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A report by the Association of Convenience Stores The Forecourt Report 2018 #ForecourtReport
A report by the Association of Convenience Stores
The Forecourt Report 2018
#ForecourtReport
03 OCTOBER 2018
LOCATIONS
» FORECOURT LOCATIONS
02
This is the third edition of the Forecourt Report, detailing the economic and social contribution of the forecourt sites that operate across the UK. Forecourts are an essential part of the overall convenience sector, with many transforming in recent years from fuel sites with a small shop to great convenience stores in their own right that also sell fuel. The forecourt sector faces specific challenges when compared to the rest of the convenience sector. The business rates bills of forecourt stores are much higher than similar sized convenience stores without fuel due to rates being calculated on the basis of turnover rather than property values, with the forecourt sector paying £208m in business rates over the last year. That’s an average rates bill of just under £18,000 per year for every forecourt site.
Despite high costs, the forecourt sector remains an important job creator, community hub and a place where entrepreneurs can invest and innovate. There are many consumers who consider the forecourt store that they visit to be their local shop; a place where they can pick up a wide range of products and use services such as click and collect, bill payment and the Post Office. 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 and William Reed. Detailed information about the methodology and calculations in the report can be found on page 15.
THE IMPORTANCE OF FORECOURT STORES
acs.org.uk • @ACS_Localshops
CHARITY TAKE AWAY BETTINGHAIRDRESSERS SPORTS
SHOP
SHOP
SHOP
SHOP
RURAL 1,341 STORES 18%
SHOP
SHOP
SHOP Services
RESIDENTIAL 2,182 STORES 29%CHARITY TAKE AWAY BETTINGHAIRDRESSERS SPORTS
SHOP
SHOP
SHOP
SHOP
URBAN TRANSIENT 2,998 STORES 39%
SHOP
SHOP
SHOP Services
COMMERCIAL/INDUSTRIAL 977 STORES 13%
SHOP
SHOP
SHOP
SHOP ServicesMOTORWAY 127 STORES 2%
Source: ACS/HIM 2018 (Independents only)
ISOLATED SITE WITH NO OTHER RETAIL/SERVICE BUSINESSES CLOSE BY
CHARITY TAKE AWAY BETTINGHAIRDRESSERS SPORTS
SHOP
SHOP
SHOP
SHOP
50%
CHARITY TAKE AWAY BETTINGHAIRDRESSERS SPORTS
SHOP
SHOP
SHOP
SHOP
UP TO FIVE RETAIL/SERVICE BUSINESSES CLOSE BY
25%
CHARITY TAKE AWAY BETTINGHAIRDRESSERS SPORTS
SHOP
SHOP
SHOP
SHOP
UP TO 10 RETAIL/ SERVICE BUSINESSES CLOSE BY
12%
LOCATED ON A MAIN HIGH STREET OR WITHIN A CITY CENTRE CHARITY TAKE AWAY BETTINGHAIRDRESSERS SPORTS
SHOP
SHOP
SHOP
SHOP13%
NEIGHBOURING BUSINESSES
Source: Experian Catalist 2018 – data refers to forecourts with shops only
THE IMPORTANCE OF FORECOURT STORES02
FORECOURT LOCATIONS03
FUEL SECTOR04
SHOPS06
SALES07
INVESTMENT08
TECHNOLOGY & SERVICES12
JOBS09
ENTREPRENEURS10
COMMUNITIES11
CUSTOMERS14
METHODOLOGY15
CONTENTS
Source: Experian Catalist 2018
FUEL FORECOURT SITES IN THE UK8,418 FORECOURTS IN THE UK WITH SHOPS7,625
THERE ARE
THERE ARE
04acs.org.uk • @ACS_Localshops
166,000 PLUG-IN CARS AND
5,500 PLUG-IN VANS NOW ON UK ROADS
There are around
05 OCTOBER 2018
» FUEL SECTOR
NEW CAR REGISTRATIONS BY FUEL TYPE
UK CHARGING POINTS BY TYPE
FUEL SALES (BILLIONS OF LITRES)
FUEL PRICING TRENDS (MONTHLY AVERAGE)
Sep ‘17 Oct ‘17 Nov ‘17 Dec ‘17 Jan ‘18 Feb ‘18 Mar ‘18 Apr ‘18 May ‘18 Jun ‘18 Jul ‘18 Aug ‘18
£1.20
£1.19
£1.18
£1.17
£1.26
£1.24
£1.22
£1.32
£1.30
£1.28
£1.34
£1.25
£1.23
£1.21
£1.31
£1.29
£1.27
£1.33
DIESEL
PETROL
1,038,679
978,089
1,104,592
1,335,5061,283,858 1,317,751
1,269,255
913,3961,351,053
51,747
1,276,870
95,038
1,286,116
87,483
480,915
83,552
1,007,654
119,785
1,127,414
27,184 32,949
1
PETROL SALES
HYBRID / ELECTRIC SALES
DIESEL SALES
1
Source: All data on this spread Portland Fuel 2018 unless specified. (1) Source: Next Green Car, August 2018 (2) Source: Zap-Map 2018
Source: Zap-Map 2017
*All years are full calendar year, except 2018 which is January to July inclusive
61.8%19.4%
13.5%
5.3%
n Fast
n Slow
n Rapid (DC)
n Rapid (AC)
2FORECOURTS IN THE UK
254 ELECTRIC CHARGING POINTS
197LOCATED ON
2
17,732 electric charging points in the UK at 6,174 locations
06 07acs.org.uk • @ACS_Localshops OCTOBER 2018
£4.1bn FORECOURT SALES CATEGORIES (MULTIPLE FORECOURTS)
of multipleforecourts are open 24 hours
75%23%of independentforecourts are open 24 hours
FORECOURT OPENING HOURS
6%4%
CLOSING TIME: PM
65
4
2
112
OPENING TIME: AM
11
10
9
8
34%
4%6%
10%
22%
49%
7%
51%
5%
3
65
4
2
112
9
8
7
3
10
0 10 20 30 40 50 60
0 10 20 30 40 50 60
0 5 10 15 20 25 30 35 40
0.00.20.40.60.81.0
OR EARLIER OR EARLIER
OR LATER
OR LATER
0.00.20.40.60.81.0
7
0.00.20.40.60.81.0
3%
11
Average number of hours open per day
Mon-Sat: Sun:
18.6 17.4
» SALES
TOTAL VALUE OF CONVENIENCE
FORECOURT SALES
Source: ACS/HIM 2018
Source: IGD 2018
Source: Nielsen 2018. The data reflects multiple forecourt retailers only
Tobacco
Soft drinks
£765m
£288m
Non-food
Confectionery
Convenience and deli
Health, beauty, toiletries and baby
Crisps and snacks, nuts and seeds
Beers, wines and spirits
Fresh milk
Ambient grocery
Frozen
Bakery
Dairy, excluding milk
Meat and fish
Cereal bars
Household and pet
Fresh produce
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
£185m
£173m
£70m
£183m £61m
£169m
£36m
£26m
£24m
£23m
£16m
£14m
£5m
£16m
£10m
£2m
» SHOPS
FORECOURTS – SHOP OWNERSHIP
FORECOURTS – PREMISES OWNERSHIP
SHOP SHOP SHOP
11%89%OWNED RENTED
SHOP SHOP SHOP
Source: ACS/HIM 2018(independents only)
FORECOURTS – SHOP SIZE
FORECOURTS – STORE TYPES
1-999 sq ft 1,000-1,999 sq ft 2,000-3,000 sq ft
Source: Experian Catalist 2018
Source: Experian Catalist 2018
Source: Experian Catalist 2018
77% 16% 6%
FUEL FORECOURT SITES IN THE UK8,418 THERE ARE
66.5%16.8%16.7%
Dealer
Company
Hypermarket
Source: Experian Catalist 2018
60%5,043
28%2,375
2% 207
9%793n Standard – Traditional forecourt shop building, selling newspapers,
cigarettes, confectionery, oil plus some food, pre-packed sandwiches, snacks and drink items.
n Full convenience store – Likely 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.
n None – No operating shop. Unmanned locations and some sites where payment is made in other premises e.g. a car dealership.
n Kiosk – May sell a small amount of oil, cigarettes and confectionery.
Sandwiches
9 OCTOBER 2018 8acs.org.uk • @ACS_Localshops
» JOBS
16%
16-24years old
Over 60years old
16%
49% Employ at least oneother family member
14% Employfamily only
Employ no family members51%
24%41%
14%21%
All data on this page – source: ACS/HIM 2018 (independents only unless specified)
UP TO
5m
41%
BETWEEN
5m & 10m
36%
BETWEEN
10m & 15m
15%
MORE THAN
15m
8%
In-store lighting 16%
» INVESTMENT
AREAS OF INVESTMENT (OF THOSE INVESTING)
Refrigeration 38%
Other energyefficiency measures
2%
Shelving 30%
SOURCES OF INVESTMENT
72%
15%
8%
1% 4%
n Funded from own reserves
n Funded/provided by suppliers
n Funded/provided by symbol groups
n Other business/wholesale funding
n Financial institutions
Parkingprovision
6%
Till systems(eg EPoS) 21%
Store signage23%
Bakery
Frozen
Dairy
Improvingstore access
7%
Air-conditioning8%
Freezerspace 10%
Full store refits12%
NEW StoreOpening Soon!
HAVE INVESTED
OVER THE LAST YEAR
INDEPENDENT FORECOURTS
PER STORE
£11,309»
AMOUNT OF REFRIGERATION
Source: ACS/HIM 2018
All data on this page – ACS Investment Tracker 2017/2018 (independent forecourt retailers only) unless specified
95,000 THE UK FORECOURT SECTOR PROVIDES ALMOST JOBS
→ LENGTH OF EMPLOYMENT
→ HOURS WORKED
36%0-16 17-30 31-40 40+
31% 28% 5%
Male 43% 57% Female
Internalbuilding
development 6%
Internal building maintenance 15%
Crimepreventionmeasures
6%
Source: ACS/HIM 2018
4 5 6 7Coffee shops/cafés BanksSpecialist food shops Pubs/bars
11 13 1412Non-food PawnbrokersFast food/takeaways Betting shops
9 108Charity shops Restaurants Petrol stations
3Post offices Convenience stores Pharmacies
1 2
10 11acs.org.uk • @ACS_Localshops OCTOBER 2018
» COMMUNITIES
MOST POSITIVE IMPACT ON THE LOCAL AREA
» ENTREPRENEURS
All data on this page – source ACS/HIM 2018 (independents only)
Source: ACS Community Barometer 2018
3%Source: ACS Voice of Local Shops 2017/2018
75%
Collecting money for a national or local charity:
Providing funding, or in kind support, to a community event:
Providing sponsorship to a local sports team or other community activity:
Taking part in community, council or local business association meeting or project:
COMMUNITY ACTIVITY
of independent forecourts engaged in some form of community activity in the past year81%
15% 11%
have been in the business
for more than 25 years
26%
OF INDEPENDENT FORECOURT OWNERS WORK MORE THAN
13%70HOURS
PER WEEK
take no holiday per year
8%
34% OF BUSINESSES ARE OWNED BY FAMILY PARTNERSHIPS
OWNERSHIP AGE AND GENDER PROFILE
62%Under 30
31–40
41–50
51–60
60+
12%
18%
28%
25%
18%
38%
75% 25%
Started the business Inherited family business
ENTRY TO THE SECTOR
TIME IN BUSINESS
34%12%
10%14%
5%26%
Wide aisles to improve accessibility 62%
Parking 87%
P
12acs.org.uk • @ACS_Localshops 13 OCTOBER 2018
» TECHNOLOGY & SERVICES
ENERGY SAVING FORECOURT SERVICES
55%44%
38%
2%
The percentage of forecourt stores in the convenience sector that provide each feature is as follows:
All data on this page – Source: ACS/HIM 2017/2018 unless specified. All features labelled * – Source: Experian Catalist 2018
All data on this page – Source: ACS/HIM 2017/2018 unless specified. All features labelled * – Source: Experian Catalist 2018. All features labelled ** – Source: ACS/HIM 2018
Electric vehicle charging point2%
Red diesel 5%
AdBlue
LPG (liquid petroleum gas)
Hydrogen refuelling station
50%
10%
1%
Pay at pump19%
*
*
*
Dry cleaning 2% Key cuttingservices 1%
86%Mobile phonetop-up
Loyalty card 61%
Prescriptioncollections 1%Photo booth 1%
Local grocerydelivery 4%
WCCustomertoilets 40%
Wheelchairaccess 80%
Home news delivery 4%Post office 5%
Hearing aidloops 20%
Parcel services
Parcelcollectionpoint
33%
Click and collect service
32%
Plants or horticulture products 21%
In-store Wi-Fi
8%
Mobile payment
65%
Contactless
84%
Digital shelf edge labels
3%
EPoS
86%
Credit card
97%
Mobile marketing platform/loyalty scheme
21%
26%
Digitaladvertisingscreens
59%
SAVE 30%
CCTV
93%
Self-servicecheckouts
1%
Store website
68%
Licensing
Late night refreshmentlicence
45%
Alcohol licence 76%
Fireworks licence 2%
Bill paymentservices 57%
Cash back 21%Communitynoticeboard 26%
27
1825
32
46
Lottery 59%*
Charged cashmachines 8%*
Free to usecash machines 51%*
Car wash
Automatic machine car wash
29%
Jet wash(manual) 37%
Hand car wash (attended) 7%
*
*
*
**
**
**
**
TOP THREE MISSIONS
AVERAGE TIME IN STORE
FORECOURTS CONVENIENCE SECTOR AVERAGE
14acs.org.uk • @ACS_Localshops 15 OCTOBER 2018
» CUSTOMERS
THE AVERAGE SHOPPER VISITS THEIR LOCAL FORECOURT
2.74 times per week
VISIT FREQUENCY
£5.80THE AVERAGE SHOP SPEND IS
29%
30%
14%
FOOD-TO-GO
1FUEL
3NEWSAGENT
2
10%
17%
All data on this page – source: HIM CTP 2018
» METHODOLOGY
Data for The Forecourt Report was undertaken by ACS in the form of two surveys: 1. Independent Forecourt Survey – Data is taken from a sub-sample of the Local Shop Report dataset, specifically the 220 independent shops which are fuel forecourts (both symbol independents and unaffiliated independents). The Local Shop Report includes a sample of 2,420 independently owned convenience store businesses in the UK. ACS contracted 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 2nd July and 24th July 2018. 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. 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 1,346 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 2017 – August 2018). Data in the report refers to independent forecourt retailers only.
Market Summary Report 2018 – 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 2018. For more information about the data please visit: https://www.zap-map.com/
Next Green CarData correct as of August 2018. 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 2018.
Nielsen – Sales Category data 2018The data included in the report refers to value 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 2018– HIM Research and ConsultingThis programme is a survey of over 20,000 convenience shoppers conducted at the ‘moment of truth’ in-store.
Community BarometerPopulus surveyed a nationally representative online sample of 2,074 UK adults aged 18+, between 14th and 15th May 2018. Respondents were surveyed using a questionnaire designed by ACS in collaboration with Populus.
Throughout the report, where percentages do not add up to 100%, this is due to rounding.
3m 48s 4m 12s
43%THE CONVENIENCE SECTOR AVERAGE IS
WORK FULL TIME
£6.50
THE CONVENIENCE SECTOR AVERAGE IS
60%
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 515001Follow us on Twitter: @ACS_Localshops
CONTACT
© ACS 2018. Design & illustration by www.fluiddesignstudio.com
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
#ForecourtReport
