Stripes Convenience Stores May Soon be Changing Their Name

 

SAN ANGELO, TX — In April, Sunoco, the parent company of the Stripes Convenience Stores, announced it was selling a majority of its stores in the U.S. to Dallas-based 7-Eleven, Inc. But the deal to divest Sunoco of about 1100 convenience stores did not include the 207 Sunoco-owned Stripes stores located in west Texas, New Mexico, and certain locations in Oklahoma. Those stores, including those around here, would be sold in another deal, not to 7-Eleven, they said.

Sunoco’s business strategy is to divest itself of retail operations to concentrate on its wholesale fuel sales and distribution business. While the company still operates 1346 stores right now, it is the wholesale supplier of gas to 7898 stores. The deal with 7-Eleven includes a multi-year contract for Sunoco to provide fuel to convenience stores owned and operated by the 7-Eleven for the next 15 years.

This map indicates the approximate locations of Stripes Convenience Stores to be sold separately and are not included in the April 6, 2017 announcement that 7-Eleven is purchasing Stripes Convenience Stores. (Graphic from Sunoco Investors teleconference)

Above: This map indicates the approximate locations of Stripes Convenience Stores to be sold separately and are not included in the April 6, 2017 announcement that 7-Eleven is purchasing Stripes Convenience Stores. (Graphic from Sunoco Investors teleconference)

The 207 stores left on the market posed a challenge. According to a company announcement Monday, Sunoco will not sell the west Texas Stripes after all. Instead, they have found a “commission agent” who will operate the remaining 207 locations and will also purchase wholesale fuel from Sunoco. The conversion to the new arrangement happens during the first quarter of 2018.

As part of the earlier deal on April 6 with 7-Eleven, Sunoco agreed to sell the Stripes and Laredo Taco brands to 7-Eleven. That may mean that the name “Stripes” will not adorn the plentiful convenience stores around here. Most definitely the employees will soon have a new employer, though.

Sunoco said their arrangement leases the stores and real estate it owns to the agent that will operate and manage the store locations. Sunoco will receive a stable rental income through Sunoco’s continued ownership of the real estate. The deal also captures a material portion of fuel margin less a commission to the agent. In other words, Sunoco will be the commission agent's wholesale fuel supplier. Sunoco said the agreement allows future asset sales, so Sunoco is still free to sell the store properties if it finds a suitor.

Overall, Sunoco is seeking a 50 percent reduction in operations costs, and the commission agent agreement does not change the company’s EBITA forecast announced in April.

The question is, who is the commission agent? Sunoco hasn’t named it, but did say the agent was a “proven operator.” The transition begins in January. 

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Good.... maybe their first order of business will be to fire about 3/4 of the rude, inconsiderate and non caring employees that they currently have and give the opportunity to those that want to work and can provide a friendly customer service.......

Ever since Town and Country was sold to stripes all of these stores and some of it employees have become nasty.
If I am going to spend my money on so called convenience stores I will go Jacks.

Ever since Town and Country sold out to Stripes (which at the time was owned by Susser Holdings) the exceptionally high standards of the company have been in a downward spiral. The stores aren't clean, the employees aren't as courteous and the deli food isn't anywhere as good. Steve Stevens, we miss you. Maybe, just maybe, the next owner or operator will return to these higher standards.

Main reason why Sunoco couldn't sell the remaining stores to 7-Eleven was due to a non compete clause that 7-Eleven has with Delek US Holdings which license the 7-eleven brand in West Texas. The Stripes stores not included in the sale are being handled by Cal's Convenience Inc.

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