With the increasing number of electric vehicles (EVs) and declining fuel volumes, it’s clear that the future of fuel stations will look very different.
To remain profitable, station owners will need to rethink their strategies.
By optimising current sites with new services such as EV chargers, food areas, convenience stores, and car washes, they can establish robust, future-proof mobility hubs.
Thanks to the revolutionary data in RetailSonar’s system and predictive models, the company has identified three major challenges for fuel station networks.
Challenge 1: Maximising the Potential of Existing Locations
On the one hand, owners need to consider whether their sites are prepared to become future-ready, with low connection costs and a high return on investment (ROI) for chargers.
It is also essential to assess the optimal types and number of charging stations needed.
In addition, food areas should be considered; that is, whether there is enough potential from local traffic and activity to secure a strong ROI, or if nearby competition may impact revenue.
Moreover, evaluating the need for a quick-stop convenience store, a takeaway concept, or even a full-service supermarket to serve the local community will be important.
Finally, owners should consider whether the location is a white spot for car wash services.
Is there enough potential from residents and passage and a lack of current car washes nearby?
Challenge 2: Optimising Location-Based Pricing Strategy for Fuel and EV Charging
To see if the station is performing at its peak, or if there are untapped opportunities in the area, you need a detailed understanding of several factors:
- Competitive Pressure: The number and brand strength of nearby fuel stations.
- Local Price Pressure: The pricing strategy of nearby competitors will affect both volume and pricing flexibility.
- Other Quality Parameters for Location: Station capacity, the presence of valuable local services, and accessibility, which can give a station a stronger local position compared to competitors, justify higher prices.
In its models, RetailSonar regularly monitors fuel costs, allowing for sensitivity analyses on individual site pricing and continuous optimisation of margins.
Challenge 3: Investing in Solid New Locations to Prepare for the Shift from Fuel to EV
As the transition to electric vehicles accelerates, investing in charging infrastructure is becoming a top priority across Europe.
In this respect, station owners will achieve higher revenues if they place the right type of chargers and optimal number of charging points at locations with acceptable connection costs.
However, random investment is not the right approach, as it’s essential to evaluate the business case for each existing site.
Here, data and artificial intelligence (AI) are invaluable tools.
Consider all the key aspects that influence the usage of charging points, including car passage, local activity, visibility (easy to locate both online and offline), accessibility (easy physical access to the site), security (camera surveillance, adequate lighting, and a feeling of safety), and competition, which relates to available power (convenience), brand strength (reliability), and charging price.
Read the real-life case of the impact of a direct price increase here.
How to Address These Challenges?
RetailSonar’s application allows these three challenges to be tackled, taking fuel station networks to the next level.
Its unique AI tool prevents costly errors by guaranteeing a 90% accurate forecast, whether at a local or international level.
It also saves time and reduces the complexity of data analysis thanks to its ease of use, avoiding the frustration of finding and combining data.
To learn more about these tools, the company will host the webinar “Maximising the Profitability of Your Fuel Station Network” on Thursday, 28 November at 11.00 AM CET.
Book a meeting with RetailSonar and transform your location strategy.
