Kroger Seeks to Divest $4B Convenience Store Portfolio
The Kroger Co. is exploring a potential sale of its 18-state convenience store business to determine if it holds more value outside of the company. The Cincinnati-based supermarket retailer’s 784-unit convenience store business generated $4 billion in total sales last year. A sale could help Kroger fight off threats from Amazon.com and others seeking to enter the U.S. grocery business.
Kroger’s Mike Schlotman says, “Our convenience stores are strong, successful and growing with the potential to grow even more. 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 business employs 11,000 and operates under the banner names: Turkey Hill Minit Markets, Loaf ‘N Jug, KwikShop, Tom Thumb and QuickStop.
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