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Opportunities in the UK Independent Forecourt Sector

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Opportunities in the UK Independent Forecourt Sector
Table of Contents

    INTRODUCTION

    5

    EXECUTIVE SUMMARY

    6

    MAIN REPORT

    24

    1. Guide to Changing Forecourt Ownership Structure

    25

    1.1 Current Ownership Arrangements: COCO, CODO and DODO Sites

    25

    1.2 Cyclical Changes in Ownership and Recent Developments

    34

    1.3 UK Forecourt Sector Market Breakdown

    37

    2. Developing the Convenience Offer Alongside Fuel

    41

    2.1 The Balance between Fuel and Shop

    41

    2.2 Prioritisation of Convenience Offer Over Fuel

    42

    2.3 The Role of Fuel: Canopy Brands and Fuel Types

    48

    2.4 The Difference between Standalone Convenience and Forecourt Convenience

    54

    2.5 Forecourt Owners: More Time to Think

    60

    2.6 The Growth of the Forecourt Multiple

    62

    3. The Forecourt Store Customer

    63

    3.1 Forecourt Customer Categorisation

    63

    3.2 Target Customer Groups: Shop Only, Regular Commuters and Females

    65

    3.3 Average Spend, Impact of High Fuel Price, Seasonal Variation and Day Part

    69

    4. Category Priorities

    74

    4.1 Increasing Diversity: "There isn’t a Single Product You Can’t Sell"

    74

    4.2 Impulse remains Key

    74

    4.3 Car Accessories

    78

    4.4 Fresh & Chilled Food

    80

    4.5 Hot Food & Foodservice

    82

    4.6 Alcohol

    86

    4.7 Flexing the Range

    88

    5. Route to Store: Food and FMCG Buying and Distribution Channels

    92

    5.1 Buying Channels and Levels of Discipline

    92

    5.1.1 Supermarket Owned Forecourts

    92

    5.1.2 Oil Company Owned Forecourts

    93

    5.1.3 Dealer Owned Forecourts

    96

    5.2 Distribution Channels and Key Suppliers

    100

    5.2.1 Delivered Wholesale and Cash and Carry

    100

    5.2.2 The Local Supermarket

    104

    5.2.3 Van Sales

    105

    5.2.4 Direct from Manufacturer

    106

    5.3 Ordering Methods

    107

    5.4 EPOS and Back Office Systems

    108

    5.5 Ensuring Availability

    110

    5.5.1 Minimal Stock Levels

    110

    5.5.2 Delivery Frequency

    111

    5.5.3 Availability Issues & the Back-Up Supplier

    113

    6. Symbols: Attitudes and Behaviours

    116

    6.1 Symbol Arrangements

    116

    6.2 Symbol Representation in Forecourt Sector

    117

    6.3 Attitudes to Symbols: Forecourt Multiples and Lakeside/Hazelwood

    118

    6.4 Motivations to Join a Symbol: A Change in Identity

    121

    6.5 Are Non-Symbols Planning to Join?

    123

    6.6 Attitudes to Specific Symbol Groups & Reasons for Joining

    125

    6.7 Member Satisfaction Levels and Buying Loyalty

    128

    7. Pricing and Promotions

    132

    7.1 General Pricing Strategies and Strategy Drivers

    132

    7.2 Price Marked Packs (PMPs)

    139

    7.3 The Role of Promotions

    143

    7.3.1 How Many Retailers Run Promotions and How Many Promotions Are Run?

    143

    7.3.2 What Type of Promotions are Sought?

    146

    7.4 Marketing the Offer: Leaflets, Loyalty Cards and Display Units and Materials

    150

    7.4.1 The Consumer Leaflet

    150

    7.4.2 Fuel Cards

    150

    7.4.3 Point of Sale and Display Units

    152

    8. Managing Relationships with Retailers: Discipline and Communication Channels

    156

    8.1 Retailer Backgrounds

    156

    8.2 Ethnicity and its Impact on Communications

    158

    8.3 Channels of Education: Oil Company, Forecourt Multiple, Delivered Wholesaler

    161

    8.4 The Manufacturer Rep

    167

    8.5 The Role of Literature Received

    175

    8.6 The Role of Exhibitions

    179

    8.7 The Role of Websites

    183

    9. Refurbishment and Store Development

    187

    9.1 Refurbishment at Each Level of the Market

    187

    9.2 The Role of Symbols

    189

    9.3 Store Extensions: The 2500 sq ft Ideal

    190

    9.4 Refurbishment Spend

    192

    9.5 Refurbishment by Ownership

    195

    9.6 Barriers to Investment: Short-Term Leases and Aging Retailers

    197

    9.7 Removing the Pumps: Conversions to Standalones and Washing Centres

    197

    10. The Impact of Crime and Security Measures and Chip and Pin

    200

    10.1 Petty Theft: Effects on Ranging, Pricing and Product Positioning

    200

    10.2 Burglary: Effect on Retailer Perceptions of Cigarettes and Cigarette Manufacturers

    203

    10.3 Store Opening Hours and Closed Door Policies

    205

    10.4 Drive-Offs

    208

    10.5 What Influences Drive-Off Levels? Location, Forecourt Design and Store Ownership

    210

    10.6 Independent Forecourt Multiples: Security Systems with Marketing Applications

    213

    10.7 Balancing "No Means of Payment" and "The Customer is Always Right"

    215

    10.8 Security Forums: Dealer, Oil Company and Supermarket Retailers Unite

    216

    10.9 Chip and Pin

    217

    11. Outside Payment Terminals and Forecourt Parking

    222

    11.1 Outside Payment Terminals

    222

    11.2 Unclogging the Pumps: The role of Split Canopies

    227

    11.3 Developments in Parking

    230

    12. Staffing and Delegation

    234

    12.1 Staffing Issues

    234

    12.2 Delegation: Staff input in Buying Decision Making

    241

    12.3 The Staff Spec: Shop or Forecourt Experience Required?

    243

    12.4 Training

    246

    13. Forecourt Multiple and Forecourt Collective Profiles

    249

    13.1 Forecourt Multiples

    249

    13.1.1 Fuelforce Ltd

    250

    13.1.2 J R Rix & Sons Ltd

    253

    13.1.3 Malthurst Ltd

    254

    13.1.4 Margram Service Stations Ltd

    256

    13.1.5 MPK Garages Ltd

    257

    13.1.6 Petrol Express Ltd

    259

    13.1.7 Snax24 Ltd

    260

    13.2 Hazlewood & Lakeside Best Practice/Informal Buying Groups

    262

    13.2.1 The Hazlewood Group and Hazlewood Member Profiles

    263

    13.2.2 The Lakeside Group and Lakeside Member Profiles

    267

    13.3 Representative Associations: Garagewatch; PRA; ACS Forecourt Forum

    269

    13.3.1 Garagewatch

    269

    13.3.2 The Petrol Retailers' Association (PRA)

    273

    13.3.3 Association of Convenience Stores (ACS) Forecourt Forum

    274

    14. Glossary of Terms and Abbreviations used in the Report

    275

    Technical Appendix

    278

    Sample Questionnaire

    279

    Published: July 2004

    Price: £ 4500, US$ 7895, € 6495

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