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05/20/2021

CrossAmerica to Rebrand Acquired 7-Eleven Stores as Joe's Kwik Mart

The purchase of 106 sites coincides with a planned reimaging of its proprietary brand.
Angela Hanson
Senior Editor
Angela Hanson profile picture
CrossAmerica Partners

ALLENTOWN, Pa. — CrossAmerica Partners LP will rebrand the 106 convenience stores it is acquiring from 7-Eleven Inc. as Joe's Kwik Mart. Additionally, the company announced that it will partner with its existing branded fuel suppliers to bring nationally well-known fuel brands to these sites. 

The Allentown-based partnership has been working on redeveloping and reimaging its proprietary Joe's Kwik Mart brand for the past 18 months, President and CEO Charles Nifong said during the company's first-quarter 2021 earnings call, held May 11. 

"The timing of the acquisition corresponds perfectly with this rebranding initiative and allows us to accelerate our rollout of the reimaging and refreshed Joe's Kwik Mart," Nifong said.

CrossAmerica's $263-million deal with 7-Eleven consists of company-operated sites included in 7-Eleven's divestiture process in connection with its recent acquisition of Speedway LLC from Findlay, Ohio-based Marathon Petroleum Corp. (MPC).

CrossAmerica expects to complete its purchase of the 106 stores on a rolling basis, starting approximately 60 to 90 days after the 7-Eleven/MPC closing date, which occurred on May 14. 

The stores are in prime locations that are a strategic fit within CrossAmerica's existing store network, allowing the partnership to manage them efficiently within its existing retail network, according to Nifong.

Located in the Mid-Atlantic and Northeast regions of the United States, the stores include 105 currently branded Speedway sites, and one site that is branded 7-Eleven. Ninety are fee-based and the other 16 are leased. The average lot size is 1.1 acres, while the average store size is 2,050 square feet.

In the 12 months ended Dec. 31, 2020, the sites distributed 154 million gallons, or an average of approximately 1.45 million gallons per site. Merchandise sales were $136 million, or an average of approximately $1.28 million per site.

"We are eager to get into the execution phase of the transaction and to welcome our new colleagues working at the sites to the CrossAmerica team," Nifong said.

Formed in 2012, CrossAmerica Partners LP is a distributor of branded and unbranded motor fuel in the U.S. It distributes fuel to approximately 1,700 locations, and owns or leases approximately 1,100 sites. The company's geographic footprint covers 34 states. 

About the Author

Angela Hanson is Senior Editor of Convenience Store News. Read More