Driven to succeed

We look at the growth of the forecourt sector and explore key areas of investment.

It’s full speed ahead for the UK forecourt sector, which hit value sales of £5bn in the last year, excluding fuel, according to the ACS Forecourt Report 2024.

Development within the sector continues at a pace, with leading independent forecourt operator, Motor Fuel Group (MFG), reporting in November that it had completed its initial £40m upgrade of Morrisons forecourts, including more than 50 sites in Scotland.

The investment follows the acquisition of 337 Morrisons petrol forecourts, including outlets in and around Aberdeenshire, Inverness, Ross and Cromarty, Fort William, Ayrshire, Lanarkshire, Dumfries, Edinburgh and Glasgow, as well as more than 400 sites across the UK for ultra-rapid electric vehicle (EV) charging in April 2024.

Further afield, Parfetts entered the arena last month with the launch of its new Shop & Go symbol group designed specifically for forecourts and commuter locations. Parfetts, which has depots in the Midlands and north of England, has created the new format to cater for time-sensitive shopper missions. Stores will offer a bespoke product range and tailored promotions, with a strong focus on impulse confectionery, snacks, soft drinks, food to go, along with beers, wines, and spirits.

Meanwhile, Zuber Issa’s EG on The Move continues to grow, having acquired 98 sites across the UK from Applegreen. The deal achieves a wider presence across the South of England, bolstering the business’s total sites to almost 150. As part of the deal, all 1,142 of Applegreen’s UK petrol filling station roles will be retained, bringing the EG On The Move employee headcount to 4,500, according to law firm Freeths, which advised on the purchase.

Transformative tech

The ACS’s latest forecourt report revealed that retailers invested almost £19,000 on average per store last year, compared to less than £12,000 in the previous year. Key areas for investment include refrigeration, technology and till systems, as forecourt operators strive to remain competitive amidst fierce competition, reports the ACS.

For Spar Lanark Way in Belfast, Northern Ireland, investing technology has been an absolute gamechanger.

The family-owned convenience store run by father and son Karl and Ross Hunter has been operating under the Henderson umbrella for approximately eight years. Located in a transient area, the outlet attracts both local residents and visitors, particularly during busy morning and evening hours. The introduction of an alcohol licence has improved weekend trade, reflecting a shift from a high fuel volume store to a more diverse retail environment.

Ross explains that before implementing the new tech, the outlet faced several operational challenges. Staffing issues were a primary concern, as the store struggled to hire and retain staff, especially during peak hours, leading to long queues and inefficient service. Additionally, managing cash transactions was labour intensive and time consuming, as handling cash shortages diverted staff away from customer-facing roles. These staffing and cash handling inefficiencies contributed to a reliance on traditional checkouts, resulting in delays that negatively impacted overall customer satisfaction.

Electronic shelf-edge labels (ESELs) have significantly improved operations and customer satisfaction at Ross’s store. Previously, pricing updates were labour intensive and prone to error, with staff often struggling to identify products correctly when using paper labels. ESELs have streamlined this process, allowing staff to update prices efficiently and accurately. This shift reduces the chances of mislabelling products, minimising customer confusion and complaints about incorrect prices. Additionally, ESELs save valuable staff time, freeing employees to focus on more value-adding tasks rather than manual label replacements. ESELs have enhanced both staff ease of use and promotional capabilities within the store.

Implementing self-checkout systems in the store brought several key benefits. Queue times significantly decreased, improving customer flow and reducing wait times. By automating the checkout process, the store was able to reallocate staff to other essential tasks, boosting overall efficiency and enhancing the customer experience.

Additionally, the integration of the Glory CI-10 Cash Recycling Solution improved cash management, reducing losses and increasing accuracy and security. Ross claimed that approximately 70-75% of transactions now occur through self-checkout, a high adoption rate attributed to effective staff training and efficient customer flow management during peak times.

Looking forward, Ross plans to continue optimising its operations by possibly expanding its use of Glory systems to further enhance cash management processes. He emphasised the importance of aligning technology with operational needs, suggesting a careful evaluation of future investments in technology based on existing efficiencies.

Furthermore, the implementation of the Glory Cash Recycling Solution significantly improved customer experience and operational efficiency. Reduced waiting times and enhanced service quality led to higher customer satisfaction. Additionally, the system allowed staff to focus on other operational areas, increasing productivity and overall store management.

Improved cash handling was another key benefit, as the Glory solution effectively managed cash transactions, reducing theft and inaccuracies. Ross noted that while cash transactions initially accounted for approximately 50% of sales, the introduction of self-service options enabled a smoother transition to electronic payments, further streamlining the cash handling process.

By addressing staffing challenges, improving customer experience, and enhancing cash handling processes, the store has not only optimised its operations but also positioned itself for future growth in a competitive market.

The full package

Another way that forecourts are advancing is by offering more additional services. The ACS reports that 27% of forecourt operators offer a parcel collection point.

“Convenience is key for consumers today,” says Matthew Fearn, Head of Network Sales at InPost UK. “As they battle with their often-hectic daily schedules, many are now looking to their local community stores for products and services that extend beyond traditional food and drink sales.

“Forecourt retailers are uniquely positioned to offer a range of vital services for consumers. One great example of this is out-of-home delivery services, such as an InPost Locker, which provides a range of benefits for both retailers and their customers.”

InPost claims that its lockers can increase footfall and grow overall sales as customers using the lockers often make additional purchases when visiting the stores. In fact, over half (58%) of InPost Locker users bought something in the forecourt shop when using the lockers, with almost a third (28%) spending up to £49 (based on 7,054 InPost Locker users at forecourt landlord-owned locations in December 2024).

The convenience of collecting and returning parcels while refuelling, or shopping for daily essentials, can make a forecourt a go-to location for consumers, as it makes an already convenient stop-off even more so. In a recent survey, 74% of users said that the InPost Locker made their visit to the petrol station more convenient, and more than half (56%) said they’re more likely to visit their local forecourt because it has an InPost Locker (ibid) highlighting their strong appeal.

“Incorporating InPost Lockers into a forecourt retail space can offer significant advantages, from increased customer footfall and additional revenue streams to enhanced customer satisfaction,” says Fearn. “With no direct costs and minimal space requirements, it’s a strategic move that can set a business apart from the competition.”