Tooley Oil Exits Convenience Retail After Nearly 50 Years, Selling Entire Portfolio of 12 Stores and 7 Car Washes

For decades, convenience stores in the United States have served as essential, quick-stop destinations for drinks, snacks, and fuel. However, recent industry trends indicate that these establishments are rapidly evolving into direct competitors to traditional fast-food chains. By expanding their offerings to include fresh, high-quality meals and premium coffee, modern convenience retailers are capturing a larger share of the daily dining market.

Despite this culinary expansion, consumer skepticism regarding food safety remains a significant challenge. According to 2025 research by Logile, a workforce management solutions provider, a striking 79% of Americans express concern over potential food contamination at convenience store locations. This lingering apprehension highlights the ongoing hurdles retailers face in establishing trust for their fresh food programs.

Nevertheless, the financial performance of the sector remains robust. Data from the National Association of Convenience Stores (NACS) reveals that U.S. convenience retail industry sales hit $341.2 billion in 2025, marking a 1.7% year-over-year increase. This milestone represents the 23rd consecutive year of growth in inside sales, demonstrating the sector’s underlying economic resilience.

Yet, operating individual retail locations is increasingly challenging as foot traffic declines across physical sites. In 2025, the average convenience store processed 45,160 transactions per month, representing a 2.7% drop compared to the previous year. This softening in customer visits places additional financial pressure on independent operators.

As store visits continue to soften, small business owners are faced with a critical crossroads. They must choose between investing in expensive store renovations to build out fresh-food kitchens or selling their physical footprint to larger national chains that possess the capital to absorb ongoing operational costs.

Tooley Oil Exits Convenience Retail, Selling Entire Portfolio of Locations

Based in Sacramento, the Tooley Oil Company has officially announced its exit from the convenience store and car wash sector after nearly five decades of operations. The family-owned business is transitioning away from consumer-facing retail to focus on its core wholesale distribution channels.

The family-owned operator successfully sold its portfolio, which included 12 convenience stores operating primarily under the proprietary Mixx Market banner, alongside seven CleanMixx car wash facilities. The transaction was completed with an undisclosed buyer, according to reports by NACS Daily.

Matrix Capital Markets Group, an investment bank specializing in advisory services, acted as the strategic advisor to Tooley Oil Company. The team facilitated the sale of the company’s petroleum marketing and convenience retail assets to a confidential strategic buyer.

Founded in 1978 by Michael “Mick” C. Tooley, the company grew into a regional staple in Northern California. After establishing a key partnership with Shell for fuel distribution, the company eventually launched its own proprietary Mixx Market store concept in 2024 to modernize its retail footprint.

Over the years, Tooley Oil made significant capital investments to upgrade several of its car wash facilities and unified its entire car wash program under its proprietary “CleanMixx” brand, enhancing the customer experience and operational efficiency.

Tooley Oil to Focus on Wholesale Fuel Distribution Post-Sale

Despite divesting its retail division, Tooley Oil is retaining its wholesale motor fuels distribution business. The company plans to leverage the proceeds from the transaction to accelerate growth and expand its 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 are excited about what lies ahead for Tooley Oil and the continued growth of our wholesale operations,” stated company president Mick Tooley.

Matrix Capital Markets, which advised on the deal, remarked that the Tooley family built “a very successful business” in the Sacramento market, adapting to changing retail dynamics over decades.

“We have known Mike and David for many years and are honored to have advised them on the successful sale of their convenience retail business. We look forward to witnessing them continue to grow their wholesale operations,” said Cedric Fortemps, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group.

Headwinds of Inflation, Labor Costs, and Card Fees Squeeze Small Operators

While Tooley Oil has not released an official statement detailing the reasons behind its retail exit, industry analysts point to several systemic challenges. As fresh food becomes a major driver of sales, smaller operators must rise to meet heightened operational and safety standards.

At the same time, the expenses associated with running food-centric retail operations are rising rapidly, squeezing already tight profit margins for small businesses.

According to the NACS April report, Direct Store Operating Expenses (DSOE)—which encompass wages, benefits, credit card fees, utilities, maintenance, and merchandise shrinkage—rose by 4.2%. Although this marks the slowest rate of increase since the COVID-19 pandemic, credit and debit card fees continued to surge, reaching a record-breaking $21.3 billion.

Retail industry expert and RTM Nexus CEO Dominick Miserandino agrees that Tooley Oil’s exit is fundamentally a matter of scale. In a competitive retail environment, smaller operators struggle to achieve the economies of scale necessary to survive.

“Running a few gas stations and car washes in California is an absolute nightmare when it comes to overhead. Every year, the minimum wage increases, maintenance costs climb, and local regulatory permits consume whatever cash you have left. If you only own a dozen locations, you lack the size needed to negotiate cheaper fuel prices or secure favorable inventory terms,” Miserandino explained to TheStreet.

“The big chains are swallowing up independent operators like Tooley because they have the capital to absorb these local operational headaches. They install hot food counters, increase average transaction tickets, and spread their massive overhead across thousands of stores. For a small operator, taking a substantial buyout check right now is far more viable than fighting a losing battle on profit margins every single month,” the retail expert added.

Industry-Wide Consolidation and Strategic Reorganizations Continue

Tooley Oil is not alone in navigating these challenging market dynamics. Numerous convenience store chains have closed locations, sold their businesses, or executed strategic downsizing efforts in recent years. Key examples of industry consolidation include:

• Alimentation Couche-Tard (Circle K): The global convenience store giant closed 80 underperforming locations within a 12-week period ending in July 2026. This move followed an earlier sale of 36 U.S. Circle K stores as part of a continuous portfolio optimization strategy designed to counter elevated consumer living costs, as reported by TheStreet.

• Cumberland Farms / EG America: Parent company EG America is systematically phasing out and rebranding several iconic regional convenience banners, including Tom Thumb, Turkey Hill, Loaf ‘N Jug, and Coen Markets. The goal is to consolidate between 600 and 700 locations under the unified Cumberland Farms flagship banner over a five-year timeline, as detailed by TheStreet.

• Casey’s General Stores (CEFCO): Following its acquisition of Fikes Wholesale, major rival to 7-Eleven, Casey’s is sunsetting the 73-year-old CEFCO brand name. The company is committing $150 million to convert and rebrand nearly 200 locations under the Casey’s banner, while simultaneously divesting 10 locations to completely 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. This capital reallocation strategy aims to redirect resources toward larger, foodservice-heavy store prototypes, as previously covered by TheStreet.

• Wawa: The beloved East Coast favorite closed its experimental, digital-only campus store at Drexel University in Philadelphia. The closure followed a costly technology testing phase that ultimately proved unsustainable, as reported by TheStreet.

• Pak-A-Sak: The 48-year-old Texas Panhandle operator opted to exit the retail space entirely. It did so by selling its entire 24-store portfolio to Casey’s, according to TheStreet.

Source link