Shell Canada Ltd. will shut down 21 Manitoba-based outlets that sell bulk fuel and lubricants and have local cardlock operations after the companys inability to locate a buyer, the company announced last week. Shells 75 other retail and cardlock operations in Manitoba, along with aviation facilities, will not be impacted by the closures.
The company says it decided to close locations after a prospective buyer decided that the purchase of the businesses was not economically viable.
For years, the agency business has faced challenges, and in its current form it is no longer a sustainable business for Shell, said Les Markiewicz, general manager, commercial fuels.
Unlike some facilities that serve a variety of customers, these agency businesses are primarily limited to the agricultural industry and are located in smaller communities, Shell spokesman Jana Masters told Lube Report. This creates challenges when you need to grow and diversify the business to remain viable. Shell is a small player in this business, and has seen an overall decline in sales in Manitoba.
Masters also said that the company will manage inventory at these various locations as the closing dates near. The focus during this period will be on working with local sales associates who operate these locations, customers and affected communities, the company said.
In this competitive business, its clear that companies must focus on where they can deliver the most value to customers and to their business, Markiewicz said. As we embark on change, we expect our customers will adjust as well by considering alternative suppliers for their fuel needs.
Locations closing Nov. 9 include Brandon, Carberry, Neepawa, Shoal Lake, Swan River, Birch River, Dauphin, Winnipegosis, Russell and Roblin.
Locations closing Nov. 16 include Notre Dame, Brunkild, Morden, Portage la Prairie, Selkirk, Winkler, Steinbach, Dominion City, Dugald, Vita and Thompson.