APRIL 2006

merging
associations
Food dealers, petroleum retailers
find strength in numbers
BY VANESSA DENHA-GARMO
Gas station
owner Amar
Dalou is all for
the merger:
“ It is so
competitive
today.”
Small business owners have a stronger voice
and better buying power now that the
boards of directors of the Associated Food
Dealers of Michigan (AFD) and the Great Lakes
Petroleum Retailers and Allied Trades Association
have voted to merge the two trade groups into a
single association. The merged association, now
known as Associated Food and Petroleum Dealers,
represents more than 3,900 small business locations
in Michigan and Ohio.
“Today, the retail food and beverage
business is increasingly cutting across
many categories. Service stations,
liquor stores and independent supermarkets
are all a part of our industry,”
said Jane Shallal, AFD president.
“Anyone who has run into a gas station
food mart or a neighborhood gro-
Jane Shallal
cery store for a gallon of milk can see just how
much the two kinds of businesses have in common.”
Ed Weglarz, president of the Great Lakes
Petroleum Retailers, also lauded the move. “The
new strength in our numbers will bring better buying
power and a more powerful voice in speaking
to the Michigan and Ohio legislatures,” he said.
“Small retail businesses play an important role in
the economic health of our two Midwestern states,
and they deserve recognition for it.”
With both associations currently overlap in certain
administrative functions and supplier relationships,
the merger made sense. “We will enjoy
economies of numbers by merging. Many of our
gasoline retailers evolved into convenience store
offerings over the years without proper and adequate
experience and training,” said Weglarz, adding that
the same happened with convenience store owners
getting into the retail gas business. “This merger
enables the two rather similar, but nevertheless different,
business models to feed off the others’ experience
and history.”
The Associated Food and
Petroleum Dealers, with Shallal acting
as its president, will have its primary
offices in Farmington Hills, with additional
offices in Lansing. The new
association will continue to provide
vendor discounts, industry news, training
programs and political advocacy
for its members, but on a more substantial and powerful
scale. Additionally, the organization’s
increased membership will assist it in more forcefully
tackling predatory pricing by merchandisers and
other businesses.
“I see my job as the president to protect the
small business owner,” said Shallal. “We are competing
with the chain stores and sometimes it is
unfair competition.”
Compared to an independent merchant, chain
stores are able to buy larger quantities of products to sell
at a reduced price. Shallal said that some companies
won’t even distribute product to the independents.
PHOTO BY DAVID REED
The Associated Food Dealers of Michigan was
founded in 1916 and represents more than 3,000
grocery stores, supermarkets and liquor licenses
throughout the state. The Great Lakes Petroleum
Retailers and Allied Trades Association has roots
going back to 1929, when it was formed as the
Service Station Dealers of Michigan. The group
merged with the Ohio Petroleum Retailers and
Repair Association in 2004 to become the Great
Lakes Petroleum Retailers and Allied Trades
Association. It represents more than 900 service stations
and convenience stores in Michigan and Ohio.
“The combination and expanded interests of the
new association will enable us to expand the offerings
to the membership base, and expand membership
by having more varied programs available to the
members. It doesn’t cost to be a member — it pays,”
said Weglarz. “We will be a larger, more effective
force when dealing with the governmental bureaus
and the legislators in Lansing and Washington, D.C.
We will be able to provide educational and training
seminars for our members. Hopefully we will bring
value to the members’ business, which will provide
generational longevity, along with real and measurable
value to being a member of the Associated Food
and Petroleum Dealers.”
Amar Dalou owns three gas stations and convenience
stores, a Mobil in Clinton Township, a Shell
in St. Clair Shores and a Marathon in Mount
Clemens. He has been in the gas station and convenience
store business for the past 13 years and says
the merger will only help his business. “We give gas
away today because the profit margins are so slim,”
said Dalou. “The gas station today is more like a convenience
store. You have to have a fast food, car
wash or convenience store to make money today.”
The 35-year-old married man with two children
said that the Food and Petroleum Association
gives owners like him a voice in Lansing and
against bigger corporations trying to put the small
businessman out of business. “It is so competitive
today,” said Dalou. “The big corporations claim
that they employ people but the truth is the
biggest employers are the small businesses.”
Over the years, the profit margins for gas station
owners on gas have decreased and with payat-the-pump
convenience, their profits have
shrunk even more. Where they once may have
made 10 percent on gas sales, that figure is now
less than 7 percent — and they have to pay 2 1/2
to 3 percent on credit card use. So often the gas
station owner does not make a profit on gas sales.
The only way for the owner to make money is to
offer other products for sale.
“Being a member of the association gives us
more buying power,” said Dalou. “The merger
makes sense. They can only help us become
stronger.”
For additional background on the two groups, visit
http://www.afdom.org/page.cfm/2/ and
http://www.oprra.com/.
34 CHALDEAN NEWS APRIL 2006