Convenience store mergers: 3 keys to success

Business models, IT systems and organizational culture are all crucial components for a smooth integration.

This content was originally featured in Convenience Store News in January 2025.

The convenience store industry is undergoing a period of consolidation driven by high-profile mergers and acquisitions. Deals like the $47 billion bid by Laval, Quebec-based Alimentation Couche-Tard Inc., Circle K's parent company, for Irving, Texas-based 7-Eleven Inc., and Ankeny, Iowa-based Casey's General Stores Inc.'s acquisition of 198 CEFCO locations underscore the growing trend of c-store chains expanding their footprints, diversifying offerings and unlocking new revenue streams. 

Yet while M&A holds significant growth potential, the work isn't over after the ink dries. For c-stores acquiring smaller chains, success requires more than inheriting an established business. It demands a thoughtful strategy to integrate business models, align information technology systems and unify organizational cultures.

The unique complexity of post-acquisition integration

Acquiring a c-store chain is no small feat, especially for companies new to mergers and acquisitions. The complexities go far beyond signing the deal and merging physical locations. Acquiring companies must align myriad aspects, including fuel operations, retail processes, and technology infrastructures. With so many components to merge, c-stores may be uncertain about where to focus their efforts.

Additionally, many c-stores operate across multiple business lines, including retail fuel, wholesale supply and, in some cases, parent-company fuel distribution. To make it all work, smaller acquired chains may need more mature operational and IT processes. Additionally, they may be located in regions with different governance and regulatory requirements. 

For example, when Casey's General Stores acquired CEFCO, it entered the wholesale fuel business—adding a new capability to its portfolio. The move requires Casey's to adapt its operations to manage wholesale supply, an area in which CEFCO had more expertise. The acquisition also expanded Casey's presence into new regions, including Texas, Alabama, Florida and Mississippi—each presenting unique market challenges for the business. 

Navigating these complexities often requires the support of partners with deep expertise in c-store operations, IT integration and organizational transformation. With the right guidance and a clear integration plan, c-stores can address these challenges and achieve long-term success. 

Here are three successful strategies for seamless integration: 

1.    Prioritize cultural integration

One of the most misunderstood aspects of integration is recognizing and respecting the culture of the acquired organization. Whether it's expertise in food service, customer relationships or inventory management, these businesses have been successful for a reason. Overlooking their strengths can undermine the value they bring to the acquisition. 

If the acquiring company pushes its own processes, systems or culture without understanding the acquired entity, it risks losing what made that business thrive in the first place. When Yesway acquired Allsup's, it retained the Allsup's brand, recognizing its iconic local identity and offerings like the Allsup's burrito, but enhanced other areas of operations such as creating a loyalty program. 

Similarly, when 7-Eleven acquired Sunoco, it retained the Laredo Taco Co. brand and expanded it to other 7-Eleven stores, thereby strengthening its own food offerings. 

While advancements in artificial intelligence can assist in mapping operational structures or analyzing workflows, cultural integration remains a human-driven process. This process must begin with a thorough understanding of the acquired organization's culture, including how employees communicate and collaborate internally. A cultural assessment can help identify best practices to retain, both from an operational and employee engagement standpoint, ultimately building trust and ensuring integration efforts complement—rather than overshadow—the acquired chain's strongest attributes.

2.    Build an integration strategy aligned with business goals

A successful integration starts with a clear strategy that aligns business goals across all levels of the organization, ensuring a cohesive approach to post-acquisition success. This involves streamlining operations by aligning physical and digital stores to enhance efficiency and improve customer engagement. Standardizing and redesigning processes fosters cross-functional collaboration and promotes continuous improvement. The key is to simplify workflows for the integrated business while creating efficient, automated business functions that support long-term growth. 

From a technical standpoint, the integration strategy should include enterprise architecture guiding principles from an expert to design IT, application and data frameworks. These partners will take the time to understand and implement best-fit applications, data systems and infrastructure to fully harness the operational efficiencies of the acquisition.

It’s also vital to align the IT integration strategy with the overarching business roadmap to minimize disruptions and ensure a smooth transition. For instance, IT integration will help migrate employee information from the acquired entity into the parent company's systems, aligning HR and payroll seamlessly within operations.

3.    Focus on organizational change management and governance

Setting up effective governance frameworks is essential to reduce risks during post-acquisition integration. For example, failing to address compliance protocols in a newly acquired entity could lead to regulatory fines, while unclear communication about job security may cause employees to leave, taking valuable knowledge with them. The acquiring company must define roles, responsibilities and teams at both the deal and parent company levels to drive productivity.

That also means providing the right support to the acquired entity, which requires a thorough introspection of audit findings, addressing identified issues and performing comprehensive vulnerability assessments before merging systems. These proactive measures help establish a secure foundation and protect both the parent company and the acquired business from potential risks.

An exciting, but not easy, process

Bringing two businesses together after an acquisition offers exciting opportunities, but it's rarely a simple task. Success requires careful planning, clear goals, and respect for what makes each company unique. Ultimately, each business depends on the other to thrive—and an effective M&A playbook led by experienced partners is critical to retain the best of both companies, opening new doors after closing the deal.