal.
Meanwhile, Pak-A-Sak, which was founded in 1978 by Dale and Joyce McKee, according to its website, is the latest independent retailer to exit the industry as economic headwinds continue to make the operating environment challenging for smaller convenience store owners.
In a statement, the McKee family said they agreed to sell Pak-A-Sak “because we care deeply about the future of this company.”
“We are confident in selecting Casey’s for this next chapter as they hold the same values we hold dear — community service, quality, and a family-friendly environment,” the family added. “We are in the early stages of this transition and at this time nothing changes in our day-to-day operations. We appreciate our team continuing to do what they do best — serving our guests and communities.”
