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INTERNATIONAL NEWS

06/09/2006
SINGAPORE -- 7-Eleven will take over pump and store operations for 65 of the 68 Shell stations in Singapore, starting in August. In addition, 7-Eleven will also gain the stores 1,500 employees, according to a report in Channel News Asia.

"This is not a cost-saving measure," said Lee Tzu Yang, chairman for Shell Companies in Singapore to Channel News Asia. "This is really one to make us succeed in the business of satisfying our customers. And actually increasing sales," he added.

Less than two months ago, Exxon-Mobil began a similar venture with NTUC Fairprice. Big oil companies are looking to become more profitable with their petrol stations by joining with retail partners. Benjamin Eng, CEO of 7-Eleven Singapore told Channel News Asia, "We opened 58 stores last year. By ourselves this year we should be opening about the same number of stores, if not more, with the 65 outlets of Shell." He said, "We've been managing that and we're managing quite well so I'm pretty confident we'll do well."

7-Eleven did not disclose how much the conversion would cost, but did say it will be less than Exxon Mobil's $30 million deal because there are less stations involved.