Leading gasoline retailer Speedway has recently purchased 97 stations across Indiana, Ohio, and Kentucky, boosting its market dominance in these areas, adding to its current 1,370-plus stations in seven states.
Speedway's latest acquisition involves the purchase announced on June 5, in which Speedway will acquire ten stores across Ohio and Northern Kentucky from Road Ranger, in exchange for a Chicagoland truck stop and cash, according to a Marathon Petroleum press release. Marathon is the parent company of Speedway, LLC.
In addition to the ten purchased stations this week, Speedway announced in late-May it was also nearly complete with a purchase of 87 GasAmerica stations it had agreed to buy in February.
After these transactions close, Speedway will boast 1,460 locations in seven states, and stand as the nation's fourth largest convenience store chain.
While this is good news for Speedway and its parent company, Marathon, it is ultimately mixed news for motorists, as less competition may lead to slightly higher prices in these areas. While Speedway remains competitive, less gasoline outlets and more power by one chain could ultimately lead to higher margins for Speedway, LLC, via your pocketbook.
As Marathon spokesman Shane Pochard talks about the purchase, he notes,
"It gives us the option to grow in a market we’ve already been successful in."
According to a
Springfield News Sun article,
The dominance of in-store sales versus gas sales has allowed Speedway some dominance nationally. Lenard said that oil companies that traditionally dominate gas stations have left more store operations to franchisees.
This is why Speedway/Marathon ranks seventh in the number of convenience stores in the country, according to Convenience Store News. But they rank fourth in company-operated versus franchisee-owned stores.
Speedway’s first-quarter profits help show that. The 13 percent increase was due in part to in-store merchandise sales. Merchandise sales through March totaled $695 million, up from $663 million for the same time last year.
Motorists who live in areas where Speedway has several outlets: how do you feel about this news?