WEST DES MOINES, Iowa -- Kum & Go LC said that it is selling 21 convenience stores and 12 surplus sites as part of its current strategy to concentrate on core markets.
As reported in a CSP Daily News Flash last Friday, seven of the 21 operating locations are in Des Moines; three are in Wichita and 11 in Omaha; 11 of the surplus sites are in Iowa, including Waterloo and Cedar Rapids, and one is in Omaha.
The 21 operating locations that will be divested are either outside of Kum & Go's core markets, or are not large enough [image-nocss] to consistently deliver the products that Kum & Go's newer locations offer, the company said.
Kum & Go's business plan calls for an increase in the number of c-stores in its core markets, while developing more and better efficiencies in its infrastructure as well as creating a stronger asset base, it added. Major markets include Des Moines, Iowa; Omaha, Neb.; Sioux Falls, S.D.; and Springfield, Mo.
The company is also building a new store in Mason City, Iowa, one of 20 the regional retailer will open this year, Jack Wilkie, senior vice president of marketing for Kum & Go, told CSP Daily News in late July. The 3,500-sq.-ft. store is expected to open November 1. The 24-hour store will feature eight fueling stations with two pumps each and a c-store with coffee and cappuccino bars, a Kum & Go Thirst Zone with 20 varieties of pop with a variety of add-it-yourself flavorings and a beer cave. It will also offer diesel fuel.
Our company is committed to carefully planned, strategic growth, said Kum & Go president and CEO Kyle J. Krause. The sale of these properties is based on our desire to consolidate and strengthen our asset base and offer a consistent brand to our customers in all of our markets.
Kum & Go has retained The Energy Exchange, Chicago, to coordinate a sealed-bid auction for these locations.
According to Mark Raccuia, executive vice president of The Energy Exchange, This sale offers a unique opportunity for jobbers as well as individual owner operators to walk into these profitable modern convenience stores and run their own business.
Bidders may bid on one, some, or all of the stores. The bid deadline is Tuesday, Sept. 18, 2007. To obtain a list of the stores contact The Energy Exchange at (866) 906-7499. The Energy Exchange is a commercial real estate firm specializing in the sale of gas stations and c-stores nationwide.
Kum & Go, which will be celebrating its 48th anniversary on September 1, is a privately held company with approximately 450 corporately owned and operated stores in 13 statesIowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota, Colorado, Arkansas, Wyoming and Wisconsin. The West Des Moines, Iowa-based company is the seventh largest privately held c-store chain in the United States, it said.
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