CrossAmerica Bundle
Who are CrossAmerica's customers?
Understanding customer demographics and target markets is crucial in the motor fuel distribution industry. Evolving fuel consumption and convenience retail needs require a deep understanding of who customers are and what they want. This insight is key for sustained market success, especially with fluctuating fuel prices in 2024 and 2025.
CrossAmerica Partners LP, since its 2012 founding, has evolved from a wholesale fuel distributor to a company with a growing retail presence. This strategic shift involves converting dealer sites to company-operated locations, directly engaging more end consumers while maintaining its wholesale network.
The company serves a diverse customer base, including independent fuel dealers and convenience store operators. It also reaches millions of motorists and shoppers across the United States. This adaptation is vital for its performance in a competitive market, as detailed in its CrossAmerica PESTEL Analysis.
Who Are CrossAmerica’s Main Customers?
CrossAmerica Partners LP primarily engages with business-to-business (B2B) clients, functioning as a wholesale distributor of motor fuels. Its core B2B customer base includes independent dealers, lessee dealers, and convenience store operators who receive branded and unbranded petroleum products.
B2B Wholesale Distribution
The company supplies gasoline and diesel to a wide network of retail fuel sites. This segment also benefits from CrossAmerica's real estate ownership and leasing for retail fuel distribution operations.
B2C Retail Expansion
CrossAmerica is actively growing its business-to-consumer (B2C) segment through company-operated retail locations. These sites offer convenience items, food, and car washes, directly serving end consumers.
Targeting General Motorists
The B2C segment aims to attract general motorists and local community members. These consumers seek convenient access to fuel and a range of retail offerings.
Segment Contribution Shift
Financial data indicates a strategic shift towards the retail segment. For instance, the retail segment's gross profit increased by 14% in 2024 compared to 2023.
Financial Performance and Strategic Realignment
CrossAmerica's financial performance in 2024 and 2025 highlights a significant transition. The retail segment saw a 14% increase in gross profit in 2024, driven by merchandise and other revenue growth of 22% and 23%, respectively.
- In Q1 2025, retail segment gross profit grew 16% year-over-year.
- Wholesale segment gross profit declined by 16% in 2024.
- In Q2 2025, retail gross profit reached $76.1 million.
- Wholesale gross profit decreased 12% in Q2 2025 compared to Q2 2024.
- The conversion of 59 Applegreen sites in Q1/Q2 2024 exemplifies this strategic shift towards company-operated retail locations.
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What Do CrossAmerica’s Customers Want?
Customer needs and preferences are central to the success of any business. For CrossAmerica Partners, understanding these requirements across its diverse customer base is key to its operational strategy and growth. This involves catering to both business-to-business clients and individual consumers.
B2B Customer Priorities
Independent and lessee fuel dealers and convenience store operators prioritize consistent fuel supply and competitive pricing. Strong relationships with major oil brands are also a significant factor in their purchasing decisions.
B2B Purchasing Drivers
Fuel price stability, favorable contract terms, and reliable supply chains significantly influence B2B purchasing behavior. In 2025, anticipated average U.S. retail gasoline prices are expected to be less than $3.00 per gallon, with diesel averaging around $3.70 per gallon.
B2B Loyalty Factors
Customer loyalty among B2B clients is built on the quality of service provided, operational support, and the added value of real estate offerings. These elements contribute to a strong partnership.
B2C Customer Motivations
For consumers visiting company-operated convenience stores, convenience is paramount. They seek a wide variety of products, from motor fuels to food and everyday essentials, alongside services like car washes.
B2C Experience Expectations
Consumers expect clean, well-maintained facilities and efficient service. The psychological drivers often relate to saving time and easy accessibility for their purchases.
Common Pain Points
Both B2B and B2C segments face challenges such as fuel price volatility, rising operational expenses, and market demand fluctuations. Addressing these issues is crucial for customer satisfaction.
Addressing Customer Needs
CrossAmerica actively works to meet these diverse needs by optimizing its business strategies. This includes converting wholesale sites to retail operations to gain better control over fuel margins and in-store offerings, as detailed in the Revenue Streams & Business Model of CrossAmerica.
- Investing in facility upgrades to improve customer experience.
- Expanding food equipment to enhance in-store product variety.
- Tailoring offerings to align with market trends favoring convenience.
- Diversifying product selections to meet evolving consumer preferences.
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Where does CrossAmerica operate?
CrossAmerica Partners LP has a significant geographical market presence, operating across 34 states in the United States. The company distributes both branded and unbranded petroleum products, serving approximately 1,600 to 1,800 locations. This extensive network underscores its role as a major fuel distributor.
Nationwide Distribution Network
CrossAmerica Partners LP distributes fuel across 34 states, reaching an estimated 1,600 to 1,800 locations. The company also owns or leases between 1,000 to 1,100 sites, indicating a substantial physical footprint.
Key Brand Partnerships
The company is recognized as one of ExxonMobil’s largest U.S. distributors by fuel volume. It also ranks within the top 10 distributors for other major brands, demonstrating broad market penetration.
Localized Convenience Offerings
CrossAmerica caters to diverse local market demands through its seven convenience store brands. These stores offer a variety of food items, essential goods, and car wash services, adapting to regional preferences.
Strategic Portfolio Adjustments
In 2024 and 2025, the company has strategically divested properties, selling 30 properties for $36.3 million in 2024 and 60 properties for $64 million in Q2 2025. This includes exiting non-strategic markets like Kansas and Colorado.
The company's approach to its geographical market presence is dynamic, involving both strategic divestitures and operational enhancements. For instance, in Q1/Q2 2024, 59 Applegreen sites were converted from lessee dealer locations to company-operated retail sites. These moves are aimed at optimizing operational control and profitability, reflecting a targeted approach to its extensive distribution network and aligning with the Mission, Vision & Core Values of CrossAmerica.
Market Reach
Distribution across 34 states indicates a broad customer base, from urban centers to more rural areas, influencing the CrossAmerica customer profile.
Brand Affiliation
Strong partnerships with major fuel brands suggest that a significant portion of the CrossAmerica target market is loyal to these specific brands.
Retail Diversification
The operation of convenience stores allows for direct engagement with consumers, providing insights into CrossAmerica consumer behavior and preferences.
Portfolio Optimization
Recent property divestitures highlight a focus on core markets, suggesting a refined CrossAmerica target market strategy and a move away from less profitable regions.
Operational Control
Converting lessee dealer locations to company-operated sites indicates a strategy to gain more control over customer experience and sales, impacting CrossAmerica customer segmentation.
Regional Differences
Variations in customer demographics and buying power across regions are implicitly managed through the diverse offerings of its convenience store brands.
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How Does CrossAmerica Win & Keep Customers?
Customer acquisition and retention for CrossAmerica Partners LP involves a dual approach, catering to both wholesale fuel dealers and retail consumers. The company leverages strong relationships with major fuel brands and strategic real estate to attract new dealers, while enhancing the in-store experience to retain retail customers.
Wholesale Customer Acquisition
Acquisition of wholesale customers is driven by partnerships with established motor fuel brands, competitive pricing, and reliable supply chains. Strategic ownership and leasing of real estate provide attractive site opportunities for dealers, acting as a key acquisition tool.
Wholesale Customer Retention
Retention in the wholesale segment is built on long-term partnerships and consistent quality service. The company's focus on 'class of trade optimization,' converting lessee dealer sites to company-operated retail, aims to strengthen overall market position and customer loyalty through integrated service offerings.
Retail Customer Acquisition & Experience
For retail operations, customer acquisition and retention are enhanced by offering a diverse product selection, clean facilities, and improved in-store amenities. Upgrading store facilities and expanding offerings cater to evolving consumer preferences, aiming to create a consistent and appealing brand experience.
Portfolio Optimization for Customer Value
Strategic divestments of underperforming sites, such as the sale of 60 properties for $64 million in Q2 2025, reflect a data-driven approach to portfolio management. This optimization indirectly enhances customer value by focusing resources on the most promising locations and customer segments.
The company's strategic shift towards company-operated retail sites, including the conversion of 59 Applegreen sites in Q1/Q2 2024, is a significant factor in customer retention. This move allows for greater operational control and potentially improved retail fuel margins, directly impacting the customer experience and brand consistency. While specific loyalty programs are not detailed, the emphasis on asset rationalization and network optimization supports the goal of delivering a more controlled and valuable service to the CrossAmerica customer base. Understanding the Target Market of CrossAmerica is crucial for refining these strategies, especially in light of challenges like soft overall demand observed in 2025.
Brand Partnerships
Long-term agreements with major fuel brands like ExxonMobil, BP, and Shell are central to attracting and retaining wholesale clients.
Site Development
Strategic real estate ownership and leasing provide attractive site acquisition opportunities for fuel dealers, a key component of the wholesale strategy.
Operational Control
Converting lessee dealer sites to company-operated retail enhances operational control and aims to improve retail fuel margins, benefiting customer retention.
Retail Offerings
Focus on a wide variety of products, clean stores, and facility upgrades aims to enhance the customer experience at company-operated convenience stores.
Portfolio Management
Data-driven asset rationalization and strategic divestments optimize the network, indirectly supporting customer value by focusing on high-potential locations.
Market Adaptability
Strategies are adapted to evolving consumer preferences and market conditions, such as addressing soft overall demand in 2025, to maintain customer loyalty.
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- What is Brief History of CrossAmerica Company?
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- What is Growth Strategy and Future Prospects of CrossAmerica Company?
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- What are Mission Vision & Core Values of CrossAmerica Company?
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