Across the C-Store industry, we are seeing massive Market Consolidation. This consolidation is improving existing brands and building greater business agility. As a c-store operator we want you to be aware of the benefits of market consolidation and how it can positively affect your business.
Driving Forces in C-Store Market Consolidation
Over the last decade we have seen the growth of profit for owners of C-Stores. The news always reports when larger named C-Store chains merge, however, smaller brands are coming into the consolidation marketplace at a rapid pace. Additionally, the C-Store industry is attracting investments from a variety of places and not just those already in the business. From private equity, public companies, and hedge funds – the attention on C-Stores is expanding. The more innovative the C-Store the higher their profits and the more we see consolidations. Why might you consider consolidating?
· Combine capital, assets, and human resources
· Financing opportunities
· Ability to focus on highest ROI locations
· Better brand consistency
· Decreased ownership costs
· Streamlined workflows
· Skill set efficiency
· Reduce operating costs
· Increase revenue
· Attract partnerships
· Elimination of duplicate assets
· Improve communication between business functions
· Gain market share
· Financial stability and retirement
Creating a Stronger Company
By combining business structures and reducing redundant responsibilities and resources, companies can become big players in the industry. The benefits: streamlining processes, lowering operating costs, and gaining purchasing power. Moving your investments within the c-store to a more profitable business line, such as food service, keeps you relevant and helps you become a stronger entity.
As we consider the rising labor costs, the idea of market consolidation is extremely appealing. When consolidation happens, the operational streamlining is complete, and this helps both companies focus more on profits and an increased market share. Although the short-term may seem costly and complex, the long-term benefits of market consolidation are incredibly sound and help you to become that big player, that strong company, that industry leader.
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What to Consider when Contemplating Consolidating
There are two important pieces we have helped our clients with as they consider market consolidations.
1. Due Diligence is always number one. Knowing what you have and the value of it to both parties is critical to success.
2. Timing. C-Store inventory can be quite complex when it comes to consolidation because there are expiration dates to a large percentage of your inventory. Additionally,
ensuring the accuracy in these audits is often why we are hired. An outside non-biased partner to help both parties can be extremely beneficial.
In today’s ever changing C-Store marketplace, we know that understanding the c-store industry is a specialty. As the ONLY inventory auditing company who focuses 100% on the c-store industry, we are equipped to provide our expertise to everyone we work with.