Motoring & Convenience
Article By Michael Taylor
Petrol stations across South Africa are evolving to suit the needs of customers with services that go well beyond filling up cars.
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It’s also a business strategy motivated by the shift in our automotive landscape, as hybrid and electric vehicle (EV) sales are starting to impact fuel sales.
Over the past five years, fuel retail sales have dropped by 7.6%, which is attributed to the improved efficiency of newer cars.
While hybrid and EV adoption initially got off to a very slow start in South Africa, they are experiencing exponential year-on-year growth thanks to the introduction of new, more affordable models and growing consumer interest.
Furthermore, the rise of work-from-home culture, accelerated by the Covid-19 pandemic, has also led to a reduction in the number of individuals who need to commute to the office every day.
Similarly, the rise of online shopping means people are making fewer trips to the store, and online retailers are transitioning to electric transport to reduce their operating costs.
All of this means that demand for petrol and diesel is slowly but surely declining, but forecourt owners have not been negatively impacted.
Instead, many have adjusted their business strategies to focus on other types of services, transforming many petrol stations into social hubs or one-stop shops for a household’s everyday needs.
According to Nedbank, this strategy is already starting to pay off, as forecourt convenience stores reported an average turnover increase of 14% over the last year.
Shifting expectations
The average South African visits a petrol station 10 times per month, but less than half of these visits are for refueling.
Nedbank Commercial Banking National Retail Services Manager Karen Keylock explained that roughly 74% of visitors will use the forecourt’s grocery store, 68% buy takeaways, and that many will simply stop to use the ATM or grab a quick coffee.
“This means viewing fuel forecourts as ecosystems that include fuel, ATMs, quick service restaurants, grocery stores, and more, essentially replacing the old-school corner café or tearoom,” said Keylock.
She pointed out how countries like Brazil, Japan, and Thailand have already embraced this philosophy, often moving the petrol pumps to the rear of the premises to create a more aesthetically pleasing environment.
Fuel is no longer the main attraction of a forecourt, and thus the locations are being converted to function as community hubs with a variety of services.
This is particularly relevant in urban centers, as people tend to live in small apartments that lack the space needed for things like washing machines.
Consequently, forecourts have an opportunity to address this need by offering laundromat services, read-made meals, and other conveniences.
While many fuel stops have a small store selling basic goods like soft drinks and chips, there is a growing demand for complete grocery outlets that can supply all of a household’s weekly shopping needs.
Supermarket giants like Woolworths and Pick n Pay are capitalizing on this with the expansion of their forecourt outlets.
Woolworths’ Foodstop franchise is partnered with Engen, and Pick n Pay’s Express can be found at BPs.
Astron Energy, which is the new fuel retailer taking over Caltex’s network in South Africa, has its FreshStop convenience stores, which are part of the Food Lover’s Market Group.
A handful of petrol stations are also going one step further, partnering with local entrepreneurs to create new high-end forecourts with unique goods and services.
The rise of luxury petrol stations
Two of the leaders of this new trend are Pantry and Relish Delux, both located in Johannesburg.
The Pantry, situated in Rosebank, is the brainchild of celebrity chef David Higgs and serial businessman Gary Kyriacou – the minds behind the upmarket Marble and Saint restaurants.
This led to the creation of the Pantry, a Sasol fuel station with a unique grocery store supplied by chefs and staff from the restaurant group.
It goes well beyond basics like chips and biscuits, as it stocks everything from imported foods to smoked salmon and Wagyu steaks.
It also features a coffee stall, a bakery, a wine section, a milkshake and ice cream bar, and a hot food section with its own pizza oven.
The location itself uses a modern, rustic aesthetic with wood and marble surfaces, and plenty of greenery.
Another example is Relish Delux, which was created by Chef Muhammed Patel.
Relish is a luxury convenience store attached to an Astron Energy fuel stop in Joburg, which supplies restaurant-quality meals.
Like Pantry, the location was designed to be inviting with warm, earthy tones, and plenty of seating, turning it into a social spot.
Article Credit to: IOL Business.
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