{"id":103665,"date":"2017-07-05T11:00:44","date_gmt":"2017-07-05T15:00:44","guid":{"rendered":"https:\/\/depquebec.com\/?p=103665\/"},"modified":"2017-07-05T21:25:35","modified_gmt":"2017-07-06T01:25:35","slug":"what-future-for-loblaws-gas-stations-in-quebec","status":"publish","type":"post","link":"https:\/\/depquebec.com\/en\/what-future-for-loblaws-gas-stations-in-quebec\/","title":{"rendered":"What Future For Loblaw’s Gas Stations In Quebec?"},"content":{"rendered":"

Last year, Loblaw<\/a> announced its intention<\/a> to divest its 213 gas stations in Canada. <\/span>At the time, Couche-Tard was seen by the media as a potential buyer.<\/span><\/span><\/p>\n

Finally, it is rather Brookfield Business Partners (BBP)<\/a> that decided to acquire the network<\/a>.<\/span><\/p>\n

For those who have never heard the name, BBP is a bit like the Caisse de d\u00e9pot et placements but for private investors. <\/span>This Toronto-based Canadian conglomerate is a tremendous global success following a Warren Buffett recipe in which it invests in long-term tangible assets of high value (office buildings, infrastructure, ports, railways, power generation plants, etc.)<\/span>. <\/span>The company manages a total of US $ 250 billion of assets around the world and its performance record makes it one of Wall Street’s darlings. <\/span>The president, Bruce Flatt, a true finance genius, made the front page of Fortune magazine<\/a> no later than two months ago.<\/span><\/p>\n

 <\/p>\n

\"\"
A true finance genius, Bruce Flatt is considered by Wall Street as the Canadian version of Warren Buffett.<\/span><\/figcaption><\/figure>\n

As soon as the acquisition is approved, next Fall, the Quebec gas sector will therefore welcome a new player. <\/span><\/span><\/p>\n

The impact of Loblaw<\/a>‘s gas network in Quebec, however, is not negligible but, admittedly, quite relative.<\/span><\/p>\n

According to our latest census, Loblaw<\/a> operates only 10 gas stations in Quebec under the banner A plein gaz<\/a>, all located in Maxi<\/a> and Provigo<\/a> supermarket parking lots.<\/span><\/p>\n

There is only one in Montreal, one in Quebec City, one in Chicoutimi, but none in Sherbrooke, Trois-Rivi\u00e8res or Gatineau. <\/span>The others are in Lachute, Saint-Lin, Victoriaville, Delson, etc.<\/span><\/p>\n

It’s not much. <\/span>Elsewhere in Canada, the same network is much more concentrated: there are about ten gas stations in Edmonton, Calgary, Vancouver, Toronto, or as many in each of these cities than in Quebec as a whole.<\/span><\/p>\n

The idea of \u200b\u200bsuch stations in the first place was to offer Loblaw customers a competitive value by allowing cross-promotions through their PC Plus loyalty program.<\/span><\/p>\n

But with the proliferation of loyalty programs, it is doubtful whether this possibility really made a difference. <\/span>Especially since Sobeys, which acquired Shell’s distribution rights in Quebec, has given itself the means to do the same, but with infinitely more stations. <\/span>That said, do people opt for a supermarket to save on gasoline?<\/span><\/p>\n

Over time, the management of such a network, so distinct from Loblaw<\/a>‘s core grocery mission, has undoubtedly represented a major distraction and a growing burden, especially as margins remain extremely thin in the sector r<\/span>etail sale of gasoline.<\/span><\/p>\n

That being said, the future of Loblaw<\/a>‘s gas station network in Quebec, which is so small in number, is difficult to predict.<\/span><\/p>\n

BBP said it looks forward to make an agreement with Imperial Oil to adopt the global Mobil brand, a first in the Canadian market.<\/span><\/p>\n

Leveraging a brand like Mobil can effectively help the network stand out and gain greater visibility.<\/span><\/p>\n

But with only 10 gas stations, we wonder what BBP intends to do in the coming years in Quebec to maximize return to shareholders.<\/span><\/p>\n

The options are limited. <\/span>It could :<\/span><\/p>\n