Dive Brief:
- Pump & Pantry has agreed to acquire 21 Hy-Vee Fast & Fresh convenience stores from the supermarket chain for an undisclosed amount, the companies announced on Friday.
- Expected to close in July, the deal includes 18 locations in Iowa, two in Nebraska and one in Minnesota, according to the announcement. Five of the sites include an in-store Starbucks, while seven have a Smokey Row Coffee shop. The deal is Nebraska-based Pump & Pantry’s first integration with both QSRs.
- The purchase will not only grow Pump & Pantry’s store count by nearly 50%, but also mark the convenience retailer’s entrance into both Iowa and Minnesota.
Dive Insight:
Owned by convenience, restaurant, truckstop and hospitality company Bosselman Enterprises, Pump & Pantry has only operated in Nebraska since its founding in 1971. This acquisition brings it into two new states and supports the company’s plans to “aggressively grow” its footprint in the Midwest, CEO Charlie Bosselman said in the announcement.
Pump & Pantry intends to rebrand all 21 locations to its banner once the deal closes, and current Hy-Vee employees will have the opportunity to transition to employment with Pump & Pantry, according to the announcement. About 15 of the 21 sites are located in the Des Moines metro area, with the rest in Davenport and Marion, Iowa; Omaha, Nebraska; and Lakeville, Minnesota. Pump & Pantry will face fierce competition across Iowa, best known for the presence of super regional convenience store players like Casey’s General Stores and Maverik.
Lucas Glasgow, senior vice president of Hy-Vee Fast & Fresh, said this sale will let Hy-Vee focus more on its grocery business as well as the c-stores that are adjacent to its supermarkets. Once the transition is complete, Hy-Vee will have 168 convenience stores in its network.
“We’re confident that these locations, under the Pump & Pantry brand, will continue to deliver the same outstanding quality and value to customers on the go as they’ve come to expect from our stores,” Glasgow said in the announcement.
Pump & Pantry will bring its Pumped Up Rewards platform — which features app discounts, scratch and win games, online ordering and real-time fuel pricing — to these stores, but the retailer will retain Hy-Vee’s Fuel Saver redemptions. On top of that, Pump & Pantry intends to roll out the grocer’s fuel savings platform across the rest of its c-stores in Nebraska.
