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The irresistible momentum behind pure electric mobility
Over the past decade, retail fuel trade has been one of the most resilient segments in the oil and gas industry. Growth in both out-of-home consumption and small-format retail has enabled significant incremental value to be captured in convenience retail and other non-fuel retail (NFR). Innovative fuel retailers who can use NFR to release additional value from their properties are competing fiercely to acquire networks, especially from major oil companies.
As in many industries, retail fuel sales in the first half of 2020 were severely hit by the global pandemic - in some months fuel volumes fell by more than 50% compared to the previous year. Most markets, however, experienced a rapid recovery as private mobility rebounded - partly because public transport was viewed as posing a risk of infection. Our analysis shows that the retail market can still offer attractive returns in the future and that operators have access to a large number of contiguous value pools.
To make use of these pools, fuel retailers will need to rethink their strategies, build their capabilities and transform their businesses. In this article, we will look at the current situation and the likely changes in fuel demand over the next few years, identify emerging retail opportunities (for example, EV charging), and consider what will be needed to develop an attractive, competitive and profitable NFR offers.
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