This might be a good time to consider in general terms what the future shape of UK forecourts might look like, following a year of yoyo-ing fuel sales due to the lockdowns, which has meant the alternative services and reasons for the existence of petrol stations have been wheeled to centre-stage.
Asian Trader looks at forecourts from the perspective of the convenience sector, of course: how far is a gas station similar to an independent grocery store; how is it becoming more or less like one at the same time that c-stores themselves are morphing into something new and strange and fabulous? In an age of food to go (FTG), will convenience eat forecourts or will forecourts gobble up convenience?
And what will happen about the UK Government’s commitment to ban the sale of new petrol and diesel vehicles by 2030, and its proposed £1.3 billion investment in electric charging infrastructure? Is this transformation plausible, with the UK’s domestic energy infrastructure already almost on its knees, and no convincing future policy plan in sight? Or is it just an electric white elephant? Do people actually understand where electricity comes from? And do they also understand the ecological illogicality of using Chinese batteries manufactured using energy generated by the filthiest of coal power-plants?
In December the first electric-only forecourt in the UK opened near Braintree, Essex,with another 99 planned to be built in the UK over the next five years by energy company Gridserve. That compares to 8,380 traditional forecourts – in 1990 there were 20,000! – only a smattering of which already have charge-points. The new electric fuel-station can serve around 40 customers per hour, compared to an average forecourt’s 400. That will be interesting.
The complete conversion of the UK to electric vehicles (EVs) is clearly a long way off, and it will be interesting to see how the UK public debt situation, which has worsened incomparably over the last year, upsets future investment plans, especially with the vast majority of UK drivers resolutely skeptical about the practicality (although perhaps not the virtues) of EVs.
If electric mobility takes off in a really transformational way, how will it affect forecourts? You can get electricity almost anywhere, after all, and it might seem silly to have to visit a “hub” as you did when accessing gasoline. If the government disperses charge points to residences, streets and charged – in both senses – parking spaces, for example, does that effectively disintermediate the fuel-hub model?
And is electricity the only energy option? Volkmar Denner, CEO of Bosch, recently criticised the EU for its EV “fixation”, arguing that saving the planet is not necessarily about the end of old-fashioned engines and that other perfectly viable low-emission alternatives to gasoline, such as hydrogen , are being ignored: “[Climate action] is about the end of fossil fuels,” he said,“and while electromobility and green charging power make road transport carbon neutral, so do renewable fuels.”
Never mind. We wrote two years ago that there were over 4,000 public electric vehicle charging points in the UK and that this figure was expected to increase to 7,900 “soon”. Nissan predicted that “public electric vehicle charging points will outnumber traditional filling stations by the summer of 2020,” and today in 2021 there are indeed more than 35,000 charge point connectors across the UK in over 13,000 locations –“That's more public places to charge than petrol stations, with around 7,000 charge point connectors added in 2020 alone,” according to EDF Energy – the USA can only boast slightly more (41,300). In the UK, at least, EV progress is being made and it remains to be seen what that means for the forecourt model.
But for the time-being we still have something like 99 per cent traditional internal combustion (IC) cars on the roads and they get thirsty, just like their drivers and passengers, every few hours. As a sector of convenience, the forecourt trade in the UK is a vital element of the grocery industry – and increasingly its allied services, such as post offices and pizza. Those elements, together with the new “live locally” ethos bestowed by the pandemic, will probably only get bigger and more important, changing the complexion and fortunes of forecourts for the better – at least in the medium-term.
An important storefront
Something like 30 per cent of independent forecourts are family businesses inherited by their current operators, and 87 per cent of these independent owners operate just one site. The entire forecourt sector provides a significant slice of employment – about 91,000 jobs – and unlike the Asian predominance in c-stores (where in London it is nearly 75 per cent) the proportion of forecourts owned by “white British” is over 70 percent - the rest, 28 per cent, being almost entirely Asian, and this could well rise as convenience merges somewhat with forecourts as grocery and FTG sales increase, and Asian entrepreneurs move in (looking at you, Issa bros, buying up Asda).
Another fact of relevance for the convenience aspect of forecourts is that over 7,300 have shops, ranging from “kiosk” to mini-supermarket, and these are fast and often becoming the focus for local shoppers in many locations where the forecourt is the most convenient destination – closer than a larger supermarket in a rural or residential area, for example. This means that the scope for grocery (together with general household goods, which have seen booming forecourt sales during the pandemic), is enormous. This potential is amplified by the possibilities of FTG sales, which have survived the Great Commuter Vanishing during lockdown, to emerge with a range of new “fairground attraction” fixtures to attract shoppers who might be filling up themselves rather than their vehicles.
The fact is that 44 per cent of forecourts have no other retail or service situated nearby, and a further 33 per cent only have five or less. That means around 80 per cent of forecourts are pretty much standalone and have the potential to monopolise sales in categories needed in a locality, but which are as yet uncatered for. As margin from gasoline is negligible, with fuel serving as an enticement for other sales (the average forecourt shop basket is £6.64 with a lot of headroom), the incentive to provide a magnetic range of higher-margin goods and services – with FTG primary among them – is immense.
Brysons Londis Forecourt, Prestwick
“The forecourt market is in growth and is set to grow by 3.8 per cent, ahead of the 3.2 per cent forecast for the overall convenience market,” says Kenton Burchell, Trading Director at Bestway Wholesale. “Overall forecourt outlets have declined by 0.2 per cent, but there has been a rise of 1.5 per cent where there is a convenience store.”
That might not sound dramatic, but is actually a seven-fold rebalancing at the margin in favour of colourful forecourt-convenience, away from the antiquated “blacksmith’s forge” village fuel-pump model, which perhaps sold de-icer, odd fan belts and a chamois leather.
The outlook is positive in terms of gasoline sales attracting customers, and that in turn is down to the pandemic, as people turn to their cars and shun the risks of public transport: there were recently an unprecedented seven million driving licence applications pending, and that is obviously the younger generation passing up the offer of trains and buses. These are the same future customers who will want Costa Coffee, F’Real milkshakes and a trip to the deli counter or Rustlers microwave (as well as loo roll and John Innes No2).
As lockdown conditions eased after April 12, gasoline sales accomplished 89 per cent of their corresponding week pre-lockdown level, gaining an average 12.5 per cent in a single week (to 18 April) according to figures from the Department for Business, Energy & Industrial Strategy (DBEIS). Clearly, the nation is keen to get back behind the wheel, even if not back on the tube.
There are also drive-thru possibilities to complement the customers who park up to refuel, and the latest trend for Delivered Convenience could have been dreamed up especially for forecourt sites, where a storeroom and loading bay could easily be put up on the extra and often unused space where a workshop or car-wash used to be.
If you add in Amazon and Hermes pick-up, a post office counter, maybe dry cleaning drop-off and key-cutting, a weekly haircutter visit and who-knows what else, a forecourt really could be a convenience and service hub instead of simply somewhere to fill the tank and the belly.
“Petrol stations have the real estate but they just need to reconfigure it to show changing needs. The pandemic has enabled petrol stations to survive beyond what looked like doom and gloom,” said BP’s eMobility innovation director, Sophia Nadur, recently.
“Serving your local community has never been so important,” agrees Burchell. “Food to go and chilled foods are always a key to a successful business, food to go and takeaway have seen growth, along with the need for home delivery. Alongside this we have seen the acceleration of digital and smart technology and its use by consumers e.g. online ordering and apps.”
He also says that there is huge scope for improvement, as the mentality changes from simple retail to service and maximising customer experience: “Businesses always need to be looking to improve. Today’s consumer expects as a minimum great customer service, high store standards, the best hygiene (toilets, functional and immaculately clean).
“Retailers need to focus on what is right for customers by offering the right product at the right price. They need to embrace the reality of electric cars and charging points with purpose-built sites, incorporating cafes, and maybe consider elements such as gyms, workstations etc.”
Practical forecourting
We talked to Nisa, who actually have around 200 forecourt sites among their 2400 stores, to get a look at what taking on a forecourt fascia really feels like and what is involved. Last year, even during a pandemic, Nisa added 60 forecourt sites to their estate.
They said that retailers have the option to operate under a symbol fascia, Nisa Local, Nisa Extra or Nisa Express, or they can go “dual branded”, whereby a Nisa partner can maintain their own identity whilst also benefiting from the Nisa brand. Alternatively, a retailer can trade under their own independent branding.
Nisa’s latest fascia development, Nisa Express, provides a dedicated fascia option and store format for forecourt and smaller convenience sites up to 1,000 sq. ft, offering three unique format options – forecourt, food-centric and essentials – each with a design and range tailored to the store’s specific market.
The new forecourt format ensures all key categories are included for on-the-go and impulse shoppers, including FTG, a vended coffee solution, comprehensive snacking range and a core offering of products to satisfy a top-up customer mission.
Delivered by Nisa, its retailers have a range of more than 13,000 SKUs, including over 2,400 Co-op own-brand products, that offer a recognised quality brand for shoppers. They say the roll-out has been a big success and has included Co-op’s extensive festive product range and the innovative plant-based GRO range. Nisa has also announced an improvement dramatic for H2 2021, a new electronic proof-of-delivery system (e-POD) that will enable a simpler paperless sign off process on delivery.
New Nisa forecourters are provided with a complete support package comprising a strong retail focused team, a staff training facility and a comprehensive marketing package incorporating social media and PR support, bespoke leaflets, point of sale material, a personalised Nisa FM radio network and national advertising – as well as a dedicated induction team to support them during their first 100 days.
Data reveals that forecourt owners investing in new and upgraded stores are enjoying average sales uplifts of 12 per cent.
John Stevenson, Stevenson Forecourts of Northallerton, says:
“We joined Nisa in 2010 and were developing one of our forecourts we’ve had since the mid-80s. We were looking to change our supply partner to one who could supply the best products and range to maximise store turnover.
At the time, Nisa supplied us with a store turnover report, looking at the demographic and competition in the area. Basically, report that Nisa produced we were able to determine the retail size that was required, so we ended up with a 3,000 sq. ft. store, and because it was a good turnover figure from the demographic report we were able to design the merchandising to maximise turnover of the store.
I’m pleased to report that all of our stores are performing as they were predicted to. My family’s been retailing in petrol for over 40 years now and we’ve really been able to personalise the store with things that were important to us and how we wanted it to look. This is our first store that we’ve put a Subway in – we’re now seeing people come trolley shop in a forecourt, get a coffee and now that we’ve got a Subway, sitting down, taking half an hour out, using the wi-fi. Our forecourts are evolving, they’ll always evolve and providing we embrace this we should always stay relevant.”
In the end, though, perhaps the most “electrifying” conclusion is one we highlighted in our last forecourt report: that FTG is the new fuel, along with all the other household needs that can be sited in a relatively spacious local hub you can drive to and charge or fill up at. Thinking again of Blackburn’s dynamic duo, Mohsin and Zuber, with their takeover of Asda (currently under review by the CMA) and their outright purchase of healthy fast food chain Leon a few weeks ago – not to mention their attempt to grab Caffè Nero last November – and it really does appear the writing is on the wall.
Dutch dairy collective FrieslandCampina has agreed to merge with smaller Belgian rival Milcobel, creating a leading dairy cooperative.
FrieslandCampina, whose brands include Yazoo and Chocomel, said the merger will provide the foundation for a future-oriented organisation that has dairy front and centre for member dairy farmers, employees, consumers, and customers.
The proposed merger is subject to approval by FrieslandCampina’s members’ council, Milcobel’s extraordinary meeting of shareholders, and antitrust authorities. The companies said member dairy farmers, employees, works councils and trade unions have been informed about the merger proposal.
Both companies, owned by dairy farmers for many generations, complement each other well in market positions and product portfolios. The merger offers further business development opportunities in market segments such as consumer cheese, mozzarella, white dairy products (such as milk, buttermilk, and yoghurt), and ingredients, as well as benefits in efficiency and expertise, for example in the area of sustainability.
“The combination of FrieslandCampina and Milcobel is bigger than the sum of its parts. It creates a future-oriented, combined dairy cooperative that is resilient and capable of capitalising on opportunities in the dynamic global dairy market,” said Sybren Attema, chair of the board of Zuivelcoöperatie FrieslandCampina.
“This strengthens our appeal to member dairy farmers, business partners and employees. Moreover, this step supports us in realising a leading milk price for our member dairy farmers, now and in the future.”
Betty Eeckhaut, chair of the board of Milcobel, said: “The cooperative philosophy, which is deeply rooted at both Milcobel and FrieslandCampina, is the bedrock for this proposed merger. Our goal remains to create added value for our member dairy farmers.
“Through our regional complementarity we will become the cooperative dairy partner of choice for current and new members, with a solid milk supply for a successful future. For employees, the new organisation provides great opportunities to grow in an international environment. For customers, this merger means more innovation, an expanded product portfolio and further professionalisation of our services.”
Based on the combined 2023 annual figures of FrieslandCampina and Milcobel - excluding Milcobel's Ysco business, which is in the process of being divested - the new, combined organisation has a pro forma revenue of more than €14 billion (£11.6bn) , operates in 30 countries, employs nearly 22,000 staff worldwide, and processes a total volume of approximately 10 billion kilograms of milk.
The boards of the cooperatives and executive management of the two parties have signed a framework agreement regarding the proposed merger. The companies aim to finalise a detailed merger proposal in the first half of 2025, which will then be discussed with the members of FrieslandCampina and the shareholders of Milcobel.
The UK government has pledged stronger measures to combat anti-social behaviour and shoplifting, which it acknowledges as serious crimes that disrupt communities and harm businesses.
Addressing a House of Lords debate on Monday, Home Office minister Lord Hanson detailed plans to abolish the controversial £200 shoplifting threshold and to introduce a new offence for assaults on retail workers.
“Anti-social behaviour and shop theft are not minor crimes. They cause disruption in our communities,” Lord Hanson stated.
“Shop theft in particular costs retailers across the nation millions of pounds, which is passed on to us as customers, and it is not acceptable. That is why, on shop theft, we are going to end the £200 effective immunity. For shop workers, we will protect them by introducing a new offence, because they are very often upholding the law in their shops on alcohol, tobacco and other sales.”
He also emphasised the government’s commitment to restoring visible neighbourhood policing, with 13,000 additional officers and Police Community Support Officers (PCSOs) planned, as well as piloting new “respect orders” to ban repeat offenders from town centres.
Later on Wednesday, the home secretary announced a £1 billion funding boost for police across England and Wales to restore neighbourhood policing. The money will include new funding of £100 million to kickstart the recruitment of 13,000 additional neighbourhood officers, community support officers and special constables.
The debate was initiated by Labour peer Baroness Ayesha Hazarika, who painted a vivid picture of the toll anti-social behaviour takes on workers and communities. “Many people who work in shops feel like they are living in a war zone,” she said. “Anti-social behaviour can so often be the canary down the coal mine and tell a wider story about what kind of society we are living in.”
Baroness Hazarika also urged the use of technology such as facial recognition to target hardened criminals responsible for terrorising shops and local residents.
Lord Hanson agreed, adding that the government is equipping police with the resources to better address persistent offenders, including funding initiatives like Operation Pegasus, which targets organised retail crime.
Retail trade union Usdaw has welcomed the Lords debate tackling anti-social behaviour and shoplifting.
“We very much welcome that Baroness Hazarika has raised this hugely important issue for our members. It is shocking that over two-thirds of our members working in retail are suffering abuse from customers, with far too many experiencing threats and violence,” Paddy Lillis, Usdaw general secretary, said.
“After 14 years of successive Tory governments not delivering the change we need on retail crime, we are pleased that the new Labour government announced a Crime and Policing Bill in the King’s Speech and all the measures that it contains, as set out by Lord Hanson.
“The chancellor announced in the Budget funding to tackle the organised criminals responsible for the increase in shoplifting, and the government has promised more uniformed officer patrols in shopping areas. It is our hope that these new measures will help give shop workers the respect they deserve.”
In response to the mounting pressures faced by postmasters across the UK, the Post Office has unveiled a centralised wellbeing platform aimed at simplifying access to support resources.
Post Office said the surge in shoplifting and violent incidents, documented in the 2024 ACS Crime Report, has only intensified the demand for comprehensive support.
With shoplifting on the rise year-on-year since 2021, and the Christmas trading period presenting heightened risks due to increased footfall and stock levels, the wellbeing of postmasters has become a pressing concern.
The new wellbeing platform, accessible via the Branch Hub app, provides a single point of access to a range of resources designed to meet Postmasters' immediate and ongoing needs. It is divided into three sections:
‘I Need Help Right Now’: Offers urgent support, including access to emergency services, mental health first aiders, , area and business support managers and organisations like Samaritans.
‘More Support and Guidance’: Provides practical tools such as security advice, social media abuse resources, and connections to organisations like Citizens Advice and Mind.
‘Access Community Support’: Encourages peer connections through WhatsApp and Facebook groups, as well as in-person meetings.
The initiative, a collaboration between the Post Office, the National Federation of Sub-Postmasters (NFSP), and Voice of the Postmaster, underscores a shift towards a more cooperative approach between historically independent groups, and creates a shared wellbeing network that is accessible to all postmasters, regardless of affiliation.
Mark Eldridge, postmaster experience director at Post Office, said the initiative will ensure that anyone who needs help can find it quickly and easily.
“It’s about creating a culture of care and resilience in the face of the challenges our postmasters face every day. If the initiative means helping just one postmaster, then we have done our job successfully,” Eldridge added.
Tony Fleming, postmaster at Thorne Post Office, shared how the initiative provided vital support following a traumatic armed robbery at his branch.
“It was incredibly difficult for the person faced with this violent threat, as well as the wider team. It’s a traumatic experience to go through as part of your day job and having the immediate support of the Wellbeing resource was invaluable – it really was wellbeing personified and gave me and everyone in the branch the support to get back to doing what we do best, serving our fantastic community in Thorne,” Fleming said.
Paul Patel, a Hampshire-based postmaster, echoed this sentiment, highlighting the platform’s ability to combat isolation and foster collaboration:
“It has been a difficult time for all postmasters who continue to serve their communities every day often feeling alone in their daily work life. It’s such a privilege to collaborate across the network to support Postmasters wellbeing from forming friendships to guiding for more professional support.”
Christine Donnelly of the NFSP highlighted the initiative’s accessibility and symbolic value.
“From a postmaster perspective this works on several levels. It is an easily accessible resource that offers advice and facts, but it also says by implication that we care, that participants from different areas of the business recognised a need and worked together to make it the best it could be,” Donnelly noted.
“It says you are not alone or the only one - how can you be if there is a whole site available?”
The Post Office plans to evolve the platform based on postmaster feedback, ensuring it remains relevant to emerging challenges.
Earlier this week, Post Office has announced a £20 million boost for postmasters to address their concerns that their income has not kept up with inflation over the past decade.
Both independent postmasters and Post Office’s retail partners that operate branches on its behalf will receive the top-up payment ahead of Christmas. The top-up payment will be based on both the standard fixed and variable remuneration the branch received in November.
Independent retailers have weathered one of their most challenging years in 2024, with multiple headwinds affecting the sector, according to the British Independent Retailers Association (Bira).
With pressures mounting throughout the year, independent retailers have faced an increasingly difficult trading environment marked by changing consumer behaviour and economic uncertainties.
"2024 has presented unprecedented challenges for independent retailers,” said Andrew Goodacre, CEO of Bira. “Consumer spending on non-food items has declined significantly, while persistent footfall problems and fragile consumer confidence have impacted high streets nationwide. Despite inflation coming under control, interest rates are falling slowly, affecting both business and consumer spending."
"The retail landscape has become increasingly competitive, with large chains implementing deeper and longer discount periods. The rise of ultra-fast fashion retailers like Shein and Temu has created additional pressure on margins, whilst deflation on non-food items has further squeezed profits," he added.
The sector has also grappled with retail crime, with Bira's latest survey showing 78.79 per cent of businesses reporting increased frequency or severity of theft incidents.
Research from PwC earlier this year also highlighted the scale of the challenge, with 6,945 outlets shutting – equating to 38 store closures per day, up from 36 per day in 2023. The figure outnumbered the rate of new store openings, which rose modestly to 4,661, averaging 25 openings each day.
Mr Goodacre said: "The key difficulties independent retailers are grappling with include low consumer demand, as consumer confidence remains fragile and shoppers are highly value-focused. Independent shops struggle to compete on price as large chains are able to discount more deeply and for longer periods."
Looking ahead to 2025, retailers face new challenges. He added: "Medium-sized retailers will see a significant increase in employment costs, while thousands of smaller retailers will be hit with higher business rates as relief drops from 75per cent to 40 per cent."
However, Mr Goodacre said he sees reasons for optimism and added: "We expect 2025 to bring some positive changes. Wages are set to rise faster than inflation, which should boost consumer spending. Both inflation and interest rates should continue to fall, helping to rebuild consumer confidence."
"The circular economy presents a growing opportunity for independent retailers, and with economic growth set to improve, we anticipate better trading conditions. While challenges remain, independent retailers who stay adaptable and resilient will find opportunities in the year ahead."
Nestlé Waters is facing a potential halt to its production of the iconic Perrier mineral water in southern France due to health risks, French media reported.
A confidential report published by French newspaper Le Monde and Radio France revealed that health authorities are recommending a production stoppage due to concerns over the sanitary quality of the water source.
Le Monde said the sparkling water brand, obtained at its source in Vergèze in the Gard prefecture, is under threat of losing its natural mineral water label, noting that “a confidential report from the Occitanie regional health agency leaves little room for any other outcome” and that the “blow could be fatal for Perrier”.
The report, citing an inspection conducted at the Perrier bottling plant in Vergèze, highlights the “regularly degraded sanitary quality” of the water catchment areas. Specifically, the report points to a “virological risk” associated with the water source.
In response to the findings, the regional health agency (ARS) has “invited” Nestlé Waters to “strategically consider another possible food use for the current mineral water catchments,” contingent upon the provision of “additional health safety guarantees.”
Nestlé Waters has not yet issued a formal statement regarding the potential production stoppage. However, the company has previously acknowledged contamination issues at the Vergèze site. In April this year, authorities ordered the destruction of millions of Perrier bottles due to “fecal” contamination detected in one of the water sources.
“Presented at the time by Nestlé and the prefecture as a one-off event linked to intense rainfall, this situation was in fact the consequence of a general deterioration in the quality of the groundwater exploited by Nestlé at Vergèze,” said Le Monde.
The future of the brand and its production site in Vergèze will be decided by the Gard prefecture, which must rule on Nestlé’s application in October 2023 to renew the operating permit for the ‘Perrier spring’. The prefecture told the paper that the decision could be made in the “first half of 2025” after receipt of an “opinion by approved public health hydrogeologists”, in addition to the ARS report.
Earlier in September, Nestlé Waters has agreed to pay €2 million (£1.7m) to close French probes over illegal wells and treatment of mineral water.
The deal ends preliminary probes into the use of wells without authorisation and fraud for filtering its mineral waters - a practice that is illegal in France where mineral waters are supposed to be natural.
The Swiss group will in addition spend €1.1m over two years on projects to restore the environment in several French towns where it operates.