Kroger sells convenience store business, expands use of innovative shopping technology
Kroger Co. and EG Group, a privately held petrol forecourt convenience store retailer based in Blackburn, Lancashire, United Kingdom, has announced a definitive agreement for the sale of Kroger’s convenience store business unit to EG Group for $2.15 billion.
Kroger Co. and EG Group, a privately held petrol forecourt convenience store retailer based in Blackburn, Lancashire, United Kingdom, has announced a definitive agreement for the sale of Kroger’s convenience store business unit to EG Group for $2.15 billion. The companies expect to close the transaction during the first quarter of Kroger’s fiscal year.
Kroger’s convenience store business operates in 18 states and includes 66 franchise operations. The stores employ 11,000 associates and operate under the following banner names: Turkey Hill, Loaf ‘N Jug, Kwik Shop, Tom Thumb, and Quik Stop. Kroger’s convenience store business generated revenue of $4 billion, including selling 1.2 billion gallons of fuel, in 2016. As part of the agreement, EG Group will establish their North American headquarters in Cincinnati and continue to operate stores under its established banner names.
“This is an exciting time for EG Group, the entry into the U.S. market presents a fantastic opportunity to deliver a successful retail offer to consumers across the various states,” said Mohsin Issa, EG Group founder and co-CEO. “We have had much success across Europe and we firmly believe the Kroger assets present a fantastic foundation to overlay our retail experience and know-how in the United States.”
In other news, Kroger has announced it will introduce its Scan, Bag, Go shopping technology in 18 operating divisions, making the service available this year to customers at 400 stores. Developed by Kroger’s in-house research and development team, Scan, Bag, Go allows customers to use a wireless handheld scanner or the app on their personal device to scan and bag products as they shop for a quicker, seamless checkout experience.
Scan, Bag, Go helps to create a personalized experience for customers throughout their shopping trip, allowing them to view and download digital coupons, keep a running total of their order, and view the current week's sales ad.
“With every new product, service, and technology integration, Kroger is redefining the customer experience and reimagining the store of the future,” said Chris Hjelm, Kroger’s executive vice president and chief information officer. “After testing Scan, Bag, Go in several locations, we are bringing this transformative technology to new stores across the country through Restock Kroger.”