7-Eleven Acquisition Includes KAG Fleet Conversion

Written by
Justin Jeffers

7-Eleven Acquisition Includes KAG Fleet Conversion

Written by
Justin Jeffers

7-Eleven Acquisition Includes KAG Fleet Conversion

Written by
Justin Jeffers

There are few better-known consumer brands than 7-Eleven, with over 60,000 stores worldwide. The company recently grew even larger, with the acquisition of over 1,000 stores previously owned by Sunoco, the largest acquisition in 7‑Eleven history. The transaction called for a new fuel-delivery strategy, which included a fleet conversion.

“Sunoco asked us to look at converting their fleet in some of the markets involved in the 7-Eleven acquisition,” says Justin Jeffers vice president – private fleet conversions. “Our fleet conversion team in North Canton worked closely with our field operations folks and KAG Logistics team to develop a plan that resulted in us providing transportation to over 700 of the stores, from Virginia, down through the Southeast, and over into Texas.”

Sunoco asked KAG to purchase their trucks and offer employment to their qualified drivers in Tampa, and to the Texas markets of San Antonio, Corpus Christi, Brownsville and Edinburg. In the rest of the areas, KAG relied on our existing drivers and assets, or leveraged our KAG Logistics division to handle those locations.  Nearly one billion additional gallons of fuel per year will now be under our inventory control through KAG.

This very large conversion required extensive planning and coordination, but the ultimate transition was accomplished in just four days. Jeffers cited this efficiency as an example of how KAG can utilize its size and scale to complete conversions quickly and efficiently. He mentioned two factors that are encouraging more fleet owners to consider partnering with KAG through a fleet conversion.

“Companies are seeing big increases in the cost of insurance,” Jeffers explained. “Some of them are cutting their liability coverage to reduce premiums, but of course that puts them at greater financial risk. The other big issue is the continuing driver shortage. We hear from people that they are frustrated with trying to find and retain qualified drivers. Many companies have lost drivers and, as a result, have trucks sitting idle with no one to drive them.”

Fleet conversions, like the recent, large-scale conversion for 7-Eleven and Sunoco, guarantee customers all the capacity they need without the frustrations of owning and operating their own fleet.