Our latest Convenience Retail Market Update examines the Australian Convenience Retail Network, impacts of COVID-19, the overall investment market as well as a detailed look at each of the major players in the market.
The Australian retail fuel industry has undergone significant change over the last five years which has seen major oil companies restructure their property and convenience assets, in a bid to protect and grow their market share. This change has seen oil companies align themselves closer with major retailers such as as Woolworths, Coles and David Jones in order to improve their retail offering and protect long term revenues. Portfolio sale and leasebacks (BP, Caltex & 7-Eleven) have become prevalent as all groups look to redeploy capital into their business with a focus on convenience retailing and upgrade of sites.
There remains significant and sustained interest in fuel based companies within Australia, particularly over the last 2-3 years. Major player Caltex recently announced its name change to Ampol and will rebrand approximately 1,050 service stations under that name over the next three years. The relatively new owner of the Woolworths network, UK-based EG Group, is also taking its first steps to rebrand under its Euro Garages, or EG name. Meanwhile Chevron has acquired Puma’s Australian network and is likely to use the Caltex brand given they have terminated the licensing agreement with Caltex Australia.