Hy-Vee sells 21 convenience stores, transaction expected to close in July
Hy-Vee announced it will sell 21 Fast & Fresh convenience stores to Pump & Pantry. The transaction amount was not disclosed and is expected to close in July. The deal involves 18 stores in Iowa, 2 in Nebraska, and 1 in Minnesota, of which 5 include Starbucks and 7 include Smokey Row Coffee. Hy-Vee stated it will focus more on its core grocery business and convenience stores adjacent to supermarkets, and will still operate 168 convenience stores after the transaction.
Key Takeaways
- Hy-Vee has agreed to sell 21 Fast & Fresh convenience stores to Pump & Pantry for an undisclosed amount, the parties announced Friday.
- The deal is expected to close in July and involves 18 stores in Iowa, 2 in Nebraska, and 1 in Minnesota. Five of them have in-store Starbucks, and seven have Smokey Row Coffee shops.
- Lucas Glasgow, senior vice president of Hy-Vee Fast & Fresh, said the sale will allow Hy-Vee to focus more on its grocery business and convenience stores adjacent to its supermarkets.
Deep Dive
Over the years, Hy-Vee has built a large network of Fast & Fresh convenience stores across the Midwest. This deal shows that the grocery retailer wants to focus on stores that directly complement its supermarket operations.
"This move allows us to devote more effort to our core business—operating retail grocery stores and convenience stores adjacent to existing Hy-Vee locations," Glasgow said in a statement. "Once the transition is complete, we will continue to operate 168 convenience stores and plan to build more Hy-Vee locations in 2027 and beyond."
According to the announcement, Pump & Pantry plans to rebrand all 21 stores under its own name after the deal closes, and existing Hy-Vee employees will have the opportunity to transfer to Pump & Pantry. About 15 of the 21 stores are in the Des Moines metro area, with the rest in Davenport and Marion, Iowa; Omaha, Nebraska; and Lakeville, Minnesota.
"We believe these stores, under the Pump & Pantry brand, will continue to provide customers with the high quality and great value they expect from our locations," Glasgow said in the announcement.
Pump & Pantry will bring its Pumped Up Rewards platform—including in-app discounts, scratch-off games, online ordering, and real-time fuel pricing—to these stores, but will retain Hy-Vee's Fuel Saver points redemption feature. Additionally, Pump & Pantry plans to roll out its fuel savings platform to its remaining convenience stores in Nebraska.