Dive Brief:
- Shell has revealed plans to sell 500 company-owned retail sites around the globe both in 2024 and 2025, according to the company’s 2024 Energy Transition Strategy report released on Thursday.
- The oil major did not specify why it’s looking to sell these sites, nor which markets they’re located in. The divestitures will be part of Shell’s new multi-billion-dollar program to upgrade its retail network with low-carbon energy solutions, including a heavy focus on electric vehicle charging stations, according to the report.
- Shell’s announcement that it will sell 1,000 stores by the end of 2025 comes as it continues to expand its company-owned retail footprint in the U.S. Shell did not specifically comment on its U.S. locations in the report.
Dive Insight:
Shell did not share whether these divestitures will occur in pieces or large amounts at once. Regardless of how these locations are sold, offloading 1,000 of its c-stores over the next two years could mark a significant shift in the global c-store landscape.
In the U.S., Shell — whose domestic headquarters are in Houston — has had something of a comeback in the c-store space over the past few years. Today, it operates about 250 retail sites, in addition to marketing fuel at about 14,000 branded gas stations across 49 states.
After exiting the company-operated c-store business in 2007, Shell burst back onto the scene when it acquired 248 locations from Texas-based retailer Landmark Industries in 2021. At this time, Shell said it was committed to growing its retail footprint and creating an “enhanced convenience offering.”
Last month, Shell agreed to acquire the retail arm of Brewer Oil Company, which includes 45 convenience stores and fueling stations in New Mexico. Once the deal closes — expected by the end of the first fiscal quarter of 2024 — Shell will have its first company-operated convenience stores in that state.
In Thursday’s report, Shell said that it invested $2.3 billion in producing non-energy products last year, which included its c-store network.
On the EV charging front, Shell said Thursday that it believes it has a “major competitive advantage” with its retail locations. Its focus on charging has been in full swing in the U.S. since Shell USA acquired EV charging company Volta for $169 million in January 2023.
“We have other competitive advantages, such as our convenience retail offering, which allows us to offer our customers coffee, food and other convenience items as they charge their cars,” Shell said in its report. “As we grow our business offering charging for electric vehicles, we expect an internal rate of return of 12% or higher.”
