Quote:
Originally Posted by bizaro86
I read an analyst report today that indicated this was way higher than they were expecting. Apparently Imperial has been hugh grading for years and these are mostly good urban locations with big Cstores and lots of car washes included.
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This is true. Imperial has been in the retail fuel business for many decades, so you can imagine they have some of the best sites in high traffic locations, including downtown vancouver, montreal and toronto. There are 1,700 esso stations nationwide, and Imperial sold the last 500 that they still owned, so as you can imagine, they kept their best stations for last.
Prime locations get higher margins (higher gasoline prices). Given how low margins are in the business, and extra 1.5 cent per liter from being in a prime location could basicly double profits from retail fuel.