Kroger exploring sale of convenience stores

Cincinnati Enquirer

The new Kroger store in Corryville is now open for business. The store is more than 70,000 square feet and is a total re-build from the previous store on the same site. The sculpture outside the store is known as The Perlieurium. Kroger partnered with Artworks and local artists, The Humanity Machine, to create this one-of-a-kind sculpture. Besides the community space on the second floor, there is also outdoor seating. The new store employs 315 associates.

Kroger is shopping its convenience store operations as the company hunkers down for a battle with Amazon and Walmart in its mainstay grocery business.

The Cincinnati-based supermarket chain disclosed "its intention to explore strategic alternatives" (corporate speak for 'it's up for sale') for 784 convenience stores located across 18 states, but none locally. Another possibility: spinning off the operation as a a stand-alone company.

Kroger's convenience store brands are: Turkey Hill Minit Markets, Loaf ’N Jug, KwikShop, Tom Thumb and QuickStop.

“Our convenience stores are strong, successful and growing with the potential to grow even more,” said Chief Financial Officer Mike Schlotman. “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.”

The convenience store operations generated revenue of $4 billion and sold 1.2 billion gallons of fuel for Kroger in 2016. The stores employ 11,000 associates.

Neither supermarket fuel centers nor Turkey Hill Dairy is included in this review.

The company has hired Goldman Sachs & Co. to identify, review and evaluate the options.