There are advantages to entering a state through new builds. Stores can be constructed exactly how and where retailers want them, and companies have plenty of time to introduce themselves to consumers before opening.
But expanding via M&A also has its benefits. There are no zoning hurdles to jump over and stores are often ready to go right away, allowing companies to immediately make a splash in local markets.
So far this year, the c-store industry has seen several companies enter new states through acquisitions. This includes two deals that could reshape the competitive landscape in the southern U.S., including the entry of a major international competitor.
Here are six c-stores taking the plunge into new states through acquisitions.
Casey’s acquisition of CEFCO adds multiple states
Casey’s General Stores announced in July that it had agreed to acquire Fikes Wholesale, parent company of CEFCO Convenience Stores, for more than $1.1 billion.
The deal adds 198 stores to Casey’s footprint. This includes 148 locations in Texas — which Casey’s initially entered last year when it acquired Lone Star Food Stores’ 22 locations — and 50 stores spread across Alabama, Mississippi and Florida.
The latter three states are all new markets for Casey’s.
This move is the latest in a series of acquisitions Casey’s has made as it looks to open 500 more locations between 2023 and 2026.
FEMSA makes a splash in the U.S.
In February 2023, Latin American convenience store company FEMSA said it was looking to enter the United States. While it had more than 30,000 c-stores worldwide, it had almost none in the U.S.
Less than a month later, Delek US Holdings suggested that it might be looking to sell its retail operations.
Both ambitions culminated in FEMSA agreeing in August to buy Delek’s 249 locations in Texas, Arkansas and New Mexico for $385 million.
FEMSA may not be done with just this acquisition. The company’s strong financials give it “an incredible spine of logistics to build just about anything they want,” said David Marcotte, senior vice president for market research firm Kantar, in an earlier interview.
Kent Kwik enters Alabama
In January, Kent Companies, parent of the Kent Kwik c-store chain, acquired 13-location c-store retailer DC Oil Company in Alabama. The 13 Chevron Texaco-branded c-stores marked Kent Companies’ first step into its eighth state of operation.
Kent also acquired DC’s fuel transportation fleet and portfolio of dealer accounts.
The Midland, Texas-based company has more than 100 c-stores, along with car washes, lubrication centers, urgent cares and a variety of other businesses.
BreakTime enters 2 new states
EG America has sold off more than 100 of its U.S. locations since the beginning of 2023. In June, Houston-based BreakTime Corner Market (BTCM) said it had bought 23 of EG America’s Loaf ‘n Jug sites — nine in Montana and 14 in North Dakota.
These were BreakTime’s first stores in either state, confirmed Bret Sullivan, regional operations director for BTCM. The stores had a new point-of-sale system installed in May and will eventually be rebranded to the company’s Brake Time banner.
Houston-based BreakTime owns around 170 gas stations and convenience stores across the country in states like Texas, Maine, California and North Dakota.
U-Stop steps into Kansas
In March, Midwest retailer U-Stop Convenience Stores introduced itself to Kansas with the acquisition of the 11-location Shop Quik Convenience Stores chain in that state.
Before the acquisition, U-Stop had operated exclusively in Nebraska, where it had around 30 sites centered largely around Lincoln.
Shop Quik’s 11 Kansas c-stores all sell fuel, while five feature quick-service restaurants like Hunt Brothers Pizza, Wild Cafe or Chester’s Chicken.
Hop Shops acquires first Indiana store
Hop Shops, a 15-location convenience store chain based in Kentucky, took over its first site in Indiana on Sept. 10. Valor Oil, Hop’s parent company, had for years owned the property where the store is located, and recently began operating the store itself rather than leasing it out to other operators.
The site, which has a Wendy’s QSR, will be remodeled in the coming months to add the chain’s popular disco bathrooms and a Chester’s Chicken.
The chain also operates two Hop Shops truck stops around Owensboro, Kentucky, 10 Hop Shops c-stores in Northern Kentucky, and two truck stops in Ohio.
