Kroger Sells C-Store Business
February 27th, 2018 by Fiedler Group
Earlier this month The Kroger Co and EG Group, a service station/convenience store retailer based in the United Kingdom, announced an agreement for the sale of Kroger’s convenience store business unit to EG Group for $2.15 billion.
The Kroger convenience store business operates 762 stores in 18 states, employs 11,000 associates and operate under the banner names Turkey Hill, Loaf ‘N Jug, Kwik Shop, Tom Thumb and Quik Stop. Kroger C-Store operations generated $4 billion, including selling 1.2 billion gallons of fuel, in 2016.
In discussing the business sale, Mike Schlotman, Kroger’s executive vice president and chief financial officer commented “Our convenience store business has been a part of our company for many years. We want to thank our management team and associates for their enduring commitment to our customers, and for the contributions they have made to build our supermarket fuel business. As part of our regular review of assets, it has become clear that our strong convenience store business unit will better meet its full potential outside of our business.”
The Kroger CFO further noted “One of the most important considerations in our decision-making process was continued operations to ensure minimal disruption to our associates. We are very pleased the EG Group plans to establish their North American headquarters in Cincinnati. EG Group is also a recognized international petrol forecourt convenience operator and they have a commercial model which clearly looks to enhance the consumer offer by working with leading retail brands customers know and trust. This is good for our associates across the country and for our headquarter city of Cincinnati. Throughout the process we were impressed with the EG Group’s professionalism, investment commitment and more importantly their understanding of the US convenience retail market. We now look forward to working with them closely to ensure a smooth transition for associates.”
Founded in 2001, EG Group is a leading fuel station and C-Store retailer with numerous global partnership brands. EG Group employs over 12,500 staff working across various European markets including the United Kingdom, France, The Netherlands, Belgium, Luxembourg and Italy. EG Group will establish their North American headquarters in Cincinnati, Ohio and continue to operate stores under their established banner names.
With the inclusion of the Kroger assets, EG Group, who will own and operate approximately 4,400 sites across Europe and the US.
Mohsin Issa and Zuber Issa, EG Group Founders and co-CEO’s remarked “This is an exciting time for EG Group, the entry into the US market presents a fantastic opportunity to deliver a successful retail offer to consumers across the various states. We have had much success across Europe and we firmly believe the Kroger assets present a fantastic foundation to overlay our retail experience and know-how in the US. We are committed to investing in the Kroger network, partnering with leading retail brands and working with the exceptional management team and associates transferring across to deliver a comprehensive retail offer. Our business model is simple but effective – EG Group is creating a stronger relationship between consumers and leading retail brands they want to access. In the US we aim to create a retail environment which delivers convenience, provides value and serves as a retail destination offering excellent welfare to motorists who live and work near our petrol forecourt convenience retail stores.”
Contact us to learn more about Fiedler Group’s convenience store knowledge or our experience in Kroger fuel station design.
