Chevron Malaysia expands retail business through RORO program

Chevron Malaysia Ltd., has revived its Retailer Owned, Retailer Operated (RORO) program which allows potential partners to own and operate Caltex service stations. RORO provides access to Chevron’s retail business consultants to the company’s retail partners in the areas of fuel marketing, supply chain and supporting business systems. “Our unique value propositions ensure prospective and current retailers alike are able to leverage on the value of a world-class brand and learn from experts committed to a profitable business,” said Jeremy Oh, country chairman of Chevron Malaysia. Under the tenets of RORO, retail partners are given the freedom to operate convenience stores or franchises of their own choosing, rather than using the brand’s convenience store. To qualify for the RORO program, prospective retail business owners need to own at least 40,000 sq ft of land and have enough working capital to cover the construction of a station, facilities and equipment costs. Retail business owners need to honor a 15- 20 year supply contract with Chevron. The success of the program is reflected in the fact that Chevron has opened six service stations a year to date and expects to open another nine by the end of 2011. (August 10, 2011)