DALLAS -- With key contracts expiring next year, 7-Eleven and Shell Oil Products U.S. are in serious talks about forging a long-term partnership that would greatly expand both brands, CSP Daily News has learned.
In a potential blockbuster deal, 7-Eleven would make Shell its flagship fuel brand, while Shell would convert most of the nearly 1,300 stores currently manned by multi-site operators to 7-Eleven, two sources familiar with the deal told CSP Daily News.
7-Eleven, which last week was taken over by Seven-Eleven Japan and is [image-nocss] dealing with the retirement of CEO Jim Keyes, is in the last year of a long-term deal with CITGO as its primary fuel provider. Sources said that while the alliance has benefited both 7-Eleven and CITGO, the Dallas retailer is eyeing a more dynamic relationship that would dramatically grow its retail presence, a desire that CITGO, as a jobber-based operator with no retail network of its own, cannot fulfill.
For Shell, the deal would mark the latest iteration in an ever-changing retail pendulum that most recently saw it embrace a model based on multi-site operators (MSO) who run the convenience stores while Shell corporate maintains control of the fuel island.
Shell has made it clear it does not want to operate convenience stores and the MSO program has had mixed results, said a source familiar with Shell's retail strategy. This would be a coup for both companies.
Officials at both 7-Eleven and Shell declined comment.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.