Shell has signed an agreement to acquire 248 company-owned fuel and convenience retail sites from the Landmark group of companies, whose convenience stores operate in Texas under the Timewise brand.
The agreement also includes supply agreements with an additional 117 independently operated fuel and convenience sites. Shell, along with most oil refiners, largely exited retailing in the U.S. in the early 2000s, opting to embrace upstream profits that dwarfed downstream retail opportunities.
The oil company dipped its toe back into retail waters in 2018, when it opened its first Shell Select convenience store in Louisville, Ky., built on the premise of high-quality and fresh food and beverages.
It has since opened only a handful of stores under the Shell Select brand. Thus, this acquisition signals a much more aggressive leap back into convenience and fuel retailing.
This acquisition enables Shell to continue its existing premium product offerings, according to the company. As one of the largest fuels and convenience retail markets globally, growing in the U.S. gives Shell the opportunity to build on its successful brand presence and leverage the strength of its ongoing business relationships, it said.
"This announcement increases our presence in a core market and shows our growth strategy in action,” said Huibert Vigeveno, Shell's downstream director. “It brings us closer to more customers and strengthens our ability to meet their rapidly changing needs.
The deal also allows us to work hand-in-hand with customers to help shape demand for low-carbon energy products and services while profitably decarbonizing alongside them.”
The company said enhancing Shell’s presence in the U.S. will advance Shell’s Powering Progress strategy in three ways:
By growing its retail footprint in one of its core markets
By providing opportunities to offer customers expanded fueling options (including electric vehicle charging, hydrogen, biofuels and lower-carbon premium fuels)
By allowing for the growth of non-fuel sales through an enhanced convenience offering
Shell added that Landmark’s more than 2,000 team members will become the foundation to enable Shell to grow its company-owned network in the U.S.
Subject to regulatory clearance and the satisfaction of closing conditions, the deal is expected to be completed by year end.
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