Mergers & Acquisitions

QuikTrip, 7-Eleven Sweet on Charlotte

Expansion plans, Couche-Tard's Pantry acquisition heating up competition

CHARLOTTE, N.C. -- Unknown in the Charlotte, N.C., area just three years ago, QuikTrip is gaining fans around the region with its super-sized convenience stores, fresh-food options and large number of drink dispensers, reported The Charlotte Observer.

QuikTrp QT 7-Eleven Couche-Tard Circle K Pantry (CSP Daily News / Convenience Stores)

With an ongoing building "blitz" across the Carolinas, the Tulsa, Okla.-based chain has rapidly become a significant player in an increasingly competitive convenience store landscape.

7-Eleven has also been expanding in the Charlotte area, and two other major players are set to combine after Circle K's parent, Alimentation Couche-Tard Inc., announced plans to buy Kangaroo Express' parent, The Pantry, for $1.7 billion, including debt.

Privately held QT has grown faster in the Carolinas than in any other previous expansion in the company's history, Mike Thornbrugh, QT's manager of public and government affairs, told the newspaper. The company, which offers gas at all locations, already has 55 stores in the two states--about 29 of which are in the Charlotte area--with eight more under construction.

"We have just touched the surface," Thornbrugh said. "Our competitors would love to know our number. But it's no secret we're there to stay, and we're going to continue to build in the right places."

After a 24-year absence, Dallas-based 7-Eleven Inc. made its return to Charlotte in 2012 when it bought 55 Sam's Marts in the region and began converting them into 7-Elevens. It has also acquired CB Mart and Fast Track locations in the Carolinas, and built new stores.

7-Eleven now has 71 locations in Mecklenburg and five neighboring counties, and it's planning on opening at least 10 more Mecklenburg stores in 2015, company spokesperson Margaret Chabris told the paper.

"We are flexible in locations," Chabris said, "but are particularly interested in walkup sites in downtown Charlotte and locations where we can sell gasoline."

QT and 7-Eleven will face intensified competition after Laval, Quebec-based Couche-Tard, the parent of Circle K, completes the acquisition of Cary, N.C.-based The Pantry, which operates primarily under the Kangaroo Express banner. The two chains have about 110

About 10 years ago, QT decided to make a push into fresh food, Thornbrugh said. Its latest "Generation 3" stores have a kitchen where customers can order everything from soft pretzels to flatbread sandwiches. Customers use touch screens to put in their orders.

The QT stores have also gotten bigger, with new locations now reaching about 5,700 square feet. The average size of a 7-Eleven ranges between 2,500 to 4,000 square feet, according to the report, citing CSP.

Another QT trademark is low gas prices, which is especially noticeable across the border in South Carolina, the paper said.

"QuikTrip has been known through our history for being a high-volume, low-margin operator," said Thornbrugh. "That's on all products."

Click here to view the full Charlotte Observer report.

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