Shopping at the company store…

April 21, 2005

Apparently, the retail alternatives in Chattanooga are so meager that long-haul trucking company Covenant Transport (CVTI) has found itself spending a lot more money at its own company store — nearly 50 percent more in 2004. But it’s not really a company store, so to speak since it isn’t run by Covenant. In the company’s recent proxy, it notes that the store, which is run by the step-sister of Covenant’s Chairman and CEO, David Parker, is not only provided space rent-free at Covenant’s headquarters, but is allowed to license Covenant’s service marks at no cost. Covenant’s website doesn’t describe what sorts of items are sold at the store and I haven’t found any Ebay listing for collectible trucks, like the type that Hess sells at Christmas, so we’re probably talking about t-shirts and other small items, like keychains and duffel bags. If so, the $512,000 that Covenant spent last year — up from $350,000 in 2003 — seems like a lot of money to spend on t-shirts and other doo-dads.

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