2019 - Association of Convenience Stores · 20% 21% 19% 23% fuel forecourt sites 8,382 in the UK 7,402 There are Full convenience store Likely to be a modern branded shop development

A report by the Association of Convenience Stores

The Forecourt Report 2019

#ForecourtReport

Hypermarket Company Dealer

65% 18% 17%

Entrepreneurs

OCTOBER 2019acs.org.uk • @ACS_Localshops 2 33

60+51 – 6041 – 5031 – 4030or under

16%

20%

21%

19%

23%

fuel forecourt sites in the UK 7,402 8,382 There

are

Full convenience storeLikely to be a modern branded shop development offering a wide range of convenience shopping for the motorist on the move. Often has dedicated shop parking.

StandardTraditional forecourt shop building, selling newspapers, cigarettes, confectionery, oil plus some food, pre-packed sandwiches, snacks and drink items.

KioskMay sell a small amount of oil, cigarettes and confectionery.

NoneNo operating shop. Unmanned locations and some sites where payment is made in other premises e.g. a car dealership.

DealerAn independently owned site usually supplied under an agreement with an oil company whose name usually appears on the brand sign. Also includes unbranded sites with no oil company identification.

CompanyOwned by the supplying oil company whose name appears on the brand sign.

HypermarketOwned and operated by the multiple retailers (hypermarket groups). Also includes sites that may be away from the main hypermarket store but are owned and branded by the hypermarket; and includes Co-op stores with Co-op branded forecourts.

Source: Experian Catalist 2019


Source: ACS/HIM 2019 (independents only)

» WHO WE ARE

37%Female

63%Male

The people who own and run stores are:

Contents

CONTENTS AND INTRODUCTION02

WHO WE ARE03

WHERE WE TRADE04

WHAT WE CONTRIBUTE TO THE ECONOMY05

FUEL SECTOR06

HOW WE OPERATE08

WHO WE SERVE14

OUR COLLEAGUES10

OUR COMMUNITIES11

THE SERVICES AND TECHNOLOGY WE OFFER12

METHODOLOGY15

ABOUT ACS15

ACKNOWLEDGEMENTS16

White British

Asian or Asian British

70%

21%

Other 9%

acs.org.uk • @ACS_Localshops 2

Forecourt shop type

Forecourt shop ownership

This is the fifth edition of the Forecourt Report, detailing the significant contribution that the UK’s petrol forecourts make to the economy and communities that they serve. Forecourts are an important part of the wider convenience sector, with thousands of customers seeing forecourts as their local shop and stores continuing to innovate in new services, technology and products. Compared to the rest of the convenience sector, forecourts have to pay much higher business rates due to their bills being calculated on the basis of turnover rather than property values. Over half of the forecourt sector also provides a free to use ATM, which is also subject to high business rates.

Despite high costs, the forecourt sector remains committed to investment and improving its offer to customers. Forecourts provide over 92,000 jobs for local people and have invested an average of over £14,000 per store over the last year. Forecourts are also committed to community retailing, with 77% taking part in some form of community activity. The information in this report is gathered from our own primary research, using forecourt specific data from the Local Shop Report survey. The report also draws on data that has been kindly provided by Experian Catalist, Portland Fuel, Zap-Map, HIM, Nielsen, IGD, Survation and William Reed. Detailed information about the methodology and calculations in the report can be found on page 15.

The importance of forecourt stores

have shops

9%791storesstores

None

59%4,939

storesstores

Standard

2%189

storesstores

Kiosk

29%2,463

storesstores

Full conveniencestore


PUB BANK COFFEE SHOP FASHION PHARMACY RESTAURANTSHOP

Up to 10 retail/service businesses close by6%

Top ten areas of investment (of those investing)

Over the last year independent forecourts have invested

funded from own reserves

Confectionery£178m5 Bakery£24m10

HAIRDRESSER BUTCHERSHOP

No other retail/service businesses close by52%

CHARITY TAKEAWAY PUB BANK COFFEE SHOP FASHION PHARMACY RESTAURANT BETTINGHAIRDRESSER SPORTSSHOP

More than 10 retail/service businesses close by10%

Neighbouring businesses


» WHERE WE TRADE » WHAT WE CONTRIBUTE TO THE ECONOMY

forecourts with shops in the UK7,402 There

areThe total value of forecourt sales £4.1bn

Locations

SHOP

SHOP

SHOP

SHOP

HAIRDRESSER BUTCHER

PUB BANK COFFEE SHOP FASHION PHARMACY RESTAURANT

CHARITY TAKEAWAY PUB BANK COFFEE SHOP FASHION PHARMACY RESTAURANT BETTINGHAIRDRESSER SPORTS

Rural 1,242 stores 17%

SHOP

SHOP

SHOP

SHOP

HAIRDRESSER



Residential 2,076 stores 28%

SHOP

SHOP

SHOP

SHOP

HAIRDRESSER BUTCHER



Urban transient 2,976 stores 40%

SHOP

SHOP

SHOP Services

Commercial/industrial 980 stores 13%

SHOP

SHOP

SHOP

SHOP

ServicesMotorway 128 stores 2%

Source: Experian Catalist 2019 Source: Nielsen 2019. Data reflects multiple forecourt retailers only

Source: Experian Catalist 2019Source:

IGD 2019

Source: ACS/HIM 2019 (independents only) Source ACS Investment Tracker 2018/2019 (independent retailers only)

SHOP

Up to five retail/service businesses close by31%

Investment

£14,463 73%per store

Tobacco £763m1 Non-food £168m6

Soft drinks £310m2 Crisps, snacks, nuts & seeds £74m7

Convenience & deliof which £57m is sandwiches £215m3 Dairy

of which £37m is fresh milk £55m8

Beers, wines & spirits £204m4 Health, beauty, toiletries & baby £27m9

Top ten forecourt sales categories (multiple forecourts only)

Refrigeration 31% Shelving 26% In-store lighting 24%Freezer space 16% Internal building

maintenance 15%

Crimeprevention

measures 10%

Till systems(e.g. EPOS) 11%

Store signage 15%

Parking provision 12%

Full store refits 13%

NEW StoreOpening Soon!

Other energy efficiency

measures 1%Airconditioning

7%

Improving store access

8%

Internal building

development 6%


2019*2018201720162015201420132012

1,038,679

978,089

1,104,592

1,335,5061,283,858 1,317,751

1,269,255 1,441,285

1,351,053

51,747

1,276,870

95,038

1,286,116

87,483

750,062

144,802

842,678

348,255

69,702

1,007,654

119,785

1,127,414

27,184 32,949

» FUEL SECTOR

223,000 plug-in cars and

8,500 plug-in vans now on UK roadsThere are around

In the UK overall, there are

On UK forecourts, there are

New car registrations by fuel type

UK charging points by type

Fuel sales (billions of litres)

Fuel pricing trends (monthly average)

Sep ‘18 Oct ‘18 Nov ‘18 Dec ‘18 Jan ‘19 Feb ‘19 Mar ‘19 Apr ‘19 May ‘19 Jun ‘19 Jul ‘19 Aug ‘19

£1.22

£1.21

£1.20

£1.19

£1.28

£1.26

£1.24

£1.34

£1.32

£1.30

£1.36

£1.27

£1.25

£1.23

£1.33

£1.31

£1.29

£1.35

Diesel

Petrol

2019*2018201720162015201420132012

* Revised ** Provisional

1

* ** * **

Petrol sales

Hybrid / electric sales

Diesel sales

1

Source: All data on this spread Portland Fuel 2019 unless specified. (1) Source: Next Green Car, July 2019 (2) Source: Zap Map August 2019

(3) Source: Zap Map August 2019. (4) Source: Zap Map 2018

*All years are full calendar year, except 2019 which is January to July inclusive

60%

17%23%

n Slow

n Fast 4

n Rapid

1,083 electric charging points3forecourts

in the UK334441on devices located at

25,702 electric charging points at 9,529 locations

2


70

Source: All data on this spread - ACS/HIM 2019 (independent retailers only)

» HOW WE OPERATE

15%82%

of forecourt shop owners work more than

of independent owners operate one store

hoursper week take no holiday

per year

have been in the business for more than 25 years

8% 34%

Business origin

inherited family business

started business64%36%

Employment of family members

47% of retailers employ at least one family member

of retailers employno family members53%

8% of retailers employ family only

Premises ownership (independents only)

25%

of independentforecourts

77%

of multipleforecourts

Average opening hours

Monday to Saturday

20.1Sunday19.1

Open

of retailers have freezer units

79%

Up to

5mBetween

5m & 10mBetween

10m & 15mMore than

15m

19% 27% 24% 30%

Amount of refrigeration

Sales space

Opening hours

None 1-499 sq. ft.500-

999 sq. ft1,000-

1,999 sq. ft.2,000-

3,000 sq. ft.

19% 50% 17% 12% 3%

18% Rent82% Own

Forecourt Shop

76% 18% 7%

1-999 sq. ft. 1,000-1,999 sq. ft. 2,000-3,000 sq. ft.

Additional space (independents only)


Source: ACS/HIM 2019 (independent retailers only)

Source: ACS/HIM 2019


Forecourt Shop


Colleagues in the convenience sector are:

Hours worked

Length of employment

of independent forecourts engaged in some form of community activity in the past year

Community activity

77%

Source: ACS Voice of Local Shops survey 2018/2019(independent retailers only)

Source: ACS Community Barometer 2019

Providing sponsorship to a local sports team or other community activity

13%

Taking part in community, council or local business association meeting or project

4%Donating to a food bank

Litter picking or other local environmental campaigns

12%3%

67%Collecting money for a national or local charity

Providing funding, or in kind support, to a community event

12%

» OUR COMMUNITIES» OUR COLLEAGUES

Most positive impact on the local area

City Pawn Shopf City Pawn Shopf

10 11 12 13

4 5 6 7 8 9

14

Pubs/bars Specialist food shops Restaurants Charity shopsPharmacies Banks

3

Post offices Convenience stores Coffee shops/cafés

1 2

Non-food Betting shops PawnbrokersFast food/takeaways Petrol stations

92,000The UK forecourt sector provides around jobs


43%57%

15%16-24

years old

68%25-60

years old

17%Over 60



35%

0-16hours

17-30hours

31-40hours

40+hours

10%29% 26%


Less than one year One to five years Six to 10 years More than 10 years

22% 13% 17%48%



Parking

82%

Food bank collection

3%

Forecourt services

» THE SERVICES AND TECHNOLOGY WE OFFER

All data on this spread: Source: ACS/HIM 2018/2019 unless stated otherwise. * Source: Experian Catalist 2019. ** Source: Experian Catalist/ACS 2019.

*** Independent retailers only. **** Source: ACS/HIM 2019.

The percentage of forecourts that have each of the following is:

Contactless payment96%

Payment methods

Mobile payment82%

Debit card

Cash

99%

100%

DEBIT

Credit card98%CREDIT

of stores have CCTV96%

Online and social media presence

Energy saving

Accessibility

Post office

5%

Parcel collection point

28%Click and

collect service

28%Cash back

19%

Dry cleaning

3%

Local grocery delivery

2%Key cutting

services

1%

Loyalty card

58%

The percentage of forecourts that provide each service is as follows:

Mobile phonetop-up

84%

Home news delivery

3%

Bill paymentservices

61%

Photo booth

1%Prescription collections

1%

Recycling bins

4%Plants/horticulture

products

19%

Community noticeboard

41%

Indoor seating area

11%Outdoor

seating area

5%

Wood/domestic burning fuel

72%****

27

1825

32

46

Lottery

64%*

Cash machine

Free to use cash machine

52%

Charged cash machine

15%

**

**

Car wash

Jet wash(manual)

37%

Automatic machine car wash

29%

Hand car wash (attended)

8%

*

*

*

Customer toilets

45%**

Food service

Microwave for customers

46%In-store bakery

25%Hot food

counter or cabinet

50%Food

preparation area/kitchen

35%Serve over

coffee machine

28%Customer

operated coffee machine

67%Food-to-go-concession

9%***

Instagram*** WhatsApp***TwitterFacebookStore website

10% 9%48%53%72%

Electric vehicle charging point2%

Red diesel 5%

Ad Blue

LPG (liquid petroleum gas)

Hydrogen refuelling station

51%

10%

2%

Pay at pump16%

*

*

*

*

26%

Chillerdoors

58%

LEDlighting

3%

Solarpanels

50%

Smartmeter

Wide aisles

64%Hearing

aid loops

37%Wheelchair

access

81%

****

24% Digital shelf edge labels

35% Mobile marketing platform/loyalty scheme

90%Till system that scans barcodes as part of a point of sale system (EPoS)

9% Power outlets/USB ports for charging customer devices

1% Self-service checkouts

12% In-store Wi-Fi

47%SAVE 30% Digital advertising screens

****


the interests of retailers on a range of issues, including business rates, energy, regulation, planning, alcohol and many more.

ACS produces several reports throughout the year, looking in detail at different aspects of the convenience store sector, all of which are available free to members.

We can also provide further breakdowns of the Local Shop Report data to members. Please contact Katie Cross at [email protected] for further details.

For more information about ACS, visit our website.

The Association of Convenience Stores is a trade association representing local shops across the UK.

We represent our members through effective lobbying, industry leading advice and networking opportunities for retailers and suppliers.

Our membership includes a diverse range of convenience store retailers, from stand-alone family run independent stores to symbol groups and multiple convenience stores. These retailers operate in neighbourhoods, villages, on petrol forecourts and in city centres.

ACS’ core purpose is to lobby Government on the issues that make a difference to local shops. We represent

About ACS

» METHODOLOGY

Primary data for The Forecourt Report was undertaken by ACS in the form of two surveys: 1. Independent Forecourt Survey – A sub-sample of the Local Shop Report dataset, specifically the 212 independent retailers which are fuel forecourts (both symbol group and unaffiliated forecourt independents). The Local Shop Report includes a sample of 2,371 independently owned convenience store businesses in the UK. ACS commissioned HIM Research and Consulting to aid in the design and delivery of the survey. The survey was carried out over the phone by BCC Marketing between 20th June and 17th July 2019. The telephone survey gathered responses from unaffiliated independent convenience stores, independent forecourt stores and independent stores that are part of a central buying or marketing group (known as ‘symbol’ groups). These are represented in the survey in the same proportion as they are represented in the market. The survey covers the nine regions of England, along with Wales and Scotland. 2. Multiple Forecourt Survey – ACS conducted an online/paper survey of its multiple forecourt members. This survey was based on the questions asked in the Independent Forecourt Survey, where relevant, to ensure consistency. The survey returned results representing a sample of 1,409 forecourt stores. ACS Voice of Local Shops survey ACS conducts quarterly surveys of 110 independent forecourt retailers, to establish the amount retailers have invested over the past quarter, what they have invested in and how they have funded their investments. The survey also looks at the community activity undertaken by independent retailers. The data included in the report is an average of the latest four quarters (November 2018 – August 2019). Data in the report refers to independent forecourt retailers only.

Market Summary Report 2019 – Experian Catalist Catalist surveyors visit 4,500 forecourts spread over each 12-month period – circa 50% of the UK forecourt network each year. Catalist surveyors are typically ex-oil company or ex-forecourt shop suppliers and are very familiar with the forecourt sector. During a visit, surveyors update data and take photos of the forecourt sites. The number of forecourt sites in the UK includes forecourts in Northern Ireland. Where specified within the report the data refers to forecourts specifically with a shop located on site.

Portland FuelPortland Analytics’ price assessments reflect trading transactions conducted in North West European wholesale markets. This is further supplemented through analysis of a wide range of historical customer, supplier and government data sources.

Zap-MapData correct as of August 2019. For more information about the data please visit: https://www.zap-map.com/

Next Green CarData correct as of August 2019. For more information about the data please visit: https://www.nextgreencar.com/electric-cars/statistics/ Convenience Retailing 2018 report – IGDThis report is compiled by the IGD based on the sales data up to the end of March 2019.

Sales Category data 2019 – NielsenThe data included in the report refers to sales for multiple forecourt retailers only. Category definitions are revised throughout the year to align with retailers and therefore categories may not be directly comparable with previous forecourt reports. For more information please visit: https://www.nielsen.com/uk/en.html

Convenience Tracking Programme 2019 – HIM Research and ConsultingThis programme is a survey of over 20,000 convenience shoppers conducted at the ‘moment of truth’ in-store. ‘Forecourt shoppers’ refers to customers shopping specifically at forecourt stores rather than standalone convenience stores.

Community BarometerSurvation surveyed a nationally representative online sample of 2,016 UK adults aged 18+, between 19th and 20th June 2019. Respondents were surveyed using a questionnaire designed by ACS.

For more Community Barometer results please visit the ACS website or email [email protected]

Throughout the report, where percentages do not add up to 100%, this is due to rounding.

» WHO WE SERVE

Purchases

All data on this page – source: HIM CTP 2019

The averagebasket size is

items2.34 £6.06

The average spend is

The average customer visits their local forecourt 2.69 times

per week

How often customers visit

Less than once a week 33%

Every day15%

Most days(5-6 times a week) 10%

Every other day(3-4 times a week) 16%

About once a week(1-2 times a week) 26%

44% 56%

Forecourt customers are:

Average age is: 47

Standalone convenience shopper

1.23miles

The average distance travelled to store is:

Forecourt shopper 4.81miles

excluding fuel

Customers travel to store

75% of forecourt shoppers drive to store versus 34% for standalone convenience shoppers

#ForecourtReport

For more details on this report, contact

Katie Cross via email at [email protected]

For more details on ACS:

Visit: www.acs.org.uk Call: 01252 515001

Follow us on Twitter: @ACS_Localshops

Contacts

© ACS 2019. Design & illustration by www.fluiddesignstudio.com

#ForecourtReport

This report would not have been possible without the support of a number of industry and research organisations that have helped by providing data.

These sources are referenced alongside the relevant sections of the report, and those organisations are:

ACKNOWLEDGEMENTS

Documents

2019 - Association of Convenience Stores · 20% 21% 19% 23% fuel forecourt sites 8,382 in the UK 7,402 There are Full convenience store Likely to be a modern branded shop development