Brand loyalty can go a long way in the retail sector, and in that regard, Texas-based convenience store chain Buc-ee’s is near the top of the pack based on recent industry surveys.
Buc-ee’s was founded in 1982 by Arch “Beaver” Aplin III in Lake Jackson, Texas. The brand evolved in the mid-2000s from the typical 3,000-square-foot convenience store to massive travel center sites that quickly earned a reputation for cleanliness, friendliness, and a large product assortment. The Buc-ee’s model centers on very large-format stores along interstates that operate more like aspirational destinations for families than traditional gas stations. Stores frequently feature more than 100 pumps but do not cater to long-haul truckers, which creates a more welcoming atmosphere for families. Clean bathrooms, expansive food programs anchored by barbecue and fresh snacks, and branded merchandise are also part of the popular model.
Currently, Buc-ee’s stores can be found in Texas (36), Alabama (4), Florida (3), Georgia (3), Tennessee (2), Kentucky (2), and one each in South Carolina, Colorado, Missouri, Virginia, and Mississippi.
Buc-ees
Plans point to sustained, capital-intensive growth into new regions. Buc-ee’s has announced expansion plans for stores in Nebraska, Arizona, Arkansas, Louisiana, Kansas, and North Carolina over the coming years. Notably, the chain is also developing plans for a 76,245-square-foot location in Fort Pierce, Florida, that would become the world’s largest convenience store and is likely to create a lot of buzz.
Expansion by Buc-ee’s could make the company a more significant competitor to national and regional chains such as Pilot/Flying J, Love’s, Alimentation Couche-Tard’s (ANCTF) Circle K chain, Casey’s General Stores (CASY), BP’s (BP) TravelCenters of America, Seven & I’s (SVNDY) (SVNDF) Speedway, Kum & Go, Wawa, Sheetz, QuikTrip, Kwik Trip, and Kroger (KR)-operated chains like Kwik Shop and Quik Stop. Interestingly, super-sized travel centers are considered an incremental headwind to restaurant giants McDonald’s (MCD), Burger King (QSR), and Taco Bell (YUM), with a higher percentage of travelers indicating that they opt to eat at convenience store chains due to the recent improvement of food quality and options.