DALLAS — CSP has learned that 7-Eleven Inc. is adding Core-Mark Holding Co. Inc. as a new wholesale partner in a strategic effort to lower risk throughout the retail network and ensure future flexibility.
According to an internal communication obtained by CSP Daily News, effective in late 2016, 7-Eleven will transition approximately 10%, or 900 of its convenience stores to Core-Mark, which will become the recommended wholesaler in central and northern California and parts of Utah and Nevada.
Core-Mark will be the primary wholesale distributor delivering a wide range of products to these stores out of three of its divisions: Las Vegas, Salt Lake City, and Sacramento, Calif.
“This transition will serve the long-term interests of both our franchise stores and [7-Eleven] to be able to leverage the services and scale of multiple wholesalers across the United States,” said Sean Duffy, 7-Eleven’s senior vice president of logistics and demand chain.
“Moving the wholesaler service for these markets to local Core-Mark distribution centers means items are on a truck for less time. Shorter trips can improve product quality and will save transportation costs,” he said. “Starting with a small number of markets will allow us to begin working with the new wholesaler to get the ordering and delivery processes integrated and modify our information systems. This will be a major undertaking, and we need to begin set up, testing and store transitions with a small number of stores through a controlled rollout.”
Core-Mark is one of the largest marketers of fresh and broad-line supply solutions to the convenience-store and retail industry in North America. Based in South San Francisco, Calif., it offers a full range of products, marketing programs and technology solutions to more than 36,000 customer locations in the United States and Canada through 29 distribution centers. Core-Mark services traditional c-store retailers, grocers, drug, liquor and specialty stores and other stores that carry convenience products.
Based in Dallas, 7‑Eleven operates, franchises or licenses approximately 10,700 7‑Eleven convenience stores in North America. Globally, there are nearly 57,400 7‑Eleven c-stores in 17 countries.