The Penetration and Performance of Supermarket Sites in European Fuel Retailing

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
• ANALYSIS
  • Service stations owned by supermarkets account for a significant proportion of the European fuel retail network
    • Supermarket service stations have the highest penetration rate in France
    • Intermarché is the leading supermarket fuel retailer in western Europe
    • Tesco and Carrefour are the leading supermarket fuel retailers in eastern Europe
    • Supermarket service stations have a higher volume throughput than traditional fuel retailers
    • Eastern Europe will be the main focus for supermarkets
    • In western Europe, growth in supermarket service stations has been limited
  • Large supermarket chains are very price-competitive in fuel retail
    • Fuel sold by supermarkets is cheaper than that sold by traditional fuel retailers
    • In France, price differentials between traditional fuel retailers and supermarkets can be significant
    • Despite varying price differentials over time, supermarket fuel remains cheaper than that of traditional fuel retailers
    • Service station profitability is not the core reason why supermarkets sell fuel
  • Supermarkets combine a strong product offering with promotions and convenient service station locations
    • Supermarkets source fuel via imports or direct from national refineries
    • Supermarket fuel retailers in western Europe have gone beyond selling regular fuels
    • Supermarket fuel retailers often have a similar product portfolio to traditional fuel retailers
    • Supermarkets compete strongly on fuel quality and location
    • Some supermarket fuel retailers have started offering businesses fuel card-style loyalty schemes
    • Supermarkets operate both stand-alone promotions and loyalty schemes for private customers
    • Supermarket fuel retailers' promotions for private customers are closer to those of traditional fuel retailers
• APPENDIX
  • Definitions
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Figures
    • Figure 1: Supermarkets account for 35% of French service stations
    • Figure 2: Intermarché has the most service stations of any supermarket fuel retailer
    • Figure 3: Tesco has 75 service stations in Poland, the Czech Republic and Hungary
    • Figure 4: Supermarket service stations' average volume throughput is up to four times higher than traditional fuel retailers
    • Figure 5: The number of supermarket service stations in Hungary has risen faster than in Poland and the Czech Republic
    • Figure 6: In 2006, there was an increase of only eight supermarket service stations in the UK
    • Figure 7: Supermarkets generally sell fuel 1-2% cheaper than traditional fuel retailers
    • Figure 8: In July 2007, there was a 3.6 euro cents price differential between the most expensive and least expensive fuel retailer
    • Figure 9: Over the last two years, supermarkets have maintained a three euro cent price differential over traditional fuel retailers
    • Figure 10: Profiting from fuel sales is considered of average importance to supermarket fuel retailers
    • Figure 11: Supermarkets' fuel retail supply chain
    • Figure 12: Although most supermarkets do not offer premium fuels, Tesco and Carrefour have started to sell biofuels
    • Figure 13: Carrefour is one of the few supermarkets to sell LPG
    • Figure 14: Supermarkets' fuel cards have less functionality than those offered by traditional fuel retailers
    • Figure 15: Stand-alone discounts on fuel are rare at supermarkets