OTTAWA -- Retailer 7-Eleven is pulling out of the Ottawa market and taking its super-cheap cell-phone service with it, leaving some customers in the lurch, according to a report in the Ottawa Citizen.
The retailer has sold all six of its Ottawa outlets to rival Quickie Convenience Stores, an Ottawa-based chain that will add the locations to its roster of 47 stores across Eastern Ontario and Western Quebec.
In a statement, 7-Eleven said it wants to focus its efforts on larger markets, according to the newspaper.
Greg Ross, vice-president of Quickie, [image-nocss] said the acquisition bolsters his company's foothold in its hometown.
However, the deal has left hundreds of cellular phone customers with no way to buy more minutes for their phones, according to the report.
7-Eleven's discount pay-as-you-go plan called SpeakOut allows customers to buy cards containing a set amount of minutes that are good for a full year. Other plans, offered by competitors, have minutes that expire in as little as 30 days.
"It's probably the most affordable service in Canada, assuming you don't use the phone a lot," James Hunter, a SpeakOut customer, told the newspaper. "I found out about it through a text message. It was very general; it said: 'Something is changing. Call our customer service center.' "
SpeakOut customers have been told they can continue to buy minutes at 7-Elevens outside Ottawa or call 1-866-310-1023 to transfer their service to discount services Petro Canada Mobility or Good Wireless. Unless customers want to spend $100 on minutes, neither allows customers to carry over airtime beyond six months.
Hunter said he hopes to find someone in Toronto who can buy SpeakOut cards and mail them to him. "It's a real inconvenience," he said.
According to Barry Nabatian, general manager of research firm Market Research Corp., convenience stores are having a difficult time competing with big discount retailers and grocery stores, especially outside of the downtown Ottawa core. The big stores are extending their hours and offer broad product selection.
"We have all of these huge Walmarts and Walmart-types stores ... so basically in the suburban areas, Mac's Milk-type of stores really do not do all that well," he told the newspaper. "Families tend to go shopping once or twice a week and buy a lot of things at once."
He said Quebec convenience stores thrive because they are able to sell alcohol, which boosts their profits.
Nabatian said taking over the 7-Eleven stores makes sense for Quickie. Unlike 7-Eleven, which needed to have a truck come from Toronto or Montreal to bring in stock for just six stores, Quickie can use its large local supply network to run the stores more cheaply.
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