Tackling the complexities of forecourt retail

The forecourt convenience market is one of the more attractive expansion areas in retail right now. Success will depend on a variety of factors including offer execution, retailer experience and quality of sites.

The real opportunities in forecourt convenience are how sites are evolving beyond fuel. Forecourts are becoming retail destinations and not just fuel stops, more of a ‘roadside convenience hub’ than just a ‘petrol station’. Growth drivers include food-to-go, multi-income streams such as parcels and EV charging resulting in longer dwell times in stores.

However, these opportunities come with real constraints. High upfront costs around land and/or infrastructure, fuel demand uncertainty and planning and regulation restrictions are all things to factor into a forecourt-focused growth model. Plus progressing with these innovative opportunities adds levels of complexity to day-to-day operations.

Costcutter is hoping to capitalise on these forecourt market opportunities by focusing on growing its estate by becoming the retail partner of choice for established fuel retailers and groups. A major example of this is the existing partnership with Penny Petroleum, which is constantly expanding, in addition to rebranding sites to ‘Penny on the Move’ to boost sales. A dedicated national accounts support team works directly with forecourt operators to tackle the complexities of forecourt retail together. Costcutter’s On-The-Go format – quick stops, distress purchases and high footfall – aligns perfectly with forecourt consumer behaviour; supported by its vast product range, retailers can feel confident in both high availability and fast stock replenishment.

Costcutter: the right fit for you?

Identifying the right model and format for retailers to maximise their profits based on store proposition can be challenging. As part of the Bestway group of fascia stores, Costcutter has a team of business development managers (BDMs) who can support business plans for every type of convenience retailer. In the field, a dedicated Costcutter BDM team supports retailers and develops their stores to drive business performance. In addition, a store design and development team works with market insights to help retailers maximise their sales, profit and footfall.

Working collaboratively with suppliers helps retailers to stock the right range, improve profit margins and offer shoppers great value. Costcutter retailers benefit from access to over 2,000 Co-op own-brand products, a 14,000 SKU range plus access to direct-to-store suppliers. As a credible chilled food offer has become increasingly important for consumers, Costcutter supports retailers via a dedicated chilled distribution centre, an increased range of fresh food in wholesale depots, and a growing range of long-life fresh products including pizzas and ready meals.

A continued multi-year partnership with Co-op Wholesale has enabled greater investment in promotions to drive shopper footfall and loyalty. Long-term partnerships have also been agreed with Simply Fresh and James Retail, the 40-strong nationwide convenience and travel interchange operator, while Penny Petroleum continues to convert sites into the group.

Additional incentives for Costcutter retailers include:

● £0 membership costs.
● A sector-leading marketing package for new and refitted stores, including digital support and social media guidance to help retailers reach consumers effectively.
● 17 three-weekly promotional periods. All stores receive a comprehensive point-of-sale kit, including window posters, shelf talkers, stack cards and shelf edge labels, plus an implementation guide for every promotional period. Retailers also receive a promotional offers booklet ahead of their point-of-sale kit, and are eligible for up to 2,000 consumer leaflets, distributed either to store or directly to shoppers’ home addresses.
● Access to Costcutter Vault, a portal providing additional point of sale, uniform, hardware and other miscellaneous sales aides.
● C-POS, Costcutter’s own in-house Epos system.
● Regular retailer forums for networking, sharing best practice and access to guest speakers and industry partners.
● Ongoing trials of age verification technology across digital services, plus support for Scottish retailers ahead of the October 2027 deposit return scheme (DRS) compliance date.