Casey’s acquires 5 stores in Iowa
“We closed three large strategic acquisitions that were a significant part of the 228 new units opened this year,” said Darren Rebelez, Casey’s president and CEO, on last year’s fourth-quarter earnings call.
Acquisitions included ones from Bucky’s, Pilot and Circle K, which Reblez said strengthened the store’s presence in Nebraska, Illinois, Oklahoma and Tennessee. He added that the acquisitions also meshed with its distribution network, including its Joplin, Missouri, distribution center opened in 2021.
In the third quarter of this year, revenue at the chain was up compared to the same quarter the year prior. Casey’s total revenue in the third quarter was about $3.3 million compared to about $3 million in the same quarter in 2022. Part of the growth came from its digital sales. Digital revenue was up 12% over last year and 25% on a two-year stacked basis, Rebelez told investors on the earnings call.
“Our guests are taking advantage of our ability to deliver grocery and general merchandise products as delivery is over-indexed versus other digital grocery and general merchandise transaction types such as pick-up,” he said, adding that mobile app orders represent 69% of all of Casey’s digital orders.
C-stores like Casey’s, which is known for its pizza offerings, have worked to modernize and build loyalty to meet consumers in the face of changes in the industry.
“Retailers may take a different approach, but investing in prepared foods, full-service options and branding are all ways that c-stores have engaged consumers and built followings,” said Retail Leader Pro chief analyst Elizabeth Lafontaine. “Creating additional capacity for prepared foods and fresh items is key for chains in urban environments where third-party delivery continues to rise.”