Over the past year, the convenience industry has undergone a significant transformation, driven largely by consolidation among some of the top players in the c-store space. Industry giants are leveraging large-scale acquisitions to enhance scalability, refine operations and compete with other growing industries.
“We’ve seen these acquisitions kind of fundamentally reshape the landscape of the industry,” noted Matt Riezman, partner at advisory firm NexChapter. “And we’re starting to see the emergence of super, regional and national players that have really sophisticated capabilities in areas like supply chain marketing operations.”
Riezman sees consolidation in the c-store industry as a trend that is likely to continue, as the market remains fragmented with over 60% of locations being owned by independent operators.
The other 40%, however, and especially the major players at the top of the pyramid, are contending with similar giants across other industries, namely quick-service restaurants (QSRs), drug stores and dollar stores. Riezman stated that the scaling the convenience industry is experiencing is pivotal when it comes to competing with other industries for customers’ business.
“Consolidation helps to drive scale, and scale becomes increasingly important for investing in things like digital capabilities and also competing with other retail channels,” Riezman said.
According to a report from Capstone Partners, a mid-market investment banking firm, the total number of acquisitions in the c-store industry was down last year, with 27 transactions announced or completed in 2024 compared with 34 in 2023.
However, the report noted an expected uptick in private-equity involvement in the c-store industry as retailers continue to focus on maximizing profits in-store, largely through the up-and-coming c-store foodservice category.
“Private-equity firms continue to see opportunity in the space,” said Riezman. “That interest might moderate as we start to see the most attractive acquisition targets get absorbed by the bigger players, but we continue to see private-equity firms interested in the space.”
www.Capstonepartners.com/insights/article-convenience-store-acquisitions-update/
Capstone Partners’ report further noted that while most c-store acquisitions were still targeted at independent operators, buyers are starting to look more at the big fish. Roughly 74% of acquisition targets this year operated 50 or fewer locations, however the average store count of acquired businesses increased 10.9% year-over-year to 57 stores.
Consolidation, of course, raises concerns for smaller chains and independent retailers, which still make up the majority of the convenience store space.
Larger chains not only have more scaling advantages, but they often have more sophisticated capabilities when it comes to marketing, digitalization and loyalty programs. This is not to say, however, that small operators are at a complete disadvantage — there are aspects of small chains that may not be replicable for consolidated chains.
The first step, according to Riezman, is for smaller retailers to understand and capitalize on their unique advantages.
“There’s still a lot of opportunity (for independent operators),” he stated. “And what I see as important for those smaller operators is that they need to double down on their unique strengths. So for some of them, it might be exceptional foodservice programs, it might be their local market knowledge. And they also may have a lot of really strong community relationships that these larger players would really struggle to replicate.”
“As we look at the future for smaller operators, I think the key is really to be strategic and focused, rather than just trying to match what the big players are doing across every dimension, because that’s going to be super difficult,” Riezman added.
He emphasized that retailers need to know there are differentiators — there are aspects of your business that intrinsically put you at an advantage over competitors; however, discovering those advantages and leveraging them is where operators need to put their focus.
Part of that leveraging process may entail selective investment. Identifying strengths and weaknesses can be key in determining where a retailer should invest their capital, especially in the age of technology.
“You can’t invest in everything at once, but I think selective investment helps to amplify those strengths. If you have a really great food program, it may be worth investing in technology to continue to maintain that advantage,” said Riezman.
“Again, you’re not going to outspend the larger players, but using that technology smartly can really enhance what those smaller operators are doing.”
Nouria and Enmarket
While 2024 was filled with headlineworthy acquisition news, Worcester, Mass.-based Nouria positioned itself for one of the biggest transformations when it announced the pending acquisition of Enmarket and its 132 c-stores.
Announced in October 2024, the acquisition nearly triples Nouria’s store count and also adds 26 Enmarket car washes to its network. Today, Nouria operates 170 c-stores and 61 car washes.
The deal is still subject to customary regulatory approvals and closing conditions, however a definitive agreement has been reached.
“Enmarket stood out as a strong acquisition opportunity due to its established presence in the Southeast, a region with significant growth potential for Nouria,” said Joe Hamza, chief operating officer at Nouria. “The company has an excellent reputation, a solid operational foundation, and a talented team that aligns well with Nouria’s values and standards. Its focus on high-quality fresh food offerings and customer experience mirrors our own, making it a natural fit.”
Hamza noted the company wanted to find an acquisition target that would not only help to drive growth operationally but also align with Nouria culturally.
“Some of our key considerations included ensuring that the integration process would maintain Enmarket’s local appeal while leveraging Nouria’s operational expertise and resources to drive further growth,” he said. “We also looked at cultural alignment and the opportunity to blend the strengths of both companies to create a stronger, unified Nouria organization.”
Nouria’s acquisition of Enmarket can be seen as indicative of the larger trend in the c-store industry, as consolidation continues to be a point of emphasis not only for the c-store giants, but also for mid-sized and small retailers.
Hamza noted the acquisition helped Nouria position itself for future success.
www.Capstonepartners.com/insights/article-convenience-store-acquisitions-update/
“This acquisition is a significant step in Nouria’s strategic growth plan. It allows us to expand beyond our New England base and establish a strong foothold in the Southeast, increasing our geographic reach and market diversity,” he said. “By combining Nouria’s operational excellence with Enmarket’s regional strength, we’re positioning ourselves for long-term success in a highly competitive industry.”
Hamza noted that Nouria remains open to future growth opportunities, whether it be additional acquisitions or organic growth. For now, the focus is on preserving the Enmarket identity as the integration process continues to unfold.
“Our immediate priority is to maintain the Enmarket brand’s strong identity while ensuring a seamless integration into Nouria’s operational framework. Enmarket has a deep connection with its communities, and we want to preserve that local appeal,” said Hamza. “This acquisition is more than just a growth opportunity for Nouria — it’s about combining two great companies to create something even better. We’re committed to supporting the Enmarket team and preserving what makes their brand special while introducing new tools and resources to drive success.”
To understand the full scope of the consolidation that is sweeping the cstore industry, we must first examine the pending and completed acquisitions that have been shaping the c-store space over the past year.
Maverik and Kum & Go
Although it was completed in late 2023, Maverik’s acquisition of Kum & Go and its continued rebranding efforts have helped shape the landscape when it comes to mergers and acquisitions for c-stores.
The massive, industry-shifting acquisition brought Maverik’s total store count to over 800, with operations spanning across 20 states.
“We are excited to welcome Kum & Go and Solar Transport team members to Maverik,” said Chuck Maggelet, CEO and chief adventure guide of Maverik, at the time of the deal. “Together, we’ll offer our customers an adventurous and differentiated convenience store experience across fuel, foodservice and insidestore offerings. We look forward to using our combined resources to grow our business and further elevate our product offerings to provide the best service to our customers.”
After Chuck Maggelet retired in May, Crystal Maggelet took over as interim and then permanent CEO and chief adventure guide of the company. Maverik announced in November 2024 that it would be rebranding all former Kum & Go locations to the Maverik banner. While there is no solidified timeline for the rebranding process, the retailer has already transformed all of its Colorado and Utah stores and has begun work on sites across Wyoming, Oklahoma, Arkansas, Missouri and Michigan.
The 7-Eleven Saga
Possibly the most talked-about acquisition of 2024 is one that has yet to occur.
In August 2024, Alimentation Couche-Tard, parent company of Circle K, lobbed a friendly proposal to Seven & i Holdings, the Japanese parent company of 7-Eleven, to acquire the company for $39 billion. Seven & i quickly rejected the offer, stating that it “grossly undervalues (the) company’s intrinsic value and opportunities to unlock that value,” according to a statement from Seven & i. The offer has since been increased to $47 billion.
The next development came from within Seven & i, when in November, the company announced a new bid of $58 billion from a member of the founding family in an effort to take the company private.
The offer is from Ito-Kogyo, a company with links to vice president Junro Ito and a top shareholder of 7-Eleven. The non-binding offer was assessed by the same committee that reviewed the Alimentation Couche-Tard bid.
“The special committee, which is comprised solely of the company’s independent, outside directors, has been reviewing the proposal carefully and thoroughly with its financial and legal advisors,” Seven & i noted in a statement. “Mr. Ito has been excluded from all discussions within the company, including board discussions, relating to any proposal from Mr. Ito and Ito-Kogyo, Alimentation CoucheTard or any other competing proposals.”
Seven & i has emphasized that no deal has been made, and no deal is guaranteed. The company has continued to evaluate offers while remaining committed to internal growth and the streamlining of operations.
Couche-Tard and GetGo
Couche-Tard didn’t just make headlines for its 7-Eleven bid. Around the same time the company proposed its bid for Seven & i, it also announced the massive news that it had entered an agreement to acquire GetGo Café + Market from Giant Eagle, a deal which is set to be completed sometime this year.
As part of the transaction, Couche-Tard and Giant Eagle agreed to maintain and partner together on Giant Eagle’s myPerks loyalty program.
“We are excited to welcome GetGo into the Couche-Tard family. As we learn more about the GetGo business, it is clear that it has built a strong and passionate customer base with high-quality stores staffed by talented and engaged teams working to deliver a great experience,” said Brian Hannasch, president and CEO of Couche-Tard. “We have deep respect for its management and people as well as its outstanding food and loyalty programs. We look forward to growing together as we learn from and continue GetGo’s innovative approaches to serving its local customers and communities.”
The $1.6 billion deal will be financed using Couche-Tard’s available cash and existing credit facilities, including its U.S. Commercial Paper Program.
Casey’s and CEFCO
One of the most influential transactions of 2024 came in late November, when Casey’s announced that it had officially closed on its acquisition of Fikes Wholesale, owner of CEFCO Convenience Stores.
The move — Casey’s largest acquisition in company history — added 198 CEFCO stores to Casey’s footprint. Of the 198 locations, 148 are located in Texas and 50 are spread across Alabama, Florida and Mississippi. The acquisition brought Casey’s total store count to approximately 2,900.
“This acquisition is the largest in Casey’s history and in line with the strategic plan laid out at the June 2023 Investor Day,” said Darren Rebelez, board chair, president and CEO of Casey’s, at the time of the deal. “We are thrilled to complete this transaction, welcome Fikes to the Casey’s team, and look forward to bringing Casey’s pizza to these highvolume stores.”
The deal was valued at $1.145 billion, which the company financed through balance sheet cash and bank financing.
As the c-store giants continue to grow and consolidate, small regional retailers will need to take a good look at their operations to determine their strengths, weaknesses and areas for improvement to remain competitive.
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