Consumers will soon see new 7-Eleven signs on convenience stores at Greater Victoria’s nine Esso stations.
The gas stations themselves will be open round the clock.
But local Esso operators say a blockbuster deal between Imperial Oil and 7-Eleven will have a devastating effect on the community, affecting employees, local businesses, suppliers, even fundraising for charities. They want the public and the federal government to know they think it’s a bad deal.
In March, 7-Eleven announced it was acquiring 148 gas stations and convenience stores in B.C. and Alberta from Imperial Oil. When the transaction closes this fall, 7-Eleven will continue to market Esso fuel supplied by Imperial.
Most of the convenience stores will be converted to 7-Eleven stores — “remodelled and stocked with a full assortment of fresh products,” according to a press statement.
News of the deal has been devastating for Melinda Waitzner, who has been an Esso retailer for 15 years who operates the station on the corner of Craigflower and Tillicum.
“I’m going to be out of a job and my husband, who has run another Esso station for more than 26 years, will also be out of a job,” Waitzner said Wednesday. “We’ve put a lot of blood, sweat and tears into these stores, building them up to be really profitable for Esso. They sold them for billions of dollars and don’t feel we need anything more than 120 days’ notice.”
Waitzner received her termination notice from Imperial Oil in late May. 7-Eleven has offered her a store manager position.
“But I’d be a 7-Eleven employee for half of what I’m making now,” Waitzner said.
She’s upset that Esso has not recognized or thanked her for the effort she made over the years.
“Esso feels I still need to stand behind the counter and smile and pretend nothing’s happening and continue business as usual, but it’s very difficult,” Waitzner said.
“I want Imperial Oil to come to the table because we tried to reach out to them and voiced our concerns, and they keep giving us the same scripted statement saying they’re meeting their contractual obligations to us.”
Tom Martin, who runs the Esso at Hillside and Shelbourne, said he will no longer manage his On the Run convenience store when it becomes a 7-Eleven.
“7-Eleven’s not giving us a good deal,” said Martin, 75. “Everything you see in here will be gone. This will all be gone. The local businesses are going to hurt with this.”
However, Martin, who has worked on the property for 52 years, said he has signed a lease with Imperial Oil and will continue to run the Esso Car Clinic garage with his son.
New Westminster retailer Gabriel Pineda represents a group of 73 retailers from Alberta and B.C. opposed to the deal. Recently, he went to Ottawa to talk to representatives of Industry Canada’s investment review division. The minister is still reviewing the acquisition, he said.
“I think it’s a terrible deal because it’s killing, not just the 148 gas stations involved, but also the small businesses supporting them. And all the economic activities around those businesses [are] being funnelled out through this big transnational corporation,” Pineda said.
Under the deal, operators will lose their discretion over what suppliers they use and how they can stock the store, he said.
One Victoria operator, who spoke anonymously because he plans to work for 7-Eleven, said local Esso stations have always agreed to use local businesses to stock the stores.
Jim Entzminger, owner of Entz 1 Distributors, is one supplier who stocks the nine local Essos with snacks and sandwiches.
“It’s a loss of business to us. It’s a significant loss and it could mean layoffs,” Entzminger said. “It’s a tough one, for sure.”
Operators who use local landscapers, electricians and accountants will no longer have that choice, Pineda said. The stores also have to be open 24 hours and operators will be required to do night shifts every now and then, he said.
“It’s more work for half the money,” Waitzner said. “It’s just not going to work for us.”
The ripple effect will be huge, she predicted. Station operators support local charities, little league ball, minor hockey associations and raise money for the B.C. Children’s Hospital.
“That’s going to be wiped out,” Waitzner said
7-Eleven issued a statement Wednesday saying it would like to keep most of the current staff.
“We think the compensation package we are offering contains elements not included by their current employer, and we hope that they will be eager to join team 7-Eleven. Family members are welcome to work in the same stores, so long as there is no direct supervisory role.”
Imperial Oil said it “would be inappropriate for us to comment further as the terms of our agreements with both individual retailers and with 7-Eleven Canada are proprietary and confidential.”
When the deal goes through, the stores will have new 7-Eleven signs. The pumps will still bear Esso markings and the Esso points program will continue, Waitzner said.
