Casey’s acquires 5 stores in Iowa
- Casey’s has acquired five former DeliMarket stores in Iowa.
- The chain, known for its pizza, is in the midst of expanding, opening more than 200 stores during its last fiscal year.
- Part of Casey’s growth came from its digital sales with digital revenue in its third quarter of fiscal 2023 up 12% over last year and 25% on a two-year stacked basis.
Casey’s has acquired five convenience stores in Iowa in its latest expansion efforts.
The five acquired stores are in the Iowa City area and were called DeliMart, a locally owned c-store chain, according to a report from The Gazette. The local DeliMart chain was founded by brothers John and Frank Moreland in 1985, according to the report. Frank Moreland, the majority owner of the chain, died in 2021.
A spokesperson for Casey’s told the outlet that DeliMart employees would be offered a job at the store when they reopened as Casey’s. Casey’s, the Iowa-based c-store chain with locations across the South and Midwest, is in the midst of expanding. In April 2022, the chain had 2,452 c-stores, but when it ended its third quarter on January 31, the convenience store had 2,472 locations, a net increase of 20 stores.
That increase, according to Casey’s third-quarter earnings report, included six store closures, 16 newly constructed stores, 12 acquisitions and six total acquired stores. During its 2022 fiscal year ending April 30, 2022, Casey’s said it grew its store footprint by more than 200 locations over the fiscal year.
“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.”