Consolidation in the c-store industry shows no signs of abating. At press time, Alimentation Couche-Tard Inc. announced it was acquiring GetGo — which operates 270 sites across Pennsylvania, Ohio, West Virginia, Maryland and Indiana — with the sale set to close in early 2025. And Ankeny, Iowa-based Casey’s announced it was set to acquire Fikes Wholesale Inc., owner of CEFCO Convenience Stores. The sale is expected to close during the fourth quarter of calendar year 2024, and will add 148 Texas-based locations to Casey’s footprint as well as 50 sites in Alabama, Florida and Mississippi, taking Casey’s store count to nearly 2,900 stores.
I remember back in 2010, shortly after I started at CStore Decisions, when Casey’s — which at the time operated about 1,500 c-stores — found itself in a David and Goliath battle, facing a hostile takeover attempt by the much larger Alimentation Couche-Tard. Against the odds, Casey’s stood its ground and successfully resisted the challenge. In the years that followed, Casey’s offensively pursued expansion, both organically and through the acquisition of smaller regional chains that allowed it to grow its Midwestern roots.
It also leaned into its highly differentiated business model, which focused on developing a loyal customer base among predominantly smaller communities.
From fending off a hostile takeover in 2010 to becoming a dominant player in the industry, Casey’s has come a long way in the past 14 years with a footprint that now spans 16 states.
As consolidation continues and behemoth chains enter new operating areas, long-standing regional c-store chains are similarly looking to offensively raise the bar to beat the competition while leaning into their strengths.
This month’s cover story highlights regional c-store chain SunStop, which operates 80 locations in Georgia, Florida and Alabama, and is strategically positioning itself to compete with national players encroaching on its market area. From remodeling locations with a focus on modernization to increasing its foodservice presence and rolling out mobile ordering to embarking on new-to-industry locations and expanding its reach deeper into Florida, SunStop is a prime example of a strong regional player that is stepping up its game as it competes with national players like Wawa and soon, Casey’s.
Competing With National Chains
National chains typically benefit from greater economies of scale, sophisticated supply chains and advanced technology systems, all of which allow them to offer lower prices, wider product assortments and often better customer experiences.
“Our goal is to look and feel like a national chain and ensure customers have that kind of experience here, if not better,” noted Glennie Bench, president of SunStop’s parent company, Southwest Georgia Oil Co.
However, she added, being a mid-sized chain also offers SunStop distinct advantages. The chain excels in many areas compared to larger competitors due to its agility and the ability of its leadership to maintain strong relationships with store managers and front-line staff, which is harder to achieve for larger operations.
Regional chains also have the advantage of deep connections that they have spent decades cultivating within their local communities and are nimble enough to adapt fast to market changes, test new concepts quickly and implement innovative solutions that fit the unique demands of their customer base — strengths they can leverage against larger players. What’s more, they boast local knowledge and long-term customer loyalty. If you’re a regional chain, don’t wait until national players open a new store across the street from your legacy location to develop a strategy to compete.
Some regional chains look to rival outsized competition by leaning into their local roots and featuring local products and services, building relationships with local vendors and participating in community outreach, such as sponsoring school sports teams. Upgrading stores to a modern design, enhancing operational efficiency and investing in technology — most especially a loyalty program — and evaluating if a foodservice offering is right for your chain are all key steps for regional players looking to rival much larger competitors.
With strategies in place, regional chains can create a unique value proposition that resonates with local customers and sets them apart from larger competitors.
