Dive Brief:

• Supermarket chain Giant Eagle announced it plans to purchase the Ricker's convenience store chain, which operates 56 stores in Indiana, according to Indianapolis Business Journal. The merger is expected to be completed by the end of the year.
• Giant Eagle operates 200 supermarkets and 210 GetGo convenience stores. It currently has six c-stores in Indiana, with a seventh set to open in Zionsville this month. The companies said they do not plan to change Ricker's stores at this point, and Giant Eagle will retain all 850 Ricker's employees.
• Ricker’s President and CEO Quinn Ricker, son of founder Jay Ricker, will join Giant Eagle to oversee operations. Jay Ricker will serve as a consultant in the company’s legal battle with the state legislature to serve cold beer in its convenience stores, according to the Indianapolis Business Journal.

Dive Insight:

With its acquisition of Ricker's stores, Giant Eagle gains a well-known c-store brand while also growing its footprint in the Hoosier state. The regional grocery and convenience store operator opened a 125,000-square-foot Market District supermarket in Carmel in 2015 and has built six GetGo Cafe + Markets in the Indianapolis area since then, with a seventh soon to open.

Ricker Oil is a family-owned business that's operated in Indiana for more than two decades. The company began as a petroleum supply business in 1979, then opened its first convenience store in 1989. It soon expanded through acquisitions of other convenience store operators to 56 locations, with a 57th slated to open later this month. Founder Jay Ricker told the Indianapolis Business Journal he'd been thinking about retiring, and that the offer from Giant Eagle "made too much sense to turn it down." 

Convenience store sales have been on the rise for the first six months of 2018, according to the National Association of Convenience Stores. More than 79% of c-stores said in-store sales increased over the first six months of 2018 compared to the same time last year. Retailers said the primary driver for sales has been healthy snack and drink options. This could be driven by the fast-growing protein and energy snack category, as well as snacking more often replacing traditional meals.

Giant Eagle has already dipped into the snacking and on-the-go meal category. The grocer recently began refreshing its GetGo gas stations to the GetGo Café + Market concept, adding grab-and-go sandwiches, salads, and fresh produce.

Ricker's gives Giant Eagle another advantage. Just last month, the chain partnered with Skip, a mobile checkout app, to develop a “hybrid” of mobile payment and an Amazon-Go like shopping experience. The grocer can now easily track how successful the technology is and if it proves to be so, may adopt it into its grocery stores and GetGo locations.

Officials have said they don't have immediate plans to change the store experience, but that will likely change as the companies share knowledge around technology, fresh foods and more. Giant Eagle also says it has no plans to change the Ricker's name to its GetGo brand. That seems like a sound move given the name recognition Ricker's enjoys throughout central Indiana.