Indie forecourts ramp up investment in business despite challenges

Independent forecourt retailers are making significant investments in their businesses, spending around £18,000 on average last year compared to around £10,000 spent by convenience stores that don’t sell fuel, a new report has found.

The 2022 Forecourt Report, published today by the Association of Convenience Stores (ACS) shows that refrigeration is the most common form of investment across the sector, with stores either looking to expand their range of fresh and chilled goods or upgrade their refrigeration to make it more energy efficient.

Half of the forecourt stores in the sector have doors on their chillers, with over a third (39 per cent) using LED lighting and 8 per cent using solar panels to reduce electricity costs.

“It’s essential that the government recognises the crucial role that forecourts play in their communities. These businesses are community hubs in their own right, providing essential services and an ever-increasing range of products for customers along with fuel and alternative power solutions,” James Lowman, ACS chief executive, said.

“The energy support package that has been provided to forecourts has been a lifeline for many, and we encourage the government to include forecourts within the list of vulnerable sectors that need longer term support.”

There are 8,379 fuel forecourt sites in the UK, out of which 7,407 have shops, and the total value of forecourt sales in the past year has been £4.8 billion.

Other key findings from this year’s Forecourt Report include:

• The UK forecourt sector creates over 84,000 jobs, with around one in four colleagues (23 per cent) being in the business for more than 10 years
• 69 per cent of forecourt retailers are active in their communities, raising money for local charities, getting involved with local projects, and donating to food banks
• One in five customers of forecourt stores visit every day (21 per cent), with four in five (80 per cent) visiting at least once a week
• There are currently 768 electric charging devices located on 446 forecourt sites across the UK
• Average fuel prices peaked in July this year, at 188.6p for petrol and 197.3p for diesel

Lowman continued: “This has been a turbulent year for fuel supply and pricing, with international events determining the price that consumers pay at the pump. It is encouraging to see that fuel prices are trending downward after peaking in the summer, especially as everyone is looking to cut costs where possible.”