Fuel Forecourt Retail Market

2© 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 2© 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Are you set to be the mobilityretailer of tomorrow?Our report on Fuel Forecourt Retail Market focusses

on the future of forecourt retailing. In the follow ing

pages w e delve into how the trends today are

shaping forecourt retailing now and tomorrow . We

start by looking at the current state of the Global

Forecourt Retail Market, both in terms of geographic

size and the top players dominating this space.

Next, w e explore the trends that are re-shaping the

industry; these are centred around the increase in

importance of the Retail proposition, Adjacent

Services and Mobility. As you go along, you w ill f ind

examples of how leading organisations are investing

their time and resources, in technology and

innovative concepts to become more future-ready.

The changing shopper missions of visiting forecourts

have resulted in major changes to the forecourt

structure. Fuels sales are declining, and w ill continue

to fall in the future, w hile non-fuel retail offerings w ill

gain prominence. For this reason, it is vital for

retailers and suppliers to understand that forecourts

are now not seen only as petrol stations but rather as

convenience stores, selling fuel.

Additionally, the future of forecourts is very much

linked to the future of transport. The type of vehicles

that w ill run on the road, play of shared mobility and

signif icance of alternative fuels (electrif ication or

hydrogen), all w ill have an impact on the number and

purpose of future forecourt sites.

In light of this, w e have imagined how forecourts w ill

look like in the future. We believe that the in-city

petrol stations w hich have a location advantage, w ill

become suited for convenience retailing; urban

forecourts w ould become prominent transport

exchanges; and highw ay sites w ill cater to long

distance travellers. How ever the level and speed of

such transformation w ill vary by economy, as

evolutionary trends in fuel retailing observed in

developed markets are yet to fully shape-up in

developing ones.

Further, as the pace of disruption accelerates, fuel

and forecourt retailers need to reimagine

themselves. We continue to highlight to industry

players to actively respond to the many threats and

opportunities; for this reason w e have outlined some

action items that can help adapt to the new reality.

The preferred mobility retailer of tomorrow w ill be

the one w ho makes ‘change’ a part of its strategy —

installing new and improved concepts w ill be the real

game changers.

Explore

new

income

streams

Continuously

evolve

business

models

Enhance

operational

efficiency

Grow non-fuel

offerings — both

products and

value-added

services

Capitalise on the

mobility mega

trends (EVs, AVs

and MaaS)1

Continue to

focus on fossil

fuel in short run,

but start to pivot

tow ards

contemporary

fuel

Innovative

concepts and

strategic

partnerships

Relentless

focus on

customer

experience Innovation

for

tomorrow

Be the

preferred

mobility retailerNote 1. EV: Electric Vehicle; AV: Autonomous Vehicle; MaaS: Mobility as a Service

Report at a glance

02. Trends in forecourt retail

— Retail— Adjacent services— Mobility

How should forecourt retailers respond in the future?

01. Market overview

— Market scenario and competitive landscape

— Implications of COVID-19

04. Current strategies

How are forecourt retailers responding today?

03. Future forecourt

How are these trends shaping forecourt retailing?

01. Market overview

5© 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Global forecourt retail market stood at US$196.6 billion in

2019 and is expected to grow at a CAGR of 3.6 percent

during 2019–23, to reach US$226.4 billon by 2023

Market Scenario

Largest and high growth markets: The US holds the largest market share w hile Argentina and China

reported largest forecourt grow th

Major markets w ill continue to grow and occupy their respective positions in the global forecourt

landscape.

— Forecourts in the US are expected to grow at a CAGR of 2.5 percent during 2019–23

— Germany, UK and Switzerland are likely to grow at a faster rate in 2019–23 than they did in 2014–19

- Germany’s forecourt market is being reshaped by global trends — Aral1 (BP’s brand) is rapidly

expanding Rewe To Go stores and further, driven by COVID, companies are developing means for

safe and contactless delivery. Despite the crisis, players such as Rew e2 are exploring the M&A route

to take advantage of emerging opportunities for new partnerships

- In the UK, 88 percent of sites have a forecourt shop of some form; sites w ith the BP fuel brand had

the highest number of forecourt shops, follow ed by Esso. Additionally, the UK’s Forecourt shop

sector continues to generate sales of around £4.5 billion per year. The trend of in-store pick-up and

home delivery is taking centre stage amid COVID fears, w ith retailers increasingly venturing into this

space via third-party partnerships

- In Switzerland, focus on ‘foodvenience’ is driving grow th, placing specif ic emphasis on ultra-

freshness and healthy products. Moreover, urbanisation continues to develop in the region spurring

demand for greater convenience, speed and choice

Developing countries will drive growth in the global forecourt retail market betw een 2019–23

— Argentina, Iran and Brazil w ill grow at a CAGR of 17 percent,13 percent and 8 percent, respectively

— Grow ing tendency tow ards convenience stores in China w ill remain a key grow th driver; by 2025 an

increase of nearly 30,000 fuel sites is expected in the country. BP is planning to grow its footprint in

China and Shell (w ith funding from Alibaba Group) is planning to automate the re-fuelling process in

ChinaNote 1. About ~94 percent of Aral’s sites feature a shop 2. LinkSource: Market size statistics sourced from Euromonitor; ***Pre-COVID analysis

Global forecourt retail market —mid-COVID analysis (1/2)

Current forecourt growth versus future forecourt growth, by country

Note: Refer to the Appendix I for a detailed country-w ise view

CAGR (%, 2014–19)

CA

GR

(%

, 2019

–23)

Top 5 markets Remaining 15 markets

Established markets will continue to hold their respective positions,

while developing economies will grow at a faster rate

Note(s): 1. Top 20 regions per 2023F market size; bubble size is 2023 market size (US$ billion); 2. Includes revenues from conv enience retail items only; 3. Major Markets (ordered by 2023 market size): (1) USA; (2) Germany; (3) China; (4) UK; (5)

Australia || Source: Data from Euromonitor (database updates historic and forecast data annually); ***Pre-COVID analysis

-15%

0%

15%

30%

-15% 0% 15% 30%

Argentina

China

UK

Germany

Australia

Canada

USA

New Zealand

France

Netherlands

Spain

Switzerland

South Af rica

Mexico

Thailand

Russia

Brazil

Poland

Egy ptIran

6.9%

5.7%

https://in.reuters.com/article/us-health-coronavirus-rwe-m-a/german-supermarket-chain-rewe-on-lookout-for-ma-targets-report-idINKCN2261CE


Competitive LandscapeGlobal forecourt retail market —mid--COVID analysis (1/2)

Global forecourt retail1 sales by players (in US$ billion)

Note 1. More than 70 percent of revenues comes from the US 2. US$17.5 billion 3. EV charging offered under ‘Shell recharge’ brand in 13 countries and Hydrogen Refuelling Stations set up at select forecourts in six countries; Source: Statistics from Euromonitor (Pre-COVID)

Company (CAGR 2014-19)

Seven & I HoldingsCouche-Tard (+15.9%) (+9.2%)

Sinopec Royal Dutch Shell(+27.3%) (+1.9%)

Others2(+1.9%) (+2.2%)

Globally, Couche-Tard is the largest forecourt retailer

by revenue, whereas, Sinopec has reported the fastest

growth

Market Leader: Canadian f irm Couche-Tard held the market leader position and reported a greater than

market average CAGR of 15.9 percent during 2014–19 achieved through an extensive store netw ork,

proactive product marketing strategies and focus on enhancing customer experience

Fastest growing player:China Petroleum and Chemicals Corp (Sinopec) w hich derives its revenue only

from China, reported the fastest grow th (CAGR of +27.3 percent during 2014–19). It is focussing on the new

business model of ‘Internet + service stations + convenience stores + comprehensive services’ to advance

the development of self -ow ned brands and grow th of non-fuel business. Additionally, it is exploring novel

w ays to make sales amid the pandemic; launching ‘zero-touch’ vegetable sales at its 6,000 gas stations in

147 Chinese cities — fresh vegetables ordered via an app delivered ‘touch-free’ to customers’ car trunk

Other players among the top five:

— Seven & I Holdings held second position in terms of revenue. Focus on enhancing in-store customer

experience, creating differentiation via private labels and operation of an extensive store netw ork in the

US1 w ere key grow th drivers. In response to COVID, it is expanding its delivery footprint via third-party

providers (e.g. Postmate, DoorDash, Favour delivery in the US) and is introducing ready-to-bake options

— BP, Shell and Sinopec accounted for ~8.9 percent2 of the global forecourt convenience sales, in 2019

- BP is continually expanding convenience partnerships sites (1,100 in 2017; 1,400 in 2018; 1,600 in

2019 — targets 2,000 by 2021) w ith REWE in Germany, M&S in the UK and MyAuchan in

Luxembourg. Driven by COVID, BP expanded its partnership w ith Deliveroo to offer home delivery

service to its customers; across the UK, BP and M&S have 125 outlets available on Deliveroo

- Shell plans to expand its ‘new fuel’ (EV/Hydrogen3) and forecourt retailing business into new er

geographies. Further, it w ill invest US$500 million (in the next 3 years) into convenience retail and

on upgrading the stores, in a bid to increase the contribution of non-fuel sales to 50 percent by 2025.

It is also tapping into the accelerated home delivery trend via third-party partnerships Note(s): 1. Includes revenues from convenience retail items only; 2. ‘Others’ category includes over 40 competitorsSource: Data sourced from Euromonitor (at current prices and fixed exchange rate), Euromonitor updates

historic/forecast data annually, per latest data, in 2018-19 Couche-Tard is the leader; ***Pre-COVID analysis

British Petroleum

141 144

155

158

5 7 8 9 10 116

6 77

9 92

3 46

7 8

55

55

5 6

44

44

45

2014 2015 2016 2017 2018 2019 2023E

141 145

147

151

155

158

226

175

170

163

182

190

197

+3.8%

+3.6%


Supply chain

disruption

Demand

fluctuations

Change in long-term

consumer buying behaviour

Workforce

challenges

Increasing

operating costs

Falling oil prices

and demand

Liquidity

crunch

Product mix re-evaluation

and network rationalisation

Consumer and workforce

health and safety

COVID-19: Implications for the fuel and forecourt retailers


28.8 32.0 33.1 33.6 34.0 34.4 34.7

Jun-20 Aug-20 Oct-20 Dec-20

61.258.5

52.1 49.6

46.8

20.420.3 22.4

(37.6)

16.9

2-Jan 16-Jan 30-Jan 13-Feb 27-Feb 12-Mar 26-Mar 9-Apr 23-Apr

US-Iran conflict Beginning of

oil price warEnd of

price war

Oil price

collapse

Expected to improve depending on

longevity of impact of Covid-19

Near term outlook:

Note: WTI Futures; Jan’20-Dec’20F US$/bblSource: Bloomberg; forecasts taken from Energy Information Administration

Historic slump in global oil prices…

Note: WTI Futures (Crude Oil) and Brent Crude both have been showing similar kind of trend. For the purpose of this study, WTI Futures has been considered

On the fuel front, the industry is being hit by a double whammy of falling prices and demand, driven by extreme lockdown measures and voluntary social

distancing

As of April 2020, the oil price plunged to its lowest level amidst the rising spread of pandemic and supply-demand mismatch(WTI Futures; Jan’20-Dec’20F US$/bbl)

Demand

shock

— Fall in demand of oil from end markets (such as aviation, transportation,

electricity generation and industrial sectors)

— Restricted movement of goods/services and people relating to the

closure of businessess and factories

— Expected reduction of 9.6 million barrels per day (bpd) of oil demand in

2020 due to pandemic

Supply

shock

— Oversupply of crude oil globally, intensif ied by Russia-OPEC oil price

conflict (w herein Russia and Saudi Arabia decided to increase oil

production, f looding the market w ith excess oil)

— Over 86 percent of stock capacity full in major US crude oil storage , as

of May 2020, w hich is leading to supply glut

How is COVID impacting the fuel and forecourt market?

https://www.bloomberg.com/quote/CL1:COM


…driven by reduction in road traffic and fuel consumption…

GermanyFuel

Road Traffic

57%Drop in

traffic jams

Petroleum and Gas Consumption (ktoe)

SpainRoad traffic3

Drop in

gasoline sales

Drop in diesel

sales

84%

62%

96%

Decline

as of 6

April

2020 vs

8 April

2019*Decline in the week ending 12 April vs week ending 14 March

Fuel

France22% Drop in gasoline

consumption

26%Drop in diesel

consumption

96.9%

Decline as

of 6 April

2020 vs 8

April 2019

*overall y-o-y fall March 2020

Road traffic2Fuel

Lower than normal

demand in the week

after lockdown

restrictions imposed

73%

Traffic decline

on March 29 vs

pre-outbreak

level

50-70%

UKFuel

Road Traffic

Road Traffic

170,616 170,035

2019 2020 F2

Fuel Road Traffic

Drop in gasoline

demand

Fall in Diesel

demand

30.6%

37.6%

Decline in

road passenger

traffic

52.4%

24.8%

Decline in

road freight

China

*January – March 2020 (y-o-y change)

*January – Feb 2020 (y-o-y change)

Australia Fuel

1,549 1,430 1,434

De

c-1

9

Jan

-20

Fe

b-2

0

Road Traffic

Automotive Petroleum products consumption (million litres)

Drop in average daily traffic across Transurban network between 1March and 29 March

About 28 percent less vehicles used the Monash Freeway in March 2020, after restrictions were implemented

48%

28%

Netherlands Road Traffic

40 -65%

Drop in

inner city

traffic

30-60%

*Reported as of April 2020

Drop in

traffic

between

cities

* Pre and post lockdown period3

Note: 1) Economic Times 2) As per EIU estimates 3) Before lockdown: 9,400 traffic jams, post lockdown 4000 traffic jams


USFuel

44%Drop in

motor fuel

demand

14

Ma

r

18

Ma

r

20

Ma

r

18%26% 30%

*4 weeks till April end 2020 vs 4 weeks April end 2019

*each day vs same day prior month (Feb 2020)

*for one city, Bordeaux

*for one city, Madrid

CanadaRoad Traffic

55percent

point

On the day of ‘stay-at-home’

announcement; congestion

index peaked at just 17%, vs

72% at the same time last year

*decline reported for Toronto

Road traffic has plummeted across the globe as social isolation practices curtailed commuter and highway traffic — resulting in falling fuel

consumption. Global oil demand slumped by about 30 percent1, leading to growing inventories across regions

https://economictimes.indiatimes.com/markets/commodities/news/crude-oil-prices-fall-on-fears-of-coronavirus-second-wave/articleshow/75673706.cms


Challenges faced by forecourt retailers

…is impacting the fuel and forecourt retailers

Note: 1. Brand loyalty declines amid COVID-19 [URL] 2. Less energy usage at stores closing during nighttime hours or lower levels of waste at both the store (with many shelves cleared) and pump; 3. Data Centre; all based on KPMG analysis

Implications for forecourt retailers

01

Demand fluctuations

— Unprecedented increase in demand for food

retail resulting in initial out-of-stock situations

— Signif icant drop in demand in for fuel as w ell as

traditional products of some convenience

categories like cigarettes and food to-go resulting

in large unused inventory

02

Supply chain disruptions

— On the fuel front — retailers’ revenues and

profit margin under pressure, ow ing to the

demand and supply shock in the oil sector

— On the c-store front — stock outs and narrower

ranges are disrupting brand loyalty and spurring

demand for cost effective private label options1

03

Direct store operating expenses (DSOE)

— Added DSOE ow ing to frequent deep cleaning

and sanitation, and new safety measures, w ill

make it diff icult to sustain the underlying

operating margin level

— Reduction in other expenses2 could offset this

cost partially — how ever, in 2020 the DSOEs are

expected to remain considerably higher

04

Liquidity implications

— C-stores have been fortunate to enter the

economic dow nturn from a position of strength;

pre-COVID, the industry had good profitability,

healthy leverage and suff icient liquidity

— How ever, they now have to proactively manage

balance sheets and liquidity — as lenders and

investors are being more selective than they w ere

prior to the pandemic

05

Workforce challenges

— Increased labour requirements to meet higher

demand for ecommerce, click-and-collect,

delivery and DC3 operations

— Health and safety of employees and customers

w ill now be integral to provide a safe shopping

experience. This w ill require operating robust

protocols for health and pre-mobilisation checks,

travel/w orkplace access and social distancing

06

Change in long-term buying patterns

— Pandemic is likely to alter consumer behaviour

permanently; more consumers are — 1) shopping

for groceries online, 2) demanding curbside pick-

up and contact-free delivery and 3) making

sustainable/healthy consumption decisions

— Retailers need to be agile enough to adapt to the

shifting purchasing patterns and accelerate

initiatives for last mile

Store image more crucial than ever before

Operators that strategically invest in and differentiate

their store image to address consumer expectations

around health and safety — w ill likely be ahead of the

recovery curve, effectively taking market share

COVID to spur network rationalisation

Current situation is akin to a ‘stress test’ — fuel

stations suffering the most today are those w hich are

vulnerable to closure going forw ard. The pandemic is

likely to aggravate netw ork rationalisation

Product-mix will have to be altered

Sale of ‘open food products’ likely to be impacted;

‘meal kits’ are w itnessing a comeback (US customers

spent US$100 million on meal kits in 4w till 11 April);

scaling back of food service operations — self-serve

foods and coffee could move behind the counter

Partnership with third-party players

While M&A deals are being stalled amidst the

uncertainty, partnership w ith third party players to

support technology and logistics (delivery) is an area

that is likely to remain relatively active

Fuel stations without a strong non-fuel offering are likely to be impacted more


https://www.convenience.org/Media/Daily/2020/Apr/20/2-Brand-Loyalty-Declines-Amid-COVID-19_Marketing

02. Trends in forecourt retail


Summary: Evolution of forecourtsForecourts’ product and service offerings are continuously evolving, driven by customer demand for convenience — contribution of fuel retailing will

continue to decline while non-fuel retail offerings will gain prominence

Consumers' forecourt visits

centred around 'distress' fuel

purchase — this dictated the

design of forecourts and the type of services offered

Convenience and ‘to-go’

culture has shifted the

consumer demand tow ards

retail shopping and adjacent services

In the future, consumer

demand for convenience

coupled with w ider mobility

and energy trends will enhance the role of services

Note (1) KPMG f orecast 2)

Source: KPMG Analy sis; pre-COVID market size statistics stated

Forecourt in the past Forecourt today Future forecourt (over 10–15 years)

Co

nve

rge

nce

(Re

tail +

ad

jac

en

t se

rvic

es

)

Technology to have an over arching presence all across

Market Size (2014): Market Size (2019): Market Size (2029):

Convenience

US$

163billion

US$

197billion

US$

274billion1

Fuel — 90%

Adjacent Services — 10%— Car services (spare parts & repairs)

Adjacent Services — 15%— Car services (spare parts and repairs)— Pick-up point for packages

Retail & F&B — 35%— Fast-food outlets— c-stores (groceries and

other products)— Liquid boost (cafes, soft

drink kiosks)

Fuel — 50%Adjacent services —30%— Home delivery goods &

services**

— Car wash and repair— Pick up point for packages

— Amazon lockers— Co-working spaces

— Child play areas— Laundry services

— Pharmacy

Fuel — 20%

Mobility — 10%— Charging points for electric and

autonomous vehicles (EV/AV)

— Mobility hubs (EV/AV service stations)

— EV/AV accessories

Retail &F&B — 40%— Fast-food outlets— c-stores (groceries and other

products)— Liquid boost (cafes, soft drink

kiosks)— High-end restaurants

— Luxury cafes— Checkout-free c-stores

— Home delivery goods & services

A trend made prominent by rising partnerships for logistics and delivery, in light of COVID-19

Home deliv ery trend made more prominent by rising logistics/delivery

partnerships in light of COVID-19

Note:

Retail & F&B

Adjacent Services

Mobility

I. Retail & F&B


Only 19% forecourt shoppers cite fuel as their

main reason for visiting a forecourt — HIM report 2020

Convenience culture is fuelling forecourt shopping…Increasing prevalence of the convenience culture is driving growth of the forecourt retail market, which is responding by improving its food and product

offerings

With people getting busier, forecourt stores have become one-

stop convenience shops ow ing to their location advantage and

long opening hours. Additionally, amid the coronavirus fears, they

are emerging as an alternative to high traff ic supermarkets.

A shopper’s mission of visiting a forecourt has shifted from need-

based ‘distress purchase’ of fuel to convenience retailing

— Non-fuel products such as grocery, tobacco, meals-to-go are

attracting more footfalls than fuel offerings. Per HIM report

20202 — only 19 percent of forecourt shoppers cite fuel as

their main reason for visiting a forecourt

— ACS3 reported that 88 percent of the 8,382

fuel forecourt sites in the UK, have ‘shops’

— BP reported4 that, half of the customers

at its forecourts in the UK did not buy petrol

Customer perception of PFS1 is changing…

In a bid to capitalise on the convenience trend, forecourt

retailers are investing in convenience retail offerings.

Moreover, the margins on c-retailing are signif icantly higher

than fuel

— In the US, non-fuel revenues accounted for 32 percent of

outlet revenues and ~63 percent of gross margins5

— Independent UK forecourt retailers are signif icantly

investing in their stores (~ £14,463 per store

on an average6) in areas of food-to-go,

refrigeration, shelving and store

signage

…driving forecourt retailers to develop c-store offeringsNon-fuel purchases at forecourt stores (2019, UK)

Ascona group + Nisa Retail “The UK forecourt market has evolved

considerably in the past decade – from a time

when the fuel mission accounted for over a third

of visits, to now accounting for less than a fifth. Retailers and operators are feeling the pressure -

or seeing an opportunity - to find alternative and

innovative ways to drive footfall to their stores and

thereby capitalise on the growth opportunities in the market.”

— Sarah Coleman, project manager at MCA

Insight & HIM (February 2020)

— Forecourt retailer Ascona

tied up w ith Nisa Retail to

supply 37 UK sites w ith

grocery products as w ell as

the Co-op’s ow n-label range

— Stores w ill vary in size (800–

3,000 sq ft) and w ill adopt

Nisa Evolution fascia and

take on latest store formats

— Expanded partnership w ith

Albert Heijn (ow ned by

grocery giant Ahold

Delhaize) after a successful

pilot phase

— This w ill enable customers

to access Albert Heijn’s ‘to

go’ food and drinks across

100 sites in the Netherlands

— Has tie-ups w ith Greggs,

Subw ay, KFC and Starbucks

— Ramped up its food-to-go

offer — acquired 146 KFC

restaurants and one Pizza

Hut store in the UK & Ireland

— Has opened up a drive-thru

KFC and Starbucks, at some

of its sites

— Rontec developed its ow n

chain of stores ‘Shop’N

Drive’ — stocking ~5,000

products (including bacon,

eggs, bread, frozen meals)

— Extended its partnership

w ith Morrison's; plans to add

50 Morrisons Daily stores

and trial new formats

BP + Albert Heijn EG Group Rontec + Morrison's

Note: 1. Petrol Filling Stations 2. HIM & MCA Insight UK Forecourt Market Report 2020 3. Association of Convenience Stores, UK (The Forecourt Report 2019) 4. In 2018 5.Per Petrotech 2016 gas conference 6. ACS Forecourt Report 2019

Source: ACS, The Forecourt Report 2019

The averagebasket size is

2.34items

The average shopper spend at forecourts is

£6.06*excluding fuel


…and enhancing the role of retail experienceForecourt retailers are re-designing c-stores with the modern consumer in mind, and offering a variety of localised products to shoppers — in a bid to

attract customers and increase the probability of impulsive purchases

Besides standardising branding across their global stores, most

forecourt retailers are revamping their in-store design to:

— Differentiate themselves from peers and attract more

customers

— Increase the retail space

— Supplement their food-to-go offering w ith seating for

customers w ho w ould prefer to eat in-store

Forecourt retailers are:

— Introducing new menus and concepts, such as live preparation

to stay up-to-date and sustain consumer interest

— Offering healthy and localised1 products – fresh fruits and

vegetables, dairy, deli and low calorie drinks and snacks – to

cater to different age groups and customers

— Altering product-mix to keep pace w ith changing customer

requirements amid the pandemic

Forecourt retailers are increasingly launching ow n private labels

of fresh food/coffee and others to:

— Create differentiation

— Drive brand loyalty

— Increase margins in their products

In-store

design

Re-vamped

product

assortment

Private

labels

BP Australia launched a ‘concept store’ featuring modern interiors w ith yellow and charcoal accents and

w ooden ceiling panels for a refreshed appeal

Applegreen’s M1 Lisburn store w on the Forecourt Trader of the Year Aw ard (2017) for its store design;

has a mezzanine f loor w hich can be accessed via an escalator, and also has an Applegreen lounge

Applegreen’s Spalding store w on the Forecourt Trader aw ard for Best Design & Development (2019)

SPAR Express forecourt store (Austria) is equipped w ith a new store design concept, featuring w ood

panelling, clear store signage and easy to navigate f loor plan

BP as part of its Trademark product portfolio ‘Too much good stuff®’, offers proprietary foods such as Good

Stuff Candy, cookies and coffee

Seven & I Holdings’ private labels in food and cosmetic comprise 7-Select GO!Smart Cold Pressed Juice

and 7-Eleven Makeup Simply Me Beauty. Also hosts a ‘24/7 life’ brand containing ~200 non-food products5

Rewe’s (Germany) offers diverse private label products. In 2019 it launched private label show er gel and

soaps under its ‘Today’ brand w hich come in packaging made of 100 percent recycled materials. Also

launched a sustainable ow n-brand orange juice, in 2020

Coop launched a freezer f illing deal3 w hich can feed a family of four for £5

7-Eleven’s Dallas lab store is testing new w ellness products such as gluten-free, keto-friendly and naturally

sw eetened goodies. Additionally, it operates combined distribution centres4 w hich supply fresh products (lunch

boxes, rice balls, sandw iches etc.) to the stores 3 times/day. 7-Elevenalso implemented a cold chain (low

temperature logistics netw ork) to maintain freshness of harvested vegetables w hile transporting them

Woolworths partnered w ith Australia Post and DHL Supply Chain to deliver the ‘Basics Box’ of groceries in

Australia, in light of the COVID-pandemic. Meant for the elderly and vulnerable, the US$80 w orth box contains

meals, snacks, and essential items; under a similar initiative Morrisons also launched ‘Essential Box’(£35 to

£55) delivery in the UK

Note: 1. Locally sourced to tailor to local preferences; 2. Delicious Ideas Food Group 3. Contains: Birds Eye four chicken burgers, Birds Eye two Southern fried chicken grills, Birds Eye mini potato waffles, Birds Eye mixed vegetables and a Cadburys

Double Decker ice cream tub 4. In order to keep offerings fresh; Temperature-separated combined distribution centres are operated by third parties and enable products from different suppliers and manufacturers to be delivered to 7-Eleven stores on the

same truck 5. Including electronic devices and toiletries, over-the-counter medication, cleaning supplies and other non-food items

Trend decelerated by COVID

Note:

Trend accelerated by COVID


…redefining customer relationship, Forecourt retailers are leveraging innovative digital tools to engage the modern and safety conscious1 consumer at every step of their purchase

experience journey

D. Re-fuel and relax

The vehicle is re-fuelled at the forecourt and is then lined

up for car w ashing, during w hich the customer picks up

his/her groceries and spends the ‘w ait’ time in a bistro

G. Personalised offers & loyalty rewards

Later during the day, the

customer receives a

personalised discount offer,

valid on a preferred product

and a chance to w in loyalty

points

A. Station locator

The customer uses

mobile app to locate the

closest outlet; view s

real-time fuel prices and

brow ses through

products/services

available

H. Order online or re-visit forecourt

The customer then chooses to either:

(1) Order product via ‘convenience

store delivery app’, w hich is

delivered at home or a public hot

spot (beaches/parks/others) via a

delivery partner (such as, Uber

Eats or Grubhub)

— Deliveries via partnerships

are becoming prominent,

driven by COVID-19; per a

latest study, 12 percent of UK

shoppers2 are using delivery

apps (such as Deliveroo/

UberEATS) more during the

lockdow n, than before.

Additionally, 5 percent expect

to continue to do so even after

the lockdow n ends

(2) Re-visit the forecourt to utilise the

discount offer; makes contactless

payment via mobile/QR code

E. Explores the ‘offer of the day’

The customer is attracted by the

‘offer of the day’ — spends time on

the forecourt to explore the offer and

ends up making an impulse

purchase

B. Outlet selection

The customer preference for an outlet

is based on his/her convenience

function; fuel price and discount

offers on his debit/credit card also

influence the decision

C. Payment

The customer can choose to either:

(1) Pre-pay for the fuel,

groceries and car w ash

services via e-Wallet, or

(2) Pay-at-Pump via an outdoor

payment terminal

PAID

F. Rates experience

The customer rates the

forecourt retailer w ith ‘n’ stars

on the app and shares his/her

experience on social media

Note 1. safety becomes prominent in light of COVID-19 2. Link

Health and safety across all touch points, becomes integral in light of COVID-19 — customers to likely prefer fuel stations that are frequently disinfecting high touch areas, offering contactless delivery and f ollowing strict food safety and handling policies

Trend accelerated by COVID

Note:

https://forecourttrader.co.uk/news/fullstory.php/aid/18642/Pandemic_will_leave_long-term_demand_for_delivery_services.html


Digitalisation is creating operational efficiencies,The Forecourt industry is quickly adapting to digital opportunities with many retailers understanding the advantages it brings; adoption in some cases remains

slow, its potential to transform the industry is huge. Driven by the pandemic, the future solutions will see an accelerated involvement of digital retailing

What’s in it for forecourt retailers?Operational efficiencies through:

Process digitisation

— Utilising sophisticated IT infrastructure to facilitate communication and standardise management across global operations

— Leveraging tools to gain real-time view on POS terminals , store systems, inventory and merchandising

— Integrating control of all types of forecourt equipment w ith the POS

— Embedding automation to save labour costs

— Using tablets w ithin stores for staff, for inventory tracking

Store data can enable forecourt retailers to:

— Design CRM campaigns

— Design new products

— Identify up-sell/cross-sell opportunities

— Explore the time/day w hen purchases spike

— Look at a customer’s path to purchase (w here), touch points (w hat) and buyer behaviours (w hy) — i.e. journey tracking

— Automatically replenish wet stock based on sales history or stock levels

► Enhanced forecourt efficiency via

predictive analytics

► Labour cost-saving

► Productivity increase of having

empowered workers

► Operational transparency

► Inventory control and tracking (fuel

inventory), supply chain management

and audit and compliance

► Accurate marketing insights generation

► Efficient wet stock management

► Efficient price strategy

► Right size food offering and targeting

right customer, at right time

► Improved capabilities and services drive

more speed and consistency

► Better insights into customer habits and

desires, resulting in improved sales and

ability to avert potential issues

Applegreen uses a price optimisation

solution to boost its profitability at the pump.

The softw are gathers real-time data (such

as market costs, competitor prices, historic

site-level sales) and then applies modelling

to forecast price elasticity — enabling

profitability w ithout compromising on the

offer of ‘low fuel prices’

Applegreen

Seven Eleven is leveraging Microsoft

Surface devices (equipped w ith Office 365

and Pow er BI) to provide franchisees w ith

insights into store performance and

purchase trends, w hile also enabling them

to analyse sale opportunities

Seven Eleven

+

Waw a is using softw are from startup Zynstra

to create a virtualisation layer for its point-of-

sale (POS) platform that lets store associates

move around the store and complete sales

using a tablet computer — reducing

checkout lines and freeing up store

associates’ time to attend customers

Wawa Inc. Zynstra+

Data driven insights

Challenges and recommendations

— Fuel retailers are faced with various barriers

when adopting digital — these inhibit them to

scale

- Internal barriers (mainly workforce related)

can be dealt with, by — (1) engaging new

skills (data science/cybersecurity specialists)

(2) developing a digitally savvy workforce on

the ground

- Strategic partnerships with fast food

chains, e-commerce giants or other fuel

retailers can help in scaling up quickly

— Regulatory challenges (e.g. GDPR) related to

storing and processing sensitive data

- Adopting proven PCI2 strategies as

blueprints, and pseudonymisation3, can help

forecourt retailers overcome privacy

challenges

Note: 1. Applegreen won the 2019 NACS European Convenience Retail Technology Award for this solution 2. Leveraging learnings and industry best practices (such as tokenisation/minimising storage of card data) adopted to comply with PCI DSS

(Pay ment Card Industry Data Security Standard) 3. Pseudonymisation replaces most identifiable fields in a data set with artif icial identifiers, or pseudonyms

+ Microsoft

PDI software


…and helping unlock value from payments*With m-commerce1 pervading every aspect of the retail landscape including forecourt, convergence between mobile and payments is taking place,

driven by consumer demand for ‘faster, better, cheaper, easier and safer’ shopping experiences

Forecourt retailers are continuously adopting faster payment methods to reduce customer checkout times at their stores. The trend is being accelerated by the pandemic — increased concern about hygiene is spurring contactless payments, as people refrain from using cash

— Most traditional fuel retailers such as BP and Shell have launched or are already

using this form of payment. Per ACS analysis2, about 82 percent of the forecourt sites

in the UK accept mobile payments

Mobile/app based payments

— A RFID chip embedded in items at forecourt store, could potentially lead to an entire basket

being scanned in one go and reduce the standard self -service checkout time — making

shopping at forecourt stores even more convenient, quick and hassle free

IBM has trialled the use of RFID chip to

scan an entire basketor trolley’s w orth

of shopping in one go, at a Shell petrol

station in Hollow ay Road, London; the

system could render traditional barcodes

obsolete

+

BP launched a smartphone app-based

payment system, ‘Bpme’ which enables

users to select the pump and make the

payment

Accepts Apple and Google Pay across its

stores; Canada stores also accept Alipay

and WeChat Pay. In the US it introduced

mobile checkout — enabling customers to

scan their purchases and checkout w ith

the 7-Eleven mobile app. Further, it

leveraged contactless technology to

enable health care w orkers pay via their

employee badges at a pop-up store5

Seven & I Holdings has introduced RFID

based unmanned cashless checkout

facilities in Japan. By 20254, aims to

implement an RFID self-checkout system

for all products

Reduced check out time and speedy transaction process

Mobile/app payments have the ability to enhance brand loyalty by:

— Serving the customer demand for ‘convenience’

— Making it easier to quantify the value delivered, by analysing app data

(via back-end analytics)

— Making the payment process safe and contactless, as customers look

for minimal human interaction driven by COVID-19 fears

— Calculating customer value w hich can be used for

hyper/personalisation of suitable offers, promotions and push

notif ications (coupons, discount offers)

What’s

in it for

forecourt

retailers?

Radio Frequency Identification (RFID)

BP

Shell’s m-payment app ‘Fill up and Go’

lets customers pay via their mobile; it

partnered w ith Jaguar to enable users to

use the car’s touchscreen to go cashless

via the shell app. In Thailand, it launched

Pay at Pump: In-car contactless

payment with PromptPay QR Code to

enhance convenience and safety amid the

COVID situation

Shell

IBM Shell Seven & I Holdings

Seven & I Holdings

Provides various quick payment

settlement options such as mobile-app

(Circle K Pay, Easy Pay), payment by car

etc. for both fuel and non-fuel purchases

Couche-Tard

Consideration:

Forecourt retailers w ill have to consider the use of mobile phones at petrol stations, ow ing to

the associated safety issues2

Note: 1. Mobile commerce 2. ACS: Association of Convenience Stores | The Forecourt Report 2019 3. Usually it is required to keep the engine, lights and electrical systems (radio/devices that emit electromagnetic radiation) turned off at the petrol station. Some

howev er argue that phones are too low-powered to trigger an explosion, but BP claims a spark could be produced if a phone is dropped and its battery knocked loose 4. Ministry of Economy, Trade and Industry Japan (Link) 5. Pop-up-store in Texas, amid COVID

especially amid the coronavirus pandemic,

where digital/contactless payments are edging

out any other form of payment owing to the

associated hygiene factor*

https://www.dailymail.co.uk/sciencetech/article-2947902/Forget-Pay-Pump-Shell-customers-soon-able-buy-petrol-using-APP-safe-use-phones-forecourts.html

https://www.meti.go.jp/english/press/2017/0418_003.html

II. Adjacent Services

Retail & F&B

Adjacent Services

Mobility


Adjacent services are gaining centre stage…

Offers services such as laundry, parcel

collection and meal kit deliveries at its food

and services convenience hub (‘Foodary’);

supports pre-orderingvia mobile app

Arranged for hairdressing services on its

forecourts in China4, w here barber shops were

closed due to COVID. Further, it extended

product range to include, bleach, sanitisers, pharmaceuticals and staple groceries

BP moved into food delivery w ith

a new brand ‘Couchfood’,

enabling on-demand ordering of

snack food; service available via Deliveroo and Uber Eats

Caltex BP + Deliveroo

Shell Couche-Tard

In addition to the expansion of product portfolios and ranges, forecourt players are focusing on new and innovative services to cater to multiple

customer needs — beyond those of their car

Bill payment

serv ices

Prescription

collections

Children play

areas

Cash-back and

Loyalty cards,

Lottery

Unmanned

v ending

Laundry/dry

cleaning serv ices

… including licencing

Alcohol licence

Late night refreshment

licence

Car wash and

repair services:

▌ Jet w ash (manual)

▌ Automatic machine car

w ash

▌ Hand car w ash (attended)

Most prevalent service(s) today

Tobacco/

cigarettes

Note: 1. Certain forecourt retailers mandate transportation of food items such as vegetables at a fixed temperature range to ensure good product quality e.g. Seven & I holding & Wawa 2. Attractive and compelling propositions to ‘stop’ the customer for a longer

duration at the f orecourt 3. In the first phase, 150 Carrefour Express fuel stations selected to develop this service 4. New y ear traditions in China include people getting their hair cut on the 2nd day of the 2nd lunar month Link 5. QikServe’s Preoday product

Other potential adjacent services…

Co-working

spaceMobile phone

top-up Cash

Machines

Local grocery

Deliv ery/cold

storage transport1

Co

nve

nie

nce

Lo

gis

tics Pick-up point

for click and

collect orders

Autonomous

ground-based

and aerial

drones for local

distribution

‘Retail to trunk’

serv ices, enabled

by connected

v ehicle technologies

E-bike last-mile

deliv ery (in

congested

ecosystems)

► Driv e customer intimacy via personalised offerings and

insights, to provide the right product service mix to customers

► Harvest attractiv e profit pools, and continually ev olv e service

propositions to differentiate themselves from peers

► Retailers need to build the maximum ‘stopping power’2 for their

sites, by enhancing the role of services in their profit mix

► Additionally, emergence of new partner concepts will require

forecourt retailers to continually rev iew and ‘churn’ concepts to

ensure the offers stay fresh and interesting over time

Offers seasonal car wash

services; cutomised to regional

atmospheric conditions (dirt,

pollen, snow etc.); also offers RFID tag based car subscriptions

Examples

What’s in it for forecourt retailers?Launched a catering programme

for family gatherings, social

and corporate events (breakfast,

lunch, dinner); offers customised packages

WAWA+ Uber Eats

Delivery and click

and collect services

Home deliv ery trend made more prominent by rising logistics/delivery

partnerships in light of COVID-19

Note:

CEPSA + Glovo

Carrefour extended its

partnership w ith Glovo for

home delivery from select 150

Carrefour Express stores3

located at Cepsa gas stations

+ Carrefour

Sinopec

Launched touch-free

service amid COVID

fears — delivering

app-ordered groceries to car trunks

Moto (Motorway service operator )

Moto is launching a

click-and-collect food

ordering scheme at 48

sites; the service will be pow ered by QikServe5

https://www.globalconveniencestorefocus.co.uk/features/sharing-best-practice-globally-key-to-shell-retail-strategy-during-pandemic/


…especially in established and high-growth marketsDeveloping countries such as Argentina and Brazil have displayed high growth potential for forecourts in general and adjacent services in particular;

mature markets will also experience high growth in adjacent services at forecourts

Note 1. Per UKPRA 2019 Market Review 2. Y-axis reflects the overall score a country has achieved after taking into account four parameters (details in Appendix III) which impact the prominence of forecourt services in the respective economy; higher the

score, more is the potential for a structural shift towards ‘adjacent services’; Source: KPMG Analysis

Established economies such as the UK and

the US will continue to hold a strong position

in the forecourt market, and given the enabling

environment (infrastructure, technology and

prominence of services in general) forecourt

services are expected to become more

prominent. In the US however, consumer

preference to refil l grocery from stores rather

than branded fuel stations1 will make it difficult

for forecourt retailers to engage with the

customer who never enters the forecourt site

Forecourt growth in Argentina and

Brazil will be coupled with growth

in adjacent services, driven by the

convenience culture as well as the

openness of the economies to

innovation

Key established economies High growth economies

Conv enience culture is picking up in both,

China and India. However, India appears to lag

in terms of infrastructure and technology

adoption; global trends such as, reliance on

non-fuel revenues to drive margins and entry of

hypermarkets in fuel retailing, are yet to fully

dev elop in the country

Iran is also witnessing an increase in the

convenience trend, driven by fast-growing

single-person households and an aging society

Though Germany is a prominent

forecourt market, its ageing

population inhibits service growth.

Also, the conv enience channel has

traditionally held a small share of the

German retail in general, largely owing

to high number and density of

supermarkets in the country

Developing economies Further details

USA

Germany

China

UK

AustraliaCanada

Spain

Switzerland

Poland

Netherlands

Thailand

Brazil

France

Mexico

Russia

EgyptSouth Africa

Argentina

IranNew Zealand

India

ItalySweden

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0%10.5%11.0%11.5%12.0%12.5%13.0%13.5%14.0%14.5%15.0%15.5%16.0%16.5%

Adjacent serv ices to become

prominent in mature

economies despite low

anticipated growth in f uture

f orecourt market — imply ing a

structural shift with ‘adjacent

service’ becoming

‘mainstream’

In the high growth markets, rapid

growth in f uture f orecourt market will

go hand in hand with growth in

adjacent serv ices

Dev eloped

Dev eloping

↑Growth in adjacent services, ↑Future forecourt growth predictions

↓Growth in adjacent services, ↑ Future forecourt growth predictions

Forecourt Retail market growth CAGR (2018–22, %) (higher the better)A

dja

ce

nt S

erv

ice

s G

row

th P

ote

nti

al S

co

re

(hig

he

r th

e b

ett

er)

2

III. Mobility

Retail & F&B

Adjacent Services

Mobility


Global mobility megatrends are transforming the industry…

Electric

Vehicles

Connected &

Autonomous

Vehicles

Mobility as

a service

Disruptive forces

ImpactEnablers

Influx of new technology

Changing consumer

demands in terms of:

Mobility

Convenience

Sustainable

environment(societal demands)

Shift from personal ownership

model to a mobility ecosystem model based on

on-demand services

Three main disruptive forces will fundamentally transform how people and things move in the future — EVs, C&AV and MaaS1

New business models and

value chains will emerge

Collaborations driven by a

need to enhance capabilities

Change in the future fuel mix

driven by a trend towards cleaner fuel

Note 1. EV: Electronic Vehicle; C&AV: Connected and Autonomous Vehicles; MaaS: Mobility as a service


...resulting in emergence of new business modelsConnected cars, autonomous vehicles and rise of mobility as a service will lead to a change in the existing business models of the forecourt players,

while also bringing data privacy into play

MaaS

ecosystem

includes:

Au

ton

om

ou

s ve

hic

les

Mo

bil

ity a

s a

se

rvic

e

P2P ride sharing

Two way car share

One way car share

Ride hailing

Bike sharing

2019 market size (global):

US$63.03 billion2027 market size (global):

US$225.16

Inter-connectedness to generate

huge amount of customer data

Mobile based

applications

+Car infotainment

system

Co

nn

ecte

d c

ars

With a rise in Internet of things (IoT), the car of the future w ill become a connected hub

that relays and processes customer data …

Note: 1. Determined based on frequent consumption or high quality 2. Calculated 3. Impacting revenue source 4. E.g. GOJEK’s partnership with Esso (link); in Singapore Gojek drivers enjoy a 20 percent discount when they buy petrol at any of Esso’s

serv ice station

… data availability results in both opportunities and challenges for the forecourt retailer

Utilise the customer data to provide

personalised services and products.

IOT w ill enable connected vehicles to provide

information on availability of 'fuel of choice‘1 at

best prices in a locality. Hence, forecourts selling at a competitive price w ill w itness a boost.

Opportunities

+Data confidentiality, cyber security

concerns and GDPR compliance

Challenges/costs

Market for autonomous vehicles (AVs) is expected to be worth US$556.7 billion by 2026

Partner w ith automakers to develop software

that ensures their brand of fuel is the

priority/default choice of the AV — creating

potential footfall at their forecourt

Opportunities

+Shift tow ards B2B sales

model, as f leet ow ners are more likely to

use AVs than individuals. Moreover,

driverless commercial f leet could make the food/restroom breaks3 at forecourt

redundant

Challenges/costs

Tie-up with AV service providers to

cater to their recharging/refuelling needs.

Urban forecourts could provide car sharing (for both ICEs, EVs) and car rental services.

Forecourt retailers could provide attractive

offers/discounts to ride sharing/hailing drivers, if they fuelled up on their station4

Opportunities

+Shared mobility w ould lead

to multiple customers with differing tastes on

the road. As a result, forecourt retailers will

have to provide compelling incentive for each type of customer to ensure footfall and

business

Challenges/costs

Consumer perception of mobility is also shifting from asset ownership towards mobility

as a service, forcing the forecourt retailers to adapt:

AV penetrationMarket size (US$ billion)

Market penetration (%)

Global autonomous vehicle market size and market penetration:

54.2 76.5 105.7 146.4203.1

282.9

396.7

556.7

0.0% 0.0% 0.1% 0.2% 0.3% 0.5%0.8%

1.7%

0%

0%

0%

1%

1%

1%

1%

1%

2%

2%

0

100

200

300

400

500

600

2019 2020F 2021F 2022F 2023F 2024F 2025F 2026F

Global Mobility as a Service (MaaS) market size and market penetration:

CAGR2:

12.5%5

2018 market size:

US$171.5 billion

2024 market size forecast:

US$347.6 billion

CAGR:

17.1%

https://www.petrolplaza.com/news/21021


...and an increase in collaborations, to boost capabilitiesElectrification will lead to partnerships between forecourt retailers, carmakers and energy providers to expand electric vehicle (EV) charging beyond

forecourts; while the forecourt of future will have to be designed keeping in mind the EVs

Note: 1. Limited details on the laboratory available 2. IONITY is a joint venture between BMW Group, Daimler AG, Ford Motor Company and the Volkswagen Group with Audi and Porsche 3. Oil & Gas 4. Ultra-fast charging

Ele

ctr

ific

ati

on

Government subsidies, coupled with mandates to discontinue diesel/petrol is

incentivising consumers to switch to EVs

Global EV market size 2017–25 (US$ billion)

28% 28% 29% 29% 29% 29% 30% 30% 30%47% 47% 47% 47%

47%46%

46%46%

46%

24% 24%24%

24%24%

24%24%

24%

24%

119 138 163195

237292

351

444

567

2017 2018 2019F 2020F 2021F 2022F 2023F 2024F 2025F

Plug-in Hybrid Electric Vehicle

Hybrid Electric Vehicle

Battery Electric Vehicle

Partnerships with energy providers to

‘expand’ EV charging beyond petrol

stations and forecourts

Possible transition to ‘mobility’ hubs;

offering converging range of services

(battery swap-out services to allow for faster powering up) and retail offers

EV w ill be the vehicle of choice and w ill

lead to a reduction of the footprint of

future forecourts. Additionally, future

forecourts will have to be designed(existing ones re-designed) keeping in

mind EV charging infrastructure

EVs w ill require retailers to develop innovative business models to

incentivise electrification of private

sector fleets (Uber, Lyft)

In Norw ay, Couche-Tard has replaced

fuel pumps w ith EV chargers in some

of its Circle K gas stations. It’s Norway

laboratory1 is testing approaches to

cope up w ith changing fuels market

Shell in partnership w ith IONITY2 plans to install

500 EV charging stations (w ith peak pow er of

350kW) in forecourts. Additionally, it acquired

pure play EV charging solutions providers

Greenlots in 2019

OMV Petrom, a Romanian O&G3 f irm

installed solar panels on the canopies

covering the gas pumps at 40 stations

in Romania; these w ill generate 30,000

kWh of electricity annually, per station

BP established a JV w ith DiDi to build EV

charging network in China in 2020.

Additionally, began rolling out 150 kW BP

Chargemaster UFC4 in the UK and piloted

UFC4 at Aral forecourts in Germany

Couche-Tard /

Circle KShell Ionity+

OMV +BP DiDi

“The opportunity also to explore options for providing charging services away from

our existing retail sitesmakes FreeWire an ideal partner for BP.” — Tufan Erginbilgic,

chief executive | BP Dow nstream, January 2018

We recognise that the customers are not just necessarily going to go to recharge just at

retail sites, they’re going to want to charge at work and home, so we’re moving into

this space” — Mark Gainsborough, executive vice president | Shell’s New Energies

operation, February 2019

Opportunities Challenges/costs

+

“Within five years we plan to have more than 100 Electric Forecourts in use, with each

supported by solar energy and battery storage. This infrastructure will accelerate the electric

vehicle revolution” — Toddington Harper, CEO | Gridserve, April 2019

Electric forecourts will also offer “a coffee shop, supermarket, high-speed internet and

everything else you would expect to find at a service station”, plus an education center w hich

w ill aim at “improving consumer confidence in such technologies" — Press Release, Gridserve, March 2020

Chargemaster+

Greenlots+


A move towards cleaner fuel driven by increasing pollution and the increasing need for a sustainable environment has increased the preference for

electric vehicles among both manufacturers and consumers

Rising transport sector’s CO2 emissions1 …

Road transport

emissions ≈ 5 Gt CO2

22%

Global energy-related

emissions ≈ 30 Gt CO2

Transport emissions

≈ 7 Gt CO2

4%

11%

73%

12%

47%53%

Sea RailAir Light-duty

v ehicles

Heav y-duty

v ehicles

Legend:

… and (2) introduce vehicle emissions standards and regulations, to support clean fuel transport

Trend towards cleaner fuel…

Note: 1. 100 percent values for these were not available, 2. Vehicles use energy, and fuel economy measures energy per unit of vehicle travel. It is the rate of energy use. Litres per 100km (Europe), Km per litre (Japan) Miles per gallon (United States), 3. The Global Fuel Economy Initiative promotes the introduction of cleaner, more energy efficient vehicles in developing and transitional countries

… have steered countries to (1) set up mandatory fuel economy2 targets via Global Fuel Economy Initiative3 (GFEI)

OECD averageaverage fuel

economy(Lge/100km)

Non-OECDaverage

av erage f uel economy

(Lge/100km)

2005

2008

2011

2030

Above Euro 3

Euro 3

Below Euro 3

No Policy

Unknown

Started in 2017, Tier 3

sets new vehicle

emissions standards

and low ers the sulphur

content of gasoline,

considering the vehicle

and its fuel as an

integrated system

Launch of ‘Road to

Zero’ strategy w hich

aims to have half of

new car sales to be

ultra low emission by

2030

Adoption of Bharat

Stage VI emission

norms (standards to

regulate emission of air

pollutants from motor

vehicles) from 1 April

2020

Since 2009, EU legislation

sets mandatory emission

reduction targets for new cars.

From 2021, phased in from

2020, the EU fleet-w ide

average emission target for

new cars w ill be 95 g CO2/km

8.1 7.5

7.6 7.6

7.0 7.5

4.0


…is changing the alternative fuel landscapeHydrogen has the potential to become a vital part of the transport mix in a low-carbon future — requiring players to re-invent their business models to

account for new infrastructure requirements (around fuel production, storage and distribution)

Note: 1. Petrol Filling Station 2. Per gasoline gallon equivalent 3. For further details visit the website 4. Link

Production of hydrogen (H2) utilises renewable source of energy such as water and is hence, considered sustainable. As a result, fuel cell hydrogen vehicles – which can travel up to 700

km on a single tank and can be refuelled in a few minutes – could be the future

How hydrogen reaches the vehicle?

Production

Dispensing the fuel into the consumer’s vehicles

H2 is fuelled into the consumer’s vehicles in few minutes. A 4 kg H2 tank holds the

energy equivalent of 4 gallons of gasoline. Such a tank is f illed in 3-5 minutes

Onsite production

at refuelling station via electrolysis that

uses w ater procured from nearby lakes

or rivers, and electricity

Offsite production

in large plants through electrolysis,

gasif ication or renew able liquid reforming

Can be stored as a compressed gas or liquid, or in a chemical compound

H2 is distributed either through pipeline or by

truck, railcar, ship, barge in high-pressure tube

trailers, else via liquefied Hydrogen Tankers

Distribution to PFS1

Storage

What’s in it for the forecourt retailers?

H2 facility integrated into an existing refuelling station

and added as another fuel offering

Impact: The precondition for this is - there should be

suff icient space on the existing site for the required

hydrogen facilities and that the delivery, storage and

dispensing of hydrogen alongside other liquid or gaseous

fuels is possible from both a technical and a regulatory

perspective

Established as a greenfield project on a standalone site

Impact: As new facility, therefore, no need to w ork w ithin

the constraints of existing site infrastructure

— Typical refuelling station components expected by

customers, such as c-stores and services

Mobile re-fuelling stations (used where there is no permanent

hydrogen re-fuelling station as yet)

Impact: As mobile hydrogen re-fuelling stations are

primarily an instrument for a market launch or for

demonstration projects, they are unlikely to have a

signif icant impact on forecourt retailers

Supply chain & other challenges Re-fuelling infrastructure considerations

Transporting, storing and delivering H2 to

the fuelling station is considered to be

expensive on a per-GGE2 basis

To ensure dispensing pressure is good

and consumer friendly, metering needs to

be done correctly, w hich becomes

challenging, as H2 is lightest molecule

High cost — expected cost to build a H2

economy could be ~US$280 billion during

2018–30, including US$80 billion for

infrastructure to store, transport and

distribute H2

Case example: H2 Mobility3, a German consortium (includes Shell, Total, OMV,

Daimler, Linde Group and Air Liquide) is establishing a netw ork of hydrogen stations

and infrastructure to supply cars with fuel cell drives in Germany; aims to install 400

H2 stations in the country by the late 2020s

Handling H2 requires compliance w ith

safety regulations, there exists a high risk

of potential ignition of H2 leakage at the

station or at the vehicle (e.g. on 10 June

2019, an explosion occurred at the Uno-

X H2 station in Norw ay4)

https://h2.live/en/h2mobility

https://www.electrive.com/2019/06/11/norway-explosion-at-fuel-cell-filling-station/


Stringent emission regulations/standards and an imminent influx of electric vehicles has led to a change in fuel mix, which in future will also comprise

electric charging points and alternative fuels such as hydrogen and biofuels

Legend:

“This is about us thriving through the

energy transition. We’re looking at the

next evolution and the needs of our

customers in the broader sense. We’re

doing nature-based solutions, giving

motorists the opportunity to do something

about their carbon footprint as we

continue to invest and ramp up long-term

solutions of electric vehicle charge posts

for those people when they’re ready to

move to EV transportation.“

— Bernie Williamson, Retail General

Manager | Shell, October 2019

Yesterday Today Tomorrow

Hence, the fuel-mix of future will be radically different from today

Various factors w ill have a role to play…

Apart from emission standards set by various economies for a low -carbon future other factors such as — (a)

the overall regulatory landscape (relating to EV/biofuels)1, (b) technical feasibility of new fuel and technologies

and (c) the level of customer, societal, as w ell as, political acceptance, w ill inf luence the pace of change and

f inal form of the future fuel mix. Not only w ill the fuel-mix change in future, but also the mix of partners or

stakeholders supplying this fuel in future w ill be drastically different from today

Note: 1. E.g. UK Government adopted the Alternative Fuels Infrastructure Directive (AFID) — these are new rules on the labelling of petrol and diesel at service stations to enhance the understanding of the fuel’s biofuel content; in 2019 new labels were

introduced at UK filling stations; Source: KPMG Analysis

Unleaded petrol Biofuels (ethanol)

Premium and super unleaded

petrolAlternate fuels

Diesel Electricity

LPG Auto Gas

03. How are these trends shaping forecourt retailing— Future forecourt


Emerging trends signal a change in the role of forecourt

… would become

prominent for transport

exchanges

… have prime locations,

will ideally become suited

for convenience retailing

In-city petrol stations

… would cater to long

distance travellers and

become one-stop multi-

use hubs

Urban forecourts

Highway forecourts

Evolutionary trends in fuel retailing observed in developed markets are yet to fully shape-up in developing ones; hence, the future

disruption in terms of technology, infrastructure and operations will materialise first in the mature markets — eventually percolating to

other economies


Future forecourt: In-city (1/3)— In-city forecourts w ill shape up to be

‘convenience stores selling fuel’

instead of fuel sellers w ith c-store

offerings; the role of local forecourt

as a ‘fuel provider’ w ill hence

diminish. This w ill open up vast

opportunities for products and

ancillary service offerings

— They w ill have a smaller format/site

w ith c-stores at the forefront to

draw in passing trade

— As e-commerce trend intensif ies

demand for intermediate storage is

bound to increase — making in-city

stations w ell placed to act as local

distribution centres playing a key

role in last-mile logistics

— These forecourts are likely to face

competitive pressures from tw o

types of players: (1) disrupters such

as ‘store on w heels’ (w hich deliver

fuels and services directly to the

customers e.g. Zebra Fuel1) and

(2) traditional supermarkets

— Heath and safety w ill be a top

priority and fuel pumps w ill be

responsible to minimise the

potential contraction of coronavirus

at the pump

Note 1. Uses a fleet of specially adapted vans to dispense fuel directly

into the customer’s vehicle and claims to be price competitive with

inner city petrol stations/forecourts 2. Link Source: KPMG Analysis

Retail shops will be in the forecourt, and

fuel w ill take the backcourt

Click & Collect lockers

for web purchases and

peer-to-peer retailing

Various type of fuels:

— Gasoline

— Battery charging

— New liquefied gas (LNG,

CNG, LPG)

Non-fuel retail innovations, e.g.

— C-store experience

— Localised food offerings, plus a

dedicated space for farmers

market

— Customised store format

— Other value-added services,

such as ATM

Car wash/

maintenance

services

Solar panels for clean

and low cost energy

Local distribution

centres (last-mile

delivery)

eBikes to sustain

continued

growth of last-

mile logistics in

congested

ecosystems

Alternative ‘fuels’

such as hydrogen

‘On Roof’ facilities for

drone distribution &

logistics services

EV charging

and parking

Drones

‘Battery Swap’

Hygiene and safety:

— Plastic gloves to handle

nozzle

— Hand protection dispenser,

E.g. GripHero2

— Robotic refuelling

Health and safety

— Higher daily frequency of store

cleaning

— Disinfecting high-touch areas

— Strict food safety and handling

policies w ith self-serve items

— Plexiglass sneeze guard

installation

Cart w ipes

and hand

sanitizer stations

Legend:

Trend intensified by

COVID-19

Decals for social

distancing

https://forecourttrader.co.uk/news/fullstory.php/aid/18525/2000_forecourts_take_up_GripHero_s_free_hand-protection_dispenser_offer_.html


Future forecourt: Urban (2/3)

Various type of fuels:

— Gasoline

— Battery charging

— New liquefied gas (LNG,

CNG, LPG)

Adjacent services and retail

offering shifting to a ‘to-go’

model

Car wash and

maintenance

services

EV and UFC1 charging

and parking

Solar panels for clean

and low cost energy

Drones

AV Hubs

‘On Roof’ facilities for

drone distribution &

logistics services

Regional

distribution

centres

Transfer point

between different

modes of transport

— Urban forecourt/petrol station w ill function

as a ‘transfer hubs’ i.e. people w ould be

able to sw itch betw een different modes of

transport

— These forecourts w ould be characterised by

prominence of ‘to-go’ model — driven by

mobile customers grabbing quick

eats/coffee w hile hopping from one

transport vehicle to another

— Urban forecourts will be fewer in number

(as EVs could be charged at home or at

w ork); they w ill act as ‘back-up’ charging

facilities w ith UFC1 also available

— These stations would have larger spaces

and fewer restrictions than the inner city

ones

— Additionally pure play electric forecourts

will emerge. For instance, Gridserve, an

energy services company has plans to

develop a UK-w ide netw ork of

electric forecourts, adjacent to a

main road or close to metropolitan

areas. The construction of f irst

such forecourt started in March

2020



responsible to minimise the potential

contraction of coronavirus at the pump

Alternative ‘fuels’

such as hydrogen

Non-fuel retail innovations e.g.

— C-store experience

— Customised store format

— Other value-added services,

such as ATM

‘Battery Swap’

Health and safety

— Higher daily frequency of store

cleaning

— Disinfecting high-touch areas

— Strict food safety and handling

policies w ith self-serve items

— Plexiglass sneeze guard installation

Cart w ipes

and hand

sanitizer stations

Hygiene and safety:

— Plastic gloves to

handle nozzle

— Hand protection

dispenser, E.g.

GripHero2


Legend:


COVID-19

Click & Collect lockers

for web purchases/P2P

retailing

Decals for social

distancing

Note: 1. UFC: Ultra Fast Charging; 2. Link

Source: KPMG Analy sis



Future forecourt: Highway (3/3)— One stop multi-use hubs

offering variety of services

such as entertainment, leisure

and fuel

— Highw ay service station

operators will have a higher

design freedom due to larger

spaces and fewer

restrictions compared to inner

city and urban petrol stations

— Given the availability of space

the forecourt w ill be

architecturally engaging in

design and built using

environmentally sustainable

materials

— Highw ay forecourts w ill cater

to different types of commuters

— long distance travellers

will have lounges to relax

while those who don’t want

to wait can avail w ide range

of ‘to-go’ offerings



responsible to minimise the

potential contraction of

coronavirus at the pump

Dedicated areas for

HGVs with advanced EV

charging infrastructure

high-speed diesel

pumps and wide lanes

Lounges and waiting areas for

long distance travellers and

long haul drivers/truckers

AV hubs

Fuel mix w ill include:

— Diesel

— CNG, LNG

— Hydrogen

— Premium unleaded petrol

Drive through services

so that consumers who

don’t want to wait can

avail the ‘to-go’ offerings

quickly

Multiple eating

joints w ith

variety of food

choices

Retail and C-stores with a

customised store format;

value added services such

as ATM, Children’s play

area etc. present

‘Battery Swap’

Vending machine for

‘pit stop’ servicesEV and UFC1

charging

and parking

Solar

panels

for clean

and low

cost

energy

Legend:


COVID-19

Hygiene and safety:

— Plastic gloves to handle

nozzle

— Hand protection

dispenser, E.g. GripHero2


— Plexiglass sneeze guard

installation

Cart w ipes and

hand sanitizer

stations

Health and safety

— Higher daily

frequency of

store cleaning

— Disinfecting high-

touch areas

— Strict food safety

and handling

policies with self-

serv e items

Decals for social

distancing

Note: 1. UFC: Ultra Fast Charging; 2. Link



04. How are forecourt retailers responding today— Current strategies

35© 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.35

© 2020 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The changing landscape is forcing forecourt retailers to adapt…

Pressure on

Profitability

Caused by e.g.:

— Decline of fuel revenues and margins

— OPEX heavy retail business

Significant

investment

requirements

Extensive investments in:

— Outlets, to increase customer experience

— Technology, to better serve customers

— Infrastructure, to serve the new fuel landscape

More

demanding

consumers

The modern consumer demands:

— Convenience in products, services and location

— Easy and hassle-free shopping experience

— Quality and provenance

Uncertainty on

future

Wide uncertainty about the future due to:

— Uncertainty on future fuel landscape and mix

— Role of (the different types of) forecourts both in retail

and in fuel

Why is the landscape changing? What do the retailers need to do?

Performance improvement & cost reduction

— To restore profitability and be able to generate suff icient

cash flow s for investments, forecourts are actively trying to

improve performance and reduce costs (OPEX)

Revenue optimisation & diversification

— To overcome the decline of fuel revenues, new sources of

revenue are developed both w ithin existing segments

(expansion of convenience retail) and by introducing new

segments

Increase customer experience

— To respond to more demanding consumers, forecourt

retailers are enhancing customer experience through all

aspects of the business to retain and expand the customer

base that increasingly needs to be pursued to visit as the

importance and necessity of fuel sales is in decline

Risk reduction

— The w ide uncertainty about the future fuel landscape and

the role of the forecourt clearly leads forecourts to actively

pursue strategies that prevent them to become obsolete in

the future

How can they do it?

1

2

3

4

Back-off ice standardisation and digitisation

1

Digitise front-end (e.g. check-out)

1 3

Data driven insights

1 2 3

Acquisitions in mobility domain

Starting adjacent services

Consolidation

2 4

3 2 4

1 2 4



…leading to consolidation, as one of the key ways to maintain market position (1/2)Forecourt retailers are consolidating in a bid to maintain or improve their market position. Continued single site acquisitions by group operators is being

witnessed; moreover, oil companies have also been acquiring pure-play EV terminal manufacturersGeographic/footprint expansion Market Penetration Sy nergy Advantages

2017 2018

Applegreen acquired a netw ork of

seven sites from Indie Carsley

Group for £21 million in a bid to

establish major service area

presence in the UK. Sites are

mainly located on the strategic

arterial route of the A1(M)

MRH acquired Chartman Retail

(operates independently

ow ned portfolios of service station

forecourts); the acquisition is in line

w ith MRH’s strategic objectives of

w idening both the breadth of

offerings and locations served

7-Eleven acquired Sunoco’s 1,030

convenience stores across 17

states in the US for US$3.3 billion

(£2.6 billion1) w ith an aim to expand

its presence in Texas, w hile

consolidating existing positions in

North America

EG Group acquired 762

convenience stores in the US from

Kroger Co. for US$2.2 billion (£1.7

billion1); group has retained

Kroger’s branding and aims to

understand the US market

dynamics via this acquisition

MRH Applegreen 7-Eleven

Sunoco

EG Group

Kroger Co.

Couche-Tard acquired 1,300

and 522 stores from CST and

Holiday, respectively in North

America. The move aided in

reinforcing its position in North

America and leverage CST’s

existing capabilities

EG Group acquired 1,000 sites from

ExxonMobil (Esso Brand) in

Germany under branded w holesale

agreement. The group started to

operate in Germany through this

acquisition

MFG acquired rival MRH for £1.2

billion to consolidate its position in

the UK market — move is expected

to create a forecourt netw ork of over

900 sites w ith a combined annual

fuel sales of 3.6 billion litres

Prax (Harvest Energy) acquired the

retail network of the two forecourt

retailers listed in UK Top 50 Indices,

HKS Retail and Retail Fuels Limited

w ith an aim to reinforce presence in

the UK

MFG acquired 14 stations from

forecourt operator Golden Cross

Group. This follow s the purchase of

sites from FW Kerridge, Burns & Co.

and Manor Service Stations in 2017

Golden Cross

Group

Couche-Tard

CST

Holiday

EG Group

ExxonMobil

MFG MFG

MRH

Prax

HKS

Note: Convenience store news reported; 1USD = 0.78632 GBP, per Oanda as at 22 April 2019

Applegreen

Welcome Break

Applegreen acquired Welcome

Break, a motorw ay service area

operator, for a cash consideration

of approximately £322 million. This

move broadens Applegreen‘ s

Motorw ay Service Area netw ork


…leading to consolidation, as one of the key ways to maintain market position (2/2)Forecourt retailers are consolidating in a bid to maintain or improve their market position. Continued single site acquisitions by group operators is being

witnessed; moreover, oil companies have also been acquiring pure-play EV terminal manufacturers

Note: 1. As at 16 April it is a non-binding, conditional and incomplete proposal; if approved, completion is expected to occur mid-2020; 2. The Oklahoma stores were not licensees or franchisees of seven eleven, they were totally independent

Other notes: Convenience store news reported; Exchange rate used for conversion as is 1 USD= 0.80254 GBP as at 30 March 2020

MFG

Symonds Retail

MFG acquired Symonds Retail,

operator of 10 sites (including six BP

branded, three Shell and one

Texaco). The acquisition also

includes three ‘new to industry sites’

and increases the total number of

petrol stations operated by MFG in

the UK, to 904

In March 2020, EG Group Limited

made a proposal1 to acquire

Australian-listed group Oliver's

Real Food w hich provides a healthy

fast food alternative for consumers

across 24 sites on Australia’s main

arterial highw ays

2019 2020

Couche-Tard

Couche-Tard acquired 9.9 percent

stake in Cannabis retailer Fire and

Flow er Holdings for £20.9 million

(US$26 million) w ith the potential to

increase it to 50.1 percent in the

future. The move w ill enable entry

into the Cannabis market

Applegreen

Applegreen acquired 40 percent

stake for £30.2 million (US$37.6

million) in 23 highw ay services

plazas in Connecticut in order to

expand its presence in North

America, particularly in the motor

service area

Couche-Tard

Couche-Tard acquired 17 Gas Stop

Holiday fuel stations and

convenience stores in the South

Dakota and Minnesota regions, in

order to strengthen its presence in

the US Midwest region

EG Group acquired a key KFC

Franchise in the UK and Ireland,

The Herbert Group, w ith an aim to

enhance its food-to-go offer.

Acquisition includes 146 KFC

restaurants and one Pizza Hut Store

along w ith a development pipeline as

w ell as a few non-trading sites

EG Group

Herbert Group

7-Eleven acquired 100 independently

operated convenience stores in

Oklahoma City2. The acquisition

increases the total number of stores

operated by the retailer in the US

and Canada to 9,700

7-ElevenEG Group

Oliver's Real Food

EG Group

Cumberland Farms

UK-based EG Group w hich f irst

entered the US market in 2018 w ith

acquisition of Kroger’s 762 c-stores,

in 2019 acquired Cumberland Farms,

w hich operates 567 c-stores in

seven Northeast states and Florida.

With this, its US site count reached

1,680 stores in 31 states

Geographic/footprint expansion Market Penetration Sy nergy Advantages Impact of COVID-19

**COVID-19 impacting

M&A deals

The pandemic

prompted Couche-Tard

to drop the AUD 8.8

billion (US$5.6 billion)

proposal for acquiring

fuel retailer Caltex

Australia

05. How should forecourt retailers respond in the future?— Future strategies



A. Brace for disruption

Forecourt footprint could witness a potential fall in

some markets, while in others, it will

have to be repurposed

Customer spend at forecourts will

continue to shift from fuel purchase

to convenience retailing

MaaS will enable new services; new business models

will emerge

Adjacent value-added and

entertainment services will gain

centre stage

(EV charging can be done at home, office, malls or restaurants and hence

charging may not require the same footprint of sites as

exists today)

(Dominance of fossil fuels is at threat and it is uncertain

at the moment which charging technology will dominate in the future; in addition, the pandemic is

altering shopping habits and spurring digital purchases)

(Rise of car-sharing and ride-sharing reduces the amount of cars on roads)

(Service offerings will become a clear differentiator, new

segments providing highly personalised customer

engagements, will emerge. Making delivery of value

propositions both physically and virtually crucial)

Fuel retailers are most likely to face the

following possible challenges in the future…



B. Prepare for tomorrow … requiring them to respond by building compelling retail propositions, efficiently managing infrastructure and operations, and re-shaping

their strategic objectives

Long term (next 10 years) Immediate actions (next 5 years)

Designing new forecourts (and re-designing existing

ones) with EV charging infrastructure

Partner with automakers to develop software that ensures their brand of fuel is the priority/default choice of the AV

Unlock value from car parks via alternative use cases (e.g. installation of charging points,

Click & Collect lockers)

Develop facilities for drone distribution and other logistics services

Infrastructure to account for hydrogen production, storage and distribution

Devise new economic models for sites e.g. renting space to new

energy suppliers (electricity etc.) and leisure retailers

Measure customer behaviour in response to EV and AV

using predictive models

Provide offers at the point of sale (via

GPS/beacon technology

Reduce check-out times

Predictive maintenanceacross forecourt equipment

Engage and grow new skills (e.g. data science)

Partner with players traditionally seen as ‘out of sector’ to develop innovative new business models (e.g. “Retail to

trunk”, “Just prepared en-route”)

Re-vamp in-store design and product assortment

(adding more cleaning and toiletry items)Review and ‘churn’

concepts continually to keep them fresh and interesting

Increase all type of ‘to-go’ offerings

Increase food-to-go offerings and ready-to-heat meals

Develop compelling ancillary service propositions to capitalise on customer EV charge wait time

Prepare for new competition from c-stores (BWG’s Spar, Musgrave’s

Centra and the fast-food chains) and not just traditional fuel retailers

Partner with operators of fleet vehicles to

cater to their recharging or re-fuelling needs

Digitalisation and automation to

save costs

Develop comprehensive mobile apps covering all aspects at one place — fuel

station information, product information, loyalty programme details, pre-order and pre-payment feature, live tracking and advance booking of

EV charging/fuel lanes

Digitise accounts receivables/payables

value chain

Digital payments to maximise revenueand security + capture customer info

Digital station TV for personalised promotions

inside the shop

Lead the way into non-traditional fuel offering (e.g. EV)

Optimise location/real estate portfolio based on traffic data

collected via in-car sensors

Offer healthy and localised products

In-city stations will be required to streamline operations in accordance with them becoming

regional distribution centres in future

Innovation across customer-focused touches (e.g. digital menu boards and free to use charging points)

Partner with tech players

Use existing physical sites to provide for: (1) logistics services and (2) services to the logistics sector

Optimise location and site formats, e.g. choosing locations based on micro-market strategy

instead of mere real-estate availability

Partner with e-commerceand logistics companies

Move from fuel to mobility service

Partner with supermarkets (e.g. Walmart) to ‘expand’ EV charging beyond forecourts

Joint ventures with major food retailers and/or c-store

chains to enhance product and format variety

Invest in solar power, battery technology and mobile charging

projects, to enter into carbon mobility space

Standardise POS (forecourt, C-Store, others) and order management processes

across touch points

Diversify business model around both B2B and B2C

charging solutions

Use digital marketing

Rapid testingof next-gen technologies

Deploy successfully tested next-generation

technologies at a scale,across multiple locations

Inventory solutions to identify high value,

fast moving SKUs

Reinvent the customer relationshipusing digital and mobile

technologies

Create differentiation (e.g. running in-store sampling

days or food festivals)

Cross- sell opportunities


Action itemsRetail considerations

Operational considerations

Strategic considerations

Location/Infrastructureconsiderations

Use existing physical sites to develop facilities for parcel pick-up/click

and collect

Note: Highlighted action items reflect the trends intensified or driven by COVID-19

Scale back foodservice operations in light of the pandemic

Increase delivery/curb-side pick up

Non-contact digital payment and delivery options

Prioritising digital engagement and digital

commerce

Country-wise scenario/recovery

planning

Workplace

and store safety

Store image and brand purpose

becomes integral

Network rationalisation



C. Reinvent to stay relevantFuel retailers need to reimagine themselves in the face of current disruption. A two pronged business plan, whereby forecourt retailers continue to focus on fossil fuel but start to pivot towards electric car charging technology is ideal in the short run. They however, need to define a long-term strategy centred around:

Customer

experience

Service-based

offerings

Digital

solutions

Forecourt retailers who do not future proof themselves, will perish!


06. Appendices

Appendix I


Market Scenario (1/2)

Note: *The market size is based on retail value RSP excluding sales tax (current value at fixed exchange rates); **CAGR Cumulative average growth rate; Market size comprises revenue derived from convenience sales only Source: Euromonitor International Ltd 2020; pre-COVID analysis

Statistics — Forecourt Retail, by Geography (2019)

Market

size

CAGR

(2014-19)

Total number of

sites/outlets

Legend:

USA

: US$111.08 billion

: 2.76%

: 114,788

Germany

: US$14.84 billion

: 2.62%

: 14,528China

: US$11.14 billion

: 23.26%

: 60,558

Australia

: US$5.72 billion

: 3.52%

: 5,268

Canada

: US$3.92 billion

: 4.18%

: 8,940

Brazil

: US$1.69 billion

: 6.96%

: 8,349

Spain

: US$2.73 billion

: 4.09%

: 9,868

Italy

: US$0.32 billion

: 2.38%

: 1,276

India

: US$0.05 billion

: 7.04%

: 333

UK

: US$6.84 billion

: 1.34%

: 7,440

Netherlands

: US$2.44 billion

: (0.34)%

: 2,125

M exico

: US$1.64 billion

: 5.19%

: 5,619

France

: US$2.09 billion

: (0.38)%

: 4,224

Argentina

: US$0.77 billion

: 32.43%

: 1,715

Global (2019)

Market size*: US$196.6 billion

CAGR** (2014–19): 3.82%

Total number of sites/outlets: 349,792


Market Scenario (2/2) Global Top 12

2019 Market ShareCountry

1

2

3

4

5

6

8

9

10

11

12

Global Top 12 2024* Market Share

Country

1

2

3

4

5

6

7

8

10

11

12

Market size: US$111.08 billion

















2024

7 Market size: US$2.73 billion

9

Note: * Forecast data for market sizeSource: Euromonitor; pre-COVID

analy sis








Country overview: USAThe forecourt retail market in the US is highly fragmented with multiple players offering similar products and services

Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Others include Sheetz Inc., EG Group Ltd, GPM Investments LLC, Giant Eagle Inc, Chevron Corp, Meijer Inc., QuickChek Corp, Energy Transfer Equity LP; Market size

comprises revenue derived from convenience sales

Source: Euromonitor International Ltd 2020; pre-COVID analysis

Forecourt retail market size* (US$ billion)

Key players in terms of market share* 2019 %

Total number of site/outlets

Number of sites/outlets: Only for key players 2019

96.9 101.1 103.4 105.3 108.4 111.1 113.8 116.6 119.5 122.4 125.3

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

114,919 115,081

114,769

115,000

114,456

114,788

114,304

114,603 114,729

115,131

115,442

113,600

113,800

114,000

114,200

114,400

114,600

114,800

115,000

115,200

115,400

115,600

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

7477197203303

593604

8041,209

1,4921,595

2,2023,913

4,1055,950

0 2000 4000 6000 8000

Energy Transfer Equity LPQuickChek Corp

Meijer IncGiant Eagle Inc

Chevron CorpSheetz IncWawa Inc

QuikTrip CorpGPM Investments LLC

Murphy USA IncEG Group Ltd

Casey's General Stores IncMarathon Oil Co

Seven & I Holdings Co LtdAlimentation Couche-Tard Inc

Forecasted f igures

Legend:

7%

6%

5%

3%

3%

2%2%

72%

Alimentation Couche-Tard Inc

Seven & I Holdings Co Ltd

Marathon Oil Co

Wawa Inc

QuikTrip Corp

Murphy USA Inc

Casey's General Stores Inc

Others

Total: US$111.1

billion

Forecastedf igures

Legend:


Country overview: GermanyThe German forecourt retail market is also very fragmented with top five players accounting for nearly 38 percent of the forecourt retail market share





Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Others include Deutscher Raiffeisenverband eV, Q1 Tankstellenvertrieb GmbH & Co KG, OIL! Tankstellen GmbH & Co KG, PKN Orlen SA, OMV Tankstellen AG,

Oilinv est (Netherlands) BV Group, Hellweg Die Profi-Baumärkte GmbH & Co KG; Market size comprises revenue derived from convenience sales only


13.0 13.2 13.4 13.7 14.4 14.8 15.3 15.8 16.3 16.7 17.2

0

2

4

6

8

10

12

14

16

18

20

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

11%

10%

8%

5%

4%

4%3%

2%2%2%

49%

Royal Dutch Shell Plc

British Petroleum Co Plc, The

Exxon Mobil Corp

Total SA

Rewe Group

Avia International

ConocoPhillips Co

ENI SpA

Internationale Spar Centrale BV

Westfalen AG

Others

14,740 14,722 14,720

14,521 14,530 14,528 14,477

14,398 14,297

14,183

14,054

13,600

13,800

14,000

14,200

14,400

14,600

14,800

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

13200227263269

405408456

529584

684808

884946

1,1451,706

1,925

0 500 1000 1500 2000 2500

Hellweg Die Profi-Baumärkte GmbH & Co KGQ1 Tankstellenvertrieb GmbH & Co KG

OIL! Tankstellen GmbH & Co KGWestfalen AG

OMV Tankstellen AGInternationale Spar Centrale BV

Oilinvest (Netherlands) BV GroupENI SpA

Rewe GroupPKN Orlen SA

Deutscher Raiffeisenverband eVConocoPhillips CoAvia InternationalExxon Mobil Corp

Total SABritish Petroleum Co Plc, The


Forecasted f igures

Legend:

Total: US$14.8

billion

Forecastedf igures

Legend:


Country overview: ChinaChina Petroleum & Chemical Corp is the dominant player in China, holding 67 percent of the market share and having 27,363 outlets





Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Bifurcation for Others not provided by Euromonitor; Market size comprises revenue derived from convenience sales only


Forecasted f igures

Legend:

3.915.07

5.82

8.169.93

11.1412.34

13.4914.70

15.9617.25

0

2

4

6

8

10

12

14

16

18

20

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

67%

23%

1%

1%0%

8% China Petroleum & Chemical Corp

China National Petroleum Corp



Total SA

Others

Total: US$11.1

billion

49,340 54,438 55,926 57,181 58,782 60,558 62,623 65,005 67,732

70,780 74,036

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

183

578

1,644

20,153

27,363

0 10000 20000 30000

Total SA



China National Petroleum Corp

China Petroleum & ChemicalCorp

Forecastedf igures

Legend:


Country overview: UKThe UK forecourt retail market is very fragmented and is expected to grow at a CAGR of 2.01 percent during the forecast period, to reach US$7.6 billion

in 2024




Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Others include Certas Energy UK Ltd, British Petroleum Co Plc, Walmart Inc, Park Garage Group, Musgrave Group Plc, Gleaner Oils Ltd; Market size comprises

rev enue derived from convenience sales only


6.4 6.4 6.46.6

6.76.8

7.07.2

7.47.5

7.6

5.65.86.06.26.46.66.87.07.27.47.67.8

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

7,627 7,584

7,550 7,513

7,485 7,440 7,429 7,414 7,392

7,355 7,303

7,100

7,200

7,300

7,400

7,500

7,600

7,700

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2023F

Forecasted f igures

Legend:

10131929313859

104110

215221

290297

347455

9691,203

0 500 1000 1500

Musgrave Group Plc

Gleaner Oils Ltd

Walmart Inc


Costcutter Supermarkets Group

Park Garage Group

John Lewis Partnership Plc

NISA-Today's (Holdings) Ltd

Certas Energy UK Ltd

Co-operative Group Ltd, The

Rontec LLP

Marks & Spencer Plc

J Sainsbury Plc

Wm Morrison Supermarkets Plc


Tesco Plc


11%

8%

7%

5%

4%

3%

2%

2%1%1%

55%

Tesco Plc


Marks & Spencer Plc


Co-operative Group Ltd, The

J Sainsbury Plc

Wm Morrison Supermarkets Plc

Rontec LLP

John Lewis Partnership Plc

NISA-Today's (Holdings) Ltd

Others

Total: US$6.8

billion

Forecastedf igures

Legend:


*% might not total up to 100%

owing to rounding


Country overview: AustraliaIn Australia, Coles Group Ltd and Woolworths Ltd (Australia) account for 45 percent of the forecourt retail market share







Forecasted f igures

Legend:

4.8 5.05.3 5.4 5.6 5.7 5.9 6.0 6.2 6.4 6.6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

25%

20%

17%

12%

7%

4%

3%3%

1%

1%0%

7%Coles Group Ltd

Woolworths Ltd (Australia)



United Petroleum Pty Ltd

Puma Energy International SA

Caltex Australia Ltd

On The Run Pty Ltd

Idemitsu Kosan Co Ltd

APCO Service Stations Pty Ltd

Rasvor Pty Ltd

Others

4,971

5,156 5,180 5,195 5,231 5,268 5,315

5,378 5,448

5,524 5,607

4,600

4,800

5,000

5,200

5,400

5,600

5,800

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

9

22

49

140

270

408

540

541

543

590

714

0 500 1000 1500

Rasvor Pty Ltd

APCO Service Stations Pty Ltd

Idemitsu Kosan Co Ltd

On The Run Pty Ltd

Puma Energy International SA

United Petroleum Pty Ltd

Woolworths Ltd (Australia)


Caltex Australia Ltd


Coles Group Ltd

Total: US$5.7

billion

Forecastedf igures

Legend:


Country overview: CanadaIn Canada, the top two players —Alimentation Couche-Tard Inc. and Parkland Fuel Corp — make up for ~50 percent of the forecourt retail market







3.23.4 3.6 3.7 3.8 3.9 4.1 4.3 4.5 4.7 4.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

7,885 7,956 8,099 8,131

8,765 8,940

9,074 9,165 9,238 9,284 9,312

7,000

7,500

8,000

8,500

9,000

9,500

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

51

219

301

378

408

1,013

1,195

1,317

1,946

0 500 1000 1500 2000 2500

Exxon Mobil Corp


Canadian Tire Corp Ltd

Empire Co Ltd

Husky Energy Inc

Parkland Fuel Corp

Suncor Energy Inc



Total: US$3.9

billion

Forecasted f igures

Legend: Forecastedf igures

Legend:

39%

13%12%

11%

5%

4%

2%

15%


Parkland Fuel Corp


Suncor Energy Inc


Empire Co Ltd

Husky Energy Inc

Others


Country overview: SpainRepsol YPF Distribuidora SA in Spain is the most dominant player both in terms of market share and the number of outlets







2.24 2.322.47 2.59 2.67 2.73 2.82 2.89 2.97 3.04 3.11

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

22%

9%

4%

4%

2%2%

2%0.1%

54%

Repsol SA

El Corte Inglés SA

Galp Energia SGPS SA

Carrefour SA

Cepsa Estaciones de Servicio SA

Disa Peninsula SLU



Others

8,364 8,664 9,119

9,542 9,637 9,868 10,085 10,267 10,421 10,546 10,641

0

2,000

4,000

6,000

8,000

10,000

12,000

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

13

170

330

350

360

430

510

3,130

0 500 1000 1500 2000 2500 3000 3500



Disa Peninsula SLU

El Corte Inglés SA

Cepsa Estaciones de Servicio SA

Carrefour SA

Galp Energia SGPS SA

Repsol SA

Forecasted f igures

Legend:

Total: US$2.7

billion

Forecastedf igures

Legend:

*% might not total up to

100% owing to rounding


Country overview: Netherlands In Netherlands, the top five players account for more than 65 percent of the forecourt retail market







Forecasted f igures

Legend:

2.48

2.402.39 2.39

2.41

2.44 2.452.47

2.502.53

2.55

2.3

2.4

2.4

2.5

2.5

2.6

2.6

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

27

46

61

95

137

237

253

303

398

0 100 200 300 400 500

Kuwait Petroleum Corp

Oilinvest (Netherlands) BV…

Gulf Oil International

European Forecourt Retail…

Avia International


Total SA

Exxon Mobil Corp


2,471 2,403 2,336 2,266 2,198 2,125 2,074 2,029 1,987 1,947 1,914

0

500

1,000

1,500

2,000

2,500

3,000

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Forecastedf igures

Legend:

23%

16%

13%11%

5%

5%

3%

2%

1%

21%


Exxon Mobil Corp


Total SA

Avia International

European Forecourt Retail Group SAS

Gulf Oil International

Oilinvest (Netherlands) BV Group

Kuwait Petroleum Corp

Others

Total: US$2.4

billion


Country overview: SwitzerlandThe top five players hold more than 70 percent of the market share in Switzerland’s forecourt retail market





Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Others include CInternationale Spar CentraleBV, Jubin Frères SA; Market size comprises revenue derived from convenience sales only


1.842.13 2.18 2.23 2.29 2.33 2.42 2.54 2.67

2.822.95

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

22%

20%

12%9%

9%

8%

6%

6%

4%4%

Migros Genossenschaftsbund eG

Coop Genossenschaft


Avia International

ENI SpA

fenaco-LANDI Gruppe



SOCAR Co

Others

12731422 1431 1438 1449 1457 1477 1496 1518 1542 1561

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Forecasted f igures

Legend:

Total: US$2.3

billion

Forecastedf igures

Legend:

25

31

44

107

113

119

119

138

158

251

307

0 100 200 300 400

Jubin Frères SA

Internationale Spar Centrale…

SOCAR Co

Oilinvest (Netherlands) BV…

Avia International


fenaco-LANDI Gruppe

ENI SpA


Coop Genossenschaft

Migros…


Country overview: PolandPKN Orlen SA is the dominant player holding 32 percent of the market share in the forecourt retail market of Poland







1.39 1.45 1.53 1.62

1.982.12

2.242.36

2.482.60

2.72

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

32%

10%

9%8%

7%2%

32%

PKN Orlen SA



Grupa Lotos SA


Amic Energy Management GmbH

Others

6,873 6,954

7,103

7,284

7,460 7,535

7,598 7,652 7,695 7,730 7,751

6,400

6,600

6,800

7,000

7,200

7,400

7,600

7,800

8,000

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

3,969

114

268

415

480

546

1,743

0 1000 2000 3000 4000 5000

Others

Amic Energy Management GmbH



Grupa Lotos SA


PKN Orlen SA

Forecasted f igures

Legend:

Total: US$2.1

billion

Forecastedf igures

Legend:


Country overview: FranceFrance reported a decline in market size from 2014 to 2019; however, a CAGR of 1.4 percent has been forecasted over 2020-24







2.13

2.112.09

2.11

2.09 2.092.11

2.13

2.16

2.19

2.23

2.00

2.05

2.10

2.15

2.20

2.25

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

39%

9%8%4%

4%1%

35%

Total SA


Exxon Mobil Corp


Carrefour SA

E Leclerc

Others

4,422

4,355

4,274 4,295 4,257

4,224 4,175

4,135 4,095

4,055 4,016

3,800

3,900

4,000

4,100

4,200

4,300

4,400

4,500

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

11

97

111

139

155

1,259

0 200 400 600 800 1000 1200 1400

E Leclerc

Carrefour SA



Exxon Mobil Corp

Total SA

Forecasted f igures

Legend:

Total: US$2.1

billion

Forecastedf igures

Legend:


Country overview: ThailandThailand forecourt retail market is highly consolidated with Seven & I holding 71 percent market share and the highest numberof sites/ outlets





Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Others include FamilyMart Co Ltd, The Bangchak Petroleum PCL, Internationale Spar Centrale BV; Market size comprises revenue derived from convenience sales only


1.36 1.40 1.491.63

1.80 1.86 1.962.08

2.212.35

2.51

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

71%

8%

8%

4%

2%1% 1%

6%Seven & I Holdings Co Ltd

PTT PCL

Tesco Plc


Big C Supercenter PCL

Exxon Mobil Corp

Central Group

Others

2,217 2,282 2,442

2,657 2,756 2,846 2,932 3,024 3,122 3,232 3,349

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

12

35

39

44

45

100

155

162

273

1,621

0 500 1000 1500 2000

Central Group

Exxon Mobil Corp

Bangchak Petroleum PCL, The

FamilyMart Co Ltd



Big C Supercenter PCL

PTT PCL

Tesco Plc


Forecasted f igures

Legend:

Total: US$1.9

billion

Forecastedf igures

Legend:

*% total not equal to 100%

owing to rounding


Country overview: ItalyIn Italy, the market is consolidated with the top four contributing to 92 percent of the forecourt retail market share







Forecasted f igures

Legend:0.280.29

0.300.31

0.310.32

0.320.33 0.33 0.33 0.34

0.25

0.26

0.27

0.28

0.29

0.30

0.31

0.32

0.33

0.34

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

38%

37%

10%

7%

8% Exxon Mobil Corp

ENI SpA


API - Anonima Petroli Italiana SpA

Others

1,152

1,181

1,213

1,262 1,270 1,276 1,281 1,282 1,279 1,273 1,266

1,050

1,100

1,150

1,200

1,250

1,300

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

1

202

233

360

480

0 100 200 300 400 500 600


API - Anonima Petroli Italiana SpA

Others

ENI SpA

Exxon Mobil Corp

Total: US$0.3

billion

Forecastedf igures

Legend:


Country overview: IndiaBharat Petroleum Corp Ltd is the key player in the Indian forecourt retail market with 23 percent market share and the highest number of site/outlets







Forecasted f igures

Legend:0.04 0.04 0.04 0.04

0.050.05

0.050.06

0.060.07

0.07

0.00

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

302 308

315 320

328 333

338 342

346 350 353

270

280

290

300

310

320

330

340

350

360

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

23%

6%

71%

Bharat Petroleum Corp Ltd

Indian Oil Corp Ltd

Others

73

103

157

0 50 100 150 200

Others

Indian Oil Corp Ltd

Bharat Petroleum Corp Ltd

Total: US$0.05

billion

Forecastedf igures

Legend:


Country overview: BrazilThe Brazilian forecourt market is consolidated, with top four key players contributing to 53 percent of the entire market share







1.211.33

1.451.59 1.62 1.69

1.811.96

2.132.31

2.47

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

22%

16%

12%3%

47%



Pampa Energia SA

AleSat Combustíveis SA

Others

7,338 7,438 7,721 7,900 8,116 8,349 8,569 8,719 8,889 9,039 9,169

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

273

1,060

1,369

2,548

0 1000 2000 3000

AleSat Combustíveis SA


Pampa Energia SA


Forecasted f igures

Legend:

Total: US$1.69

billion

Forecastedf igures

Legend:


Country overview: MexicoFomento Económico Mexicano SAB de CV is the largest player in Mexico in terms of market share and number of outlets





Note: *Market size and share are based on the retail value RSP excluding Sales Tax; Bifurcation for Others not provided by Euromonitor, it does include Organización Soriana SAB de CV; Market size comprises revenue derived from convenience sales

only ; Source: Euromonitor International Ltd 2020; pre-COVID analysis

Forecasted f igures

Legend:

1.27 1.301.40 1.47 1.56 1.64 1.74

1.831.94

2.052.17

0.00

0.50

1.00

1.50

2.00

2.50

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

74%

7%

5%

14%Fomento Económico Mexicano SABde CV



Others

5,596

5,569 5,577 5,578 5,600

5,619 5,640

5,659 5,680

5,704

5,731

5,450

5,500

5,550

5,600

5,650

5,700

5,750

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Total: US$1.64

billion

Forecastedf igures

Legend:

17

180

198

2,886

0 1000 2000 3000 4000

Organización Soriana SAB de CV



Fomento Económico Mexicano SABde CV


1,777

1,757

1,737

1,724 1,712 1,715 1,719

1,725

1,739 1,749

1,759

1,660

1,680

1,700

1,720

1,740

1,760

1,780

1,800

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Country overview: ArgentinaGlobally, Argentina recorded the highest CAGR across the globe in 2019 (at 32.4 percent); YPF SA holds half of the forecourt retail market share in the

country







Forecasted f igures

Legend:

0.19 0.240.33

0.42

0.59

0.77

0.96

1.141.29

1.441.58

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2014 2015 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F

Forecastedf igures

Legend:

479

160

212

269

595

0 200 400 600 800

Others

Trafigura Argentina SA

Bridas Corp


YPF SA

50%

19%

11%

10%

10%YPF SA


Trafigura Argentina SA

Bridas Corp

Others

Total: US$0.77

billion

*% might not total up to

100% owing to rounding

Appendix II


Case study: Lekkerland || GermanyLekkerland, a German wholesaler launched an innovative store concept at the end of 2016 called the “Frischwerk concept”which was part of the company’s future strategy — Convenience 2020.

The Frischwerk concept takes a fresh look at petrol stations and food services in Germany and has been designed taking consumer and supplier feedback on layout, setup, marketing, training of staff.

Some of the key findings form these feedback and research were:

— Demand for a clear division between two zones, which can be referred to as ‘traditional’ and ‘modern’. Food services and everything related is 'modern', while all that’s related to car care, petrol and cigarettes is 'traditional‘. From an operational point of view there must be two different people working in the two areas clearly linked to each section

— A shopper friendly atmosphere was also an important factor

— Another critical element was the prices at gas stations in Germany which are often perceived by consumers as too high or the pricing structure is not consistent. So the company developed a pricing model (dynamic pricing) as a recommendation to our customers that also includes the competition in the area around the station (what are others charging)

— The company also borrowed the ‘meal deal’ idea (three or four items for a single, good price) which was prevalent in the UK but wasn’t really being done in German petrol stations till 2016

Further the company is also testing a digital screens solution in and outside the stores where they can offer products or promotions depending on different consumer need states

Source: Frischwerk: Lekkerland's innovative store concept for petrol stations, PetrolPLAZA; Lekkerland transforms forecourt experience in Germany with Frischwerk concept, Global Convenience Store Focus


https://www.globalconveniencestorefocus.co.uk/features/lekkerland-transforms-forecourt-experience-in-germany-with-frischwerk-concept/

Appendix III


Methodology: Adjacent Services Growth PotentialAspect Description

Objective — The objective of country attractiveness is to understand the potential of growth of the forecourt adjacent services on a country to country basis. Attractiveness is gauged in terms of quantitative parameters around:

- Digital adoption index; Source: World Bank (2016, latest available)

- Historic growth of convenience store; Source: Euromonitor data

- Expected growth in forecourt market; Source: Euromonitor data

- Services as a percent of GDP; Source: World Bank latest data (mainly 2018)

- Demographics structure; Source: World Bank, Demographic Dividend

Approach — The quantitative factors are assigned weightages according to the possible impact:

- Digital adoption index; weightage assigned: 30%

- Historic growth of convenience store; weightage assigned: 30%

- Expected growth in forecourt market; weightage assigned: 20%

- Services as a percent of GDP; weightage assigned: 15%

- Demographics structure; weightage assigned: 5%

— Ranks/ratings are assigned to each data point on the scale of 1-23, with 1 being the most attractive and 23 being the least

— Calculation of overall ranks/scores - Ratings are multiplied by the weighting value of each factors. Then sum of the weighted scores across all factors gives the total/consolidated score for a player; basis which the overall rank is calculated. The calculation of consolidated score is based on a KPMG proprietary excel tool

Caveats — The data, that is the weightages, is based on KPMG Analysis

— The ranking is linked to the weightages and any changes to the weightages will affect the ranking

Appendix IV


List of key firms mentioned in the report (1/5)Name Headquarter Primary Industry Business Description

Alimentation

Couche-Tard Inc.

Canada Food Retail Operates and licenses convenience stores. Its convenience stores offers tobacco products, grocery items, beverages, and fresh food offerings; road

transportation fuel; and stationary energy, marine fuel, aviation fuel, and chemicals. The company operates its convenience stores chain under various

banners, including Circle K, Corner Stone, Couche-Tard, Holiday, Ingo, Mac’s, Re.Store, and Topaz. It is also involved in the sale of lottery tickets, calling

cards, gift cards, postage stamps, and bus tickets; issuance of money orders; and provision of ATMs and car wash services.

Amazon.com Inc. US Internet and Direct

Marketing Retail

Engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: (1)

North America, (2) International and (3) Amazon Web Services (AWS) segments. It sells merchandise and content purchased for resale from third-party

sellers through physical stores and online stores. The company also manufactures and sells electronic devices, including Kind le e-readers, Fire tablets, Fire

TVs, and Echo devices. In addition, it offers programs that enable sellers to sell their products on its websites, as well as their own branded websites; and

programs that allow authors, musicians, fi lmmakers, skil l and app developers, and others to publish and sell content.

Applegreen Plc Ireland Automotive Retail Operates motorway service areas and petrol fi l ling stations in Ireland, the UK and the US via three segments: (1) Retail Irel and, (2) Retail UK, and (3) Retail

USA. The company operates as a roadside convenience food and beverage retailer that sells fuel, food, and other groceries und er its Bakewell brands, as

well as other partnered international brands, such as Burger King, Subway, Costa Coffee, Greggs, Lavazza, Chopstix, Freshii, 7-Eleven, Starbucks, KFC, Pret

a Manger, Pizza Express, Waitrose, WH Smith, Harry Ramsden, Tossed and the Ramada and Days Inn hotel.

BP

Chargemaster

UK Specialized Consumer

Services

BP Chargemaster operates a network of electric vehicle charging points. BP Chargemaster was formerly known as Chargemaster Li mited and changed its

name to BP Chargemaster in August 2018.

BP Plc UK Integrated Oil and

Gas

Engages in the energy business worldwide. It operates through three segments: (1) Upstream, (2) Downstream, and (3) Rosneft. The Upstream segment is

involved in the oil and natural gas exploration, field development, and production; midstream transportation, storage, and processing; and marketing and

trading of LNG, biogas, power and natural gas liquids (NGLs). The Downstream segment refines, manufactures, markets, transports, supplies, and trades in

crude oil, petroleum, and petrochemical products and related services to wholesale and retail customers. The Rosneft segment engages in the exploration

and production of hydrocarbons, as well as jet fuel, bunkering, bitumen, and lubricants activities. It also provides convenie nce retail services to consumers

through company-owned and franchised retail sites, as well as other channels, including dealers and jobbers.

Caltex Australia

Limited

Australia Oil and Gas Refining

and Marketing

Engages in purchasing, refining, distributing, selling, and supplying petroleum products in Australia, New Zealand, and Singa pore. It operates through

Convenience Retail, and Fuels and Infrastructure segments.

Carsley Group UK Automotive Retail Carsley Group operates petrol stations. As of 5 October 2017, Carsley Group operates as a subsidiary of Applegreen Plc.

China Petroleum

& Chemical

Corporation

China Integrated Oil and

Gas

China Petroleum & Chemical Corporation, an energy and chemical company, engages in oil and gas, and chemical operations in th e People’s Republic of

China. It operates through five segments: (1) Exploration and Production, (2) Refining, (3) Marketing and Distribution, (4) Chemicals, and (5) Corporate and

Others. It is a subsidiary of China Petrochemical Corporation.

Costa Limited UK Restaurants Operates a chain of coffee shops in the UK and internationally. Offers caffè latte, velvety flat white, classic Americano, ri ch cortado, cappuccino, white & black

americano, hot chocolate, and mocha. Operates as a subsidiary of The Coca-Cola Company (Coca-Cola acquired Costa from Whitbread)

Source: Standard & Poor Capital IQ, accessed 28 August 2019



CST Brands Inc. US Automotive Retail Through its subsidiaries, operates as an independent retailer of motor fuel and convenience merchandise items in the US and e astern Canada. It operates

through three segments: (1) US Retail, (2) Canadian Retail, and (3) CrossAmerica. The company’s retail operations include sal e of motor fuel at retail sites,

commission sites, and cardlocks; food, convenience merchandise items, and services at retail sites; and heating oil to reside ntial customers, as well as

heating oil and motor fuel to small commercial customers. Also provides other products and services, including car wash, lottery, money orders,

air/water/vacuum services, video and game rentals and access to ATMs.

Delicious Ideas

Food Group

UK Packaged Foods and

Meats

Manufactures and markets confectionery products.

Euro Garages

Limited

UK Automotive Retail Owns and operates petrol station forecourts in the UK. Its forecourts feature convenience stores that sell car care products, groceries (chil led and ambient),

newspapers and magazines, sandwiches, and tobacco; fast food outlets; and coffee shops. Euro Garages Limited has strategic pa rtnerships with BP, ESSO,

Shell, SPAR, Starbucks, Subway, Greggs and Burger King. Its ultimate parent is EG Group Limited.

Exxon Mobil

Corporation

US Integrated Oil and

Gas

Explores for and produces crude oil and natural gas in the US, Canada/Other Americas, Europe, Africa, Asia, and Australia/Oceania. It operates through (1)

Upstream, (2) Downstream, and (3) Chemical segments. Exxon is also involved in the manufacture, trade, transport, and sale of crude oil, pe troleum products,

and other specialty products; and manufactures and markets petrochemicals, including olefins, polyolefins, aromatics, and various other petrochemicals.

First Utility

Limited

UK Electric Util ities First Util ity Limited, doing business as first:util ity, supplies electricity and gas to residential and business customers. T he company was incorporated in 2004

and is based in Warwick, UK. First Util ity Limited operates as a subsidiary of The Shell Petroleum Company Limited.

FW Kerridge

Limited

UK Automotive Retail FW Kerridge Ltd. owns and operates petrol stations.

Golden Cross

Group Limited

UK Automotive Retail Operates as service stations providing full vehicle services and petrol pumps.

Harv est Energy

Limited

UK Oil and Gas Refining

and Marketing

Harvest Energy Ltd. blends and supplies motor fuels. It supplies road fuels; and fuels and lubricants, such as diesel, bio di esel, gasoil, red diesel, and

kerosene. Its customers include national supermarket chains, major oil companies, haulage companies, logistics companies, bus and rail operators, uti l ities

providers, local authorities and other government organisations, delivery services, high street retailers, port authorities, and construction companies. It

markets and sells its products through dealers.

HKS Retail

Limited

UK Automotive Retail Owns and operates a chain of fuel fi lling stations. It provides carwash services, vehicle repair services, services through m ini-super market stores, and

convenience experience. The company was founded in 1984 and is based in Leicester, UK with locations in Leicester, Loughborou gh, Coseley,

Buckinghamshire, Derbyshire, Surrey, Northampton, Nottinghamshire, Walton-On-Thames, Gosport, and Tividale, UK.

Holiday

Stationstores

Inc.

US Automotive Retail Operates a chain of gasoline stations and convenience stores. Its stores offer gasoline and fuels; and breakfast sandwiches, hams, cheeseburgers, jumbo

corn dogs, steak burgers and so on. It operates corporately owned stores and franchise stores in the northern tier region of the US, such as Minnesota,

Wisconsin, Michigan, North Dakota, South Dakota, Montana, Wyoming, Idaho, Washington, and Alaska. As of December 2017, it was a subsidiary of

Alimentation Couche-Tard Inc.




International

Business

Machines (IBM)

US IT Consulting and

Other Services

IBM is an integrated technology and services operating via five segments: (1) Cognitive Solutions, (2) Global Business Services segment, (3) Technology

Services & Cloud Platforms segment, (4) Systems segment and Global Financing.

IONITY Germany - IONITY is a joint venture between BMW Group, Daimler AG, Ford Motor Company and the Volkswagen Group with Audi and Porsche. Its aims to build a pan-European high-power-charging network for Electric vehicles, to facil itate long-distance travel.

Kwik Chek Food

Stores Inc.

US Food Retail Operates a family of customer service-oriented convenience stores, grocery stores, and quick food operations. It offers home-style meals, gourmet coffee,

brewed tea, grocery items, snack foods, and more

Manor Serv ice

Stations Limited

UK - As of October 5, 2017, Manor Service Stations Limited operates as a subsidiary of Motor Fuel Group Limited.

Marks and

Spencer Group

Plc

UK Department Stores Operates various retail stores. The company offers protein deli and dairy; produce; ambient and in -store bakery; meals dessert and frozen; and hospitality and

‘Food on the Move’ products. It also provides womenswear, menswear, l ingerie, kids wear, and home products; and financial services, including credit cards,

current accounts and savings products, insurances, and mortgages, as well as renewable energy services.

Motor Fuel

Group Limited

UK Automotive Retail Motor Fuel Group Limited, a forecourt operator, owns and operates petrol stations in the UK. Its petrol stations operate unde r various brands. The firm's petrol

stations activities include sale of petrol; and operation of shops, as well as other forecourt facil ities, including ATM, car wash, vacuum, air and water, l iquid

petroleum gas, and electricity charge point services.

MRH (GB)

Limited

UK Automotive Retail Owns and operates petrol service stations with convenience store in the UK. Its store offers breads, milk, eggs, meal deals, rollover hot dogs, coffees, and

other deals.

P97 Networks

Inc.

US Data Processing and

Outsourced Services

Develops PetroZone, a mobile payment, e-commerce and digital marketing platform for fuel retailing industry. Its solution enables consumers to have better

mobile shopping experience, options for lower fuel prices, and opt-in personalised digital offers for in-store purchase. Its platform connects consumers with

retail fuelling merchants and convenience stores across a broad partner ecosystem, including oil company payment networks, me rchants, consumer package

good companies, automotive companies, and banks.

Repsol SA Spain Integrated Oil and

Gas

Operates as an integrated energy company worldwide. Its Upstream segment engages in the exploration and development of crude oil and natural gas

reserves. Its Downstream segment in involved in refining and petro chemistry; trading and transportation of crude oil and oil products; marketing of oil

products, petrochemical, and LPG; the marketing, transport, and regasification of natural gas and LNG; and generation and marketing of electricity

Rontec Roadside

Retail Limited

UK Automotive Retail Rontec Roadside Retail Limited operates forecourts in England and Wales. The company offers fuel, food -to-go, and other retail brand forecourts.

Roofoods

Limited

UK Restaurants Roofoods Limited, doing business as Deliveroo, owns and operates an online food delivery platform in the UK. Its platform allowsusers to order food from

local restaurants.




Royal Dutch

Shell Plc

Netherlands Integrated Oil and

Gas

Operates as an energy and petrochemical company worldwide. Operates through Integrated Gas, Upstream, and Downstream segments. It explores for, and

extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates

upstream and midstream infrastructure necessary to deliver gas to market. The company also markets and trades natural gas, LNG, crude oil, electricity,

carbon-emission rights; and markets and sells l iquefied natural gas as a fuel for heavy-duty vehicles and marine vessels. In addition, it trades in and refines

crude oil and other feed stocks, such as gasoline, diesel, heating oil, aviation fuel, marine fuel, biofuel, lubricants, bitu men, and sulphur; produces and sells

petrochemicals; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as

intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol.

Sev en & I

Holdings Co.

Limited

Japan Food Retail Provides convenience stores, general supermarkets, department stores, restaurants, banks, IT services. It operates in seven b usiness segments. Domestic

Convenience Store segments operates convenience store businesses based on direct management and franchise systems, such as th e operation of 7-Eleven

stores in Japan. Overseas Convenience Store segment operates convenience stores, such as 7 -Eleven overseas. Superstore segment is a retail business

that provides food, daily necessities and other items necessary for daily l ife. Department Store segment conducts retail busi ness. Finance-Related segment is

involved in the banking, credit card business and leasing business. Specialty Store segment operates a retail business that p rovides specialised and

distinctive products and services. Others segment is involved in the real estate business.

Sunoco LP US Oil and Gas Storage

and Transportation

Together with its subsidiaries, the firm engages in the distribution and retailing of motor fuels in the US. It operates via two segments: (1) Fuel Distribution and

Marketing (purchases motor fuel from independent refiners and major oil companies and supplies it to independently operated dealer stati ons, distributors and

other consumer of motor fuel, and partnership operated stations, as well as to commission agent locations) and (2) All Other segment (operates retail stores

offering motor fuel, merchandise, foodservice and other services that include car washes, lottery, ATM, prepaid phone cards and wireless services)

The Kroger Co. US Food Retail Operates as a retailer in the US. The company operates supermarkets, multi -department stores, marketplace stores, and price impact warehouse stores. Its

combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centres, fresh seafood, and organic produce;

and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys. The company’s

marketplace stores offer full -service grocery, pharmacy, health and beauty care departments, and perishable goods, as well as general merchandise,

including apparel, home goods, and toys; and price impact warehouse stores provides grocery, and health and beauty care items, as well as meat, dairy,

baked goods, and fresh produce items. It also manufactures and processes food products for sale in its supermarkets; and sell s fuel through fuel centres.

The New Motion

BV

Netherlands Specialty Stores Provides smart charging solutions for electric vehicles in Europe and offers charging products for both residential and business locations. It serves private

users and business in industries, including private homes, apartments, office locations, housing associations, lease drivers, large corporates, municipalities,

parking complex, leasing companies, real estate and OEMs. The New Motion BV operates as a subsidiary of Royal Dutch Shell plc .

The SPAR Group

Limited

South Africa Food Distributors Engages in the wholesale and distribution of goods and services to SPAR grocery stores, build it builders’ merchandise outlet s, SPAR liquor stores, and other

retail outlets. It offers food and non-food products under the SPAR brand; cookware, kitchen utensils, appliances, bathroom linens, and accessories under the

SPAR Good Living brand; produce and bakery products under the SPAR Freshline brand; pork, lamb, beef, and chicken meat under the SPAR Tender and

Tasty brand; medicines and products under the Pharmacy at SPAR brand; and real value for money under the SaveMor brand.




Waitrose Limited UK Food Retail Waitrose Limited, a food retailer, operates a chain of supermarkets in England, Scotland, and Wales. It sells groceries, such as bakery products, milk, meat,

fruits and vegetables, beers, wine and spirits, soft drinks and water, household products, tea and coffee, health and beauty products, baby and child products,

and pet care products; home and garden products, including cooking products and kitchenware, dining products and tableware, h ousehold cleaning products,

laundry products, candles, newsagents and stamps, office and stationary products, and tights and socks; and flowers and gifts.

Wawa Inc. US Food Retail Owns and operates a chain of convenience retail stores. Its stores offer fresh food, including hoagies and sandwiches, salads and wraps, and snacks, as well

as soups, and sides and bowls; coffee and beverages; dairy products, including milk and ice creams; and fuel services. The co mpany also manufactures and

supplies Wawa branded beverages to school districts, colleges, universities, hospitals, nursing homes, prominent restaurants, and hotels, as well as produces

milk and juice products. In addition, it sells apparel, coffee, gift cards, and novelties/others online.

WM Morrison

Supermarkets

Plc

UK Food Retail Operates retail super stores under the Morrison's brand name in the UK. The company engages in the in -store and online grocery retailing activities. It also

supplies eggs; manufactures and distributes fresh food, and morning goods and bread; prepares and supplies seafood; processes fresh meat; invests in,

develops, and maintains properties; and offers insurance, leasing, technical testing and analysis, and property partnership services, as well as holds

pharmaceutical l icense. The company operates through 494 supermarkets, as well as various petrol fi l ling stations.

Zynstra Limited UK Application Software Provides hybrid information technology (IT) platform for small and mid-sized businesses. It offers Cloud Managed Servers that are delivered as physical on-

site servers that have been pre-staged with IT services, a local private cloud for applications, and Azure cloud storage; and pre-integrated with services, such

as Microsoft Office 365. The company also provides SMB IT for organizations with 5 to 250 IT workers on any site; Education I T for small and large schools;

Enterprise Branch IT for multi -site and remote offices and branches; and Zynstra Cloud Management Platform, a multi-tier cloud management platform that

delivers IT management services. In addition, it offers enterprise-grade hybrid IT-as-a-Service for SMBs, branch offices, education, retail, and industries.

Further, the company provides Microsoft Office 365 integration, resil ient active directory with single sign on, RDX removable storage, cloud backup and

disaster recovery, and support services.


Sources


Sources (1/5)Market Overview & Competitive LandscapeEuromonitor, Fuel Market Review 2018, Forecourt Trader UK; China: 30,000 new petrol stations to open by 2025, Petrol Plaza; BP to boost China retail sites, Oats lrc; Convenience Stores in Switzerland, Euromonitor; Sinopec Annual Report 2018; BP Annual Report 2018; 7&I Annual Report 2018, accessed 20 June 2019; Coronavirus (COVID-19)…responding globally, IGD; 7-Eleven Expands Delivery Footprint; 7-Eleven; German supermarket chain Rewe on lookout for M&A targets: report, Reuters, accessed 26 May 2020

Implications of COVID

Historic slump in global oil prices…Bloomberg; U.S. Energy Information Administration, Oil Market Report - April 2020, accessed 11 May 2020

…is being driven by reduction in road traffic and fuel consumptionCoronavirus to cut China’s 1Q fuel demand by 36pc: CNPC, 20 February 2020, Argus; Short-Term Energy Outlook, EIA; What are the impacts of the COVID-19 Pandemic onour Transport Systems, 31 March 2020, ARRB; Australian data sheds new light on COVID-19 transport effects, 8 April 2020, TransportXtra; NEM demand in the time of COVID-19, 9 April 2020, Energy Council; Global energy demand to plunge this year as a result of the biggest shock since the Second World War, 30 April 2020, IEA; Australian Petroleum Statistics, February 2020, Department of Industry, Transport use change, COBR; Here’s how energy demand has changed during the UK's lockdown, 1 April 2020, World Economic Forum; TRAFFIC VOLUME TRENDS, February 2020, US Department of Transportation; Highway traffic is plunging in these US cities amid coronavirus pandemic, 13 March 2020, USA Today, COVID-19 mitigation efforts result in the lowest U.S. petroleum consumpti decades, 23 April 2020, EIA; Decline in US gasoline, jet fuel demand from COVID-19 could linger for years, 13 April 2020, S&P Global, What has the Covid-19 situation done to motorway traffic?, 7 April 2020, TRL; Covid-19 to wipe out 10 million barrels per day of oil demand in 2020, 16 April 2020, The Economic Times; OPINION: Global oil consumption cut by up to a third: Kemp, 16 April 2020; UK Department for Business, Energy, & Industrial Strategy; Germany shows first signs of road fuel demand recovery, 22 April 2020, Argus; Green Shoots Appear in Germany and Italy’s Power Market, 23 April 2020, Bloomberg, Germany switches on power slowly after lockdown, 30 April 2020, The Economic Times; Low U.S. Traffic Levels 'Unprecedented' Amid Coronavirus, 15 April 2020, US News; accessed on 11 May 2020 ; Fact box: COVID-19 lockdowns depress fuel demand worldwide, Reuters; The effect of the COVID-19…on mobility in the Netherlands, TomTom; Before and after COVID-19: Europe's traffic congestion mapped, Here 360; UK road travel falls to 1955 levels as Covid-19 lockdown takes hold, The Guardian accessed on 14 May 2020

What does this mean for fuel and forecourt retailers?

Coronavirus (COVID-19) offering retail fuel stations a “stress test” for the future, IHS Market, 21 April 2020; Convenience Retail Industry Pivots for Long-Term COVID-19 Impact, NACS, 12 April 2020; 2000 forecourts take up GripHero's free hand-protection dispenser offer, Forecourt Trader, 30 April 2020; Foodservice distributors project $24 billion loss due to COVID-19, IFDA Online; Meal Kits Make a Comeback, NACS, 5 May 2020; Pandemic Inspires ‘Ethical Consumption’, 7 May 2020; accessed on 14 May 2020

RetailConvenience culture is fuelling forecourt shopping…ACS: The Forecourt Report 2018, Association of Convenience Stores; ACS: Forecourt Stores Investing to Transform Food Offer, ACS; Forecourts lead convenience sector in food-to-go category, Barber Wadlow; Forecourts leading a food-to-go trend, Forecourt Trader; Food-to-go mission less important to forecourts, says report, The Grocer; HIM Forecourt Focus 2017,Forecourt Focus: Convenience Is Overtaking The Pumps, HIM; Why forecourt retailing offers some of the best insights into the future of retail, LinkedIn;

https://forecourttrader.co.uk/files/Fuel_Market_Review/Fuel_Market_Review_2018.pdf


https://www.oats-lrc.co.uk/lubes-marketing/article-2815/bp-to-boost-china-retail-sites-shell-looks-to-forecourt-automation

https://www.euromonitor.com/convenience-stores-in-switzerland/report

https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/investors/bp-annual-report-and-form-20f-2018.pdf

https://www.7andi.com/library/dbps_data/_template_/_res/en/ir/library/ar/pdf/2018_all.pdf

https://www.igd.com/articles/article-viewer/t/coronavirus-covid-19-how-convenience-operators-are-responding-globally/i/24760

https://corp.7-eleven.com/corp-press-releases/04-29-2020-7-eleven-expands-delivery-footprint-through-third-party-providers

https://in.reuters.com/article/us-health-coronavirus-rwe-m-a/german-supermarket-chain-rewe-on-lookout-for-ma-targets-report-idINKCN2261CE

https://www.iea.org/reports/oil-market-report-april-2020

https://www.argusmedia.com/en/news/2074258-coronavirus-to-cut-chinas-1q-fuel-demand-by-36pc-cnpc

https://www.eia.gov/outlooks/steo/archives/apr20.pdf

https://www.transportxtra.com/publications/local-transport-today/news/65078/australian-data-sheds-new-light-on-covid-19-transport-effects/

https://www.energycouncil.com.au/analysis/nem-demand-in-the-time-of-covid-19/

https://www.iea.org/news/global-energy-demand-to-plunge-this-year-as-a-result-of-the-biggest-shock-since-the-second-world-war

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/876889/FINAL_Press_Conference_Slides_20200330.pdf

https://www.weforum.org/agenda/2020/04/we-analysed-electricity-demand-and-found-coronavirus-has-turned-weekdays-into-weekends/

https://www.fhwa.dot.gov/policyinformation/travel_monitoring/20febtvt/20febtvt.pdf

https://www.usatoday.com/story/money/cars/2020/03/13/coronavirus-pandemic-cratering-road-traffic-these-us-cities/5041250002/

https://www.eia.gov/todayinenergy/detail.php?id=43455

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/decline-in-us-gasoline-jet-fuel-demand-from-covid-19-could-linger-for-years-57985942

https://trl.co.uk/news/news/what-has-covid-19-situation-done-motorway-traffic

https://energy.economictimes.indiatimes.com/news/oil-and-gas/covid-19-to-wipe-out-10-million-barrels-per-day-of-oil-demand-in-2020/75182512

https://energy.economictimes.indiatimes.com/news/oil-and-gas/opinion-global-oil-consumption-cut-by-up-to-a-third-kemp/75184534

https://www.argusmedia.com/en/news/2098631-germany-shows-first-signs-of-road-fuel-demand-recovery

https://www.bloomberg.com/news/articles/2020-04-23/electricity-demand-shows-signs-of-rising-in-italy-and-germany

https://energy.economictimes.indiatimes.com/news/power/germany-switches-on-power-slowly-after-lockdown-research/75462494

https://www.usnews.com/news/best-states/articles/2020-04-15/low-us-traffic-levels-unprecedented-during-coronavirus-pandemic

https://teams.microsoft.com/dl/launcher/launcher.html?url=/_#/l/meetup-join/19:meeting_Y2IxZDUwOWYtOGZmOC00Y2YyLWE1NzAtNzQ4YjZiMTIxMTUx@thread.v2/0?context%3d%7b%22Tid%22%3a%22deff24bb-2089-4400-8c8e-f71e680378b2%22%2c%22Oid%22%3a%22d4562cea-3eaf-4710-9891-4918e6a17fcb%22%7d%26anon%3dtrue&type=meetup-join&deeplinkId=479367d8-c0a1-49da-a045-8410b9eec145&directDl=true&msLaunch=true&enableMobilePage=true&suppressPrompt=true

https://www.tomtom.com/covid-19/country/netherlands/

https://360.here.com/covid-19-impact-traffic-congestion

https://www.theguardian.com/uk-news/2020/apr/03/uk-road-travel-falls-to-1955-levels-as-covid-19-lockdown-takes-hold-coronavirus-traffic

https://ihsmarkit.com/research-analysis/coronavirus-offering-retail-fuel-stations-a-stress-test.html

https://ihsmarkit.com/research-analysis/coronavirus-offering-retail-fuel-stations-a-stress-test.html

https://www.convenience.org/Media/Daily/2020/Apr/14/1-C-Retail-Industry-Pivots-COVID19-Impact_Research


https://www.ifdaonline.org/news-insights/industry-news/24billionloss

https://www.convenience.org/Media/Daily/2020/May/5/5-Meal-Kits-Make-a-Comeback_Foodservice

https://www.convenience.org/Media/Daily/2020/May/7/3-Pandemic-Inspires-Ethical-Consump_International

https://www.acs.org.uk/sites/default/files/acs_forecourt_report_2018.pdf

https://www.acs.org.uk/news/acs-forecourt-stores-investing-transform-food-offer

https://barberwadlow.co.uk/whats-new/forecourts-lead-convenience-sector-in-food-to-go-category/

https://forecourttrader.co.uk/news/archivestory.php/aid/12909/Forecourts_leading_a_food-to-go_trend.html

https://www.thegrocer.co.uk/companies/traditional-retailers/forecourts/food-to-go-mission-less-important-to-forecourts-says-report/571683.article

https://www.himshopper.com/shopper/convenience/ctp-2017/forecourt-focus-convenience-is-overtaking-the-pump/

https://www.linkedin.com/pulse/why-forecourt-retailing-offers-some-best-insights-future-cate-trotter/


Sources (2/5)Forecourts have become so much more than a petrol station, Talking Retail; Fill up with fuel and food as Budgens at Shell launches in Wellingborough, Northampton shire Telegraph; Our Deli2Go Range, Shell; Shell hires Jamie Oliver in ‘£5m deal to update food offer at service stations, Foodservice Equipment; BP plans to open more M&S.., erpecnews; Rontec Food-to-go, Rontec; Shop’N Drive, Rontec; Applegreen is Forecourt Trader of the Year, Forecourt Trader; Rontec to add 40 more Morrisons stores at its sites, Forecourt Trader; Making the future, Forecourt trader; Applegreen-Bakewell, Anglo Irish; Applegreen has €50m to fuel growth on expansion, Irish Examiner; This is the gas station of the future. Hopefully, the bathrooms are cleaner, Market Watch, accessed June 2019; Forecourt convenience growth set to outpace overall sector, Forecourt Trader; EG Group acquires KFC’s largest franchise in UK and Ireland, Petrol Plaza; Forecourt and Convenience: a marriage made in heaven, Asian Trader; Forecourt convenience growth set to outpace overall sector, Forecourt Trader; Morrisons announces new and expanded wholesale partnerships, Convenience Store; Forecourt c-stores to grow sales by 3.8%, report finds, Talking Retail; ACS: The Forecourt Report 2019, ACS.org, accessed April 2020; Albert Heijn and BP expanding convenience partnership in Netherlands, IGD; Albert Heijn and BP to expand convenience partnership in the Netherlands, Petrol Plaza; Nisa partners with Ascona, The Grocer; accessed 22 May 2020

… and enhancing role of retail experienceFill up with fuel and food as Budgens at Shell launches in Wellingborough, Northampton shire Telegraph; M1 Lisburn Service Area (Applegreen), Wesleyjohnston; Take a look inside new Applegreen M1 service station - without causing traffic chaos, Belfast Telegraph; New look and feel for SPAR Express forecourt stores in Austria, SPAR International; It's All About 'Mojo' for BP's ampm Division, CsNews; Shell Germany and DIFG UK—New European Appetite for Healthy UK Snacks, Pr NewsLink; 7-Eleven Opens Its First Lab Store In The U.S. In Dallas, theshellbyreport; The Modern Forecourt, cstoredecisions; ACS: Forecourt Stores Investing to Transform Food Offer, ACS; Why forecourt retailing offers some of the best insights into the future of retail, LinkedIn; Giant Made of Sweets and Candy Is A Hit for ampm, CSP Daily; Simply Great Coffee, Couche Tard; Couche-Tard Turns Attention to In-Store Offerings, CS News; Couche-Tard Annual Information form 2019, Couche Tard; Forecourts have become so much more than a petrol station, Talking Retail; Our Deli2Go Range, Shell; Petrol Retail Association Market Review 2018, Petrol Retail Association; Seven-Eleven Japan’s Business Model, 7&I, accessed June 2019; Top honours for retailers nationwide, 2019 Winners, Forecourt Trader; Group Business Strategy, Seven-Eleven; Our private label products, REWE; Rewe Group: 60 second update, IGD; Rewe And Penny Switch To Sustainable Own-Brand Orange Juice, ESM Magazine, accessed 22 April 2020; Woolworths Introduces ‘Basics Box’, Hello Care; Woolworths ramps up online delivery, Woolworths, accessed 26 May 2020

Digitalisation is creating operational efficiencies,Forecourts have become so much more than a petrol station, Talking Retail; Scale to Sale technology can help streamline forecourt operations, CBE; Wawa Brings Digital Integration to C-Stores, NACS; Convenience Store EPoS Systems, CBE; The Forecourt Retail Industry Is Ready For GDPR Right?, Protegrity; What the future of the petrol station looks like, from renewable energies to driverless cars, The Telegraph; EVs and digitisation influence global forecourts market, Smart Energy; Forecourt of the future, SAS; Reinventing a Gas Station as a Hub for Multi-Modal Mobility, MIT Design lab; Market Review 2019, PRA; Kwik Chek Partners With P97 Networks, P97; Digital Transformation Initiative, Oil and GasIndustry, World Economic Forum, accessed June 2019; 7-Eleven Empowers a More Mobile Workforce with Microsoft Cloud Solutions and Devices, PR Newswire; NACS European Convenience Retail Awards 2019 Winners, Global Convenience Store Focus; Convenience Retailers Honored in London, Convenience.org, accessed April 2020

…redefining customer relationship … and helping unlock value from paymentsKPMG Analysis; Mobile Commerce for Retail Fueling, P97; Reliable and flexible payment for any gas station forecourt, Orpak; LS Forecourt Brochure, LS Retail; PSS 5000 Brochure, Gilbarco; Why You Should Use Pay-at-Pump to Increase Store Traffic, Invenco; Drive sales and traffic in your gas station, LSE Retail; You can now pay for BP fuel with your smartphone, Motoring Research; Jaguar and Shell put mobile into mobile payments with touchscreen in-car fuel payments with PayPal, Internet Retailing; Why forecourt retailing offers some of the best insights into the future of retail, LinkedIn; Supermarket checkout designed to scan entire shopping basket trailed in London, Evening Standard;

https://www.talkingretail.com/opinion/forecourts-become-much-petrol-station-26-03-2018/

https://www.northantstelegraph.co.uk/news/fill-up-with-fuel-and-food-as-budgens-at-shell-launches-in-wellingborough-1-8233562

https://www.shell.co.uk/motorist/station-locator/our-deli2go-range.html

https://www.foodserviceequipmentjournal.com/shell-hires-jamie-oliver-in-5m-deal-to-update-food-offer-at-service-stations/

http://www.erpecnewslive.com/article/875/bp-plans-to-open-more-ms-food-stores-on-its-forecourts-to-drive-profits

http://www.rontec.com/retail-partners/

https://www.rontec.com/retailers/shopn-drive/

https://forecourttrader.co.uk/news/archivestory.php/aid/13883/Applegreen_is_Forecourt_Trader_of_the_Year.html

https://forecourttrader.co.uk/news/archivestory.php/aid/13035/Rontec_to_add_40_more_Morrisons_stores_at_its_sites.html

https://forecourttrader.co.uk/news/fullstory.php/aid/15456/Making_the_future.html

http://www.anglo-irish.com/Catalogue/Detail/Applegreen-Bakewell

https://www.irishexaminer.com/breakingnews/business/applegreen-has-50m-to-fuel-growth-on-expansion-912016.html

https://www.marketwatch.com/story/this-is-the-gas-station-of-the-future-hopefully-the-bathrooms-are-cleaner-2017-06-06

https://forecourttrader.co.uk/news/fullstory.php/aid/18211/Forecourt_convenience_growth_set_to_outpace_overall_sector.html


https://www.asiantrader.biz/forecourt-and-convenience-a-marriage-made-in-heaven/

https://forecourttrader.co.uk/news/fullstory.php/aid/18211/Forecourt_convenience_growth_set_to_outpace_overall_sector.html

https://www.conveniencestore.co.uk/news/morrisons-announces-new-and-expanded-wholesale-partnerships/597475.article

https://www.talkingretail.com/news/industry-news/forecourt-c-stores-grow-sales-3-8-report-finds-04-03-2020/


https://retailanalysis.igd.com/retailers/ahold-delhaize/news-article/t/albert-heijn-and-bp-expanding-convenience-partnership-in-netherlands/i/24413


https://www.thegrocer.co.uk/convenience/nisa-partners-with-ascona-forecourts-to-supply-sites-with-grocery/605035.article

https://www.northantstelegraph.co.uk/news/fill-up-with-fuel-and-food-as-budgens-at-shell-launches-in-wellingborough-1-8233562

http://www.wesleyjohnston.com/roads/m1servicearea.html

https://www.belfasttelegraph.co.uk/news/northern-ireland/take-a-look-inside-new-applegreen-m1-service-station-without-causing-traffic-chaos-34531324.html

https://spar-international.com/news/new-look-and-feel-for-spar-express-forecourt-stores-in-austria/

https://csnews.com/its-all-about-mojo-bps-ampm-division

https://prnewslink.net/releases/e2524/19970.html

https://www.theshelbyreport.com/2019/03/27/lab-store-dallas-7-eleven/

https://cstoredecisions.com/2016/04/29/the-modern-forecourt/

https://www.acs.org.uk/news/acs-forecourt-stores-investing-transform-food-offer


https://www.cspdailynews.com/snacks-candy/giant-made-sweets-candy-hit-ampm

https://www.couche-tard.com/great-coffee?lang=en

https://csnews.com/couche-tard-turns-attention-store-offerings

https://corpo.couche-tard.com/wp-content/uploads/2019/07/AIF-v14-ENG-FINAL-1-1.pdf


https://www.shell.co.uk/motorist/station-locator/our-deli2go-range.html

https://www.ukpra.co.uk/assets/documents/market-review-pra-2018.pdf

https://www.7andi.com/library/dbps_data/_template_/_res/ir/library/ar/pdf/2012_11.pdf

https://forecourttrader.co.uk/news/fullstory.php/aid/17555/Top_honours_for_retailers_nationwide.html

https://www.forecourttraderawards.co.uk/2019-winners/

https://www.7andi.com/library/dbps_data/_template_/_res/en/ir/library/co/pdf/2018_05.pdf

https://www.rewe-group.com/en/company/quality-management/our-private-label-brands

https://retailanalysis.igd.com/news/news-article/t/rewe-group-60-second-update/i/22856

https://www.esmmagazine.com/private-label/rewe-penny-switch-sustainable-brand-orange-juice-90356

https://hellocaremail.com.au/woolworths-introduces-basics-box-elderly-vulnerable-people/

https://www.woolworthsgroup.com.au/page/media/Press_Releases/woolworths-ramps-up-online-delivery-capacity-to-support-elderly-and-vulnerable-australians-in-self-isolation/


https://www.cbe.ie/cbes-technology-highlighted-shelflife-magazine/

https://www.convenience.org/Media/Daily/2019/May/4-Wawa-Brings-Digital-Integration-to-C-Stores_Tech

https://cbesoftware.co.uk/convenience/

https://www.protegrity.com/forecourt-retail-industry-ready-gdpr-right/

https://www.telegraph.co.uk/business/2016/06/12/what-the-future-of-the-petrol-station-looks-like-from-renewable/

https://www.smart-energy.com/news/global-forecourts-market/

https://blogs.sas.com/content/hiddeninsights/2017/11/13/petrol-forecourt-future/

https://design.mit.edu/projects/mobility-hub


https://p97.com/blog/kwik-chek-partners-with-p97-networks/

http://reports.weforum.org/digital-transformation/wp-content/blogs.dir/94/mp/files/pages/files/dti-oil-and-gas-industry-white-paper.pdf

http://reports.weforum.org/digital-transformation/wp-content/blogs.dir/94/mp/files/pages/files/dti-oil-and-gas-industry-white-paper.pdf

https://www.prnewswire.com/news-releases/7-eleven-empowers-a-more-mobile-workforce-with-microsoft-cloud-solutions-and-devices-300912553.html

https://www.globalconveniencestorefocus.co.uk/features/reitan-convenience-denmark-wins-2019-nacs-international-convenience-retailer-of-the-year/

https://www.convenience.org/Media/Daily/2019/Jun/7/2-Convenience-Retailers-Honored-in-London_NACS

https://p97.com/oil-companies/

https://www.orpak.com/solutions/forepay-forecourt-payment/

https://cdn2.hubspot.net/hubfs/491011/assets/Brochures-and-Flyers/LS Forecourt Flyer.pdf

https://www.gilbarco.com/eeu/sites/gilbarco.com.eeu/files/pdfs/3132_PSS5000_PRINT.pdf

https://www.invenco.com/news/use-pay-pump-increase-store-traffic

https://www.lsretail.com/blog/drive-sales-traffic-gas-station

https://www.motoringresearch.com/car-news/bp-bpme-fuel-payment-smartphone-app/

https://internetretailing.net/themes/themes/jaguar-and-shell-put-mobile-into-mobile-payments-with-touchscreen-in-car-fuel-payments-with-paypal-14944


https://www.standard.co.uk/tech/supermarket-checkout-designed-to-scan-entire-shopping-basket-trialled-in-london-a3747506.html


Sources (3/5)Shell Eyes Global C-Store Expansion, CSP; Market Review 2019, PRA; BPme; BP launches Bpme, BP; Fill up & Go, Shell; Apple Pay and Google Pay can buy you a Slurpee at 7-Eleven, Engadget; Japan convenience stores plan next generation of self-checkout, Nikkei; Easy Pay, Couche-Tard, accessed June 2019; 7-Eleven introduces mobile checkout in NYC, Retail Dive; Declaration of Plan to Introduce 100 Billion Electronic Tags for Products in Convenience Stores Formulated, METI; Japan moves closer to a reality of unmanned stores after successful RFID trial, accessed April 2020; Pandemic will leave long-term demand for delivery services, ForecourtTrader; 7-Eleven Opens Pop-Up Store for Health Care Workers, CS News; Shell Launches Pay At Pump: In-car Contactless Payment, Shell, May 2020

Adjacent ServicesAdjacent services are gaining centre-stage…KPMG Analysis; Amazon and Repsol strike parcel pick-up deal, Financial Times; Caltex puts pedal to metal on food convenience strategy, Financial Review; Food Delivery By Deliveroo, Shell UK; One Carwash For All Season, Circle K; Convenience Capitalises on Its “On-the-Go” Advantage through Channel Innovation in Australia, Euromonitor International; The Forecourt Report 2018, ACS, accessed June 2019; BP launches Couchfood™ in collaboration with Uber Eats, BP; Why more of us will order milk from the couch, c-store, February 2020; Heard of couchfood? It’s BP snacks delivered to your door, Out In Canberra; WAWA Catering, WAWA; Spain: Repsol opened 352 Supercor Stop&Go stores in 2019, Petrol Plaza, accessed April 2020; Sinopec selling groceries in touch-free style, IGD; Carrefour…Glovo to Cepsa fuel stations, ERPEC News; Sharing best practice globally key to Shell Retail strategy during pandemic, Global Convenience Store Focus; Moto prepares for June launch of click-and-collect food ordering, Forecourt Trader, accessed 25 May 2020

… especially in established & high growth markets...KPMG Analysis, Why forecourt retailing offers some of the best insights into the future of retail, LinkedIn; The road ahead: BP and the mobility future, BP; Mobility 2030, KPMG; Automotive: Bringing the future into focus, KPMG UK; Mobility Ecosystem 2030, Drivemidlands.co.uk; Future of Fuel Stations: None, shopping malls or else?, CarPay Diem; Aral envisions the gas station of the future, Petrol PLAZA; Service stations to be smarter in the future, Motoring News, accessed 20 June 2019; First South Korean Convenience Store Opens in Tehran, Financial Tribune, accessed 21 April 2020

MobilityGlobal mobility megatrends are transforming the industry...Why forecourt retailing offers some of the best insights into the future of retail, LinkedIn; The road ahead: BP and the mobility future, BP; Mobility 2030, KPMG; Automotive: Bringing the future into focus, KPMG UK; Mobility Ecosystem 2030, Fuel retailers in race to future-proof forecourts, Independent.ie; The Connected Car, IHS Markit; 470 Million Connected Vehicles On the Road by 2025, ITSDigest; In the fast lane: how autonomous vehicles are accelerating the development cycle, ITProPortal; UK in pole position to lead autonomous technology race, Autovista Group; Projected autonomous vehicle market penetration worldwide between 2021 and 2030, Statista; Autonomous Vehicle Market Expected to Reach $54.23 Billion,by 2026, Allied Market Research; Global Mobility as a Service (MaaS) Market 2018, Reuters; BP to acquire the UK’s largest electric vehicle charging company, BP; BP buys UK's largest car charging firm Chargemaster, BBC, accessed 20 June 2019

… resulting in emergence of new business modelsPetrol Forecourt Design, campbellrigg; Fuel retailers in race to future-proof forecourts, Business World; Mobility as a service: The value proposition for the public and our urban systems, ARUP; The Future of the Forecourt: A Vision for 2040, CSP; Future vision: Connected Cars and Fuels & Convenience Retailing, TechUK; IoT Is Becoming Increasingly Important for Convenience & Fuel Retailers, Convenience Store; Data Is Fuelling Forecourt Retail Growth, Protegrity; GDPR, ACS; Will autonomous and electric vehicles kill the

https://www.cspdailynews.com/fuels/shell-eyes-global-c-store-expansion


https://www.bp.com/en_gb/united-kingdom/home/products-and-services/BPme.html

https://www.bp.com/en_gb/united-kingdom/home/news/press-releases/bp-launches-bpme-the-new-way-to-pay-for-fuel.html

https://www.shell.co.uk/motorist/shell-fuels/fill-up-and-go.html

https://www.engadget.com/2018/09/10/apple-pay-and-google-pay-available-at-7-eleven/

https://asia.nikkei.com/Business/Japan-convenience-stores-plan-next-generation-of-self-checkout

https://www.circlek.com/easypay

https://www.retaildive.com/news/7-eleven-introduces-mobile-checkout-in-nyc/561567/

https://www.meti.go.jp/english/press/2017/0418_003.html

https://www.thedrum.com/news/2019/02/14/japan-moves-closer-reality-unmanned-stores-after-successful-rfid-trial

https://forecourttrader.co.uk/news/fullstory.php/aid/18642/Pandemic_will_leave_long-term_demand_for_delivery_services.html

https://csnews.com/7-eleven-opens-pop-store-health-care-workers

https://www.shell.co.th/en_th/media/press-releases-2020/shell-launches-pay-at-pump.html

https://www.ft.com/content/eb241b90-000b-11e7-96f8-3700c5664d30

https://www.afr.com/companies/retail/caltex-puts-pedal-to-metal-on-food-convenience-strategy-20170529-gwfn7b

https://www.shell.co.uk/motorist/food/shell-food-delivery-by-deliveroo.html

https://www.circlek.com/us/heartland/newcarwash

https://blog.euromonitor.com/convenience-advantage-channel-innovation-australia/


https://www.bp.com/en_au/australia/home/media/press-releases/bp-launches-couchfood.html

https://www.c-store.com.au/2020/02/13/why-more-of-us-will-order-milk-from-the-couch/

https://www.outincanberra.com.au/heard-of-couchfood-its-bp-snacks-delivered-to-your-door/

https://www.wawa.com/wawacatering


https://supplychainanalysis.igd.com/news/news-article/t/sinopec-selling-groceries-in-touch-free-style/i/24556

http://www.erpecnewslive.com/article/3728/carrefour-extends-its-alliance-with-glovo-to-cepsa-fuel-stations

https://www.globalconveniencestorefocus.co.uk/features/sharing-best-practice-globally-key-to-shell-retail-strategy-during-pandemic/

https://forecourttrader.co.uk/news/fullstory.php/aid/18646/Moto_prepares_for_June_launch_of_click-and-collect_food_ordering.html


https://www.bp.com/en/global/corporate/news-and-insights/bp-magazine/advanced-mobility-trends.html

https://home.kpmg/uk/en/home/insights/2017/04/mobility-2030.html

https://www.iia.org.uk/media/1689777/automotive-bringing-the-future-into-focus-justin-benson-kpmg.pdf

https://www.drivemidlands.co.uk/wp-content/uploads/2017/05/Mobility-Ecosystem-2030-John-Leech-KPMG.pdf

https://www.carpay-diem.com/2018/05/11/future-of-fuel-stations-none-shopping-malls-or-else/


https://www.motoring.com.au/service-stations-to-be-smarter-in-the-future-107962/

https://financialtribune.com/articles/economy-business-and-markets/76569/first-south-korean-convenience-store-opens-in-tehran


https://www.bp.com/en/global/corporate/news-and-insights/bp-magazine/advanced-mobility-trends.html

https://home.kpmg/uk/en/home/insights/2017/04/mobility-2030.html

https://www.iia.org.uk/media/1689777/automotive-bringing-the-future-into-focus-justin-benson-kpmg.pdf

https://www.drivemidlands.co.uk/wp-content/uploads/2017/05/Mobility-Ecosystem-2030-John-Leech-KPMG.pdf

https://www.independent.ie/business/world/fuel-retailers-in-race-to-futureproof-forecourts-36807406.html

https://ihsmarkit.com/topic/autonomous-connected-car.html

https://www.itsdigest.com/470-million-connected-vehicles-road-2025

https://www.itproportal.com/features/in-the-fast-lane-how-autonomous-vehicles-are-accelerating-the-development-cycle/

https://www.autovistagroup.com/news-and-insights/uk-pole-position-lead-autonomous-technology-race

https://www.statista.com/statistics/875080/av-market-penetration-worldwide-forecast/

https://www.alliedmarketresearch.com/press-release/autonomous-vehicle-market.html

https://www.reuters.com/brandfeatures/venture-capital/article?id=38604

https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bp-to-acquire-uks-largest-electric-vehicle-charging-company.html

https://www.bbc.com/news/business-44640647

https://campbellrigg.com/news/forecourt/petrol-forecourt-design

https://www.independent.ie/business/world/fuel-retailers-in-race-to-futureproof-forecourts-36807406.html

https://www.arup.com/perspectives/publications/research/section/maas-the-value-proposition

https://www.cspdailynews.com/fuels/future-forecourt-vision-2040#page=1

https://www.techuk.org/insights/opinions/item/8944-future-vision-connected-cars-and-fuels-convenience-retailing

https://csnews.com/iot-becoming-increasingly-important-convenience-fuel-retailers

https://www.protegrity.com/collaterals/data-fueling-forecourt-retail-growth/

https://www.acs.org.uk/advice/gdpr

https://www.imeche.org/news/news-article/will-autonomous-and-electric-vehicles-kill-the-petrol-station


Sources (4/5)petrol station?, Imeche.org; EVs and digitisation influence global forecourts market, Smart Energy International; Jacob Schram’s vision of the future of mobility, Petrolplaza; Mobility as a Service (MaaS) Market To Reach USD 372.1 Billion By 2026, Globenewswire, accessed 20 June 2019; Connected Car Market by Technology, Allied Market Research, accessed April 2020

… and increase in collaborations, to boost capabilities Global Electric Vehicle Market, June 2018, Allied Market Research, accessed via EMIS database; Shell opens high power charging park in France, electrive.com; Greenlots announces acquisition by Shell, Greenlots, Shell buys NewMotion charging network in first electric vehicle deal, Reuters, First Utility Becomes Shell Energy Retail Ltd And Switches Customers To 100% Renewable Electricity, Shell; BP buys UK's largest car charging firm Chargemaster, BBC News; Gridserve unveils plans for 100 large-scale charging sites, Forecourt Trader, accessed July 2019; UK's First Electric Forecourt Is Under Construction, Insideevs, accessed March 2020; BP Annual 2019; OMV Petrom Is Using Solar At Filling Stations, Clean Future; Romania: Solar panels …OMV Petrom, Serbia Energy; Fuel-retail chains are visiting Norway to ponder a future when gas stations don’t exist, electrrk; Chevron starts deploying EV charging, electrek; Circle K replaces its fuel station with EV Fast Charging hub in Norway, New Mobility; Couche-Tard Expands Testing of Electric Vehicle Charging in Europe, CS News

Trends toward cleaner fuel…Global Trends toward Cleaner Fuels and Fuel Efficient Vehicles, GFEI; Global Fuel Economy Trends, GFEI; Business Trends: Clean fuels—a global shift to a low-sulfur world, Hydrocarbon Processing; Reducing CO2 emissions from passenger cars, European Commission; Global fuel economy initiative, UN environment; Vehicle Emissions StandardsMarch 2017, wedocs; EPA Sets Tier 3 Motor Vehicle Emission and Fuel Standards, EPA; The Road to Zero, HM Government; Bharat Stage VI norms: Know how they will impact you; https://www.delphi.com/sites/default/files/inline-files/delphi-worldwide-emissions-standards-passenger-cars-light-duty-2016-7.pdf; Limits to improve air quality and health, AA; 2050 Energy Scenarios, KPMG; accessed 20 June 2019

… is changing the alternative fuel landscape…Hence, the fuel-mix of future will be radically different from todayHydrogen: still the fuel of the future?, Chemistry World; Shell Hydrogen Study Energy Of The Future?, Shell; Hydrogen as an Alternative fuel for transportation; Energia News; H2 Mobility website, H2 Mobility; H2 Mobility Managing Director: The future has begun, Gasworld; Norway: Explosion at hydrogen filling station, Electrive, accessed 20 June 2019; Shell plans to replace forecourt with EV-only charging hub, 18 October 2019, Forecourt Trader; Mobility as a Service Market to Generate Revenue Worth $347.6 Billion by 2024: P&S Intelligence, P&S Intelligence via Globalnewswire; Forecourt labels, UKPIA, accessed April 2020

How are these trends shaping forecourt retailing?KPMG Analysis, Forecourt of the future, Circle Brands; Aral sees a future for petrol stations in new report; Autovista Group; Why forecourt retailing offers some of the best insights into the future of retail, LinkedIn; GRIDSERVE unveils £1 billion ‘Electric Forecourt’ EV infrastructure programme, Current News, Gas Service Stations: The Future of Electric Vehicle Infrastructure, evrater; accessed July 2019; Gridserve EV Forecourt breaks ground in the UK, Electrive, accessed April 2020

https://www.imeche.org/news/news-article/will-autonomous-and-electric-vehicles-kill-the-petrol-station

https://www.smart-energy.com/news/global-forecourts-market/


https://www.globenewswire.com/news-release/2019/04/01/1790931/0/en/Mobility-as-a-Service-MaaS-Market-To-Reach-USD-372-1-Billion-By-2026.html

https://www.alliedmarketresearch.com/connected-car-market

https://www.electrive.com/2018/10/28/shell-opens-ionity-charging-park-in-france/

https://greenlots.com/greenlots-announces-acquisition-by-shell-one-of-the-worlds-leading-energy-providers/

https://in.reuters.com/article/us-newmotion-m-a-shell/shell-buys-newmotion-charging-network-in-first-electric-vehicle-deal-idINKBN1CH1QV

https://www.shell.com/energy-and-innovation/new-energies/new-energies-media-releases/first-utility-becomes-shell-energy-retail-ltd.html

https://www.bbc.com/news/business-44640647

https://forecourttrader.co.uk/news/fullstory.php/aid/16528/Gridserve_unveils_plans_for_100_large-scale_charging_sites.html

https://insideevs.com/news/403436/uk-first-electric-forecourt-under-construction/

http://www.annualreports.com/HostedData/AnnualReports/PDF/LSE_BP_2019.pdf

http://www.cleanfuture.co.in/2020/05/18/omv-petrom-is-using-solar/

https://serbia-energy.eu/romania-solar-panels-at-petrol-stations-installed-by-omv-petrom/

https://electrek.co/2020/02/17/fuel-retail-chains-are-visiting-norway-to-ponder-a-future-when-gas-stations-dont-exist/

https://electrek.co/2019/05/20/chevron-ev-charging-gas-stations/

https://www.newmobility.global/smart-infrastructure/circle-k-replaces-fuel-station-ev-fast-charging-hub-norway/

https://csnews.com/couche-tard-expands-testing-electric-vehicle-charging-europe

http://wedocs.unep.org/bitstream/item/23331/GlobalTrends_JaneAkumu.pdf?sequence=1

https://www.globalfueleconomy.org/media/45138/fuel-economy-leaflet.pdf

https://www.hydrocarbonprocessing.com/magazine/2016/february-2016/trends-and-resources/business-trends-clean-fuels-a-global-shift-to-a-low-sulfur-world

https://ec.europa.eu/clima/policies/transport/vehicles/cars_en

https://www.unenvironment.org/explore-topics/transport/what-we-do/global-fuel-economy-initiative

https://wedocs.unep.org/bitstream/handle/20.500.11822/17544/VehicleEmissions_worldmap_March2017.pdf?sequence=1&isAllowed=

https://wedocs.unep.org/bitstream/handle/20.500.11822/17544/VehicleEmissions_worldmap_March2017.pdf?sequence=1&isAllowed=

https://nepis.epa.gov/Exe/ZyPDF.cgi/P100HVZV.PDF?Dockey=P100HVZV.PDF

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/739460/road-to-zero.pdf

https://economictimes.indiatimes.com/industry/auto/cars-uvs/bharat-stage-vi-norms-know-how-they-will-impact-you/articleshow/66362907.cms

https://www.delphi.com/sites/default/files/inline-files/delphi-worldwide-emissions-standards-passenger-cars-light-duty-2016-7.pdf

https://www.theaa.com/driving-advice/fuels-environment/euro-emissions-standards

https://www.energynetworks.org/assets/files/gas/futures/KPMG Future of Gas Main report plus appendices FINAL.pdf

https://www.chemistryworld.com/features/hydrogen-still-the-fuel-of-the-future/3009235.article

https://www.shell.com/energy-and-innovation/new-energies/hydrogen/_jcr_content/par/textimage_1062121309.stream/1496312627865/6a3564d61b9aff43e087972db5212be68d1fb2e8/shell-h2-study-new.pdf

http://www.energianews.com/newsletter/files/596d605ad5f2eb8c64539c7128e2df98.pdf

https://h2.live/en/h2mobility

https://www.gasworld.com/the-future-has-begun/2016768.article

https://www.electrive.com/2019/06/11/norway-explosion-at-fuel-cell-filling-station/

https://forecourttrader.co.uk/news/fullstory.php/aid/17611/Shell_plans_to_replace_forecourt_with__EV-only_charging_hub.html

https://www.globenewswire.com/news-release/2019/12/18/1962022/0/en/Mobility-as-a-Service-Market-to-Generate-Revenue-Worth-347-6-Billion-by-2024-P-S-Intelligence.html/

https://www.ukpia.com/policy-focus/fuels/forecourt-labels/

http://www.circlebrands.co.uk/work/client/80/

https://autovistagroup.com/news-and-insights/aral-sees-future-petrol-stations-new-report


https://www.current-news.co.uk/news/gridserve-unveils-1-billion-electric-forecourt-ev-charging-programme

https://evrater.com/future-electric-vehicle-infrastructure

https://www.electrive.com/2020/03/10/first-of-100-gridserve-charging-stations-breaks-ground-in-the-uk/


Sources (5/5)How are forecourt retailers responding today?The changing landscape is forcing retailers to adapt …resulting in consolidation, as one of the key ways to maintain market shareForecourt consolidation continues as HKS acquired, UK forecourt consolidation: MFG acquires MRH, IGD Retail Analysis; Prax Group adds HKS to growing forecourt estate, MRH buys fellow Top 50 Indie Chartman Group, Applegreen buys seven sites from Carsley Group, Forecourt Trader; Kroger to sell convenience store business to UK petrol station operator EG Group, Proactive Investors; Consolidation is ‘shaping’ convenience sector, Talking Retail; The UK petrol station market: what’s happening?, Rapleys; How UK forecourtstores are fuelling profits, erpecnews; Couche-Tard Mines Reverse Synergy Opportunities From Holiday Cos. Acquisition, CS News; Couche-Tard reaches deal with CST Brands to boost presence in U.S, Canadian Grocer; Euro Garages acquires 1,000 Esso stations in Germany, PetrolPLAZA; 7-Eleven, Inc. Completes Acquisition of 1,030 Sunoco Stores, 7Eleven Corporate, MFG buys 14 sites from Golden Cross Group; Applegreen completes takeover of Welcome Break, Forecourt Trader; Mergermarket, accessed 9 January 2019; Petrol forecourt giant EG Group in double acquisition, Business Live; MFG To Purchase Forecourt Operator Symonds Retail, MFG; Couche-Tard steps further into cannabis with Fire & Flower stake, BNN Bloomberg, MFG to buy forecourt operator Symonds Retail Talking Retail, Applegreen to acquire 40% stake in US service plaza deal, The Irish Times; 7-Eleven Inc. to Acquire 7-Eleven Stores in Oklahoma, CSP Daily News; England UK: EG Group acquires KFC Franchise from Herbert Group, Petrol World. Com; Couche-Tard Acquires 17 Holiday Stations From Franchisee, CSP; EG Group Completes Cumberland Farms Acquisition, EG Group website; EG Group Completes Acquisition of Cumberland Farms, CS News; EG Group Closes on Cumberland Farms Purchase, CSP Daily News; Following Cumberland Farms Acquisition, EG Group Moving Headquarters to Massachusetts, 5 November 2019, C-store decisions, accessed April 2020

https://retailanalysis.igd.com/news/news-article/t/forecourt-consolidation-continues-as-hks-acquired/i/20463

https://retailanalysis.igd.com/news/news-article/t/uk-forecourt-consolidation-mfg-acquires-mrh/i/18489

https://forecourttrader.co.uk/news/fullstory.php/aid/15860/Prax_Group_adds_HKS_to_growing_forecourt_estate.html

https://forecourttrader.co.uk/news/archivestory.php/aid/13851/MRH_buys_fellow_Top_50_Indie_Chartman_Group.html

https://forecourttrader.co.uk/news/archivestory.php/aid/13738/Applegreen_buys_seven_sites_from_Carsley_Group.html

https://www.proactiveinvestors.co.uk/companies/news/191237/kroger-to-sell-convenience-store-business-to-uk-petrol-station-operator-eg-group-191237.html

https://www.talkingretail.com/news/industry-news/consolidation-shaping-convenience-sector-27-07-2018/

https://rapleys.com/news/the-uk-petrol-station-market-whats-happening/

http://www.erpecnewslive.com/article/1955/how-uk-forecourt-stores-are-fuelling-profits

http://www.erpecnewslive.com/article/1955/how-uk-forecourt-stores-are-fuelling-profits

https://csnews.com/couche-tard-mines-reverse-synergy-opportunities-holiday-cos-acquisition

http://www.canadiangrocer.com/top-stories/couche-tard-reaches-deal-with-cst-brands-67908


https://corp.7-eleven.com/corp-press-releases/01-23-2018-7-eleven-inc-completes-acquisition-of-1-030-sunoco-stores

https://forecourttrader.co.uk/news/archivestory.php/aid/14401/MFG_buys_14_sites_from_Golden_Cross_Group.html

https://forecourttrader.co.uk/news/archivestory.php/aid/15859/Applegreen_completes_takeover_of_Welcome_Break.html

https://www.business-live.co.uk/retail-consumer/petrol-forecourt-giant-eg-group-17903549

https://www.motorfuelgroup.com/mfg-to-purchase-forecourt-operator-symonds-retail/

https://www.bnnbloomberg.ca/couche-tard-steps-further-into-cannabis-with-fire-flower-stake-1.1291600

https://www.talkingretail.com/news/industry-news/mfg-buy-forecourt-operator-symonds-retail-14-10-2019/

https://www.irishtimes.com/business/retail-and-services/applegreen-to-acquire-40-stake-in-us-service-plaza-deal-1.3979335

https://www.cspdailynews.com/mergers-acquisitions/7-eleven-inc-acquire-7-eleven-stores-oklahoma

https://www.petrolworld.com/convenience-retail-news/item/34474-england-uk-eg-group-buys-uk-ireland-s-largest-kfc-franchise

https://www.cspdailynews.com/mergers-acquisitions/couche-tard-acquires-17-holiday-stations-franchisee

https://uk.eurogarages.com/eg-group-completes-cumberland-farms-acquisition/

https://csnews.com/eg-group-completes-acquisition-cumberland-farms

https://www.cspdailynews.com/mergers-acquisitions/eg-group-closes-cumberland-farms-purchase

https://cstoredecisions.com/2019/11/05/following-cumberland-farms-acquisition-eg-group-moving-hq-to-massachusetts/

Our KPMG Ireland Retail & Manufacturing team:

Niall SavagePartner, Head of Retail and Manufacturing KPMG in IrelandT: +353 1 700 4141E: [email protected]

Emer McGrathPartner, Head of Markets: Corporates, Government & Enterprise KPMG in Ireland T: +353 1 410 2418E: [email protected]

Michael Daughton Partner, Head of Risk and Regulatory Retail & ManufacturingKPMG in IrelandT: + 353 1 410 2965E: [email protected]

Tom McEvoyAudit PartnerRetail & ManufacturingKPMG in IrelandT: + 353 1 410 1924E: [email protected]

Donal ThomasTax Partner Retail & ManufacturingKPMG in IrelandT: 353 1 700 4306E: [email protected]

Mark Collins Partner, Head of Deal Advisory Retail & ManufacturingKPMG in IrelandT: + 353 1 410 1407E: [email protected]

Robert O’HaraAudit Director Retail & ManufacturingKPMG in IrelandT: + 353 1 700 4745E: [email protected]

Jackie HennessyRisk Consulting Director Retail & ManufacturingKPMG in IrelandT: + 353 1 700 4171E: [email protected]

Chris CaddenManagement Consulting Director Retail & ManufacturingKPMG in IrelandT: + 353 1 700 4488E: [email protected]

Shane O’ReillyCorporate Finance Director KPMG in IrelandT: +353 1 700 4654E: [email protected]

Mark CarrollDeal Advisory Director KPMG in Ireland T: +353 1 700 4098E: [email protected]

Emer O’BrienManaged Services Director KPMG in Ireland T: +353 1 410 2135E: [email protected]

© 2020 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Ireland.The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.The KPMG name and logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity.If you’ve received this communication directly from KPMG, it is because we hold your name and company details for the purpose of keeping you informed on a range of business issues and the services we provide. If you would like us to delete this information from our records and would prefer not to receive any further updates from us please contact [email protected]. Produced by: KPMG’s Creative Services. Publication Date: Aug 2020. (6460)

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Fuel Forecourt Retail Market

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