22
Nov

How Fuel Companies Are Putting Emphasis On Retail Sales

During 2020, fuel sales, like many other sales, plummeted in the midst of the COVID-19 pandemic. Though fuel demands began to recover after lockdowns were partially lifted, many fuel companies began searching for other ways to improve their sales revenue. The major fuel retailers in Australia have started outlining plans to increase retail and convenience store sales to maximise revenue coming from non-fuel sales. Here are some of the newest facts about how the majors are planning on increasing non-fuel related sales, as well as some information on how these companies are recovering from the pandemic.

What Do Fuel Sales Look Like Now?

At the beginning of lockdown, fuel sales were down significantly, with some petrol stations down more than 80 percent from 2019. The COVID-19 pandemic has caused the country as a whole to spend far less money on gas, due to the travel restrictions and lockdowns.

Many continue to wonder if fuel sales will ever reach what they were pre-pandemic as more and more jobs have adapted to a work from home environment.

Why Are The Majors Shifting Focus to Convenience Store Sales?

There is a considerable market for convenience stores. Convenience stores have proven themselves to be resilient over time, making them a profitable market. In the midst of the pandemic, many people have chosen to shop at convenience stores in favor of large grocery chains, which tend to be much more crowded and are more of a health risk.

Convenience stores have expanded the products they offer and now carry many groceries that you would find in a larger store. Convenience stores across the world have also begun to partner with delivery apps such as DoorDash, making them widely accessible.

How Successful Are Non-Fuel Related Sales?

Fuel retail sales, though they are currently popular, may not be a long lasting market. It is projected that by 2030, fuel retail sales will be worth $79 billion, a decline from its 2019 value of $87 billion. However, these numbers vary by market.

In mature economies, some networks will have to be rationalised for fuel retail sales to be successful. There are still plenty of opportunities in developing markets which will likely see an increase in retail sales. The overall success of non-fuel sales depends heavily on market characteristics and strategies, and fuel retail margins may prove to be more resilient than sales volume.

If you need help developing strategies to boost non-fuel related sales at your petrol station contact us.