C-store M&A activity suggests more consolidation is coming in the U.S.

Most of the transactions in 2024 involved smaller chains or single-store operators.

The pace of merger and acquisition activity in the U.S. convenience store sector is accelerating with recent trends suggesting the nation’s c-store landscape is ripe for more change. While most of the transactions in 2024 involved smaller chains or single-store operators, several larger operators inked deals to significantly expand their footprints into new regions.

“Convenience stores are found in towns large or small. Food insecurity affects roughly 1 in 10 Americans and nearly 90% of U.S. counties with the highest rates of food insecurity are rural. C-store consolidation trends can have a significant impact on food accessibility in rural areas,” said Billy Roberts, food and beverage economist with CoBank.

The convenience store market remains heavily fragmented and widely dispersed, which lends itself to additional consolidation. The U.S. had 152,396 convenience stores in 2024, a 1.5% year-over-year increase, according to data from the National Association of Convenience Stores. Only 22 c-store chains in the U.S. have more than 400 locations, while roughly 96,000 have 10 or fewer. The majority of the sector (63%) is comprised of single-store operators.

“The vast number of single-unit operators alone points to opportunities for larger chains to expand their relationships or acquire new properties to maximize efficiencies across supply chains and distribution networks,” Roberts added.

Acquisitions of smaller operators have been commonplace in recent years. Data from Capstone Partners indicates 80% of deals completed in 2023 were for target companies of less than 50 stores. Through September of 2024, 74% of the transactions involved smaller c-store entities.

Several major moves involving some of the largest operators: in 2023 include Maverik purchasing Kum & Go's 400 c-stores, RaceTrac's purchase of Gulf Oil and its 1,000 branded sites, and BP's $1.3 billion acquisition of TravelCenters of America.

Similar activity in 2024 was largely driven by major chains looking to expand their geographical footprint. FEMSA purchased 249-unit Delek US Holdings. Casey's acquired 198 CEFCO c-stores for $1.15 billion, pushing the chain to over 2,900 locations. And Sunoco sold 200 stores to 7-Eleven in a $1 billion deal.

In a saga that began in August 2024, the Canadian c-store chain and 7-Eleven are reportedly working on a potential divestiture package to address regulatory concerns considered a major hurdle to the merger. Alimentation Touche-Card is well represented in the c-store sector with over 7,000 Circle K locations. Under a merger, the combined 7-Eleven/Circle K would be nearly 10 times the size of their next-closest competitor and own more than 13% of all c-stores in the US.