The forecourt sector continues to evolve as operators up the ante with improved retail offerings and EV charging points.
By Sarah Britton
Forecourts provide over 89,000 jobs for local people and have invested an average of over £11,700 per store – well at least they did when the latest Association of Convenience Stores Forecourt Report was published last year. Since then, there has been a tidal wave of movement as the sector continues to invest and the lines between convenience and forecourt become ever more blurred.
Back in October, Asda completed the acquisition of EG Group’s UK business meaning the retailer would take on hundreds of new convenience stores. This announcement followed the news that Asda had also kicked off its programme to convert 116 convenience Co-op petrol stations to its Asda Express convenience brand.
Since then, Co-op and EG-conversion stores have been opening across the UK, with 24 in Scotland, 310 in England and 22 in Wales.
Penny Petroleum, the UK’s fifth-largest independent forecourt operator, has also been investing in its retail offer. The company, which turned 30 this year, has entered into a long-term partnership with Bestway Retail, part of Bestway Wholesale. The operator already worked with the retail group to optimise its offer on 11 forecourts and retail stores and the new agreement has seen a further 57 stores joining the Costcutter operation to accelerate the customer offer. As part of the plan, the group re-branded its sites to Penny on the Move and joined the Bestway Retail National Account division.
Zuber Issa’s EG On The Move has also teamed up with a convenience operator, as the Co-op expands its franchise offer into forecourts. As part of a trial roll out, the first Scottish store, Nitshill Services in Glasgow, has already launched and will be followed by Portlethen, Aberdeenshire; and Macmerry in Tranent, East Lothian over the summer, in addition to a further four sites in England.
Nitshill Services in Darnley, Glasgow is open 24 hours and includes electric vehicle charging, with the Co-op convenience store offering a focus on fresh, chilled and healthy produce; meal ideas and everyday essentials; prepared sandwiches and food to go. The food service offer at the site also includes branches of Greggs and Starbucks.
The move is part of Co-op’s ambition to grow its franchise business to over 500 sites by 2030.
Issa said: “Following on from this seven-store trial, we look forward to working with Co-op to consider other locations across the network … this partnership not only promises to enhance our convenience store offer but it will also ensure our customers have access to exceptional fuel retail services including electric vehicle (EV) charging, a wide choice of essential and premium grocery and merchandise along with an enjoyable foodservice experience.”
To celebrate turning 70, fuel brand JET has created a series of platinum-themed marketing activities and revealed a retro logo to mark the occasion.
‘JET Petroleum’ was founded in 1954 by Yorkshire businessman John Willy ‘Bill’ Roberts, who named the single service station firm after the licence plate of his first tanker: JET 855. Fast forward to 2024 and JET has grown into a leading brand in the UK, with 307 sites.
The firm will unbox some of its rich heritage, sharing stories from dealers, staff and customers as part of a ‘memory lane’ content series. There will also be a series of platinum Behind the Business dealer interviews, themed merchandise, including totes and t-shirts, and filmed content for social media.
The 70th celebrations will also see the return of the hugely popular Wheel Spins activity.
Meanwhile, the UK’s largest independent forecourt operator MFG is investing an initial £40m into Morrisons forecourts between May and October 2024 following its acquisition of 337 Morrisons petrol forecourts and more than 400 sites across the UK for ultra-rapid EV charging. MFG is refitting the stores with new equipment to provide improved food to go and “a truly convenience led retail offering,” with increased opening hours, alcohol licences where appropriate, and the provision of other services such as the National Lottery.
The group is also planning a full-scale redevelopment of the Morrisons portfolio, which will include valeting centres and the installation of ultra-rapid EV charging hubs. MFG is targeting the installation of 800 ultra-rapid 150kW EV chargers within the first five years alone, which will position MFG as one of the largest ultra-rapid EV charge point operators in the UK, with a landbank of over 1,300 sites.
Not to be left out of this lucrative market, BP has committed to investing up to £1bn by 2030 in the UK’s EV charging infrastructure with 90% of new public charge points being rapid or ultra-fast. And to maximise on its EV sites, BP has been loud and proud about elevating its convenience offer, especially food to go. “We know that as the energy transition progresses, customers and their habits will change,” says the group. “We expect customers will spend more time at our sites in the future, charging their EVs.
“Our challenge now is to work out how we flex our current five-minute grab-and-go offer for a 20-minute customer stay while they charge.”
The company is trialling a Wild Bean Cafe made-to-order ‘food for now’ offer, which will see premium options, such as an avocado, halloumi and egg bap, made fresh on premises, and customers will also have the option to customise their food with a variety of fancy sauces – spicy gochujang ketchup anyone?
Since introducing this concept, the firm claims to have seen a 60% increase in Wild Bean Cafe sales and a 20% rise in transactions at trial sites.
Gulf was thrilled to announce the successful reopening of Gulf Nairn Service Station, thanks to a £100,000+ investment from Certas Energy earlier this month.
The site, which includes a Spar shop, has been fitted out with a new ceiling, flooring and energy-efficient lighting with a bespoke counter to provide an improved shopper experience.
In addition, the chiller space has been expanded and the store now has defined zones for food to go, chilled, alcohol and making a meal.
Sharon Ellen, Spar UK Store Manager, said: “Gulf Nairn is truly the heart of our community. As locals ourselves, we’re overjoyed with the positive feedback on the refurbishment.”
Gulf Retail UK said: “This investment underscores our dedication to enhancing customer experience, strengthening community ties, and supporting our retailers’ success.”
Lumina Intelligence concurs that forecourts offering EV charging must ensure their offer stands out from the crowd. “With an increasing number of consumers opting for home charging, forecourts must differentiate their offerings to remain relevant,” it says.
EV charging can bring greater margins, alongside additional revenue from increased non-fuel spending as EV drivers experience longer dwell time, states OC&C Strategy Consultants’ The Forecourt of the Future 2022 report. “At present, the dwell time for an EV charge is between 30 and 40 minutes,” it says. “In the future, we anticipate this will reduce to between 15 and 20 minutes, but this is still significant compared against the current dwell time of, on average, three minutes.
“Longer consumer dwell times offer the opportunity to develop new retail propositions. These should be tailored to the forecourts’ locations, as consumers on highways will have different needs and expectations to those who are charging in urban areas. For example, forecourts could add value for consumers (and increase revenue) with a range of services appropriate to each site’s location such as click and collect, enhanced shopping experiences and ultra-fast valet services.”
MFG has done just that by signing a new partnership agreement with ME Group to install up to 300 Wash.ME Revolution laundry machines across the UK over the next five years.
The machines give consumers access to self-service, large-capacity (9kg and 20kg drums), energy-efficient, high-speed washing and drying laundry services, 24 hours a day, seven days a week.
With investment in additional services, food to go and ultra-fast EV charging, the forecourt sector is definitely going places.
