Marathon to acquire Andeavor (Tesoro)

jamcool
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Re: Marathon to acquire Andeavor (Tesoro)

Post by jamcool » May 21st, 2018, 6:46 am

What happens to AM-PM? It is a different operating style than Speedway. The Midwest is different from the West Coast.

storewanderer
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Re: Marathon to acquire Andeavor (Tesoro)

Post by storewanderer » May 22nd, 2018, 9:07 pm

jamcool wrote:
May 21st, 2018, 6:46 am
What happens to AM-PM? It is a different operating style than Speedway. The Midwest is different from the West Coast.
AM PM is controlled by BP so those are under agreements with BP. I don't see much of an operating style at all with AM PM unless poor execution, high prices, and extreme inconsistency in operations, store odor, restroom availability, and even hours of operations are considered an operating style.

They could debrand most of the AM PMs and I doubt it would impact sales in the stores much at all. The few AM PMs that were built by BP were actually quite nice, but even some of those have weird execution issues due to the loose (nonexistant?) franchise standards.

Here in Reno someone actually opened a new Arco/AM PM inside a vacant gas station (had been a 7-Eleven long ago). The place is not doing well at all. It is nicely remodeled and so far the operator is keeping it clean and the employee on duty is always polite and friendly. The nearby Maverik and 7-Eleven are both kicking it, even with higher fuel (and in some cases store) pricing at both. The AM PM is dead. Also down in Carson City in the past six months two of the AM PMs have debranded (still Arco fuel, just no more AM PM) and they seem to have the same amount of store traffic as they did before and the stores are no different than before.

Not many new Arco brandings come with AM PM in Tesoro territory, but there are more in BP territory. For instance a ton of new Arco brandings down in Las Vegas (former Rebel Oil sites), none are taking AM PM Store, just the Arco fuel.

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Re: Marathon to acquire Andeavor (Tesoro)

Post by storewanderer » November 2nd, 2018, 11:44 pm

https://csnews.com/marathon-complete-20 ... y-end-2018

Wow, they moved fast with Super America. Speedway owned Super America until 2010 anyway and those sites never really did go off of Speedway's program/format so those are the easiest conversion. They had the same loyalty program as Speedway has (my old loyalty card even shows both the Speedway and Super America logos), kept using the NCR Radiant registers all these years (probably since it best supported the loyalty program), etc.

So it says they will go to the Southwest next, specifically El Paso and Arizona. It sounds like all those weird brands there like Giant and Howdy's will go away. Those were average at best c-store operations anyway and Speedway will be a remarkable improvement.

And now they are not yet sure how they will handle California. I question how successful it will be for them to bring the Marathon brand to California for dealer sites. I also wonder if they learned it won't be quite so easy to get out of those Shell and Mobil supplier agreements that Tesoro got involved in over the past decade... not to mention all those Arco owners who have a great business model that is widely accepted by consumers in California that is free of any credit/debit card acceptance fees due to not accepting credit cards and charging a fee for debit cards.

They do have a number of corporate operated sites in California that I will expect to see converted to Speedway in California, unless they decide they don't want to do corporate sites in California and shift those back to dealers. It appears they have about 150-170 corporate operated sites in California under a variety of fuel banners (USA, Arco, Shell, Mobil). Their corporate operated sites in California as it stands are lousy operations (Giant had been running them, but never put the Giant name onto them for some reason, or any programs so they have weird generic coffee/fountain programs, no name employee uniforms with generic odd "hello my name is" name tags, etc.) and need some pretty serious help on merchandising and promotion. Giant also continued to have two gas prices (cash price/credit price) in some of its NorCal sites that had it under previous owner Flyers despite not doing that anywhere else they operate. Another example of their lack of effort on bringing the sites into a consistent operating manner with their sites in the Southwest. Speedway should be an improvement there as well, but the locations are somewhat oddly scattered geographically, and many do not have full size c-stores.

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Re: Marathon to acquire Andeavor (Tesoro)

Post by BillyGr » November 4th, 2018, 4:34 pm

storewanderer wrote:
November 2nd, 2018, 11:44 pm
They do have a number of corporate operated sites in California that I will expect to see converted to Speedway in California, unless they decide they don't want to do corporate sites in California and shift those back to dealers. It appears they have about 150-170 corporate operated sites in California under a variety of fuel banners (USA, Arco, Shell, Mobil). Their corporate operated sites in California as it stands are lousy operations (Giant had been running them, but never put the Giant name onto them for some reason, or any programs so they have weird generic coffee/fountain programs, no name employee uniforms with generic odd "hello my name is" name tags, etc.) and need some pretty serious help on merchandising and promotion. Giant also continued to have two gas prices (cash price/credit price) in some of its NorCal sites that had it under previous owner Flyers despite not doing that anywhere else they operate. Another example of their lack of effort on bringing the sites into a consistent operating manner with their sites in the Southwest. Speedway should be an improvement there as well, but the locations are somewhat oddly scattered geographically, and many do not have full size c-stores.
The store sizes shouldn't be an issue - they've had experience with that taking over the Hess locations (we have stores locally ranging from just big enough for a few coffee pots and a cooler or two, to moderate sized ones that sit "between the pumps" on an island to full sized stores behind the pumps).

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