HOUSTON -- Jobbers and branded wholesalers will gain the most out of the latest round of Major Oil retail divestmentsthis one from ConocoPhillips, whichas reported in CSP Daily Newson Friday announced the sale of 330 company-operated and 500 dealer-run locations.
Emphasizing how ownership of the assets was not strategic for the future of the company, ConocoPhillips spokesperson Phil Blackburn told CSP Daily News that the future of retail for the integrated oil company lies with the branded reseller and wholesaler channel. The sites will most likely be [image-nocss] sold to existing branded marketers, thereby strengthening our relationship with them, he said.
As far as timing, we will begin marketing the assets immediately with completion determined by individual sales and purchase agreements, Blackburn added.
He also made a point to say that the company has no intention of ceasing the sale of branded product. Currently, the company operates under the 76, Conoco and Phillips 66 brands in 26 states.
Blackburn would not elaborate on the markets involved or where a majority of the company-owned sites were. Many of the locations selling 76-branded gasoline are in the West Coast and Pacific Northwest, while its Conoco and Phillips 66 brands are strongest in the Southcentral and Midwest regions of the United States.
This move will strengthen the ConocoPhillips brand because jobbers and distributors know the needs of their local customers, said Dan Gilligan, president, Petroleum Marketers Association of America (PMAA), told CSP Daily News. This announcement is consistent with the moves of nearly all the major oil companies in recent years to reduce direct retail operations.
Because most major oil companies are selling company-operated locations to jobbers and distributors, the resulting growth and expansion of the branded jobber segment has been impressive in recent years, Gilligan said.
The industry is seeing, to some extent, the emergence of what Gilligan called mega-jobbers. He defined these companies as moving more than 50 million gallons of gasoline and diesel each year. Because jobber companies are the core constituency of PMAA, we are having to revamp some of our work products to better serve those members, he said.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.