7-Eleven strengthens network of convenience store franchises with acquisition of Mobil retail fuels business

7-Eleven has announced that it has completed the acquisition of Mobil Oil Australia’s retail fuels business, in a move that will strengthen the national network of convenience store franchises, and introduce new opportunities for further growth.

Announced earlier this year, 7-Eleven Chief Executive Officer Warren Wilmot says that the company is thrilled the new acquisition has been completed.

“The new sites build on 7-Eleven’s position as the leader in the convenience retailing industry in Australia, taking the number of 7-Eleven stores from 400 to more than 650,” he adds.

Mr. Wilmot notes that similar acquisitions in the past have delivered significant merchandise sales growth across the convenience store franchises, demonstrating the strength of the brand’s consumer appeal.

“In addition, the acquired sites are well-positioned with strong fuel and food store volume, bringing excellent synergies with 7-Eleven’s current operations,” he says.

The acquisition is comprised of more than 250 company-owned or leased service stations, primarily located in the metropolitan areas of eastern Australia.

This will significantly strengthen the presence of the convenience store franchises in the eastern seaboard market, as well as introducing approximately 30 stores in South Australia, where 7-Eleven did not previously operate

Mr. Wilmot is confident the move will promote further growth for the brand.

“The acquisition combines two successful companies with high-calibre workforces to make a stronger organisation focused on growth, our customers and our employees,” he says.

The new combined entity will serve more than 160 million customers each year, with plans to convert most of the Mobil sites into 7-Eleven retail franchises by the end of 2011.

In addition to significant upgrades to existing Mobil sites, Mr. Wilmot notes that the acquisition “is also great news for our existing franchisees as it will bring supply chain efficiencies and greater buying and marketing power for 7-Eleven.”

“We would like to thank everyone from both companies who worked expeditiously to achieve the planned changeover for 4 October 2010,” he concludes.