Dive Brief:
- Yesway has acquired 35 Wes-T-Go and Chillerz Convenience Stores in Abilene, TX, according to The Shelby Report.
- The Des Moines, IA-based company already operates 38 units in Iowa and Kansas. The grocer is hoping to have more than 100 stores by the end of the second quarter of fiscal 2017.
- “With Yesway, customers will enjoy great customer service and redesigned stores that are true to our brand promise — they’ll be efficient, inviting and friendly," Brian Trout, Yesway's SVP of operations, told The Shelby Report. "We’re grateful to the Wes-T-Go team for building such a loyal and consistent customer base, and are eager to continue to serve, get to know, and be part of the community.”
Dive Insight:
Yesway’s latest move may not seem that significant now, but the c-store's acquisition builds on plans to greatly increase its presence by acquiring, improving and rebranding approximately 500 stores over the course of the next few years.
The company’s purchase adds Texas to its geographic mix, and reports are that it’s also looking to move into states like Oklahoma, Arkansas and Missouri.
C-stores are seeing something of a resurgence in recent years. Yesway believes that it can compete with larger grocers, retailers and even the discounters that are increasing their presence. In addition to meeting consumer demand, convenience stores’ increasing focus on foodservice reflects some harsh realities for the retail space.
Sales at c-stores set a record last year with $233 billion worth of in-store sales, according to the National Association of Convenience Stores. Top categories included tobacco, with 36% of in-store sales, and foodservice, which accounted for 22% of in-store sales.
Many convenient stores are playing into new trends, adding items such as made-to-order sandwiches and salads, cut fruit and a variety of coffees, teas and other beverages to their stores. Some are even incorporating sophisticated, on-trend ingredients like kale, quinoa and hummus.