The Penetration and Performance of Supermarket Sites in European Fuel Retailing

In certain European countries, supermarkets have dramatically increased their share of the fuel retailing market over the last four decades. In order to maximise fuel sales, traditional and supermarket fuel retailers alike need to understand the factors behind this success and how, by copying best practice, they can grow their own business.



Report Highlights
Supermarket fuel retailers account for 35% of service stations in France, the highest penetration of any market. The leading supermarket fuel retailer in France, Intermarché owns 33% of these service stations, followed by Carrefour which owns a further 26%. Both of these players have a fuel retailing presence in other European markets. Supermarkets' key motivation for selling fuel is to enhance turnover in the grocery sector of their business. Given that the main objective for supermarkets involves using fuel retail to enhance the performance of other parts of the business, they are likely to be in a position to continue undercutting traditional retailers on price. Fuel cards provide traditional fuel retailers with a competitive advantage with regard to business customers, although supermarkets compete more closely with regard to their promotions to private customers. In order to generate more loyalty from private customers some traditional fuel retailers have entered into multi-retailer loyalty schemes.


[Studien Infos ausblenden]

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
Service stations owned by supermarkets account for a significant proportion of the European fuel retail network 2
Supermarket service stations have the highest penetration rate in France 2
Intermarché is the leading supermarket fuel retailer in western Europe 3
Tesco and Carrefour are the leading supermarket fuel retailers in eastern Europe 4
Supermarket service stations have a higher volume throughput than traditional fuel retailers 5
Eastern Europe will be the main focus for supermarkets 6
In western Europe, growth in supermarket service stations has been limited 7
Large supermarket chains are very price-competitive in fuel retail 8
Fuel sold by supermarkets is cheaper than that sold by traditional fuel retailers 8
In France, price differentials between traditional fuel retailers and supermarkets can be significant 9
Despite varying price differentials over time, supermarket fuel remains cheaper than that of traditional fuel retailers 10
Service station profitability is not the core reason why supermarkets sell fuel 11
Supermarkets combine a strong product offering with promotions and convenient service station locations 12
Supermarkets source fuel via imports or direct from national refineries 12
Supermarket fuel retailers in western Europe have gone beyond selling regular fuels 13
Supermarket fuel retailers often have a similar product portfolio to traditional fuel retailers 14
Supermarkets compete strongly on fuel quality and location 15
Some supermarket fuel retailers have started offering businesses fuel card-style loyalty schemes 16
Supermarkets operate both stand-alone promotions and loyalty schemes for private customers 16
Supermarket fuel retailers' promotions for private customers are closer to those of traditional fuel retailers 17
APPENDIX 17
Definitions 17
Further reading 17
Ask the analyst 17
Datamonitor consulting 18
Disclaimer 18

[Inhaltsverzeichnis ausblenden]

Figure 1: Supermarkets account for 35% of French service stations 2
Figure 2: Intermarché has the most service stations of any supermarket fuel retailer 3
Figure 3: Tesco has 75 service stations in Poland, the Czech Republic and Hungary 4
Figure 4: Supermarket service stations' average volume throughput is up to four times higher than traditional fuel retailers 5
Figure 5: The number of supermarket service stations in Hungary has risen faster than in Poland and the Czech Republic 6
Figure 6: In 2006, there was an increase of only eight supermarket service stations in the UK 7
Figure 7: Supermarkets generally sell fuel 1-2% cheaper than traditional fuel retailers 8
Figure 8: In July 2007, there was a 3.6 euro cents price differential between the most expensive and least expensive fuel retailer 9
Figure 9: Over the last two years, supermarkets have maintained a three euro cent price differential over traditional fuel retailers 10
Figure 10: Profiting from fuel sales is considered of average importance to supermarket fuel retailers 11
Figure 11: Supermarkets' fuel retail supply chain 12
Figure 12: Although most supermarkets do not offer premium fuels, Tesco and Carrefour have started to sell biofuels 13
Figure 13: Carrefour is one of the few supermarkets to sell LPG 14
Figure 14: Supermarkets' fuel cards have less functionality than those offered by traditional fuel retailers 16
Figure 15: Standalone discounts on fuel are rare at supermarkets 16

[Tabellenverzeichnis ausblenden]