2019 - association of convenience stores · 20% 21% 19% 23% fuel forecourt sites 8,382 in the uk...
TRANSCRIPT
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: 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
Source: Experian Catalist 2019
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
OCTOBER 2019acs.org.uk • @ACS_Localshops 4 5
» 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
PUB BANK COFFEE SHOP FASHION PHARMACY RESTAURANT
CHARITY TAKEAWAY PUB BANK COFFEE SHOP FASHION PHARMACY RESTAURANT BETTINGHAIRDRESSER SPORTS
Residential 2,076 stores 28%
SHOP
SHOP
SHOP
SHOP
HAIRDRESSER BUTCHER
PUB BANK COFFEE SHOP FASHION PHARMACY RESTAURANT
CHARITY TAKEAWAY PUB BANK COFFEE SHOP FASHION PHARMACY RESTAURANT BETTINGHAIRDRESSER SPORTS
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%
OCTOBER 2019acs.org.uk • @ACS_Localshops 6 7
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
OCTOBER 2019acs.org.uk • @ACS_Localshops 8 9
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: Experian Catalist 2019
Source: ACS/HIM 2019 (independent retailers only)
Source: ACS/HIM 2019
Source: ACS/HIM 2019
Forecourt Shop
OCTOBER 2019acs.org.uk • @ACS_Localshops 10 11
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
Source: ACS/HIM 2019
43%57%
15%16-24
years old
68%25-60
years old
17%Over 60
Source: ACS/HIM 2019 (independent retailers only)
Source: ACS/HIM 2018 (independent retailers only)
35%
0-16hours
17-30hours
31-40hours
40+hours
10%29% 26%
Source: ACS/HIM 2019 (independent retailers only)
Less than one year One to five years Six to 10 years More than 10 years
22% 13% 17%48%
Source: ACS/HIM 2019 (independent retailers only)
OCTOBER 2019acs.org.uk • @ACS_Localshops 12 13
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
****
OCTOBER 2019acs.org.uk • @ACS_Localshops 14 15
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