The decision follows an asset review that suggests Kroger’s c-store business may be of more value outside of the company, officials with the Cincinnati, Ohio-based retailer said in an investors’ presentation this week.
"Our convenience stores are strong, successful and growing with the potential to grow even more," affirmed Mike Schlotman, Kroger's EVP/CFO. "We want to look at all options to ensure this part of the business is meeting its full potential. Considering the current premium multiples for convenience stores, we feel it is our obligation as a management team to undertake this review."
Kroger's convenience store business generated revenue of $4 billion, including selling 1.2 billion gallons of fuel, in 2016.The business unit has delivered 62 consecutive quarters of identical store sales growth.
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"Our convenience store management and associates are an important part of our success,” Schlotman added. “They put our customer first every day. We value what they do and thank them for what they will continue to do as we conduct this evaluation.”
Kroger's convenience store business includes 784 convenience stores located across 18 states, including 68 franchise operations. The stores employ 11,000 associates and operate under various banner names, including: Turkey Hill Minit Markets, Loaf 'N Jug, Kwik Shop, Tom Thumb and QuickStop. Neither supermarket fuel centers nor Turkey Hill Dairy is included in this review Goldman Sachs & Co. to identify, review and evaluate the options
See more details about Kroger’s strategy reset HERE.