The 784 convenience stores operated by Kroger generate annual revenue of $4 billion, including fuel sales, and have delivered 62 consecutive quarters of same-store sales growth, but the supermarket retailer may be putting up a “For Sale” sign.
Kroger announced on Oct. 11 that it had hired Goldman Sachs to identify, review and evaluate options for its c-stores, which operate in 18 states under banners including Turkey Hill Minit Markets, Loaf ‘N Jug, KwikShop, Tom Thumb and QuickStop.
“Our convenience stores are strong, successful and growing with the potential to grow even more,” said Mike Schlotman, EVP and CFO of Kroger in a statement. “Considering the current premium multiples for convenience stores, we feel it is our obligation as a management team to undertake this review.”
Kroger also announced its intention to sharpen its focus on its core supermarket business with its “Restock Kroger” plan, which includes redefining the food and grocery customer experience through:
• Data and Personalization: The…