With 2030 fast approaching it’s time to start putting non-fuel retail at the centre of the forecourt offer, according to Robert Onion, chairman of design agency, Circle.
In his presentation at Forecourt Trader Summit 2023, he said that meant thinking about strategies for developing the forecourt sector’s retail brands and migrating customers away from thinking of them as just petrol and diesel retailers – and also making the EV motorist feel more welcome.
“One of the things that we need to bear in mind is that we’re not at the edge of the cliff. It’s not suddenly going to go to EV, or eco-fuels, or hydrogen tomorrow. There’s a transition period that we need to consider,” he said, adding that operators need to prepare to move away from the traditional forecourt, towards a different kind of consumer who’s got different types of wants and needs.
Onion said the new type of EV driver has got a different set of functional requirements versus a traditional ICE vehicle driver.
“Things like reliability of equipment, ease of use, does this charger actually fit my vehicle? Will there be a charger available on the site? These are the questions EV drivers ask. But we also need to realise that these are not two completely different sets of customers. There’s crossover, of course, as we all want speed, we want convenience. And we all want our fuel, whether it’s liquid fuel, whether it’s an eco-fuel, whether it’s hydrogen, or whether it’s electricity – and the basics, ie a clean, family friendly environments.”
Onion said currently EV drivers are aged 40-years plus, tend to be much more affluent than ICE drivers and therefore they have more disposable income.
He said EV drivers are looking for a first-class experience, they don’t want to be viewed as second-class users with chargers stuck at the back of a site: “They want to have really good facilities. And some of the work that we’ve been doing is really about visibility, so that when I come on to your site, or to any site, I want to see where that facility is with clear signage.
“I guess one of the biggest differences between these new types of driver and the more traditional ICE drivers is that there’s much more of a focus on sustainability in the environment.
“Clearly sustainability is critical to communicating with these kinds of customers. And that is sustainability across the site, whether that’s to do with the buildings you’re constructing, whether it’s to do with the landscaping on the sites or the coffee cups. It’s kind of macro to micro.”
He added that it was important to remember that as the market matures, these customers will actually change, and we’ll all become EV drivers eventually.
He told delegates that they need to realise that there is an enormous amount of competition for charging. He added that most EV drivers would much prefer to charge either at home or at the office, or maybe the leisure centre. And he pointed to China where they are now doing daily battery swaps.
“When we think about the charging experience itself, getting that experience right is important. We know that customers are prepared to pay a premium for high-speed chargers. But they’ll be asking why should I come here? What’s in it for me beyond charging my car? What kind of loyalty or rewards can I expect to get?”
Onion referred to a McKinsey report which revealed that the future of non-fuel consumption was likely to be shaped by three main consumer trends. The first one is fresh and frequent – referring to a customer’s tendency to cut down on their big weekly shop and shop more locally.
The second is delivery on the go. And the third one is the frictionless customer experience, which is about things like digital menu boards and contactless payment solutions.
To address customer needs Onion spoke of three solutions: the mission focus; multi-branded offers; and retailing excellence.
“The mission focus is all about developing forecourts into destinations for food shopping with other services like click and collect or a pharmacy. There could be modular workspaces depending on location or a place to walk your dog.
“The second one is about branded offers. This can be either big strong brands or small local brands – either can be really compelling. You’ve obviously got the likes of the big ones which become destinations in themselves. But then there are pop-up fresh local produce shops. We need to think about innovating those branded offers beyond just coffee and food.
“And then thirdly, excellence in retail capabilities and encouraging dwell time on your site. Creating environments that are really, really interesting that you actually want to spend some time in, especially if you’re with your family. The kids could be being entertained while you’re catching up on your emails. This idea of frictionless retail is especially important for EV drivers.
“You could also be thinking about things like car care, beyond just a car wash and valet, thinking about other services that could be offered.
“Depending on the size of the location, the retail hub could become – should become – a destination, more than just coffee. It should have a whole range of non-fuel retail services that will attract people into your sites, family-friendly services, again, depending on the location.”
As for design, Onion said these changes represented a great opportunity to think about the kind of environment you’re offering to your customers and thinking beyond the traditional shop box and fuel canopy, and instead plugging into the kind of ideas and emotions that people want.
He spoke about ‘softer’ designs that might inspire people and change the perception of what the forecourt is about.
“A project we’ve been working on recently in the United Arab Emirates is a modular and scalable solution that works both in urban settings and transient settings. It is a concept which is built off-site in a factory and then located on-site. It’s a small, modular filling station with natural materials. In traditional forecourts you probably wouldn’t be using much timber for obvious reasons. But there’s an opportunity now to do that. And we’re working on some really interesting, stable modular timber buildings at the moment for EV sites to make those environments vibrant and attractive with sustainability connecting to the outdoors.”
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