Dive Brief:
- EG Group will look to expand its footprint in the U.S. as it simultaneously offloads c-store properties through its $1.5 billion sale-leaseback deal with Realty Income Corporation, the company said in its recent first-quarter trading update.
- The retailer emphasized its intent to continue growing the Cumberland Farms brand in the U.S., noting a “clear opportunity” to bring Cumberland Farms’ coffee, private label products and SmartPay rewards platform to the rest of EG Group’s 1,700-store U.S. network, according to the update.
- As some Cumberland Farms locations included in the sale-leaseback agreement have begun transferring ownership in recent weeks, EG Group said it will evaluate new sites as it continues the Cumberland Farms rebrand, specifically prioritizing those that are ideal for foodservice and electric vehicle charging.
Dive Insight:
EG Group said it will undertake this Cumberland Farms expansion to “create a strong U.S. identity,” according to the update. With nearly a dozen c-store brands in its U.S. portfolio, a lack of consistency from banner to banner in the past could have caused headaches for the company, one expert previously noted.
EG Group first began rebranding some of its U.S. c-stores to Cumberland Farms last September. Besides Cumberland Farms, EG America’s c-store portfolio includes Turkey Hill, Certified Oil, Quik Stop, Fastrac, Tom Thumb, Loaf ‘N Jug, Kwik Shop, Sprint and MinitMart. Those stores are scattered across 30 states and have over 20,000 employees.
This expansion will likely occur as EG Group begins its search for a new president for its U.S. division. EG Group also said it will continue to review non-core assets for divestment in the U.S. during this time.
Across its entire network, EG Group has identified nearly 4,000 potential sites to install ultra-fast chargers, according to the update. These locations have high foot traffic, as well as plenty of parking space and foodservice and/or grocery offerings, the company said.
Blackburn, U.K.-based EG Group currently has more than 5,500 c-stores across the U.S., U.K. and Ireland, Europe and Australia.
