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.
As industry leaders is cash handling, Volumatic has long supported the use of cash and the importance of maintaining access to cash for both consumers and businesses. The company recognises the importance of the new set of rules created by the Financial Conduct Authority (FCA) two months ago, to safeguard access to cash for businesses and consumers across the UK.
Since introduction, the new rules are intended to ensure that individuals and businesses who rely on cash can continue to access it and the outcome has already sparked the creation of 15 new banking hubs across the UK, including one in Scotland, with many more to follow.
These hubs provide shared spaces for consumers to access basic services, such as depositing and withdrawing cash, and are being embraced by businesses keen to support the use of cash, who have been struggling in recent years due to the flurry of bank closures across the UK.
With this in mind, Volumatic welcomes the increase in banking hubs and other facilities but recommends businesses go one step further to make things even easier.
“We have known for some time that more and more people are using cash again on a daily basis and so it’s great that access to cash is being protected by the FCA, something that we and others in the industry have been campaigning for, for a long time,” said Volumatic’s Sales & Marketing Director Mike Severs. “Both businesses and consumers need to have easy and local access to cash, and these new rules ensure cash usage continues to rise and will encourage more businesses to realise that cash is still an important and valid payment method.”
With time being of the essence for most businesses, making a journey to the nearest bank, banking hub or Post Office isn’t always possible on a daily basis, plus there is the obvious security risk to both the money and the individual taking it to consider.
Volumatic offers integration with the G4S CASH360 integration
Volumatic’s partnership with G4S, announced back in April 2024, means every business dealing in cash anywhere in the UK can have access to a fully managed solution. This will be especially relevant to those who currently have to walk or travel a distance to a bank or PO to deposit their cash.
Severs adds: “Although having more banking facilities is fantastic news, Volumatic can help businesses even more by bringing the bank to them through an investment in technology like the CCi that can offer integration with the G4S CASH360 solution. Together, we make daily cash processing faster, safer, and more secure and the combination of solutions will save businesses time and money for years to come, making it a truly worthwhile investment.“
Volumatic offers a range of cash handling solutions, with their most advanced device being the CounterCache intelligent (CCi). This all-in-one solution validates, counts and stores cash securely at POS, with UK banks currently processing over 2.5 million CCi pouches each year. When coupled with the upgraded CashView Enterprise cash management software and its suite of intelligent apps, the Volumatic CCi can offer a full end-to-end cash management solution – and now goes one step further.
It does this by providing web service integration with other third-party applications such as the CASH360 cash management system, provided by the foremost UK provider of cash security, G4S Cash Solutions (UK).
“Ultimately, only time will tell how successful the FCA’s new rules will prove. In the short amount of time the new legislation has been in place, the signs are already looking good, and coupled with the new technology we offer, it is a good thing for businesses and consumers alike in the ongoing fight for access to cash and more efficient cash processing,” concludes Severs.
Retail technology company Jisp has launched an NPD service as part of its new Direct to Retailer business unit.
The new NPD service will allow brands to launch or trial new products in a guaranteed number of convenience store locations, with on the ground review of execution by Jisp’s retail growth manager team, and performance data and insights deliverable through its scanning technology and back-office systems.
Brands will also be able to draw on retailer and consumer feedback on the product and its performance thanks to Jisp’s significant resource in user communication, with over 1,000 retailers and more than 100,000 registered shoppers.
Brands can set the parameters of the NPD activity delivered through Jisp’s new service, selecting the duration of the campaign, the number of stores to launch into and even the geographic spread or demographic make-up of the stores included.
Product merchandising and promotional execution in store is monitored by the Jisp RGM team and full reporting is available to help brands better understand the success of their new product and shape future promotional strategy.
This robust data and insight set means that Jisp can not only provide a reliable view of what is selling in stores, but through its scanning technology can also indicate who is buying the product, when, where and why.
Alex Rimmer
“As part of our recent strategic review and restructure, we identified five key pillars of growth, or business units through which to drive new business,” said Alex Rimmer, director of marketing & communication at Jisp.
“Our existing core business already provided us the means to develop new services efficiently and through discussions with major brands, retailers, wholesalers and industry authorities, we identified a need for guaranteed implementation and execution of NPD in the convenience sector.”
Compliance is further assured using Jisp’s Scan & Save scanning technology along with a retailer reward scheme which pays stores for their participation and commitment to the process.
With 1,000 stores already registered with Jisp, the company is in talks with other businesses about opening the new NPD service to their stores given the benefits of securing NPD and reward for execution.
“This is a Win-Win for the sector,” added Alex Rimmer. “Brands can create a bespoke NPD launch campaign with a guarantee that their product will be instore, on shelf and correctly merchandised and promoted, receiving actionable data and insight to shape future strategy. Retailers secure access to NPD, support in merchandising it and reward for taking part, while customers find more local touch points where NPD from their favourite brands are available.”
With this new service promising to be such a valuable asset to the market, retailers and brands are encouraged to contact Jisp to capitalise on the opportunities.
Tesco is slashing the price of more than 222 own-brand and branded products in its Express convenience stores.
Essentials including milk, bread, pasta and coffee are included in the lines which have been reduced in price by an average of more than 10 per cent at Tesco Express stores. The retail giant has made more than 2,800 price cuts across stores in recent months. With 2,048 of convenience stores at the end of the 2023-24 financial year, Tesco aims to benefit hundreds of thousands of customers from the cheaper deals.
The firm said the move comes in the wake of more than 2,800 price cuts made by the chain across its stores in recent months. From Wednesday, customers will pay £1.45 for a four-pint bottle of milk at their local Tesco Express store (down from £1.55) and a Tesco Toastie White Thick White Loaf is also 10p cheaper at 75p.
There are even bigger savings on Tesco Chicken Breast Portions (300g), which have dropped in price by 25p to just £2.25 and a 200g jar of Tesco Gold Instant Coffee now also costs 25p less at just £2.25. Among the branded products with price cuts are Warburtons White Sliced Sandwich Rolls, with the price of a six-pack cut by 10p to just £1.20 and Domestos Original Bleach 750ml, which is now just £1.19 in Express stores after an 11p price cut.
Tesco CEO Ken Murphy said, “Today’s round of price cuts on more than 200 lines in our Express stores underlines our commitment to offering great value to Tesco customers.
"Whether you are picking up coffee and milk for the office or a loaf of bread and a tin of soup on the way home, our Express stores offer both convenience and great value.”
This comes a week after One Stop, the convenience store chain owned by Tesco, has reported a surge in sales to nearly £1.3bn during its latest financial year. The Walsall-based company posted a revenue of £1.29bn for the 12 months to 24 February, 2024, an increase from the previous year's £1.17bn. Over the course of the year, the number of stores directly operated by One Stop increased from 712 to 733, while its franchised locations also grew from 291 to 317.
1. One in five people who have successfully quit smoking in England currently vape, with an estimated 2.2 million individuals using e-cigarettes as a smoking cessation tool.
2. The increase in vaping among ex-smokers is largely driven by the use of e-cigarettes in quit attempts, with a rise in vaping uptake among people who had previously quit smoking for many years before taking up vaping.
3. While vaping may be a less harmful option compared to smoking, there are concerns about the potential long-term implications of vaping on relapse risk and nicotine addiction. Further research is needed to assess the impact of vaping on smoking cessation outcomes.
ABOUT one in five people who have stopped smoking for more than a year in England currently vape, equivalent to 2.2 million people, according to a new study led by UCL researchers.
The study, published in the journal BMC Medicine and funded by Cancer Research UK, found that this increased prevalence was largely driven by greater use of e-cigarettes in attempts to quit smoking.
However, the researchers also found a rise in vaping uptake among people who had already stopped smoking, with an estimated one in 10 ex-smokers who vape having quit smoking prior to 2011, when e-cigarettes started to become popular. Some of those smokers had quit for many years before taking up vaping.
The study looked at survey data collected between October 2013 and May 2024 from 54,251 adults (18 and over) in England who reported they had stopped smoking or had tried to stop smoking.
“The general increase in vaping among ex-smokers is in line with what we might expect, given the increasing use of e-cigarettes in quit attempts. NHS guidance is that people should not rush to stop vaping after quitting smoking, but to reduce gradually to minimise the risk of relapse,” lead author Dr Sarah Jackson, of the UCL Institute of Epidemiology & Health Care, said.
“Previous studies have shown that a substantial proportion of people who quit smoking with the support of an e-cigarette continue to vape for many months or years after their successful quit attempt.
“However, it is a concern to see an increase in vaping among people who had previously abstained from nicotine for many years. If people in this group might otherwise have relapsed to smoking, vaping is the much less harmful option, but if relapse would not have occurred, they are exposing themselves to more risk than not smoking or vaping.”
For the study, researchers used data from the Smoking Toolkit Study, an ongoing survey that interviews a different representative sample of adults in England each month.
The team found that one in 50 people in England who had quit smoking more than a year earlier reported vaping in 2013, rising steadily to one in 10 by the end of 2017. This figure remained stable for several years and then increased sharply from 2021, when disposable e-cigarettes became popular, reaching one in five in 2024 (estimated as 2.2 million people).
The researchers found, at the same time, an increase in the use of e-cigarettes in quit attempts. In 2013, e-cigarettes were used in 27 per cent of quit attempts, while in 2024 they were used in 41 per cent of them.
Senior author Professor Lion Shahab, of UCL Institute of Epidemiology & Health Care, said: “The implications of these findings are currently unclear. Vaping long term may increase ex-smokers’ relapse risk due to its behavioural similarity to smoking and through maintaining (or reigniting) nicotine addiction. Alternatively, it might reduce the risk of relapse, allowing people to satisfy nicotine cravings through e-cigarettes instead of seeking out uniquely harmful cigarettes. Further longitudinal studies are needed to assess which of these options is more likely.”
Independent retailers association Bira has held a meeting with members of the Treasury team to discuss concerns following its robust response to the Government’s recent Budget announcement.
The Budget, labelled by Bira as "devastating" for independent retailers, was met with widespread indignation from Bira members.
Andrew Goodacre, CEO of Bira, said: “Thank you to all the members who have shared their thoughts on the impact of the budget. Based on this feedback, Bira has been robust in its response and judgement of the budget, especially where it is hurting the medium sized independents by as much as an extra cost of £200K per annum.
“We have also held a meeting with members of the Treasury team to discuss our concerns. Whilst there were no indications that any changes would be made, our concerns were listened to.
“We also discussed the proposed reform to business rates which is due to be in place for April 2026. It was clear from the meeting that Bira will be fully involved with this reform.”
Bira, representing over 6,000 independent retailers across the UK, earlier stated that the reduction in business rates relief from 75 per cent to 40 per cent (capped at £110k) from April 2025 will more than double costs for many retailers.
As a post-budget reaction, Goodacre said on Oct 30, "This is without doubt the worst Budget for independent retailers I have seen in my time representing the sector. The government's actions today show complete disregard for the thousands of hard-working shop owners who form the backbone of our high streets.
"Small retailers, who have already endured years of challenging trading conditions, now face a perfect storm of crippling cost increases. Their business rates will more than double as relief drops from 75 per cent to 40 per cent, while they're hit simultaneously with employer National Insurance rising to 15 per cent and a lower threshold of £5,000, down from £9,100. Add to this the minimum wage increase to £12.21, and many of our members are telling us they simply cannot survive this onslaught."