Wellington is set to see another business close its doors with Caltex announcing its Lee Street service station will shut as of October 14.
According to Caltex Australia media adviser Georgie Wells, the station has been suffering from deterioration in sales, forcing the company to make the difficult decision.
“The Caltex Service Station at Wellington has experienced a steady decline in sales volumes and profitability in the past 12 months,” Ms Wells said.
“As a result it is no longer economically viable.
“The operator has also resigned from the contract with Caltex and has not sought a renewal.
“The site will subsequently be closed this month.”
Upon hearing that another business would be closing, Mayor Anne Jones expressed her shock.
“I am very disappointed,” she said.
“Very disappointed to see
that another premise is closing down.”
However, she does believe the competition may have had an impact on the choice to close the station.
“Having two Caltex stations in the same street may have played a part,” she said.
“The discount offers such as the four cents off per litre most probably contributed to the decline in sales.
“(But) I don’t believe there are too many services stations in town if you only take into account the population.
“We cater for huge traffic passing through Wellington as well.”
Previously a ‘Bogas’ station, Caltex has owned the site for the past five years, offering a range of products as well as Star Cards for regular customers.
However, Ms Wells confirmed Star Card holders would still
be able to use these cards at
the new Woolworths petrol station.
“Caltex wholesales to Woolworths so there will still be options for Star Card owners in Wellington,” she said.
Future plans for the property have not yet been determined.