Retail
Valero retails gasoline branded as Valero, Shamrock, Diamond Shamrock, Ultramar, Beacon, and Total, the last under license from Total S.A.. While this arm of the company is the most visible to the public, it is, according to CEO William R. Klesse, "a very small part of operations".
Valero is attempting to shift its focus from being a discount gasoline brand to becoming a premium brand. As part of the shift, Valero has begun to rebrand its Ultramar, Beacon, Total, and Diamond Shamrock stations to the Valero brand. The Beacon and Shamrock brands are used by retailers as a low-cost alternative to the premium Valero brand. The Shamrock brand is based on the former Shamrock Oil and Gas Company, which merged with Diamond Alkali in 1967 to form Diamond Shamrock, thus declaring the trademark from official abandonment. The name Ultramar, while being eliminated in the United States, will still be used as Valero's brand name in Canada. Valero introduced its updated "Corner Store" retail concept on December 28, 2007, opening the company's first 5,500-square-foot (510 m2) prototype in western San Antonio. The Corner Store retail division, originally part of Diamond Shamrock, was absorbed into Valero's business portfolio in 2001. Not all Valero gas stations have a Corner Store included - one Valero gas station in Euless, Texas east of Fort Worth is co-branded with a 7-Eleven convenience store.
On July 31, 2012, during the 2nd Quarter Earnings Conference Call, Valero announced intentions to separate the retail business from the remainder of the company. CFO Mike Ciskowski stated "We believe the separation of our retail business by way of a tax-efficient distribution to our shareholders will create operational flexibility within the business and unlock value for our shareholders." Additional details of the spin-off were said to be forthcoming.
Valero issues its own private label credit cards for its stations through its credit card-only subsidiary, DSRM National Bank. The initials stand for "Diamond Shamrock Refining & Marketing", the unit of Diamond Shamrock which created it before being purchased by Valero.
Read more about this topic: Valero Energy Corporation
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