Forecourt closures in the UK over the past two decades mean that there are now fewer petrol stations servicing a growing number of vehicles and the market is becoming very competitive!

Forecourt closures over the past two decades mean that there are now fewer petrol stations servicing a growing number of vehicles. Retail margins for fuel have fallen to such an extent that forecourt retailers have been focusing increasingly on non-fuel retailing during the 1998 to 2002 review period. The market is becoming ever more competitive and main media advertising expenditure rose sharply in the year to March 2003. In particular, investment by the major fuel companies Shell and Texaco caused the amount spent on advertising petrol and diesel to almost double over the year.

(PRWEB) August 29, 2003 -- Research and Markets have announced the addition of the "Forecourt Retailing Market Assessment 2003" report to their offering.

Forecourt closures over the past two decades mean that there are now fewer petrol stations servicing a growing number of vehicles. Even so, retail margins for fuel have fallen to such an extent that forecourt retailers have been focusing increasingly on non-fuel retailing during the 1998 to 2002 review period.

The motor fuel retailing market was virtually static in 2002, following a peak in sales value in 2000, which was due mainly to high fuel costs. This stagnation is attributed to a combination of factors, including static demand for fuel, partly in response to government efforts to discourage car usage, price stability linked to the freezing of fuel duty, and supermarket price wars.

While the number of forecourts in the UK is falling, there is some evidence to suggest that the rate of closure is slowing. Sites owned by oil companies accounted for the largest number of closures during 2002, but site closures among larger independent retailers accounted for the highest percentage decrease. In contrast, there has been a significant rise in the number of sites opened by supermarkets, which are increasing their share of the fuel market.

Forecourt retailers have increasingly turned to non-fuel sales as a means of combating the problem of low fuel margins. Forecourt shops are well placed to cater for consumers with busy lifestyles, offering convenience, ease of access and long opening hours, and forecourt operators have capitalised on this by making available to consumers an expanding range of products and services.

Non-fuel retailing at forecourt sites has been beneficial both to oil companies and to grocery retailers. These outlets fit in with the strategies of major supermarket groups - which have been hit by planning restrictions on large out-of-town stores - to focus on smaller outlets, while for convenience chains and symbol groups, they offer a means of reaching a wider consumer base.

The range of non-fuel products available from forecourt shops is growing and includes items such as cigarettes and tobacco, confectionery, soft drinks, hot and cold snacks, groceries, newspapers and magazines, car care products and barbecue and solid fuel products.

The market is becoming ever more competitive and main media advertising expenditure rose sharply in the year to March 2003. In particular, investment by the major fuel companies Shell and Texaco caused the amount spent on advertising petrol and diesel to almost double over the year.

The consumer research conducted for this report suggests that nearly one in five adults often make impulse purchases when paying for petrol at forecourt retail outlets. The survey also confirmed that these outlets are used by people when not buying petrol, with nearly three in ten people claiming to shop at these outlets (sometimes or often), even if they do not need to go there to buy petrol.

Sales of fuel are expected to remain fairly steady in the 5 years to 2007, but investment in the non-fuel sector should ensure a healthy level of growth over the forecast period.

For a complete index of this report click on http://www.researchandmarkets.com/reports/35067

REPORT DATA SUMMARY:
Forecourt Retailing Market Assessment 2003
Category: Retailing & Services
URL: www.researchandmarkets.com/reports/35067

About Research and Markets Ltd.
Research and Markets Ltd. are Europe's largest resource for market research. R&M distribute thousands of major research publications from the world's leading publishers, consultants and market analysts. R&M provide you with the latest forecasts on international and regional markets, key industries, the top companies, new products and the latest market trends.

For additional information on ResearchandMarkets.com, their range of reports or their value-added services, visit their web site at http://www.researchandmarkets.com or mailto:press@researchandmarkets.com

- END -