What is Sales and Marketing Strategy of CrossAmerica Company?

The company distributes motor fuels to a wide array of customers, including lessee dealers, independent dealers, commission agents, and its own retail locations. This extensive network is built on strong partnerships with major fuel brands, solidifying its position as a significant distributor in the market.

CrossAmerica is actively expanding its retail footprint by acquiring and converting sites. This segment focuses on increasing merchandise sales and optimizing fuel margins to drive overall revenue growth.

A key element of CrossAmerica's business strategy involves optimizing its asset portfolio through initiatives like 'class of trade optimization' and 'real estate rationalization.' This includes converting sites and divesting non-core properties while retaining fuel supply relationships.

In Q2 2025, the wholesale segment saw a 12% decrease in gross profit due to lower volumes, partly from conversions to the retail segment. The retail segment experienced a slight 1% decrease in gross profit, though merchandise sales grew by 2%. Strategic acquisitions, such as the purchase of 59 convenience stores in early 2024, demonstrate ongoing expansion efforts.

The company's brand identity is significantly shaped by its extensive geographic reach, spanning 34 states. This vast presence is complemented by a robust distribution network that serves approximately 1,800 locations and includes about 1,100 owned or leased sites, differentiating it from competitors.

CrossAmerica differentiates itself through well-established, long-term relationships with major oil brands like ExxonMobil, BP, Shell, Marathon, Valero, and Phillips 66. It ranks as one of ExxonMobil's largest U.S. distributors by fuel volume, underscoring its reliability and market influence in the wholesale segment.

For its retail operations, the brand appeals to its target audience through seven distinct convenience store brands, operating over 250 locations. These sites offer a range of food, everyday essentials, and car washes, promising a clean and welcoming customer experience.

The company emphasizes its commitment to environmental, social, and governance (ESG) responsibilities, positioning itself as a 'responsible, people-focused organization.' This includes strict adherence to environmental regulations and community involvement, such as sponsoring local events, contributing to a positive brand perception.

This ongoing strategy focuses on enhancing the asset portfolio by divesting non-strategic properties and optimizing site conversions. The goal is to reduce debt, improve leverage ratios, and position the portfolio for long-term success.

This initiative involves acquiring new convenience stores and rebranding existing ones to strengthen the company's retail footprint. The expansion of company-operated sites, with a 17% increase in average site count in Q1 2025, indicates successful integration and growth.

Local initiatives, such as sponsoring the Women's 5K Classic, reinforce the brand's image as a responsible and community-focused organization. These efforts foster goodwill and enhance brand visibility within the communities served.