Some of the Midwesterners who visit Casey’s General Stores Inc. convenience stores are changing their behavior because of inflation, both in the company’s shops and at the gas pump, Chief Executive Officer Darren Rebelez said.
The 28% of Casey’s visitors that the company considers low-income are saving money by choosing cheaper prepackaged foods and the store’s private label instead of hot breakfast items or name-brand products.
“They also are making different meals,” Rebelez said. “So they’ll buy a bag of nuts and a juice or something like that, and that’ll be a meal.”
Those customers are still filling their tanks all the way at the pump, but they’re choosing cheaper ethanol blends to stretch their dollars further, Rebelez said.
Operating in 16 states, Ankeny, Iowa-based Casey’s is the third-largest US convenience-store operator behind Seven & i Holdings Co.’s 7-Eleven and Circle K owner Alimentation Couche-Tard Inc. It says it’s fifth among US pizza chains. Its shares are up 4.9% this year through Wednesday, trailing the 6% rise of the S&P 400 MidCap Index.
The company on Wednesday announced a new three-year strategic plan, intending to add 350 stores to its current count of about 2,500 through the fiscal year ending in April 2026. Despite economic pressures, Rebelez said, Casey’s is enjoying a good development environment as smaller convenience-store operators offer attractive prices for expansion.
Rebelez said towns often welcome Casey’s stores and they integrate in their communities through collaboration with local charities.
“I can tell you I’ve worked for other companies and I’ve never had anybody write me a letter or call and say, ‘Can you please build a store in my community?’” Rebelez said. “But at Casey’s, I get it all the time.”
