Loblaw Cos. Eyes Sale of Canadian Gas Network
BRAMPTON, Ontario — One of Canada's leading retailer's may be putting a for-sale sign on its gas network.
Loblaw Cos. Ltd. completed a strategic review of its gas bar operations. The company said it will engage potential buyers in considering a sale of the business. The gas bar network consists of 212 retail fuel sites located adjacent to grocery stores.
According to the company, the gas bar network continues to deliver strong and stable cash flows, and it is expected to grow as Loblaw's grocery store network grows.
Loblaw added the right strategic partner would further elevate the business and its value to customers.
"Our gas bars have contributed consistently to our bottom line and our offer to customers," said Grant Froese, chief operating officer, Loblaw. "Customers appreciate the convenience of onsite fuel and the benefits of a loyalty program that links gas bar and grocery purchases. We anticipate that these benefits will continue regardless of whether the business is sold."
Ontario-based Loblaw is a Canadian food and pharmacy retailer and the majority unitholder of Choice Properties Real Estate Investment Trust. It has more than 2,300 corporate, franchised and associate-owned locations.