Fortunes of families Trim and Shahin change dramatically Fred Shahin and son Charlie at the family's first service station Source: adelaidenow They're two of the state's best known companies, but this week, the fortunes of BP On The Run empire and Trims work clothes store took very different turns - a reflection of the changing economic times THE Shahin family has reinvented the service station, from a place to pick up fuel, oil and lukewarm pies to a one-stop retail outlet with nationally recognised brands such as Subway and Brumby's bakeries. The On The Run success story this week spread to encompass BP's outlets throughout South Australia, although some of the oil giant's outlets are still owned independently. The BP deal, worth tens of millions of dollars, includes 16 metropolitan and 12 regional sites, subject to approval from the Australian Competition and Consumer Commission. The Shahin family story now, effectively, includes the handing over of the South Australian retail operations of two of the so-called global "big oil" companies, beginning with Mobil in 2010. Even given the short history of the Shahin family in South Australia, from 1984, the story is remarkable, beginning as it did with a single live-on-site service station at Woodville purchased by the late Fred Shahin. Fred Shahin flanked by sons Charlie, Yasser and Samin in 2007 But the Shahins' success that has inspired so many began decades earlier when Fred, aged 10, crossed the Palestinian/Lebanese border on foot during the 1948 war that created Israel and, in the process, drove hundreds of thousands of Palestinians from their homeland. With no possessions, Fred lived for months in a makeshift tent with his family. He went on to become an accountant through night school and worked for the United Nations for 27 years, including as the head of logistics caring for Palestinian refugees in Lebanon. In 1984, Fred and wife Salwa moved to Australia to escape the war-torn region. Ironically, Fred bought the service station because he could not find a job, but the companies he started, and which his children say he still inspires, now employ 2000 people. His sons now run the business. The oldest, Charlie, was heavily involved in making the Woodville service station a success and today the three brothers share responsibility for the oversight of the business. Yasser is responsible for brands like On The Run. Dr Sam Shahin was lured back from medical practice and now oversees the family's property interests; daughter Amal is still a doctor. Yasser says the secret to the family's success has been to stick to the values of his father. They still have the tiny newspaper advertisement from The Advertiser for the Woodville station sale. "Honesty, integrity, trust, recognition, innovation, never running out, never closing and treating each customer as a guest and that has become what we now call the On The Run Promise," Yasser says. Dad actually worked as a forecourt attendant - it was attendant-serve at the time - and Dad, with the help of my brother Charlie, over time expanded the business's trading hours and range of products. Early on, he and Charlie re-invested in the site, making the shop larger and introducing self-service to reduce his costs. Russell Trim at the shop entrance on King William Street, Adelaide. From a very early stage, he was committed to re-investing in his business to improve it. He placed only one precondition on his sons joining the business; that being they go and complete a tertiary education first so that if they did not enjoy the business they would have something to fall back on. My brothers and I grew up next door to this service station and went to school at Woodville High, just off Port Rd. From the beginning (it was) Charlie and then we all worked in the business; we pumped fuel, served customers and learnt first-hand every element of the business. We worked very hard from a young age. Fred gave his children numerous enduring qualities that contribute to how the wider team runs the business today. "The most important principle was to not put a price on your reputation," Yasser says. John and Alfred Trim (in their store. Given a choice between reputation and money, reputation always won out. He maintained a very simple way of making decisions and never wavered from what the `right thing to do' was. Yasser says loyalty is also crucial to success. "The same business that roasted our coffee 10 years ago roasts it today - the same (tradespeople) have worked on building our sites for more than 10 years," he says. Yasser says a focus on core competencies, hands-on managers, respect for staff, close relationships with suppliers, meritorious appointment, relishing being the underdog, and being fiercely competitive are also ingredients for success. The Shahins don't franchise On The Run. "We are based in SA and own and professionally operate all of the On The Run convenience stores," Yasser says. Alf and John Trim at Morphettville in 1955. We happen to sell fuel as a service to customers. This means that we have teams that specialise in each area, fuel, shop, Subway, HappyWash, Brumby's and so on. Our management team is based in SA, which is rare nowadays. On The Run was born of necessity when, in the late '90s, fuel margins were terrible and unsustainably low and selling shop goods became essential. It was then that the creative baton was passed from father to sons and Yasser, with his brothers, started searching for a theme and a concept and decided to try to better utilise the service station land to sell more than just fuel. By 2010 there were On The Run signs at a total of 81 sites, when the company took over 26 Mobil service stations. Yasser says the company has since spent $17 million on developing the former Mobil sites and creating 250 new jobs directly. The Women's and Children's Hospital, the Sammy D Foundation, Make-A-Wish, local schools and sporting groups have been among the beneficiaries of charity fundraising. Alf Trim with son Russell and his sons Justin and Matthew celebrating Alf's 70th birthday in 2007 "Car-washing and food were added but the principle was about adding things that suited people on the move," Yasser says of the On The Run concept. Yasser insists no matter what the growth plans of Peregrine, the company will be committed to South Australia. "We didn't imagine we would employ 2000 South Australians and we are grateful for the support the customers in the community give us," he said. The whole family is fiercely proud of South Australia. Peregrine will remain headquartered in SA no matter what its growth plans. Ambition has always been a strong part of the Shahin family tradition. "We are clear in our vision now - we want to build the best business in SA; in innovation, customer experience and job satisfaction," Yasser says. Peregrine will be the place to be and we will shape the shopping experience. The Shahin name will soon become well known in regional South Australia as well because the BP acquisition will allow it to expand into communities such as Whyalla, Loxton and Kadina. One transformation Yasser would like Adelaide to make is to embrace the concept of a cycling city. "I'd also like to do more around being part of cycling this year," he says. It is something I am passionate about when I am not working. From products we sell in-store like tyre repair kits to hydration, and to bike racks outside sites, I'd like to see Adelaide become serious about this. WHEN the news broke on Tuesday, it was both shocking yet also depressingly familiar for retail in this state. Another South Australian household name - Trims - had been forced to call in the administrators as the impact of the tough retail environment in this state continued to bite. Locked doors and signs in the windows of one of the state's best outfitters was evidence that something was not right for a company founded 76 years ago and that had traded through the Depression, wars and the collapse of the State Bank. Three days later came the announcement from administrator Andrejs Strazdins, of BRI Ferrier, that Trims' remaining 30 employees had been laid off and the company would not resume trading - at least until a buyer is found. In recent months, straitened trading conditions have claimed such well-known names as Darrell Lea and potato grower Mondello Farms, while Spring Gully Foods is fighting back from the brink. Administrators say Trims has been experiencing difficulties paying for new stock and a "large number" of suppliers had not been paid. One supplier told the Sunday Mail that Trims began to fall behind with their payments over a year ago. The supplier had ceased supplying the outfitter in recent months and is still owed money. "We've been hit, maybe not as bad as some, but that's essentially what has gone on," the supplier says. It's bloody sad as they were a good customer. Another says they had seen the writing on the wall two or three years ago, while industry sources claim there were discussions about a month ago about the company's future. What is not in question is that, over the past six months, three other Trims stores had closed, including one in Marion two weeks ago, until only the flagship city store remained open. Managing director Russell Trim told the Sunday Mail Trims' predicament was the end result of a loss in consumer confidence that was biting hard as a previously buoyant national economy softened. "You don't have to be a brain surgeon to know that retail in this country is on its knees," he says. Consumers have lost confidence and the node in their brain to spend has disappeared. On Wednesday evening, as administrators continued a stocktake of the company's assets to gauge whether it could pay $2.1 million in debts, Mr Trim nevertheless paid tribute to the loyalty of its customers, suppliers and staff, and reflected on the family's decades in business. It is an inglorious position for a company whose familiar shopfront on the corner of King William and Carrington streets has long personified the strength of SA family-owned retailers. Founded in 1937 by twins Alf and John Trim, Trims began as a gold buyer at the tail-end of the Depression, before morphing into the second-hand trade, retailing, importing and real-estate development. At one time it was also the largest clothes hire business in Australia and even had a suit of armour standing in the shop - although not available to clients. "There were some interesting moments," John Trim said in an interview in 1985. One day a man came into the shop and asked, `Son, do you buy gold?. He opened his kitbag and took out three magnificent gold cups, racing trophies. When I asked his name, he said `J. Cummings' - he was the father of Bart, who was then a struggling young trainer. No one could afford to hang on to such things in those days. Yet Trims has hung on through war, economic downturns, the deaths of Alf and John within six months of each other in 2007 and 2008, and fights with Adelaide City Council over the "visual clutter" created by signage outside its shop. It expanded to shopping centres at Marion, Tea Tree Plaza and Mt Barker and, in many ways, became the quintessential Adelaide outfitter. In 1991, in the grip of Paul Keating's "recession that we had to have," Russell Trim attributed the retailer's continued success to good, old-fashioned hard work. "There's no easy way out of it," he said, explaining the strategy was simply "to put your nose to the grindstone." However, independent retail expert and former Rundle Mall Management Authority general manager Martin Haese says Trims' experience demonstrated how the local retail market had become increasingly difficult for small- to medium-sized retailers. On the one hand, he said, the smaller, more nimble retailers had succeeded in carving out specialist niches. On the other, large national or multinational retailers succeed because of their market dominance, global supply chains and economies of scale. Companies such as Trims have been caught in a pincer in which they are neither large enough to compete with the big boys nor specialised enough to develop a distinct identity among customers. Last year, general manager Justin Trim - the son of Russell and the third generation of the family to be involved in the business - calculated the company dealt with 200 brands and 300 suppliers in any given month. But Mr Haese says businesses are now living in the "age of the specialist." "It's very hard for a retail business to be a mile wide and six inches deep," he says. It's easier to be 18 inches wide and a kilometre deep. Business SA director of policy Rick Cairney says longer-term structural issues are also militating against a recovery among local businesses, with current rates of stamp duty, land tax, company tax and payroll tax raising the cost of trading in South Australia. He says retailers also need to get to grips with the demands of a globalised economy, including the growing need for an online presence. A big sign on Trims' website says "Online store coming soon." Trims has been the subject of furious comment on its Facebook page and on adelaidenow since its closure was announced. A former employee told the Sunday Mail many staff had been upset at negative comments about customer service and supply of stock and were relieved that people finally knew why this had occurred. A creditors' meeting is set for Friday, while administrators have been contacted by groups interested in buying the company. Other options include the Trim family reopening the business or, failing that, the company entering liquidation. In 2008, following the death of his father, Alf, Russell Trim tried to explain the emotional connection many in this state have with the family's business. "Many South Australians have memories of coming into Trims and being able to find and buy many weird and wonderful items unavailable elsewhere," he said.