the Agreement, if the store operation on the Swedish Shellstationer between the Finnish St1 and the Seven Eleven will not be extended, according to a source. The data is confirmed by Magnus Carlsson, president of Reitan Convenience Sweden, which owns the brand Seven Eleven.
"of Course, it will mean a drop in our turnover by 2018," he says.
eight years Seven Eleven stood for store operations in the Swedish Shellstationerna, owned by Finnish St1 since 2010. When the agreement expired about two years, however, it will not be renewed, following a decision from the St1′s board of directors.
"the St1 is very satisfied with the way the RCS pushed the stores, but the company has decided that you shall have control over the entire marketplace," writes Stefan Samuelsson, head of Retail at St1, in an internal email to company employees as the Di.
the News came as a surprise for Magnus Carlsson, then they worked towards an extension.
Now chosen to go a different route and it gets you respect. But it is important to remember that we have two years left on his contract, so it is 'business as usual' in the future," he says.
Shellstationerna accounts for 20% of RCS’s revenues.
"of Course, it will mean a drop in our turnover by 2018 because there are 106 stores leaving," says Magnus Carlsson.
the Ceo notes, however, that skilled personnel are likely to be needed thereafter.
"St1 surely want pick over a part to the franchisee, depending on what they will do with the stations, but we hope that the good people want to stay with us. The future will tell if they become a franchisee under a different form, or if they take over another store," says Magnus Carlsson.
He emphasizes at the same time that most have taken the news with ro and with the remaining time on the contract.
"You can’t really sit and start planning now, but we have good momentum on the ship and intend to continue so these two years."
Di have searched St1 for a comment.
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