On Wednesday, the American retail company Kroger announced that there is a possibility that they will sell their 784 convenience-store operations.
According to the executive VP and CFO of Michael J. Schlotman, the convenience stores have been successful, however they want to optimize on the opportunity for them to grow even further with the sale.
“Our convenience stores are strong, successful and growing with the potential to grow even more,” said 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.”
So far, the c-store division has collected $4 billion in revenue, of which 1.2 billion is attributed to fuel revenue in 2016.
Goldman Sachs & Co was hired by Kroger to judge the options for the c-store division.
In the meantime, Kroger is working to implement a new business plan, titled the “Restock Kroger Plan”. The plan will focus on four major areas that include—but are not limited to—Expanding Partnerships to Create Customer Value, Develop Talent, and Redefine the Food and Grocery Customer Experience. The “Restock Kroger Plan” will focus on investing in a number of different areas and initiatives, some of which include space optimization, technological innovation, and creating for better digital experiences.
“We know that when we serve America through food inspiration and uplift, we create value for our shareholders, customers and associates,” says Rodney McMullen, Kroger’s chairman and CEO, about the Kroger’s future plan. “Combining our food expertise and data analytics uniquely positions Kroger to create new and highly relevant customer experiences, delivered both digitally and in stores. Restock Kroger builds on our strengths and strategically repositions Kroger to accelerate our customer-centered efforts in order to create shareholder value.”
