The traditional drivers of forecourt business are in decline so operators must focus more on building their retail offering by catering for the needs of local convenience shoppers, Palmer and Harvey (P&H) is warning in today’s Independent Retail News.
The leading wholesaler has published its first Forecourt Report that aims to set out the challenges and opportunities facing petrol stations whose numbers have declined by 11,000 over the past two decades.
The report says the changing nature of forecourt retailing is evident from the fact that “many new-builds are based around the shop rather than around the pumps and are significantly larger than their older, fuel-only brethren”.
Chris Etherington, chief executive of P&H, said: “The opportunity for forecourts lies in capitalising on trends towards impulse shopping, food-to-go and fresh food offers as well as improving and streamlining extended services.
“The real opportunity lies in introducing fresh format executions centred around specific shopper missions, understanding what is fuelling the change in forecourt retailing, what the rules of attraction are and applying a new, informed category vision,” he said.
The report points out that big earners, such as fuel, tobacco and newspapers and magazines, are in decline so “many operators are looking to their convenience offering as the best way to arrest the likely fall in revenue”.
“The factors that drive changes in convenience shopping are also helping to transform the forecourt sector. Consumers want value-for-money and will actively seek out promotions while simultaneously demanding a clean and tidy store, excellent, friendly service and a wide range of products,” said P&H, which has a strong presence in the independent forecourt sector through its Mace symbol group.
Looking ahead, P&H says long-term success will be down to operators relying less on traditional products and knowing their local market and adapting stock and service to match it. They will also need to offer value-for-money and promotions and to look hard at the food-to-go offering “because it is a big growth sector”. Retailers “need to understand that the customer is in charge”, says P&H.
