Kroger May Sell Off Its Convenience Store Chains, Including Kwik Shop, Tom Thumb, Turkey Hill

[storewanderer]

I believe the c-stores in the Memphis market were acquired from Schnucks, who may have inherited them from Sessel’s/Albertsons. When Schnucks sold their Memphis stores, the c-stores were rebranded “Kwik Shop” but apparently were really run under the Tom Thumb store division.
On a separate note, if you go to that Kroger Corporate link (www.bakersplus.com/cstores), the stores listed as sold to EG group don’t list most of the Turkey Hill stores. Not sure why. Looks like EG really acquired a grab bag of stores with little market penetration. To me, the only option will be to sell the stores off piecemeal in each market.

I noticed this too with the list on that site. For instance it only showed the Quik Stops in Nevada, not any of the California ones.

Also a lot of Tom Thumb in FL is missing.

I realize what it is. The list only is of c-stores sold that were "attached" to some Kroger grocery banner's fuel points program.

In the case of a lot of Turkey Hill, FL Tom Thumb, and CA Quik Stop, those stores were not "attached" to any of the grocery banner loyalty programs... so they did not show up on the list.

Interesting how many stores in Colorado were retained... almost all in the parking lot of or within eyesight of a KS/CM.

[pseudo3d]

I believe the c-stores in the Memphis market were acquired from Schnucks, who may have inherited them from Sessel’s/Albertsons. When Schnucks sold their Memphis stores, the c-stores were rebranded “Kwik Shop” but apparently were really run under the Tom Thumb store division.
On a separate note, if you go to that Kroger Corporate link (www.bakersplus.com/cstores), the stores listed as sold to EG group don’t list most of the Turkey Hill stores. Not sure why. Looks like EG really acquired a grab bag of stores with little market penetration. To me, the only option will be to sell the stores off piecemeal in each market.

I still think they can make Turkey Hill at least a solid East Coast chain, but they're barking up the wrong tree with the others. If they keep the stores up at least in decent shape, then they can milk them for cash to fund their European ventures.

[storewanderer]

I believe the c-stores in the Memphis market were acquired from Schnucks, who may have inherited them from Sessel’s/Albertsons. When Schnucks sold their Memphis stores, the c-stores were rebranded “Kwik Shop” but apparently were really run under the Tom Thumb store division.
On a separate note, if you go to that Kroger Corporate link (www.bakersplus.com/cstores), the stores listed as sold to EG group don’t list most of the Turkey Hill stores. Not sure why. Looks like EG really acquired a grab bag of stores with little market penetration. To me, the only option will be to sell the stores off piecemeal in each market.

I still think they can make Turkey Hill at least a solid East Coast chain, but they're barking up the wrong tree with the others. If they keep the stores up at least in decent shape, then they can milk them for cash to fund their European ventures.

I don't know enough about Turkey Hill to know. I do think Loaf N Jug (and maybe Kwik Shop) have some potential to be solid chains in their markets. The retention of those scattered Loaf N Jugs by Kroger does complicate things to some extent but I don't think it is a deal maker by any means as Loaf N Jug still has some penetration in quite a few spots, though many are rural.

I also see the Kroger Pharmacy inside the Tom Thumb in Pensacola, FL closed... appears it just closed as there are (positive) reviews of it on Google from 3-4 months ago.

[pseudo3d]

I believe the c-stores in the Memphis market were acquired from Schnucks, who may have inherited them from Sessel’s/Albertsons. When Schnucks sold their Memphis stores, the c-stores were rebranded “Kwik Shop” but apparently were really run under the Tom Thumb store division.
On a separate note, if you go to that Kroger Corporate link (www.bakersplus.com/cstores), the stores listed as sold to EG group don’t list most of the Turkey Hill stores. Not sure why. Looks like EG really acquired a grab bag of stores with little market penetration. To me, the only option will be to sell the stores off piecemeal in each market.

I still think they can make Turkey Hill at least a solid East Coast chain, but they're barking up the wrong tree with the others. If they keep the stores up at least in decent shape, then they can milk them for cash to fund their European ventures.

I don't know enough about Turkey Hill to know. I do think Loaf N Jug (and maybe Kwik Shop) have some potential to be solid chains in their markets. The retention of those scattered Loaf N Jugs by Kroger does complicate things to some extent but I don't think it is a deal maker by any means as Loaf N Jug still has some penetration in quite a few spots, though many are rural.

I also see the Kroger Pharmacy inside the Tom Thumb in Pensacola, FL closed... appears it just closed as there are (positive) reviews of it on Google from 3-4 months ago.

It's just the fact that the stores are too scattered and too many conditions to really make it the chain they want. Strategically, what they wanted would've made more sense if they had snapped up CST Brands or the Sunoco stores.

[a42887]

I believe the c-stores in the Memphis market were acquired from Schnucks, who may have inherited them from Sessel’s/Albertsons. When Schnucks sold their Memphis stores, the c-stores were rebranded “Kwik Shop” but apparently were really run under the Tom Thumb store division.
On a separate note, if you go to that Kroger Corporate link (www.bakersplus.com/cstores), the stores listed as sold to EG group don’t list most of the Turkey Hill stores. Not sure why. Looks like EG really acquired a grab bag of stores with little market penetration. To me, the only option will be to sell the stores off piecemeal in each market.

There's stores even within the Loaf 'N Jug banner missing from the list. I don't know all of them, but there are two stores in Laramie, Wyoming missing from both lists.

The list of divested stores is most definitely not 762 long though.

Also odd that the new banner for the retained Fremont, Nebraska location is Dillon's, when Baker's is the banner for grocery in that market (which is reflected on all of the divested Kwik Shops).

[storewanderer]

I believe the c-stores in the Memphis market were acquired from Schnucks, who may have inherited them from Sessel’s/Albertsons. When Schnucks sold their Memphis stores, the c-stores were rebranded “Kwik Shop” but apparently were really run under the Tom Thumb store division.
On a separate note, if you go to that Kroger Corporate link (www.bakersplus.com/cstores), the stores listed as sold to EG group don’t list most of the Turkey Hill stores. Not sure why. Looks like EG really acquired a grab bag of stores with little market penetration. To me, the only option will be to sell the stores off piecemeal in each market.

There's stores even within the Loaf 'N Jug banner missing from the list. I don't know all of them, but there are two stores in Laramie, Wyoming missing from both lists.

The list of divested stores is most definitely not 762 long though.

Also odd that the new banner for the retained Fremont, Nebraska location is Dillon's, when Baker's is the banner for grocery in that market (which is reflected on all of the divested Kwik Shops).

The lists seem to only have c-stores that were tied to a loyalty card. So in the case of Laramie, since Kroger has no supermarket there, they omitted those from the list. Similar to all of the California Quik Stops which did not participate in fuel rewards but did have the loyalty card for beverage/pizza clubs (despite a few being in close proximity to FoodsCos which does have a fuel rewards program redeemable at its gas stations and other Kroger stations).

[storewanderer]

Signage at Quik Stop says effective December 31, they will no longer be accepting Kroger Gift Cards.

Quik Stop also put new stickers on the pump skirts that say just Quik Stop (no longer a Smiths logo). The pump screen also asks "do you have loyalty card" instead of "do you have Smith's card" now.

Over at Smiths they covered the Quik Stop logos on their pumps with masking tape. You can see right through it.

[storewanderer]

Today at Quik Stop when I went in to redeem fuel points the clerk gave me a new loyalty card and said they are no longer affiliated with Smiths and after the first of the year they will no longer give discounts for Smiths points. I am not sure if maybe there is a misunderstanding or if the fuel point redemption will really end there. The only signage posted is about gift card redemption ending after the first of the year. The Quik Stop website is still logging into the Kroger loyalty program.

The new loyalty card is for EG Group and has all of the Kroger c-store banners (doesn't have the Minit Mart chain that EG Group recently took over last week) on it, in addition to the Kroger c-store logo. I am surprised that Kroger c-store logo is on this card as they recently removed that logo from the fountain drink cups.

There was some new language on the receipt that showed the various buy x get 1 free "clubs" for fountain, coffee, etc. that disappeared after EG Group took over, with a notation that said the purchases will accumulate only with an EG Group Card.

[jamcool]

I suspect EG will put all of these stores under one banner (they acquired the Minit Mart operation from TA) .

Could EG buy the AM-PM brand from BP? Marathon/Speedway has bought the ARCO assets and wants to expand its own brands instead of licensing the West Coast only banner, and BP isn’t interested in a West Coast only brand.

[storewanderer]

I suspect EG will put all of these stores under one banner (they acquired the Minit Mart operation from TA) .

Could EG buy the AM-PM brand from BP? Marathon/Speedway has bought the ARCO assets and wants to expand its own brands instead of licensing the West Coast only banner, and BP isn’t interested in a West Coast only brand.

Based on how EG does business elsewhere, I have been expecting them to brand the fuel operations. Minit Mart is branded (under an assortment of brands since that is just a hodgepodge of random c-stores that TA bought out over the past few years).

BP has been more active with AM PM the past couple years with a few new build locations, etc. Everything is franchised out and nothing is corporate operated. It never made sense to me why BP took AM PM out of the midwest then kept ownership of it in the west even after selling off most of the west coast Arco to Tesoro. AM PM is a dying brand at least in the Tesoro territory.

EG Group hasn't done much with the c-stores. They stopped the fuel pump replacement program that Kroger was doing so many Quik Stops still have 15-20 year old Gilbarco pumps that work fine, but Kroger was replacing with newer Wayne pumps (in preparation for Chip Cards at the pumps next year and to be consistent with having all Wayne pumps), they still haven't bothered to get EMV Chip Card acceptance in-store when at this point other major convenience store chains have, but they have upped the prices inside the stores from where they were under Kroger.

At this point I see EG Group as a placeholder that will do little and sell out to someone else at the right multiple. In the mean time, they have a very profitable established Kroger c-store operation that can be run with fairly minimal effort. Kroger wanted out of its c-store operations despite that the operations were profitable, a good compliment to their supermarkets in many regions, and generally well-liked by customers, in order to raise cash for its digital money pit. It appeared Kroger sold the c-stores to EG Group as it was a buyer that could close the transaction fast and not have to go through a lengthy FTC process involving divesting stores. Kroger wanted a quick deal to raise money for the digital money pit fast. TA wanted out of Minit Mart which ended up being a disaster that did not make money for them. Minit Mart is a mix of junk and okay stuff and was probably a mistake. I suspect EG Group got a "good deal" on Minit Mart.