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Raley’s divests fuel center business

Anabi Oil agrees to buy, operate Aisle 1 gas stations

Russell Redman

December 7, 2018

2 Min Read
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Western grocery retailer Raley’s plans to sell its 13 Aisle 1 fuel stations to Anabi Oil, a Southern California convenience store/gas station operator.

Financial terms of the transaction weren’t disclosed. Raley’s said yesterday that Anabi will retain the Aisle 1 name for the locations and become its exclusive fuel partner. Plans call for Anabi to take over operations of the Aisle 1 fuel centers early next year.

The Aisle 1 fuel locations, adjacent to Raley’s supermarkets in Northern California and Nevada, offer full-service fuel, car wash and convenience items.

Raleys_Aisle_1_car_wash_sign_0.png“As we continue to move our vision around health and wellness forward, we are focused on our core business of offering healthy food at affordable prices,” Raley’s President and CEO Keith Knopf said in a statement. “This move will allow Raley’s to advance our long-range strategic plan and sets up a series of moves that will position Raley’s for significant growth and expansion.”

Under the agreement, West Sacramento, Calif.-based Raley’s will continue to provide fuel pump rewards to its grocery customers, who will be able to redeem them at the Aisle 1 sites. The company said 70 Raley’s stores currently offer pump rewards to area Aisle 1 locations.

“With extensive experience in the convenience business and a strong family business in California, Anabi Oil was the perfect partner,” Raley’s Chief Financial Officer Ken Mueller commented, adding that the transaction is slated to close in late December.

Related:Raley’s takes aim at added sugar in cereal

Upland, Calif.-based Anabi Oil owns and operates more than 295 locations and delivers fuel to another 160 stations under multiple brands, including its Rebel banner. The company also is one of California’s largest Shell-branded fuel distributors.

“Aisle1 is a great addition to the Rebel brand, complementing our existing portfolio in both California and Nevada,” stated Sam Anabi, owner and CEO of Anabi Oil. “We are excited about our long-term relationship with Raley’s. With our expertise in running fuel stations and convenience stores, paired with a dominant grocer in the market, we will offer customers a fueling, convenience store and grocery rewards experience that others cannot.”

The companies added that they will explore expanding customer discounts to other Anabi-owned locations and opening other fuel stations at Raley’s stores. They said they’re also working to provide options for continued employment to the 80 employees at the fuel stations, 11 of which are in California and two in Nevada.

Overall, Raley’s operates 129 stores in California and Nevada under the Raley’s, Bel Air Markets, Nob Hill Foods, Food Source and Market 5-ONE-5 banners.

Related:Raley’s makes checkstands ‘better for you’

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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