SIOUX FALLS, S.D. -- When Andy Howes of Howes Oil Co. grew frustrated with a national fuel supplier a few years ago, he decided to create "Local," a convenience store branding option for outlets in the Sioux Falls, S.D., area.
The first Local site opened in November 2013. Since then, motorists in the region have been seeing Local signs go up, according to a report by The Argus Leader. During the past two years, 28 Shell-branded convenience stores in the Sioux Falls area served by Howes Oil have converted to Local. Recent conversions include four locations in Sioux Falls.
"The reason for the name 'Local' is that it's homegrown in South Dakota. I think if people have the opportunity to support a local business, they will. So we incorporated 'Local' right in our name," Howes, president and owner of Howes Oil, told the newspaper.
Howes Oil is a petroleum wholesaler and transporter based in Sioux Falls. Andy Howes is the third member of his family to run the 77-year-old business.
Local is a brand name, said the report, not a franchise. The brand helps outlets connect to their communities and offers them competitive flexibility without the costly requirements of a national brand, Howes said. Local outlets typically are family-owned businesses with one or two outlets.
"All of these stores have their own unique feel. There's no cookie cutter," Howes said. "They don't need a company in Texas telling them it's time to clean the floor. They know they need to clean their floors and run a safe operation."
A majority of the initial Local converts are in South Dakota, but there also are four in Minnesota, four in Iowa and one in North Dakota. Howes said he intends to keep expandingg the brand.
Howes Oil provides the exterior signs for convenience stores that become Locals. Each store's five-digit ZIP code is added to the business name to further enhance its community ties.
"We're making an investment in these retailers," Howes said. "The goal of Local is to help these family-run businesses not only remain competitive for future generations but also continue to be strong supporters of their local communities."
A few stores in the region served by Howes Oil stuck with Shell, but most converted, the report said.
From 2002 to 2014, Howes Oil was a wholesaler for more than 50 Shell-branded c-stores, including 16 Gas Stops. Howes Oil's contract with Shell expired at the end of the year.
Click here to view the full Argus Leader report.
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