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QuikTrip is opening 100 more locations in San Antonio and Austin, one of a few convenience store brands to expand in Texas even as midsize brands like Stripes and Corner Store have fallen.
7-Eleven picked up Sunoco's Stripes and Laredo Taco Co. brands in a $3.3B deal in April. The acquisition gives Dallas-based 7-Eleven a foothold in the untouched Houston market and expansion opportunities in Central Texas, according to the Dallas Morning News.
Sunoco bought the Stripes brand in 2014, then spun off the stores, saying it wanted to focus on its wholesale fuel business. Proceeds from the April sale to 7-Eleven went to pay down Sunoco's debt, according to Reuters.
Canadian-based Circle K announced its own merger with CST Corner Stores at the end of June. That gives Circle K the Corner Store Market brand, which focuses on fresh food.
Midsize Tulsa, Oklahoma-based QuikTrip announced its own expansion of up to 100 stores in the Austin and San Antonio markets. That builds on 137 stores opened in North Texas since 2000. QuikTrip's Mike Thornbrugh said that leverages the chain's North Texas distribution hub.
"Anybody can build a convenience store on the ground, but we believe there's not anybody in this business that does the employee training that we do, the benefits that we have or allows the promotions that we do," Thornbrugh said. "We take our time training our employees."
The first Central Texas QuickTrips should open next summer. Thornbrugh puts no timeline on when all 100 stores will be open. That will be dependent on how long it takes to find the right locations and go through the permitting process.
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Despite the rush of consolidations, 60% of Texas' 15,600 convenience stores are still independently owned.
Thornbrugh said convenience stores must be innovative in the current climate because the two biggest cash generators — cigarettes and gasoline — have slipped in recent years.
That has led, in many cases, to a rush toward fresh food, but the Texas Food & Fuel Association's Jesus Azanza said new amenities like dog parks, karaoke, food and wine pairings, and selfie walls are picking up steam.
"Competition is fierce in the convenience store space," Azanza said. "Having cheap gas doesn’t cut it these days. Savvy consumers want value and convenience, but they also want to have a great experience."
CORRECTION, OCT. 26, 4:27 P.M. CT: An earlier version of this story incorrectly portrayed the timeline of QuikTrip's Central Texas expansion. It has been updated.
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