Abstract
Overview
Introduction
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.
Scope
- A review of supermarket service station penetration rates in 8 key
European markets, with site numbers of the leading supermarket fuel retailers.
- An outline of price differentials between traditional and supermarket fuel
retailers and the reason behind supermarkets' pricing strategies.
- An understanding of supermarkets' supply chain and the extent to which it
differs from that of traditional fuel retailers.
- Analysis of the respective competitive advantages of supermarkets and
traditional fuel retailers with regard to fuel products and promotions.
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.
Reasons to Purchase
- Compare the presence of supermarket fuel retailers across 8 key European
markets through penetration rates and site numbers.
- Understand the extent to which supermarket fuel prices differ from those
of traditional fuel retailers and the reasons for this.
- Gain an insight into the competitive advantages of supermarkets and
traditional fuel retailers through an analysis of their fuels and promotions.
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