The convenience store brands currently in expansion mode are seeking sites within new population growth markets that are still underpenetrated, such as the Carolinas, Utah, Idaho, Tennessee and even the Dakotas. Empty lots or vacant buildings along major highways and thoroughfares in rural and suburban settings are especially sought after. Look for secondary and tertiary markets to be eyed, including retail street-front spaces on Main Street for smaller convenience store prototypes that are sprouting up. Convenience stores featuring drive-thru capabilities are also continuing to develop. The latest trend in convenience stores is to offer an elevated array of healthier fresh food and beverage options beyond the usual pre-packaged chips, candy bars and sodas. The brands leading this convenience store growth include Wawa, Kwik Trip/Kwik Star and Kum & Go.
Wawa is on a mission to open 100 new units per year over the next eight years. The brand is eyeing upcoming growth in the South, notably Georgia, the Carolinas and Tennessee, which are all new states for Wawa. North Carolina is on track to see its first store open by 2024, rumored to be in the town of Kill Devil Hills, a popular beach town within the Outer Banks. Nashville, Tenn., is expected to get its first unit by 2025. Up to 40% of the new units that Wawa will open will be in territories where it already has a presence, with central Pennsylvania being especially targeted for growth of up to 40 new units.
Many of Wawa’s new units are expected to be drive thrus, especially within Florida. This is a new format for Wawa, with its first drive thru debuting in 2020 in Westhampton, N.J., in which a drive-thru window was added to its regular-sized convenience store, which is between 4,000 and 6,000 s.f. In 2021, the brand introduced a much smaller standalone drive-thru-only 1,800-s.f. prototype in Morrisville, Pa., which serves foods such as breakfast sandwiches, burgers and coffee. A 2,030-s.f. standalone drive thru is expected to open in Macungie Township, Pa., by the end of the year. Wawa will most likely continue to test different configurations of its drive-thru units.
Wawa looks for lot sizes that are about two acres, with parking for about 55 cars. Space should be a freestanding building at a high-volume intersection, on a corner, including outparcels of shopping centers or mixed-use developments. Minimum traffic counts should be at least 25,000 vehicles per day. The majority of its units are in densely populated suburban neighborhoods, but urban metro sites are also sought after. Wawa is known for its reasonably price food selections, such as pizza, fruit bowls, soups, quesadillas and salads.
Kwik Trip anticipates opening between 40 and 50 new stores per year over the next four years, and will be looking to expand into North Dakota, South Dakota and Michigan, all new states for the brand. Michigan is expected to see new builds in both Ironwood by late summer/early fall, and Iron Mountain by 2023. Kwik Trip will also be further expanding into regions where it already has a presence but still has room to grow, including in St. Paul, Minn., Minneapolis and Milwaukee, as well as throughout all of Iowa, where the brand is known as Kwik Star. With its convenience stores sized between 7,000 and 10,000 s.f., which are frequently paired with gas pumps and car washes, Kwik Trip looks for empty lot spaces or vacant buildings along major highways, ideally on a corner of a cross street. Co-shared space in a large building will also be considered, such as its unit in Owatonna, Minn., that shares the structure with Sterling Pharmacy, a local pharmacy brand. Kwik Trip sites are generally in rural and suburban areas with a dearth of dining options in the vicinity.
In January, Kwik Trip introduced a new brand called Kwik Spirits. These stores will be the same square footage dimensions as its regular stores but will focus on a larger selection of products for the age 21-plus crowd, such as liquor and vaping items. Kwik Spirits locations are anticipated to be remodels of smaller-sized Kwik Trip/Kwik Star stores that are within close proximity of larger sized stores in the same area. An initial nine stores have already opened, sprinkled throughout Minnesota, Wisconsin and Iowa, and more may be on the horizon if the format proves to be successful. The Kwik Trip/Kwik Star convenience stores are known for their huge food selections that feature the brand’s own freshly baked goods, as well as take-home meal options.
Kum & Go expects to open between 15 and 20 new units per year over the next five years. Growth will be concentrated in three new states that Kum & Go will be expanding into: Utah, Michigan and Idaho. Look for the metros of Salt Lake City, Grand Rapids and Boise to all be initially targeted. New states east of Michigan will also be eyed for growth in the future. Kum & Go looks for space in 5,000- to 6,500-s.f. range for its stores on major thoroughfares with car service tenants close by, such as AutoZone Auto Parts or Valvoline Instant Oil Change. Suburban communities will especially be targeted. More urban metro territories will benefit from a new prototype Kum & Go will roll out this year, called the bistro format, which can fit into space under 4,000 s.f. and works best in ground-floor street-front retail, preferably a corner unit. The first bistro unit is expected to open by the end of this year in Walnut, Iowa.
Within the last year, Kum & Go introduced an updated menu for its convenience stores, such as offering coffee from the premium brand, BLK & Bold. Other updates include providing healthier made-to-order food options, such as salads, vegetables, grain bowls and smoothies, and more grab-and-go items including breakfast burritos, hot dogs and chicken sandwiches.
