BLACKBURN, U.K. -- As England's EG Group takes ownership of 762 convenience stores in the United States, the company said it "will look to implement into the USA its successful retail brand partner commercial approach."
EG Group on April 20 completed its acquisition of the c-stores from The Kroger Co., including 66 franchise operations operating in 18 states and employing 11,000 associates under the banner names Turkey Hill, Loaf ‘N Jug, Kwik Shop, Tom Thumb and Quik Stop.
As previously announced, EG Group said it will establish its North American headquarters in Cincinnati and continue to operate stores under their established banner names.
The Kroger purchase is EG Group's first move into the U.S. market, and it "facilitates an opportunity to secure further assets in North America," the company said.
But first the company will work its operating strategy into the former Kroger assets. Click here to read Kroger's take on the deal closing.
"This will entail assessing the acquired site network in terms of its retail potential, initially partnering with and investing in a few locations with recognized global and local retail brands to understand the market dynamics and consumer perceptions," the company said. This process "will then provide the necessary market understanding and business model confidence to accelerate growth and rollout of a best-in-class retail offer across the remaining network."
In the United Kingdom, EG Group works with foodservice brands such as Subway, Starbucks, Burger King and KFC alongside c-store operators such as Spar, providing a place to shop, eat and buy fuel. In Europe, it uses this partnership approach with retail giants such as Carrefour. The company intends to build a similar network in the United States.
"We now look forward to working with our exceptional U.S. management team and begin to invest in the network in the coming months," said Mohsin Issa, founder and co-CEO of EG Group. "Given the spatial spread across the USA, nurturing the right strategic brand partnerships for the respective market regions is going to be an important strategy focus in North America.
"We already have established relationships with many leading U.S. retail brands, and consumers want to access convenient locations to fulfil multiple fuel, convenience store and food-to-go missions and stop at those locations that provide excellent welfare to motorists," he said. "For example, customers are looking to access a safe retail environment, well-lit sites with ample parking, free Wi-Fi, internal seating areas and clean washrooms.
"We aim to invest and transform our locations into branded retail destinations and be recognized as an effective U.S. fuel, convenience store and food-to-go retailer."
Founded in 2001 by brothers Zuber and Mohsin Issa, Blackburn, U.K.-based EG Group is a leading gasoline and convenience retailer that has established partnerships with global brands such as Esso, BP, Shell, Carrefour, Louis Delhaize, Spar, Starbucks, Burger King, KFC, Greggs and Subway.
EG Group employs more than 26,000 staff working in more than 4,600 sites across various European markets including the United Kingdom, France, The Netherlands, Belgium, Luxembourg and Italy and now the USA.
Click here to read more about EG Group's entrance into convenience retailing in the United States.
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