Consumers in the United States often view convenience stores as essential, fast-service stops for drinks, snacks and fuel. Moreover, the latest industry data shows that these stores are becoming direct competition to fast-food chains, offering fresh meals and premium coffee.
However, at the same time their skepticism around fresh food safety at these stores is growing. In fact, 79% of Americans worry about food contamination at convenience stores, according to 2025 research from Logile, a workforce management solutions provider.
Despite the skepticism, food service and merchandise sales for the U.S. convenience retail industry reached $341.2 billion in 2025, a 1.7% increase over 2024, according to data from the National Association of Convenience Stores (NACS). This was the 23rd straight year that inside sales have increased.
Nonetheless, maintaining individual stores is becoming tougher as foot traffic drops across physical locations. In 2025, the average convenience store had 45,160 transactions per month, a 2.7% decrease from 2024.
As store visits soften, smaller operators face a choice between making costly store renovations to build fresh-food kitchens or selling their footprint to larger national competitors.
Tooley Oil quits convenience retail business, sells all locations
Sacramento-based Tooley Oil Company is officially exiting the convenience store and car wash business after nearly 50 years of operations.
The family-owned operator sold its 12 convenience stores, primarily operating under the proprietary Mixx Market banner, and seven CleanMixx car washes to an undisclosed buyer, as reported by NACS Daily.
Matrix Capital Markets Group, an advisory-focused investment bank, has advised Tooley Oil Company on the sale of its petroleum marketing and convenience retail business to a confidential buyer.
Founded in 1978 by Michael “Mick” C. Tooley, the company grew into a regional staple before partnering with Shell for fuel distribution and eventually launching its own Mixx Market store concept in 2024.
Over the years, the company made significant investments to upgrade several of its car washes and unified its car wash program under a proprietary “CleanMixx” brand.
Tooley Oil will continue to run its wholesale operations
Despite selling its retail division, Tooley Oil is retaining its wholesale motor fuels distribution business and plans to use the proceeds from the deal to drive further growth in wholesale operations.
“After nearly 50 years of our family being in the retail business, this is certainly a bittersweet moment for us… While this closes an important chapter for our family, we’re excited about what’s ahead for Tooley Oil and the continued growth of our wholesale operations,” company president Mick Tooley stated.
Matrix Capital Markets, which advised on the deal, said the Tooley family built ‘a very successful business’ in the Sacramento market.
“We’ve known Mike and David for many years and are honored to have been able to advise them on the successful sale of their convenience retail business. We look forward to seeing them continue to grow their wholesale business,” said Cedric Fortemps, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group.
Small operators are battling rising wages and credit and debit card fees
While the company didn’t provide an official reason for the sale and exit from retail, recent industry data point to a few possibilities. As food becomes a major part of sales, smaller operators need to rise to the challenge.
Meanwhile, expenses to run those kinds of operations are rising.
“Direct store operating expenses (DSOE)—which include wages and benefits, card fees, utilities, maintenance and merchandise shrink—increased 4.2%, the slowest rate of increase since the COVID pandemic. However, credit and debit card fees continued to climb, hitting a record $21.3 billion,” reveals the NACS April report.
Retail expert and RTM Nexus CEO Dominick Miserandino agrees that Tooley Oil selling out comes down to simple scale.
“Running a few gas stations and car washes in California is a nightmare on overhead. Every year, minimum wage goes up, maintenance costs climb, and local permits eat up whatever cash you have left. If you only own a dozen locations, you don’t have the size to negotiate cheaper gas prices or cut deal terms on inventory,” Miserandino told TheStreet.
“The big chains are swallowing up guys like Tooley because they have the cash to eat those local headaches. They slap in hot food counters, boost the register tickets, and spread overhead across thousands of stores. For a small operator, taking a big check right now beats fighting a losing battle on margins every single month,” the retail expert added.
Related: Ikea closes another key store after barely a year
Recent convenience store closures and strategic reorganizations
Tooley Oil is not alone. A number of convenience stores closed their doors or sold their businesses or made other strategic downsizing efforts in recent years. Some of those include:
- Alimentation Couche-Tard (Circle K): The convenience store giant closed 80 stores in a 12-week span ending in July 2026 (following a prior sale of 36 U.S. Circle K locations) as part of an ongoing portfolio optimization strategy in response to elevated consumer living costs, according to a reporting by TheStreet.
- Cumberland Farms / EG America: Parent company EG America is phasing out and rebranding several iconic regional convenience banners, including Tom Thumb, Turkey Hill, Loaf ‘N Jug, and Coen Markets, to consolidate 600 to 700 locations into the unified Cumberland Farms flagship banner over five years, as detailed by TheStreet.
- Casey’s General Stores (CEFCO): Following its acquisition of Fikes Wholesale, 7-Eleven rival Casey’s is sunsetting the 73-year-old CEFCO brand name and committing $150 million to convert and rebrand nearly 200 locations to the Casey’s banner, while also divesting 10 locations to exit the Mississippi market, as reported by TheStreet.
- 7-Eleven: The global operator is executing a massive fleet restructuring by closing hundreds of underperforming North American locations to reallocate capital toward larger, foodservice-heavy prototypes, as previously covered by TheStreet.
- Wawa: The East Coast favorite shuttered its experimental, digital-only campus store at Drexel University in Philadelphia following a costly tech test, as reported by TheStreet.
- Pak-A-Sak: The 48-year-old Texas Panhandle operator opted to exit the retail space entirely by selling its entire 24-store portfolio to Casey’s, according to TheStreet.
Related: Target rolls out another generous deal to win back customers
