Most people know Kroger as a large, national chain of supermarkets. What they may not know is that Kroger also operates nearly 800 convenience stores under a variety of regional brands, including Kwik Shop, Tom Thumb, Turkey Hill, Quick Stop, and Loaf ‘N Jug. However, those could all soon be up for sale.
Kroger announced this morning that it has retained Goldman Sachs to evaluate its options for the convenience store division, which operates 784 stores in 18 states.
According to Kroger, this network of stores bring in $1.4 billion a year to the company, selling about 1.2 billion gallons of fuel to customers.
“Our convenience stores are strong, successful and growing with the potential to grow even more,” said Kroger 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.”
About a decade ago, Kroger decided to do a semi-rebrand on its convenience store chains, giving them all the same new logo but letting each chain retain its name.
Turkey Hill Dairy — the Pennsylvania-based division that produces its own brands of ice cream, juices, iced tea, and other products — is not part of any potential sale, notes Kroger. Nor are any of the gas stations connected to Kroger-owned supermarkets.