Project Highlights
Client: Single Site Retailer Looking to Sell
Project Category: Potential Investment Analysis
Project Overview
b2b Solutions was retained by a limited partnership with no c-store experience to evaluate a location it owned in another state. The site’s management had turned over to a relative that lived there. The underlying goal was to determine what would be needed to put the business in saleable condition. Two of our c-store consultants were chosen to work on the project.
Actions by Our C-Store Consultants Included
The ownership couldn't provide any meaningful data for analysis prior to or post going on site.
Met with the store's manager to discuss the fuel (gasoline and diesel) purchasing processes comprising product ordering, cost, delivery, and payment processes.
Held discussions with the store manager and an employee regarding the store merchandise purchase practices.
Reviewed the store layout, store conditions and staffing with manager.
Evaluated the site's exterior appearance and functionality including the fueling equipment (gasoline and diesel), parking lot and signage.
Assessed the store's interior equipment and overall condition.
Discussed the current accounting process or the lack there of with the manager.
Examined the current information systems capabilities.
Visually appraised inventory levels.
Determined based on the manager's statements that fuel sales constituted far mor of the site sales and the industry's averages.
Deliverables Included
Documented our findings in a report for the company.
Our reported noted the site could be sold "as is" but based on the issues we found the company would take a loss on the sale.
The report's recommendations were categorized as immediate, short term, and long term.
Immediate actions involved addressing cash crisis by first determining it true extent, addressing the external and internal conditions we noted in the report. This included repairing the dispensers, a freezer case and other equipment. Changing the current practice of proving credit for diesel purchases and collecting the current accounts receivable.
Short term recommendations included determining if the location management should be changed, address the issues with the payment process for fuel to avoid having to pay COD. Tackling the store low inventory levels especially cigarettes and beer.
Intermediate actions included evaluating the site restaurant operations including pricing and labor requirements and remerchandising the store.
Long term recommendations included evaluating alternative fuel suppliers and deciding if they were going keep or sell the location.
Our lead c-store consultant held conference call with the location owners to answer their questions regarding our report.
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