Marathon to acquire Andeavor (Tesoro)

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Re: Marathon to acquire Andeavor (Tesoro)

Post by storewanderer »

jamcool wrote: February 20th, 2020, 1:57 pm 7-11 and Speedway are as different as fish and fowl... most of the Speedways have oversized kiosks for convenience stores that are too small for an average size 7-11. How much of this is just wiping out a major competitor
This is a rotten deal. Speedway has been a good, disciplined, consistent operator. They don't have the nicest sites but they are maintained pretty well and reliable. 7-Eleven is consistently lousy. 7-Eleven's franchise model is the reason for this. I do not know how they will find franchisees to run 4,000 new stores but I am sure they will find a way to bring Speedway down to the quality of their D grade operation.

When 7-Eleven bought the corporate Valeros in CA which were a variety of sizes but veered toward small, they barely kept 1/3 of the stores. Then of the ones they kept they franchised most/all of them out. Then they put 76 branded gas onto them at a high cost and at a split price for debit and credit whereas the corporate Valeros were same price cash or credit and usually one of the lowest prices in a given area.

I really hope this deal does not go through. I figured something was up late last year when Speedway halted store conversions in southern California.
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Re: Marathon to acquire Andeavor (Tesoro)

Post by buckguy »

7-11 varies regionally. Their DC area operation has undergone a real renaissance over the past decade. They opened new locations for the first time in ages, older stores have been extensively remodeled and they've responded to the entry of Wa-wa but rolling out some very different stores such as brand new one in the Mt Vernon Square area of DC with a taco bar.
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Re: Marathon to acquire Andeavor (Tesoro)

Post by Alpha8472 »

Speedway brought in all new drink machines when they took over a Mobile gas station. The frozen drink flavors were a vast improvement as well as the new rewards program.

Now they are going to get rid of that? It will probably be a downgrade.

However, I visited a newish 7-Eleven last week and I was impressed by the selection of hot foods ready to go. 7-Eleven still needs major improvements to their operations out West. The new store seemed very small and cramped.
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Re: Marathon to acquire Andeavor (Tesoro)

Post by jamcool »

7-11’s Japanese owner is dropping its bid to buy Speedway... Coronavirus fears etc. Expect EG Group to go after Speedway.
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Re: Marathon to acquire Andeavor (Tesoro)

Post by pseudo3d »

jamcool wrote: March 5th, 2020, 6:51 am 7-11’s Japanese owner is dropping its bid to buy Speedway... Coronavirus fears etc. Expect EG Group to go after Speedway.
Can't believe Seven & I Holdings would want to buy Speedway considering how integration with Stripes is barely gaining ground, beyond a few bits of signage and some 7-Eleven merchandise (inc. Slurpees). The only thing that may suggest otherwise is a new store in the Houston area that is opening as 7-Eleven rather than Stripes...but otherwise, many of the programs (including drinks and coffee) are all still Stripes' programs (and I believe Sunoco's programs haven't changed either).
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Re: Marathon to acquire Andeavor (Tesoro)

Post by Alpha8472 »

With regard to some of the Albertsons gas stations being sold to Speedway, it is most likely Albertsons is not prepared for the required switch to EMV at the gas pump in October 2020. Many gas pumps are not compliant and there is currently a huge waiting time for technicians to come out to upgrade the pumps. There are also software issues and the software may not be available by the deadline. Albertsons probably wanted to sell to Speedway instead of losing tons of money when the deadline passes. It could be well into the next year before they can be compliant. The losses are not worth it, and many companies would rather just sell off their money losing gas stations based on a cost analysis. It is a liability and with the upcoming IPO, Albertsons would want to sell off anything it can to increase profits.
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Re: Marathon to acquire Andeavor (Tesoro)

Post by pseudo3d »

Alpha8472 wrote: March 12th, 2020, 12:52 pm With regard to some of the Albertsons gas stations being sold to Speedway, it is most likely Albertsons is not prepared for the required switch to EMV at the gas pump in October 2020. Many gas pumps are not compliant and there is currently a huge waiting time for technicians to come out to upgrade the pumps. There are also software issues and the software may not be available by the deadline. Albertsons probably wanted to sell to Speedway instead of losing tons of money when the deadline passes. It could be well into the next year before they can be compliant. The losses are not worth it, and many companies would rather just sell off their money losing gas stations based on a cost analysis. It is a liability and with the upcoming IPO, Albertsons would want to sell off anything it can to increase profits.
I can't find anything about Albertsons selling off gas stations. Most of their pre-2006 stock was already divested years before. I suppose that some of the Safeway/Vons stations may be shuffled off as they try to renovate and rebrand their gas station brands though...
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Re: Marathon to acquire Andeavor (Tesoro)

Post by Alpha8472 »

Someone mentioned that their Albertsons Gas stations in Oregon converted to Speedway. Perhaps it is only to the ones in Oregon. The ones in California are still Safeway, but they have not yet adopted EMV at the gas pump. There could be a ton of losses due to fraud once October comes around.
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Re: Marathon to acquire Andeavor (Tesoro)

Post by storewanderer »

Alpha8472 wrote: March 12th, 2020, 10:45 pm Someone mentioned that their Albertsons Gas stations in Oregon converted to Speedway. Perhaps it is only to the ones in Oregon. The ones in California are still Safeway, but they have not yet adopted EMV at the gas pump. There could be a ton of losses due to fraud once October comes around.
The OR Albertsons stations were sold off by Supervalu to a variety of purchasers, one of which was Tesoro. They first converted to USA, then some converted to Mobil, now some have converted to Speedway Express (independent c-store with Speedway gas).

You may want to try the Safeway gas pump again. They have had EMV at their gas pumps for at least the past year. They were actually the first place I saw with EMV at the gas pump. Eventually after that I saw it at Kroger and then a little more eventually at Speedway (but not Speedway Express- those locations didn't get that upgrade). I have seen EMV on Safeway/Albertsons gas pumps the past year across multiple of the divisions in NV, OR, CA, ID, and AZ. The pump may revert back to swipe if the chip reader got broken (really it should stop working) but I have yet to see that anywhere I've been.
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Re: Marathon to acquire Andeavor (Tesoro)

Post by BillyGr »

And realistically, if they can't get the pumps converted in time, they could simply shut off the credit card acceptance part and have everyone pay inside like they did in the past.

Not quite as convenient, but safer for the cards and stores.
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