Casey’s General Stores plans to add at least 350 locations nationwide over the next three years, the latest in a wave of expansions and dealmaking in the convenience store and fuel stop industry.
The chain said this week in a presentation to investors it will expand both through new store openings and acquisitions. The plan will boost Casey’s total store count to at least 2,870 when completed. The Ankeny, Iowa-based company did not disclose how much it will invest in the expansion.
Convenience store chains are wrestling with major challenges to their business, such as declining tobacco sales and the likely shift away from gasoline to electric vehicles. To boost revenue, players like Buc-ee’s, Wawa and Royal Farms are rapidly opening new locations nationwide. Couche-Tard, owner of Circle K, this year spent about $100 million to acquire 30 locations in Arkansas and Florida that operate under different brand names.
One of Casey’s top rivals, Kum & Go, is waiting for regulatory approval for its sale to Maverik. The 390-location Kum & Go, owned by Krause Group, is based Des Moines, Iowa.
Truck stops are also taking steps to juice sales through acquisitions and new service offerings. BP this year agreed to buy truck-stop chain TravelCenters of America for $1.3 billion. Love’s Travel Stops & Country Stores is adding truck washes at some of its 636 locations in 42 states. And Pilot Flying J, the largest truck travel center chain, is partnering with General Motors to install electric vehicle charging stations at up to 500 Pilot Flying J locations.
Casey’s, which says it’s the third-largest U.S. convenience store chain, did not disclose the specific areas for its expansion, but did say in its investor presentation it “has ample opportunity to expand within its footprint” in the Midwest. However, Casey’s also said it has an opportunity to expand into new areas, including Texas and Louisiana, that are within 500 miles of its distribution centers in Ankeny, Iowa; Terre Haute, Indiana; and Joplin, Missouri.
The company is also one of the biggest pizza restaurants. Most of its stores make pizza in-house. The company said during its investor presentation that growth in food sales is a key part of its expansion plan.