Dive Brief:
- Texas Born plans to double its store count over the next five years through a combination of organic growth and acquisitions, CEO Kevin Smartt and President Nate Brazier said in an interview with C-Store Dive.
- TXB, which currently has 54 c-stores, plans to surpass 100 sites by adding seven to 10 stores to its network annually, Smartt said.
- TXB’s growth strategy contrasts with the trajectory of many similarly sized c-store operators, some of which have sold their assets as economic pressures continue to squeeze profits.
Dive Insight:
TXB quietly revealed plans to surpass 100 stores in early 2025. If achieved, that growth trajectory would be the biggest in its history. Despite the geopolitical and economic environment growing more challenging since then, the retailer remains committed to the goal.
Of the seven to 10 stores it’s targeting for each year, four to six will be new builds, while the rest will come through acquisitions, Smartt said.
“I look at the 100-store mark — yes, we’re still aiming for that,” Smartt said. “We’ve got a whole pipeline of real estate we’ve already acquired and that we’re working on acquiring. And if the right M&A opportunity came along, we’d sure take a look at that as well.”
Convenience retailers with no more than a few dozen locations have increasingly exited the c-store industry as economic headwinds take a toll on profitability. This year alone, operators that have sold their retail assets have included Tooley Oil, Earnheart Oil, Fleming Brothers Oil, PowerTrac, FastLane, Big Boss Stores and Monfort Companies.
But TXB is betting on its strong operational standards and community ties to grow its store count instead.
Smartt said although TXB’s store count hasn’t grown much through the years, the retailer has still been building and acquiring new sites while closing down others for various reasons. He said this is common practice, especially among smaller operators.
“We've been a good acquirer … we've bought several single store locations and sometimes multiple in one year,” Smartt said.
Smartt emphasized that the M&A activity among larger operators has given TXB an opportunity to stand out as it pursues more growth. Bigger brands such as Casey’s General Stores and Oxxo USA continue to acquire and rebrand smaller chains in Texas.
“We’re just able to really be a bigger part of our communities, to have a really strong local name and presence, and I think people appreciate that,” he said.
