Death rarely comes quickly for retail brands.
In many ways, retailers are like cats that have nine lives. A company like JCPenney has survived bankruptcy, new owners, and becoming a lot less relevant.
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Even Sears still exists, although it’s a sad shadow of its former self. The same can be said for Toys R Us, Sharper Image, and countless other brands that have gone bankrupt.
Some brands linger even after it seems like they have been fully killed. Both Party City and Blockbuster Video each have one location left, even though the parent companies have long since called it quits. Radio Shack also has some remaining U.S. operators who own rights to continue using the name, even though it has long ceased to mean much.
Retailers tend to be like horror-movie villains. They often only seem dead, only to miraculously survive in time for the next sequel.
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Not every brand gets its Freddy Kruegger or Jason Vorhees moment, though. Some do die and don’t come back.
It’s rare, so that makes it especially sad when a popular brand that was doing well appears like it’s going to disappear.
Casey’s General Store is shutting down JF Heritage.
Image source: Casey’s General Store
Casey’s General Stores bought rival chain
Many consumers have significant loyalty to their local convenience store chain. People in New England love Cumberland Farms, while other parts of the country have deep loyalty to Wawa, Sheetz, Racetrac, and other smaller players.
That makes it challenging when one popular convenience store chain buys another.
In some cases, the new owner will continue to operate both brands. That’s not the case with Casey’s General Stores’ (CASY) latest acquisition.
Casey’s General Stores, Inc. agreed to buy Fikes Wholesale, Inc., owner of CEFCO Convenience Stores, in an all-cash transaction for $1.145 billion. The purchase price includes tax benefits valued at approximately $165 million for a net after-tax purchase price of $980 million.
The Fikes and CEFCO names have a deep history.
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“Fikes Wholesale, Inc. and CEFCO Convenience Stores began as a single ‘filling station’ in Cameron, Texas, in 1952 and has grown to be a respected operator with stores in multiple states,” the two companies shared.
The deal will greatly expand Casey’s reach.
“Casey’s acquisition of Fikes will include 198 retail stores and a dealer network. The proposed transaction will increase Casey’s footprint to nearly 2,900 stores. The acquisition will bring 148 additional stores to Texas, which is a highly strategic market for Casey’s, as well as 50 stores in the southern states of Alabama, Florida, and Mississippi,” they added.
In addition to the retail stores and dealer locations, the transaction includes a fuel terminal and a commissary to support the Texas stores.
The CEFCO name will soon disappear
While Casey’s always planned to eliminate the CEFCO name, it ensured a careful transition. The new owner understood that parts of the brand resonated with customers, and it wanted to make a slow change in order to not lose parts of CEFCO that made the brand valuable.
Casey’s CEO Darren Rebelez has always been clear that his company intended to remodel CEFCO locations and rebrand them under the Casey’s banner. He also made it clear that this $150 million commitment, which included adding kitchens to the CEFCO stores, would proceed carefully.
Immediately after the acquisition, Casey’s created hybrid stores to test its signature pizza alongside CEFCO’s food offering.
“We’ve been deliberate in terms of understanding what the guest needs are in Texas and Florida, what they liked about the CEFCO offer, maybe what they weren’t as satisfied with, and how they feel about the Casey’s proposition and how those two things can come together,” Rebelez said.
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That evaluation process, however, is nearing its end, and Casey’s plans to start converting stores soon. That means the end of the CEFCO brand as we know it. It will be a very slow death, however, as the transition for the full fleet could take 9-12 months and likely would not start until next year.
The new company will be keeping CEFCO’s popular chicken tenders, as well as its taco and burrito offerings.