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Running a Successful Fuel Retail Business in Changing Times

The fuel industry is at a turning point, with operators under pressure to modernize their strategies and adapt to evolving market demands. In the past decade, fuel has remained relatively stable in the gas and oil market, while forecourts have seen growth by expanding into non-fuel sectors. By diversifying their offerings, innovative fuel retailers have unlocked more value, built stronger networks, and attracted customers in creative ways. Despite the pandemic's initial impact in 2020, where the industry globally declined by 50%, recovery followed as mobility resumed. So, what should fuel retailers focus on to keep growing in a rapidly changing world?

Understanding the Changing Market

The long-term outlook for the fuel industry suggests a global decline, with the market projected to shrink from $87 billion in 2019 to $79 billion by 2030. This is largely due to modest growth in developing regions such as Asia, the Middle East, and Latin America, and potential declines in mature markets like Europe, China, and the U.S., driven by efficiency improvements, emission regulations, and the rise of electric vehicles and shared mobility. Along with this, consumer behavior is shifting: more people are working from home, shopping online, and moving away from supermarkets to convenience retail.

However, these changes also present new opportunities. By expanding the non-fuel retail market, fuel retailers can counterbalance these declines. Global forecourts are expected to grow from $22 billion in 2019 to $30 billion in 2030, unlocking significant value and mitigating risks.

Industry Trends

Fuel retailers can remain competitive by upgrading their non-fuel retail segments and embracing modern retail standards. Key consumer trends shaping this shift include:

• Fresh and Frequent: Consumers are moving away from large, weekly grocery trips, preferring smaller, more frequent purchases from local stores.
• Delivery on the Go: With increased online ordering, more food will be consumed outside of the home, creating opportunities for fuel retailers to cater to this demand.
• Frictionless Customer Experience: Retailers are introducing digital menu boards, contactless payment systems, and other innovations to make the shopping experience quicker and easier.
• Integrated Digital Tech: The pandemic accelerated the adoption of digital connectivity. Consumers now expect seamless communication and personalized shopping experiences.

The Bottom Line

Fuel retailers must redefine their customer experience to stay competitive. By embracing the digitization of services and offering personalized, seamless interactions, they can better meet the needs of today’s consumers. Retailers should also explore new ways to create value, such as refining existing product lines or services. By leveraging technology to streamline operations and improve the customer journey, fuel retailers will thrive in a changing world.

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