UK-based convenience store operator EG Group is buying Kroger’s U.S. convenience store unit for $2.15 billion as it expands into the U.S. market.
Kroger’s U.S. network consists of 11,000 employees at 762 locations in 18 states, and includes 66 franchise operations.
The network operates under banners including KwikShop, Loaf ‘N Jug, QuickStop, Tom Thumb and Turkey Hill Minit Markets, says RetailWire.
“Our business model is simple but effective — EG Group is creating a stronger relationship between consumers and leading retail brands they want to access,” said Zubba Issa, co-founder and co-CEO of EG. “In the U.S. we aim to create a retail environment which delivers convenience, provides value and serves as a retail destination.”
Under pressure from competitors such as Walmart and Amazon, Kroger had been considering selling its convenience store operation for several months.