Casey's






Store Growth





casey's Stores





Store Development

One of the ways Casey’s stands out a whole lot more is growing primarily by acquisition. Prior to fiscal 2003, we achieved our growth by constructing several new stores each year and by purchasing a few of our franchise stores—arguably a type of acquisition.

Senior Vice President John Harmon, who leads our acquisition team, said, “In terms of sales and profits, newly constructed stores matured in three to five years. Acquired stores contribute much more quickly due to the existing customer base and trained employees.”

Our goal for fiscal 2007 was to acquire 50 stores and build 10. We completed 8 new constructions and acquired 52 stores. “Foremost among them were the 33 HandiMart locations we purchased in the second quarter,” said Harmon.

We were in no rush to rebrand the HandiMart stores because it was a strong name in a concentrated area. Of course we believe our own brand is stronger, and we will complete the brand transition as we add kitchens for our proprietary prepared food program to the appropriate locations in the coming months.

 
 
 
 
 

We expect further acquisition activity within the industry during fiscal 2008 for three reasons: Profit margins will be thinner for the prime items of gasoline and cigarettes, making it more difficult for smaller operators to compete. There will be an increased drive toward consolidation. Financing availability should be favorable.

“Having our own distribution center is an enormous advantage for operating our stores profitably,” Harmon stated, “and we have the capacity to serve 1,000 more stores out of our warehouse.” We believe we’ll acquire those stores primarily in our nine-state marketing territory. The right kind of opportunity will lead us outside of the nine states. Concentration will be the key.

Our goal for fiscal 2008 is to acquire 50 stores and build 10 stores. As we pursue attractive acquisitions, we will adhere to our business model of focusing on the small-town customer, the potential contribution to earnings, and the estimated return on invested capital.

During next year, we can be counted on to apply new efficiencies as we pursue our acquisition goal. Hitting the exact number counts less than making sure our growth is disciplined growth.
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