Convenience store chains in the U.S. are building and acquiring new stores at unprecedented rates. Economic headwinds brought on by COVID-19 have lingered, forcing c-store retailers to expand their footprints and gain new customers to boost their profits.
Unlike the Circle Ks and Casey’s of the world, the smaller operators don’t have hundreds or thousands of stores, so the impact of each acquisition or series of builds is amplified.
Here’s a rundown of some of the fastest-growing, under-the-radar convenience retailers in the U.S. right now. But before we dive in, a few parameters:
This is solely based on store count growth in recent years for chains that had less than 350 company-operated locations at the end of 2023.
Rutters
In January 2023, Rutter’s — which currently has 87 c-stores across Pennsylvania, Maryland and West Virginia — touted plans to reach 130 locations and extend its reach into Delaware and Virginia by 2028. Just this week, it started building its first store in Virginia.
If achieved, this expansion will not only introduce Rutter’s and its fried pickles and peanut butter burgers to a new audience, but boost its store count by a staggering 60% in just a few years. That’s a significant increase for a company that until now has focused on only a few markets. If I’m Wawa, Sheetz, or even Baltimore-based Royal Farms, my palms are sweating
Majors Management
Likes to acquire other convenience stores and has done so numerous times in recent years. Majors Management’s purchase of nearly 200 MAPCO Express c-stores last year was the largest in company history.
Majors made five acquisitions in 2022 — including the purchase of 69 Circle K stores across six states — and took the industry by storm with its largest deal in company history last year. That move, which closed in November 2023, saw Majors acquire nearly 200 MAPCO Express convenience stores across Tennessee, Alabama, Georgia, Mississippi, Arkansas and Kentucky.
CrossAmerica Partners
The only public company on this list, CrossAmerica Partners LP rarely makes headlines or even receives investor questions during its quarterly earnings calls. But the Allentown, Pennsylvania-based company has quietly added hundreds of locations to its c-store network over the past few years.
That growth began when CrossAmerica acquired 106 locations from 7-Eleven in 2021, a move which company leadership credited for its “record breaking” 2022. Earlier this year, CrossAmerica acquired 59 c-stores from Applegreen and commenced broader plans to beef up its retail footprint by converting dealer sites to company-owned locations.
CrossAmerica had 296 company-operated c-stores at year’s end of 2023. Currently, the retailer has 372 — about a 26% jump from the end of last year with a quarter still to go.
H&S Energy
In September 2023, H&S Energy, which at the time operated around 160 convenience stores in California, shared plans to more than double its store count to 400 locations in the coming years. The Orange County-based company was coming off the acquisition of 46 convenience stores via separate transactions the year before and appeared hungry for growth.
It didn’t take long for those plans to commence. This past March, H&S acquired Andretti Petroleum Group’s 170 convenience retail sites and gas stations across California, Oregon and Washington state.
H&S’s 300-plus convenience stores now operate under its own Power Market banner and Andretti’s Pinnacle 365 branding. Since acquiring Andretti’s stores, H&S has become one of the most ubiquitous c-store brands in California alongside 7-Eleven and Circle K.
Nouria
Since it was founded in 1989, Worcester, Massachusetts-based Nouria has become a regional favorite around New England for its clean stores, customer service and entrepreneurial spirit. At the start of this year, the company operated about 170 convenience stores across Massachusetts, New Hampshire, Maine and Rhode Island.
But Nouria’s popularity is expected to surge very soon. In October, the company agreed to acquire Enmarket’s 132 convenience stores and 26 car washes across Georgia and the Carolinas.
Once the deal closes, Nouria will not only nearly double its c-store count, but will arrive in three new states located in an entirely new part of the country. And the company doesn’t appear ready to stop growing anytime soon. It says on its website it’s actively looking to open more locations in new communities around the U.S.
Kent Kwik (Kent Companies)
The Kent Companies, which operates about 110 convenience stores under the Kent Kwik banner across the Southwest and Southeast U.S., has acquired 35 sites through three separate transactions since March 2023. Those locations are scattered across Texas, Alabama and Florida.
Buying 35 c-stores over a year and a half may not seem like much at first glance. But consider this: Kent only had about 75 company-operated c-stores as of spring 2023, nearly 50 years after opening its first location. In the span of a year, the Midland, Texas-based company grew its store network by nearly 50%. That kind of growth doesn’t happen often in this industry.
Parker’s Kitchen
Since being founded in 1976, Savannah, Georgia-based Parker’s Kitchen has built a following with its Southern-style food menu while its CEO, Greg Parker, has become a spokesperson for the industry over the years.
Despite its clear connection to its communities and unique product offering, Parker’s isn’t afraid to step outside its comfort zone.
In October 2023, the retailer, which had about 76 locations at the time, outlined plans to open 75 new locations by 2027. Parker’s is also targeting several new markets during this growth phase, including Jacksonville, Florida; Augusta, Georgia; and Aiken and Myrtle Beach, South Carolina.
Today, Parker’s has about 93 locations. If all goes according to plan, the company will surpass 150 stores in the next two years, having grown its store network by over 100% since 2023.
Original article Fueling Up: What are the fastest growing small and mid-size c-store chains in the US? | C-Store Dive
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