Squeezed by shrinking fuel margins and rising competition from retailers and fast-food chains, petrol station convenience store owners are tailoring their food and other products to drive foot traffic and protect profits.
Moreover, forecourt owners are under pressure to better utilise their space by adding services that unlock new revenue streams.
According to a report by Trade Intelligence, shopper expectations are rising, and format strategy is more important than ever. Knowing where to play — and how to win — is becoming a commercial imperative. Although convenience remains the core appeal, forecourts increasingly compete with supermarkets, quick-service restaurants and online delivery platforms.
Nicola Allen, a forecourt analyst at Trade Intelligence, said more forecourt owners have a “comprehensive understanding of what their customers want and are customising on the fly, including going beyond what the retail or fuel brand is able to offer”.
“There is definitely opportunity for creative options (including on specials and deals),” she said.
Forecourt operators are increasingly investing in partnerships, food services and customer experience. Collaborations with major retailers and quick-service restaurant brands are expanding while food offerings, from barista coffee to hot meals, are becoming central to driving footfall and profitability.
According to a Forecourt Retail Report 2025/2026 released by Trade Intelligence in partnership with Nedbank, half the customers surveyed have a strong preference for supermarket-branded forecourt stores.
Loyalty programmes are playing an increasingly important role in attracting and retaining customers, while reward programme partnerships between banks and fuel retailers are influencing where motorists refuel.
Forecourt is no longer just a petrol station that happens to have a shop. It’s now, for a lot of people, actually a destination.
— Nicola Allen, analyst at Trade Intelligence
Forecourt convenience retail grew sales by 4% to R40bn in 2024, contributing 15% to South Africa’s FMCG primary convenience channel.
“Forecourt is no longer just a petrol station that happens to have a shop. It’s now, for a lot of people, actually a destination,” said Allen.
According to the report, cold beverages such as energy drinks, water and soft drinks are the most popular buys across convenience stores, at 75%, followed by airtime at 58% and hot ready-to-eat food at 57%.
According to the report, convenience store owners have recorded a growing demand for quick service restaurant (QSR), deli and on-the-go offerings as well as barista coffee. There is also a significant shift to e-cigarettes and vapes, especially in the upper LSM stores.
“The core of forecourt convenience remains, but strong new categories have emerged,” said Allen.
With petrol consumption down 21.4% and diesel consumption down 11.6% over the years, fuel stations are cannibalising off one another, said Allen.
New vehicle sales are also not boosting consumption because consumers are financially constrained, with some reducing travel and others increasingly working from home. There is also an increase in fuel efficiency of new vehicles, especially small cars, as well as an increase in car pooling and the use of e-hailing.
“So you can see why a lot of forecourt owners, who generally own the whole space, are looking to their QSR, to their stores, to car washes, to replace the shrinking revenue,” said Allen.
As traditional fuels decline gradually over time with EV recharging and alternative energy refuelling likely to gain traction from around 2040, convenience retail and adjacent services will make up an increasing share of total forecourt revenues.
Some fuel brands are preparing for EVs with plans to install charging stations and are designing their products and services to keep customers at forecourts longer. However, Allen cautioned that EV powering is not necessarily going to be a massive money spinner for forecourts.
“If the forecourt site is going to exist, it needs to offer multiple benefits.”
Business Times
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