Convenience Store News - July 2018 - 52

COVER STORY

"As the old saying goes, it takes a willing
seller and buyer to have a transaction. The
market seems to have a healthy number of
willing buyers," Montgomery said.
If smaller chains want to be sold, they have
to make themselves "sale ready." This may
require very little work for some, and a lot
of work for others. Sell-side companies are
very good at highlighting the upsides a
buyer might extract from a site, but they
need something to work with, the b2b
Solutions executive explained.
NRC's Ruben believes smaller chains could
very well be the next round of M&A.
"We've been talking to a lot of clients.
We're seeing guys who have five to 25 to
30 stores ask, what does their future hold?
Maybe, this is the right time for them to get
out," he said.
In fact, Monroe's American Business Brokers
& Advisors is selling stores to private-equity
clients whose thoughts are to build a larger
chain of stores that will later be sold to an
even larger chain of stores.

"We are taking small chains of stores (10 to 50 stores) and
consolidating them into a number above 100 stores so that
eventually a larger chain will buy them," Monroe shared.
"The more stores that are involved in a transaction, the
easier the transaction. Meaning it is easier to do a 50-store
deal than it is to do a 10-store deal."
While setting themselves up for acquisition may be the
current strategy for some smaller chains, it is not an acrossthe-board trend, in Sartory's view.
If a privately owned c-store company is not dealing with
succession issues, and has made the investments necessary
in its business to compete with the larger operators in its
trade areas, then these operators are not under pressure to
sell, he pointed out.
"Many of our clients love the convenience store business
and have no plans or desire to exit the industry," Sartory
said. "They are primarily focused on growing their business
and making sure their retail network remains competitive
in a marketplace that will continue to consolidate for the
foreseeable future."

The Rise of Smaller Chains
The unceasing consolidation in the c-store industry is
having multiple effects, including evolution in the very definition of a "smaller chain." According to Monroe, a smaller
chain used to consist of 10 c-stores. Now, that number has
jumped to 30.
"The idea of a large chain is becoming more elusive every
day. When you look at the top 100 stores in the U.S., it's
almost like looking at the haves and the have-nots. We go
from a chain of stores in the thousands, to a few chains
who have several hundred stores, and then we drop down
into the number of owners who have less than 100 stores,"
he observed.
Even as the big chains keep getting bigger, there is still a
needed role in the market to be played by smaller chains
and midsize players. "Very much so," said Pester Marketing's Spresser.

"We are not a national brand like a 7-Eleven, but we have
developed a regional brand, so we have brand recognition
and we've found a niche," he said.
"Also, these [big] guys are
not going into some of these
rural areas. 7-Eleven's selfHoliday Cos. Inc.
distribution of their food items
Acquired by Alimentation Couche-Tard Inc.
limits where they can go," he
added. "I think there is a niche
E-Z Mart Stores Inc.
for us, and I think there is a
Acquired by GPM Investments LLC
niche for us going forward, particularly on a regional basis." CSN
Jet Pep Inc.

DROP-OFFS FROM LAST YEAR
CSTĀ BrandsĀ Inc.
Acquired by Alimentation Couche-Tard Inc.
The Kroger Co.
Sold convenience store division to EG Group
Western Refining Inc.
Acquired by Tesoro Petroleum Corp.
(now Andeavor)

52 Convenience Store News C S N E W S . c o m

Acquired by CrossAmerica Partners LP &
Alimentation Couche-Tard Inc.


http://www.CSNEWS.com

Table of Contents for the Digital Edition of Convenience Store News - July 2018

Contents
Convenience Store News - July 2018 - Intro
Convenience Store News - July 2018 - Cover1
Convenience Store News - July 2018 - Cover2
Convenience Store News - July 2018 - 3
Convenience Store News - July 2018 - 4
Convenience Store News - July 2018 - 5
Convenience Store News - July 2018 - Contents
Convenience Store News - July 2018 - 7
Convenience Store News - July 2018 - 8
Convenience Store News - July 2018 - 9
Convenience Store News - July 2018 - 10
Convenience Store News - July 2018 - 11
Convenience Store News - July 2018 - 12
Convenience Store News - July 2018 - 13
Convenience Store News - July 2018 - 14
Convenience Store News - July 2018 - 15
Convenience Store News - July 2018 - 16
Convenience Store News - July 2018 - 17
Convenience Store News - July 2018 - 18
Convenience Store News - July 2018 - 19
Convenience Store News - July 2018 - 20
Convenience Store News - July 2018 - 21
Convenience Store News - July 2018 - 22
Convenience Store News - July 2018 - 23
Convenience Store News - July 2018 - 24
Convenience Store News - July 2018 - 25
Convenience Store News - July 2018 - 26
Convenience Store News - July 2018 - 27
Convenience Store News - July 2018 - 28
Convenience Store News - July 2018 - 29
Convenience Store News - July 2018 - 30
Convenience Store News - July 2018 - 31
Convenience Store News - July 2018 - 32
Convenience Store News - July 2018 - 33
Convenience Store News - July 2018 - 34
Convenience Store News - July 2018 - 35
Convenience Store News - July 2018 - 36
Convenience Store News - July 2018 - 37
Convenience Store News - July 2018 - 38
Convenience Store News - July 2018 - 39
Convenience Store News - July 2018 - 40
Convenience Store News - July 2018 - 41
Convenience Store News - July 2018 - 42
Convenience Store News - July 2018 - 43
Convenience Store News - July 2018 - 44
Convenience Store News - July 2018 - 45
Convenience Store News - July 2018 - 46
Convenience Store News - July 2018 - 47
Convenience Store News - July 2018 - 48
Convenience Store News - July 2018 - 49
Convenience Store News - July 2018 - 50
Convenience Store News - July 2018 - 51
Convenience Store News - July 2018 - 52
Convenience Store News - July 2018 - 53
Convenience Store News - July 2018 - 54
Convenience Store News - July 2018 - 55
Convenience Store News - July 2018 - 56
Convenience Store News - July 2018 - 57
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Convenience Store News - July 2018 - 63
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Convenience Store News - July 2018 - 81
Convenience Store News - July 2018 - 82
Convenience Store News - July 2018 - Cover3
Convenience Store News - July 2018 - Cover4
Convenience Store News - July 2018 - U1
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