Retail, fuel, convenience and hospitality-led properties can offer compelling investment potential when they are located correctly, designed thoughtfully and occupied by businesses that understand changing consumer behaviour, says Vermaak Properties of South Africa
The real estate agency in Cape Town says that as the demand for accessible, experience-driven destinations continues to grow, investors should consider opportunities that go beyond traditional commercial models.
“Properties with strong visibility, reliable access, high traffic volumes and adaptable retail components may be well positioned to benefit from this evolving landscape.”
A unique shift is said to be taking place in South Africa's convenience retail space as retail convenience sales are fast making up almost half of the forecourt’s turnover.
Two key research findings were presented on the retail landscape and more specifically on the convenience side of the fuel retailers’ business, showing that the scales are tipping in the fuel-to-convenience ratio, with convenience, QSR & FMCG contributing 46% of all sales in the retail forecourt space.
South African forecourts are said to be operating in a highly pressured, value-driven market, where success depends on: Winning on price + promotions, Serving convenience-led missions effectively and Adapting to reduced brand loyalty and increased switching.
That was the clarion call at the Convenience Leaders’ Exchange recently held in Sandton, South Africa attended by senior retail leaders from the fuel and retail convenience sectors.
The traditional petrol station model in South Africa is evolving, says Vermaak Properties.
They say that what was once simply a place to fill up, grab a snack and continue with one's journey is increasingly becoming a destination in its own right, combining fuel, food, convenience retail, hospitality and community-focused spaces.
“A standout example is The Pantry by Marble in Rosebank, Johannesburg. Positioned alongside a Sasol forecourt, the concept has transformed the everyday fuel stop into a premium lifestyle experience, offering customers far more than convenience shopping.”
With restaurant-quality food, bakery offerings, curated grocery products, coffee, takeaway meals and inviting seating areas, The Pantry has created an environment where people do not simply stop - they stay, the real estate agency says.
It adds that the success of the Rosebank location has already supported the brand’s expansion into standalone stores in Hazelwood, Pretoria and Bassonia, Johannesburg South.
This is a strong example of how well-positioned commercial property, paired with the right tenant mix and customer experience, can create value beyond the traditional boundaries of a fuel station or convenience retail space, it says.
Full story Sweating the asset: How multi-purpose forecourts unlock diversified revenue streams
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