Despite declining fuel sales, a new report by Trade Intelligence reveals a growing forecourt retail sector in South Africa. The report examines the forecourt retail market, key players and shoppers.
As shoppers become increasingly time-pressured, convenience is a growing necessity, and South Africa’s forecourt stores have positioned themselves effectively to meet this need. Understanding the dynamics of this channel has thus become fundamental for FMCG suppliers and manufacturers wishing to capitalise on this growing sector.
An interesting paradox playing out in forecourts is that while fuel sales are declining, sales in their retail stores are growing:
SA fuel sales have dropped -7.6% over 2022/2023 vs 2018/2019. However, forecourt retail sales grew +8.5% in 2023 to R33bn (vs 2022 at R30.7bn)
Fuel forecourt footprint has increased +14.5% over the last five years, i.e. +582 net new forecourts since 2019, indicating that fuel retailers are ramping up their focus on forecourt retail to supplement revenue
“As fuel sales continue to decline, non-fuel retail offerings are gaining prominence in the forecourt sector,” says Sandy Sutton, retail analyst at Trade Intelligence.
More details at Despite declining fuel sales, forecourt retail sector shows growth (bizcommunity.com)
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