Convenience Store News

JUL 2015

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42 Convenience Store News | JULY 2015 | WWW.CSNEWS.COM COVER STORY know its customers, Powell added. From a real estate perspective, there's a chance not all stores will survive the acquisition. "It's kind of like apples and oranges because they have different busi- ness models," said Dennis Ruben, managing director at NRC Realty & Capital Advisors LLC. "About 75 percent of The Pantry's properties were leasebacks that involved negotiating a lease with a landlord. How many of those Pantry sites wind up staying in the system in the next five years is anyone's guess." Analyzing the portfolio will take time, according to John Sartory, managing director at Petroleum Capital and Real Estate LLC. "I think it's going to take a while for everyone to figure out how to rationalize those assets. There are a number of Pantry sites [Couche- Tard] will probably not hold on a long-term basis," Sartory said. "They may sell some for alternative real estate use or sell them to deal- ers and look to have nothing more than a supply relationship." Finally, what does this combined company mean to other players in the convenience channel? The way Brownlow sees it, anytime you combine the scale of any of the top operators in the industry, smaller operators with less capital will be increasingly challenged to keep up, both with the in-store offer- ings as well as the competing fuel prices. "Broadly speaking, what you've seen with not just Couche-Tard and The Pantry, but with ETP [Energy Transfer Partners] and Susser [is that] the industry consolidation as a whole is a greater threat to the mom-and- pop operators vs. operators like 7-Eleven, which are better adept to keep up with these changes," he said. "7-Eleven always has the scale and capi- tal to compete. It is on the same footing." Speaking of 7-Eleven, the No. 1 c-store chain does not need to start looking over its shoulder, according to the industry experts. "I don't see it directly affecting 7-Eleven. There is still no national c-store chain. There is no McDonald's in our industry. 7-Eleven will focus on expanding in those areas in which they can logistically," said Brownlow. — Melissa Kress Drop-Offs From Last Year The Pantry Inc. Acquired by Alimentation Couche-Tard Inc. Hess Corp. Retail assets acquired by Marathon Petroleum Corp. VPS Convenience Store Group Acquired by GPM Investments LLC My Goods Market Acquired by United Pacific New Additions to the List Sunoco LP Mirabito Energy Products Buchanan Oil Co. Jet Pep Weigel's Stores Inc. Stinker Stations MNS Ltd. (ABC Store) Enmark Stations Inc. 101t Family Express Corp., Valparaiso, Ind. 62 62 0 $138,580 Family Express 101t Dash In Food Stores Inc., La Plata, Md. 62 62 0 $189,540 Dash In Food Store 103 7-Eleven Hawaii Inc., Honolulu 61 61 0 $76,440 7-Eleven 104 CHR Corp., York, Pa. 60 60 0 $98,540 Rutter's Farm Store 105 BFS Foods Inc., Morgantown, W.Va. 59 59 0 $165,100 BFS Foods 106t Sam's Mart, Matthews, N.C. 58 53 5 $161,200 Sam's Mart, Express Mart 106t Pester Marketing Co., Denver 58 58 0 $178,880 Alta Convenience 108t Rebel Oil Co. Inc., Las Vegas 55 55 0 $193,440 Rebel Plus 108t CoGo's Co., Pittsburgh 55 42 13 $133,120 Jiffy Mart 108t Southeast Petro Distributors, Cocoa, Fla. 55 46 9 $139,100 Sunshine Express, Sunshine Food Mart Source: Nielsen TDLinx, April 2015 2015 Total U.S. Company-Operated Franchise/ Latest Year-End Sales* Primary Rank Company, City, State Store Count Stores Licensee Stores ($000) Store Names On the Cusp (Nos. 101-110)

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