Cincinnati-based Kroger may sell off its convenience store business amid changes in the grocery market, the company said in a statement.
The Kroger Co. said its convenience store business is growing, but is “potentially of more value outside of the company than as part of Kroger.” The company intends to “explore strategic alternatives for its convenience store business, including a potential sale,” the company said.
"Our convenience stores are strong, successful and growing with the potential to grow even more," said Michael Schlotman, the company's executive vice president and chief financial officer. "We want to look at all options to ensure this part of the business is meeting its full potential."
“Considering the current premium multiples for convenience stores, we feel it is our obligation as a management team to undertake this review,” Schlotman’s statement said.
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Kroger’s convenience store business includes 784 convenience stores located across 18 states, with 68 franchise operations, the company said in the statement. The stores operate under the names Turkey Hill Minit Markets, Loaf ‘N Jug, KwikShop, Tom Thumb and QuickStop.
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Kroger’s supermarket fuel centers and Turkey Hill Dairy are not included in the review.
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