Nearly 79% of all petrol stations have significant retail sales, according to the latest report from Corporate Intellegence Group, and the number of such outlets will continue to grow.
CIG estimates that forecourt sales rose by 10% last year to total £1.7bn, showing growth three times that of overall retail sales. Cigarettes and confectionery account for a vast proportion of goods sold, but sales of general grocery items, and in particular soft drinks, are growing fast.
Superstores will become an ever greater competitive force within the petrol market, forcing traditional filling stations into selling higher margin products. Forecourt sales will increase at a rate well in excess of average retail growth. As a result, this new market will attract attention and investment, with the quality of outlets continuing to rise and full-scale convenience stores becoming more commonplace.
However, the number of petrol stations will contract. CIG’s research tallies with the latest report from Grimley J R Eve which predicts a fall in numbers from 19,500 to 15,000 by 1995. GJRE say that oil companies are likely to seek ways out of the dealer market. The number of filling station sites being put up for sale will increase significantly and values, particularly on sites at the lower volume end of the market, will be significantly affected.
