Woolworths Limited
(ASX:WOW) has announced changes to the Caltex-Woolworths alliance which will see sales from Caltex-operated sites excluded from the company’s financial results.
Over the last financial year the Caltex-Woolworths fuel network totalled 633 sites including 131 Caltex operated sites and the remainder operated by Woolies.
The retailing giant says 92 Caltex-operated sites will now be rebranded as ‘Star Mart’ or ‘Star Shop’ convenience stores but continue to offer Woolworths fuel discount redemption.
The remaining 39 Caltex-operated sites will exit the alliance and no longer offer the Woolworths fuel discount redemption.
Once the changes have been implemented Woolies petrol discounts will be redeemable at about 100 Caltex operated sites and at more than 500 Woolworths-operated sites.
Woolworths says it will no longer recognise sales from the Caltex operated sites in its results and the changes are not expected to have a material profit impact on its results.
Woolworths reported a net profit of $2.45 billion in the full 2014 financial year.
