Specialist
Former senior executive at Motor Fuel Ltd.
Agenda
- UK fuel shortages and implications for Euro Garages in light of Russia-Ukraine conflict
- Fuel volume and gross margin dynamics
- Convenience and food service growth, including gross margin impact and average spend
- Growth outlook including EV (electric vehicle) roll-out challenges
Questions
1.
Could you outline the key trends you’ve noticed within the fuel and forecourt retail market over the past few months? How has this market evolved?
2.
What could be the lasting impacts of the port disruptions you mentioned and who is most at risk?
3.
Could you elaborate on how fuel volumes have been trending over Q1 2022? How is the dynamic between price and volume related? Interestingly, your comments on Morrisons show the elasticity between demand and price.
4.
What is your outlook for fuel volumes and trade over the rest of 2022?
5.
How do you think about fuel volumes over 5-10 years? Obviously, you have the push to EVs [electric vehicles].
6.
How do you think operators and petrol stations are thinking about the evolution to EV? You mentioned 70% of people charging at home currently. Is there anything around charging at the start of your journey vs charging on-route and how that might shape where EV stations are put within the estate?
7.
You mentioned very different strategies from the operators. Is there any winning strategy that you can highlight, or one that might prove economically better or more viable for some players?
8.
Do you expect the supermarkets to come out on top in terms of the migration to EV, given the consumer habits, in the sense that it increases the time spent at a supermarket?
9.
What’s happening with fuel margins within the industry? How sustainable are they?
10.
How does EG [Euro Garages] fit into the pricing discussion? Obviously, the company is priced at the top end of the fuel market. Do you think it is a key benefactor of the higher prices?
11.
Have you seen any change in Asda’s fuel margin strategies or dynamics, given the ownership by EG?
12.
Have you noticed any consequence for Asda’s store volumes or demand due to the change in strategy?
13.
What are the trends and demand dynamics in the forecourt and supermarket retail side of the garage stations?
14.
How do all the strategies approach increasing average spend within supermarkets and forecourts? How has average spend been trending over Q1 2022?
15.
What percentage of the EG estate do you think Asda on-the-go stores can be rolled out to?
16.
How is EG approaching the EV rollout? How do you view the company’s strategy, given what you mentioned the competitors are already doing?
17.
How do you assess MFG [Motor Fuel Group] stating that it might be coming to market? Who might look to acquire the company? Do you think it’ll be a trade sale or PE?
