Market Review2018

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002_PRA_2018.indd 1 20/12/2017 10:42 Market Review 2018 CONTENTS HELP US TO HELP YOU, MARKET OVERVIEW 4 THE INDEPENDENT H&S NEW ZEALAND-STYLE 10 FORECOURT RETAILER, BY INDUSTRY VIEW BY ARGUS MEDIA 14 SUPPORTING YOUR TRADE EDGEPETROL ON GOING DIGITAL 16 ASSOCIATION NOW SHELL DISCUSSES FUTURE FUELS 18 “Together we HYDROGEN Q&A WITH ITM 24 THE NEW ACOP L133 FORM 28 are stronger” THE PRIMARY AUTHORITY PARTNERSHIP SCHEME 30 PRA LOBBYING UPDATE 32 BRIAN MADDERSON ACCENTURE ON THE MOVE TO ELECTRIC 36 CHAIRMAN ACTION AGAINST ROGUE HAND CAR WASHES 38 TACKLING MODERN SLAVERY 40 he Market Review 2017 was extremely well received MARKET BY NUMBERS FROM EXPERIAN CATALIST 42 by members, product and service suppliers, BUSINESS RATES UPDATE BY MUA 46 Tindustry advisers, consultants, media THE PROPERTY MARKET BY CHRISTIE & CO 48 moguls, Parliamentarians, Government officials – in PRA EVENTS 50 fact the whole panoply of people involved and AIC ON THE FUTURE OF PAYMENTS 52 interested in our fascinating retail sector. We are FORECOURT TRADER OF THE YEAR 54 very thankful to all the contributors providing S&P GLOBAL PLATTS ON ELECTRIC VEHICLES 56 insightful content and to all advertisers giving WHOLESALE CHANGE 58 such great financial support. Having set the bar so high last ALLIED FOR SUCCESS 60 year, it will be no mean feat to raise the level yet again with GDPR – THE NEW DATA REGS 62 this 2018 issue. Constantly we review our communication and interaction with members to improve the exchange of information and ideas. Therefore this year, we are changing the format of Who’s who at the PRA our Regional events to “Business Breakouts” with more PRA MANAGEMENT TEAM (London) Ltd emphasis on networking as well as delivering great content. Brian Madderson, Chairman Joseph Richardson, Jos. Richardson & Son Ltd There are 10 such events plus five ever-popular Roadshows, 07768 608332 [email protected] John Ryeland, George Hammond plc held in conjunction with Thames Communications, Gordon Balmer, Commercial Manager Hemant Tandon, Park Garage Group planned during the spring and autumn across all four home 07771 834073 [email protected] Shane Thakrar, HKS Retail Ltd countries. Check the PRA website for dates and locations. Phil Monger, Technical Director PRA continues to invest to make our website www.ukpra. 07831 327990 [email protected] PRA TECHNICAL COMMITTEE Mike Garner, Chairman, The Garner co.uk a really valuable tool, especially with increasing content Ray Blake, Technical Manager 07496 967269 [email protected] Group to the members-only section. Steve Coombe, Membership Manager Nick Brocklehurst, Westbridge Motors Our fortnightly e-newsletter, PETROL HEADS-UP, is now 07831 373205 steve.coombe@rmif. (Northampton) Ltd distributed to over 2,000 email addresses with an “opening” co.uk Jon Brownsey, Fordingbridge Garage rate of close to 30% – well above the norm for such trade David Garside, Blakemores Jill Howkins, F. Howkins & Son publications. Do send photos/press releases/updates about PRA EXECUTIVE COMMITTEE Brian Madderson, Chairman Graham Lambert, St Michaels Garage your own company to our Editor: Anne Bruce anne.bruce@ Joe Brough, Manor Service Stations Ltd rocketmail.co.uk David Charman, Parkfoot Garage Ltd Andrew Lawrence and Ben Lawrence, Finally, we are planning to hold another annual Forecourt Mike Garner, The Garner Group Lawrence Garages (London) Ltd Conference in conjunction with ACS on Tuesday 3 July. Do Sue Kembrey, Stanishawe Services John Oliver, Central Convenience Stores Emma McVie, Southern Co-operative put this date into your diary as we already have a major Graham Lambert, St Michaels Garage Ltd Andy Jagger, sponsor to debate the “future of fossil fuel” – a subject vital Andrew Lawrence, Lawrence Garages to all of us after this turbulent year for our industry.

The Retail Motor Industry Federation (RMI) is a leading automotive trade body in the Publisher: John Lewis UK, representing franchised PRA MARKET REVIEW is published by Editor: Tracy West Lewis Business Media Ltd, Art Editor: Sarah Crowhurst car and commercial vehicle dealers; independent garages; Suite A, Arun House, Office Village, Sales: Rachel Hallett bodyshops; motorcycle dealers; petrol retailers; auction houses River Way, Uckfield, TN22 1SL Printed by: Stephens & George Print Group, and cherished number plate dealers; who provide sales and Tel: 01825 983105 Goat Mill Road, Dowlais, Merthyr Tydfil, CF48 3TD Fax: 01825 983108 ©Lewis Business Media Ltd 2018 services to motorists and businesses across the UK. Email: [email protected] All rights reserved. 201 Great Portland Street, London W1W 5AB Tel: 020 7307 3598 • Fax: 020 7307 3406 • www.ukpra.co.uk

www.ukpra.co.uk 03 Market Review 2018

Developments in the sector include new-to-industry sites and alliances with the grocery multiples

as it gets” for independent retailers? Some of the favourable conditions, in 2017: A YEAR OF no particular order, included: Continuing fuel duty freeze Benign weather meant no travel CONSOLIDATION disruption due to floods or snow Post-Brexit economic growth with PRA Chairman Brian Madderson reviews industry ultra-low inflation and borrowing costs No supply disruption from strikes consolidation through 2017 or major plant outages Continuing above-trend demand n the last Market Review, I referred Just as we thought politics was for both diesel and petrol to ‘A Year of Surprises for 2016’ and settling, we had enforced ministerial No new fuel grades to Ithis could have been the heading changes including the resignation of accommodate for 2017 provided the focus was on Defence Secretary Fallon occasioned Slow climb back of crude oil prices UK politics. Back in April, after Prime by inappropriate personal behaviour No exchange rate shocks between Minister May had called a snap and Overseas Secretary Priti Patel’s USD and GBP. election, the most generous price on misadventure in Israel. As we go to These factors enabled retailers a Conservative majority was then 1/14 press, news of First Secretary of State to make improved and stable fuel and many considered this a decent Damian Green’s resignation will force margins with strong cash flow which investment. As it turned out anyone yet further Ministerial shuffles ensuring further confirmed to banks, private making this bet would have lost their that PRA lobbying has to remain on full equity funds and others that this was shirts. However, the great British alert for 2018. a financially sound sector. As a result, Electorate proved as fickle as with The issues and outcomes of an business consolidation in the forecourt the Brexit Referendum by once again extremely busy year are covered in sector accelerated: confounding the pollsters and very more detail on pages 32 and 34. Exceptional offers up 12 x EBITDA nearly seeing Corbyn and his Labour Meanwhile, a new punchier headline made by acquirers with over 10 party into No.10. Only the unexpected had crept across my mind … “Fuel companies buying (or leasing) some comeback of the Conservatives in retailing in 2017 – As good as it gets?” 150 dealer sites Scotland under their charismatic Some 20 years after the screening Market confidence encouraged new leader Ruth Davidson, plus the of Jack Nicholson’s romantic comedy investment in 48 New-to-Industry last-minute deal with the Democratic with Helen Hunt, we may look back on (NTIs) and 33 Return-to-Industry (RTIs) Unionist Party in Northern Ireland saw 2017 (at least the first half) and pose forecourts and shops a chastened May continue as PM. the question was this year “As good Fuel suppliers such as Harvest ▹

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006_PRA_2018.indd 1 19/12/2017 11:29 Market Review 2018

▹ Energy, BP Retail, Essar and Certas petrol and 30.0bn/l for all diesel still now enables fuel distributors to access also buying (leasing) sites provide nearly £27bn/year in fuel excise E5 petrol at all terminals in Northern The establishment of Intervias as duty to the Treasury. Add a further Ireland. the holding company for EG Group £7bn/year for VAT, and the gradual tax For some time, forecourt (360 sites) and European Fuels loss as EVs take an increasing share operators have seen the potential for Retailing Group (over 1,200 sites) of the fuels’ market will be exercising convenience retailing and this year majority owned by TDR Capital proved the most able minds in Whitehall for a have stepped up with exciting brand to be a temporary measure. A new suitable replacement. developments led by the “Super” company EG Group was formed, which On the fuel supply side, there have dealer groups including: has acquired the 2,000 plus sites from been no changes to refinery numbers Rontec: trialled 10 sites with ExxonMobil in both Italy and Germany or ownership this year. With the Daily (formerly trialling with to take their total forecourt number to prospect of retail demand for petrol MFG) in late 2016/early 2017 which over 3,500. A new head office is now increasing to outstrip diesel again, quickly moved to a roll-out programme under construction in Blackburn, which the gasoline heavy UK production involving a total of 40 shops by the will provide 150 jobs. units may soon be realising better year end. It is understood that a further It is disappointing to note that profitability. Likewise, there have been tranche of up to 50 conversions is the Statistics Dept at BEIS no relatively few changes to ownership or programmed for 2018. longer calculates the split between capacity at the UK pipeline network or MRH: has entered into a new commercial and retail diesel volumes at fuel terminals located at UK ports supply arrangement with Booker Retail when publishing their quarterly data, and inland since the formation of Partners following successful trading quarterly in arrears. Twelve month Navigator Terminals in 2016. at the convenience stores on rolling comparisons for the period This was the joint venture between the Peregrine Retail forecourts acquired ending September 30, 2017 Macquarie Capital and Greenergy, earlier this year. This new deal will involve indicate that fuel volumes may have which acquired the UK’s largest MRH rolling out a number of Budgens started to reflect weaker demand from terminal located on the north Thames format shops across their portfolio during reducing economic activity. from Royal Vopak. Others in the group 2018 and withdrawing from the Co-op Overall consumption of petrol and include Seal Sands, North Tees and trials at the end of January. diesel was only 0.5% above the same Windmill. BP are in negotiations to sell EG Group: undertook trials period in 2016, whereas previous data their interests in the Kingsbury and on 10 sites with Sainsbury’s Local had shown ongoing growth above Northampton terminals but Hamble and provided it is operationally and 2%. The trend rate of reduction in will not now be sold. financially successful for both parties, retail petrol was only down (1.5%), the The most notable recent change is the concept could be rolled out to lowest level for some years. Diesel for the acquisition of BP’s Belfast terminal further sites in 2018. both commercial and retail showed by Puma Energy. This prompted a Others: dealers across the UK Below left to right: Puma Energy’s new significantly reduced growth at 1.6%. £2m investment by the new owner continued to invest in shop extensions ethanol plant; Moto Total annual volumes of 16.5bn/l for into an ethanol blending plant which and development of convenience ▹ has joined the PRA

A notable recent change was the acquisition of BP’s Belfast terminal by Puma Energy

www.ukpra.co.uk 07 Market 2018Review

Symbol market share format. However, this is seen as a the leading UK tobacco wholesaler relatively limited development and the for JTI and Imperial with a turnover Spar – 1,200 sites convenience symbol brand Budgens exceeding £4bn/year and nearly Booker – 950, Premier 95, is being rolled out more extensively in 3,500 employees as well as a major Budgens 100, Family Shopper 15 = 1,160 sites 2018 after successful trials. supplier of convenience foods to There has been unexpected the fuel retail sector. Under financial Costcutter Supermarkets consolidation in the specialist stress, PWC was advising the Board, Group (CSG) – (MSA) sector with Tony Read arriving as new CEO Costcutter 325, 355 = 680 sites as Roadchef took a policy decision in the summer, on a sale to private to exit fuels retailing. This was equity fund The Carlyle Group. This Nisa (Co-op) – 167 sites accomplished by the end of November, deal appeared to be gaining ground Others – Bestway, Co-op etc with BP and EG Group picking up the when news broke overnight on 28 = 260 sites majority of the forecourts. November that the company had TOTAL 3,467 (Number of indie The two retailing behemoths gone into administration. Supplies sites is approx 5,400 – so 64% have symbol brand stores) remaining are Welcome Break and ceased immediately and 2,500 staff , each with around lost their jobs without compensation. ▹ brands which means that over 64% 45 sites (including straddles). With The remaining staff are assisting the now offer well-known symbol brand Welcome Break already onboard, PRA administrator. expertise and product ranges. are delighted to have Moto joining as The Co-op, after 14 quarters of Conventional views held in the members from 1 January 2018. Other consecutive like-for-like growth, City about the aspiration of private independent MSA operators include brought forward plans to become equity investors is that they optimise EG Group, Westmorland, Rontec, the exclusive wholesaler in spring cash flow returns whilst maximising MRH and Applegreen, so PRA now 2018 to the Costcutter Supermarket asset values before disposing their represents nearly 80% of this sector. Group (CSG) embracing supplies investment within a three- to-five to Costcutter, Mace, Simply Fresh, year timescale. Bloomberg was the COLOSSAL DEVELOPMENTS Kwiksave and Superstore brands. first city analyst to report that Lone There have been some colossal Nisa, founded 40 years ago, was Star, the US private equity firm which developments across the wholesale subject to an agreed bid of £137.5m had purchased MRH for a rumoured and convenience sectors as by the Co-op. The Nisa members £800m in early 2016, had appointed consolidation became the driver for were balloted and a minimum 75% of change. bid £3.7bn for Booker shareholder operators were required Retail Partners in an agreed merger to support the bid. Many considered Oil companies also that was referred to the Competition this outcome unlikely but the final vote & Markets Authority (CMA) with reached 75.9% and, subject to CMA focused on convenience unconditional approval confirmed investigation due for completion by in late December. Tesco has 3,200 March 31 next year, will proceed. UK stores, whereas Booker supplies Morrisons announced on August Lazard Ltd to review an Initial 117,000 independent retailers, a 1 that it had won a contract to supply Placement Offer (IPO) option in the headline figure that includes the 5,500 McColl’s portfolio of 1,300 convenience early part of 2018 for an estimated retail stores under its symbol group stores (including seven forecourts) and price tag of £1.5bn. This report has brands Premier, Londis, Budgens and 350 newsagents from January 1, 2018 neither been confirmed or denied. Family Shopper. with national brands and exclusive Likewise, EG Group also attracts Palmer & Harvey, established access to the Safeway brand. This deal rumours of an impending IPO but again some 90 years ago, had become would eventually phase out all other the company has not commented. suppliers to McColl’s. Rumours circulating earlier this year Motorway services No of These developments potentially that Clayton Dubilier & Rice, the US operator sites leave the market heading to a very private equity majority owner of MFG, WELCOME BREAK 45 different place. was seeking bids was vehemently MOTO 44 With Tesco, Sainsbury’s and denied by key directors/shareholders. BP 27 Morrisons, there are now three Oil companies also focused on their EURO GROUP 15 multiple retailers engaged in different convenience offer: SHELL 13 ways in wholesaling. This will provide WESTMORLAND 6 BP Retail: a heady and expensive stiff competition for the 600 indie APPLEGREEN 3 cocktail of acquisition, leasing, KDRBs wholesalers supplying across mainly MRH 3 and NTIs moved their M&S Simply regional territories and one can RONTEC 2 Food format to around 280 out of their assume further consolidation and TOTAL 158 320 sites. closures ahead.

Shell: has quietly upped the *Total includes: all UK countries; certain major Independent forecourt retailers will number of sites, especially around A-road services eg A1(M) so is therefore higher need to be alert and ready for change than some data provided by Experian Catalist and the M25, based on the Little Highways England at short notice.

08 www.ukpra.co.uk 009_PRA_2018.indd 1 18/12/2017 12:16 Market Review 2018

A MUCH DIFFERENT APPROACH TO H&S On a trip to New Zealand, amongst other things, the PRA’s Ray Blake compared our Health & Safety (H&S) on PFSs to theirs

arly in 2017 my wife and I were than there being a law stating that equivalent to the south of France, fortunate in being able to tick one the employer is responsible for the the top of the Alps, the highlands of Eof the wishes off our bucket list, H&S of their employees and anybody Scotland, the fjords of Norway and by touring around New Zealand (NZ). else on their premises, in the main, everything in between. We baulked at While planning our trip we had everybody in NZ is responsible for bungee jumping, but did every other an amazing piece of luck in that we their own H&S. To complement this exciting pastime NZ has to offer: jet managed to catch up with an old arrangement, NZ has what amounts boats, zip wires, gushing geysers to friend – Andy – who was over from to a state insurance system to cover name just a few. NZ, where he’d emigrated to some everything that could be the outcome On our travels, we found out how 10 years earlier. It was during the few of an accident, from emergency many earthquakes NZ has and that, in hours that we spent talking about our treatment through to rehabilitation and total, in the last 90 years 565 people planned trip, that I began to realise aids to living if you’re disabled due to have been killed by earthquakes. I then many fundamental things that are, to an accident. Employers and employees surmised that had NZ adopted our UK H&S legislation and associated guidance to the letter, the whole The next revelation was that the basis of country would be uninhabited. As a direct comparison between my whole career doesn’t exist in NZ the two approaches, I looked at the requirements for me bungee jumping me, mind-bogglingly different about pay into a government fund called the in the UK and in NZ. I had thought life in NZ. ‘Accident Compensation Corporation’, that it was banned in the UK but there It started when Andy said: “Oh, you and this also deals with accidents is a company touring the UK with a don’t have to have car insurance”. His involving visitors to NZ. It was then crane that lifts you in a metal cage 17-year-old son has a Subaru Impreza that I decided to investigate how petrol up to 160ft, from which you are then as his first car! I then discovered that stations were operated under this pushed out of on a length of strong the NZ approach to Health and Safety alternative safety regime. elastic. Unfortunately (or fortunately), (H&S) comes from a completely Our expedition around NZ was because I am over 50, I would require different direction than in the UK. The amazing, we travelled almost the a doctor’s certificate that states I am fit next mind-blowing revelation was that whole length of the two islands during enough to participate, (there is a long the basis of my whole career doesn’t four weeks of their summer and list of medical conditions that would exist in NZ. This is because rather encountered climates and scenery preclude the doctor providing me with ▹

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011_PRA_2018.indd 1 18/12/2017 12:35 Market Review 2018

▹ a certificate). I would also have to sign and remote monitoring/controls. Plus, an insurance waiver. Whereas, in NZ, I a response to incidents by the site could turn up, pay my money, tell them operator. The exception being where a I am okay, be strapped up, take off my petrol station is provided as a service glasses and launch myself off a bridge to a community, where the locals have nearly three times the height of the an interest in ensuring that the site is crane at 435ft. safe and available. According to the latest figures NZ VS THE UK available (2008), there are 1,265 petrol For well over a decade, I have been at stations in NZ. While in NZ, I observed the forefront of the drafting of guidance that in the cities and towns, most in the UK for operating unmanned of the sites looked very similar to a petrol forecourts. All the guidance typical forecourt with a convenience stems from the requirements of Section store in the UK. However, I did see 3, of the Health and Safety at Work etc. what were obviously newly developed Act 1974. This reads: “It shall be the ‘GULL’ branded unmanned sites in duty of every employer to conduct his some towns selling fuel at significantly undertaking in such a way as to ensure, lower prices than other sites in the It is the interpretation so far as is reasonably practicable, area. Although the dispensers and that persons not in his employment payment equipment were as you would of the words ‘so far as is who may be affected thereby are not find in the UK, I could see no evidence thereby exposed to risks to their health of remote monitoring. I certainly reasonably practicable’ or safety”. Thus, making the operator observed many unmanned sites in that is the quandary of a petrol forecourt responsible for the rural areas. In fact, I was pleased to health and safety of the public that visit find these sites, which were obviously their premises, the very opposite of the located where they would serve tourists unable to trade for some months. To situation in NZ. desperate for fuel, as well as the local overcome this issue, he abandoned The reality is that the operation of community. Many of these sites were the GRP installation and installed petrol forecourts has evolved over a very basic, but with a card acceptor. above-ground fuel tanks and double- century in response to both demand I had an interesting conversation skinned monitored plastic pipework. and the available technology. The big with the owner of one site. He This removes the requirement for step forward during the late 1960s or informed me that he had recently recertification, and allowed him early 1970s was from a man in a brown acquired the site as part of a swap deal to remain in business following coat and a satchel dispensing the with a major oil company that wanted the November 2016 earthquake. fuel into the vehicle, to the customer another site that he owned. When he Remarkably, the site came with around serving themselves. However, I took over the site, it had newly installed 10 acres of land, on which he intends to remember unmanned sites when I had below-ground tanks and pipework, build a museum where he will display just passed my driving test in 1974, however, as is typical in NZ the tanks his collection of American muscle cars when you posted a £1 note into a slot and pipework were GRP. Where a site and British motorcycles. I said I would on the pump. with this type of installation is affected call in when I was passing next! Since my involvement, we have by an earthquake, it must be recertified The Health and Safety culture in the aimed to achieve the same level of before it can open. There are very few UK evolved from the strength of the control at an unmanned site as we have people carrying out the certifying of unions when workers were deemed on a self-service site, using CCTV and petrol installations, and because of expendable by the employers. all manner of clever intuitive systems this, a perfectly sound site may be On balance, I believe that what we have is fair. It is the interpretation of the words ‘so far as is reasonably practicable’ in our legislation that is the quandary. Should 4.4 million people leave NZ because, on average, six people per year are killed by earthquakes? Of course not. Should the operators of unmanned sites in the UK have to spend tens of thousands of pounds on monitoring their forecourts, when they don’t in NZ? What is ‘reasonably practicable’ to prevent harm to their customers? Top: some of the sites Ray visited on his trip I wonder if it will ever be tested in a to NZ court in the UK?

12 www.ukpra.co.uk 013_PRA_2018.indd 1 08/12/2017 17:45 Market Review 2018

violent US hurricane season. Hurricane During 2017, diesel in UK and other Harvey, which struck the US Gulf coast European countries was increasingly DEMAND on August 25 2017, caused wide-spread vilified and targeted by new clean-air flooding and refinery shutdowns, some zones and charges, and it is of which took months to start up again. clearly now falling out of favour with car IS CRUCIAL US Gulf refiners lost 5mn b/d of their buyers. Diesel’s share of new UK car usual throughput at the height of the registrations has fallen by 5 percentage Argus Media’s analysis editor crisis in early September, equivalent to points in the last year to just over Charlotte Blum says Opec’s three-and-a-half times the UK’s entire 42%. But reports of diesel’s death are production cut heaved oil prices refining capacity. exaggerated. Trucks drive further than As a consequence, gasoline refinery ever before, and this has pushed diesel higher during 2017, but will it last? margins jumped to almost $22/bl consumption up to the largest ever in in early September when it looked the first nine months of 2017. Diesel lobal oil prices are on an like drivers in the US might run out remains by far the most important road upward path thanks to a rare of petrol. Margins soon fell back fuel in the UK, making up more than Gco-operation between Opec below $10/bl though when the supply two-thirds of it. Still, petrol demand is and Russia. In addition, growing global problem turned out not to be as bad as growing faster, and diesel’s share has demand has boosted refinery margins, it had first looked. shrunk by a couple of percentage points giving UK and other European refiners When it came to diesel, UK and from its peak in February 2017. another lease of life. other European markets notoriously For 2018 and the outlook of crude oil, From the start of 2017, Opec short of diesel had to scramble for some oil producers are now using the and non-Opec partners have been alternative supplies. Diesel cargoes recovery in prices to finance an increase surprisingly unified and managed to were even moving in the opposite in output, especially shale oil producers stick to their pledges of 1.7mn b/d of direction across the Atlantic to normal, in the US. A series of big fields, whose production cuts. The cuts managed when Latin American markets usually development began when prices were to turn round the oversupply that had supplied from the US Gulf had to high, are starting up in 2018. swelled stocks to record levels and import diesel from Europe. Opec and its partners have decided plunged Brent crude futures prices For UK diesel importers a stronger to continue with their production to an average $45/bl in 2016. Brent pound softened the rise in prices. The restraint until the end of 2018, but they has climbed back up to around $63/ referendum in favour of Brexit in June cannot stop the tide of new oil coming bl, some $8/bl higher than before the 2016 initially sent the pound tumbling to the market, especially if their efforts production cuts started. by almost 12% against the US dollar help boost prices further. Demand will Also, luckily for the refiners, during that year, but sterling has recouped be crucial. If it flags, the market could 2017 strong demand growth kept some of its losses. While dollar prices well tip back into oversupply in 2018, refining margins at $10-15/bl for for diesel barges in northwest Europe with prices falling again impacting the diesel, giving refiners another decent are 16% higher than a year ago, they wholesale price levels for fuels also for year. They got help from a particularly are only 9% up for UK buyers. UK refiners.

ARGUS WHOLESALE CRUDE, GASOLINE & DIESEL PRICES 2016 – 2017 40 70 Argus Gasoline Eurobob Argus ULSD Argus North Sea Dated (crude) 60 35 50

30 40 ppl

30 USD/bl 25

20 20 10

15 0 Jan 2016 Feb 2016 Mar 2016 Apr 2016 May 2016 Jun 2016 Jul 2016 Aug 2016 Sep 2016 Oct 2016 Nov 2016 Dec 2016 Jan 2017 Feb 2017 Mar 2017 Apr 2017 May 2017 Jun 2017 Jul 2017 Aug 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017

©Copyright Argus Media Ltd 14 www.ukpra.co.uk Argus downstream

Argus provides UK companies with direct access to wholesale fuels market information. This enables our clients to respond quickly to price developments and compete more effectively. You can access Argus data and insight through the web, PDF reports, direct data feeds or your mobile device.

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015_PRA_2018.indd 1 19/12/2017 12:47 Market 2018Review

EdgePetrol’s Andrew Horton and Tony Head of PETROL Highway Stops RETAIL GOES DIGITAL How forward-thinking retailers are embracing technology

t is the question that every automated. We needed a way to make drive margins and volumes. In the not- independent retailer asks sure we were on track in real-time in so-distant future, you will be able to Ithemselves: “How can I maximise terms of sales and actual blended fuel receive accurate and intelligent optimal my fuel margins whilst maintaining or margin, so we could act.” order form recommendations. increasing my volumes?” By securely integrating with both The EdgePetrol data science team Many retailers feel that their options your fuel supplier and your epos, is also working on building a model are limited. Fuel margins are typically EdgePetrol captures the price and to recommend optimal pricing, not thin and your replacement cost may volumes of the grades you are selling only based on fuel sales data, but vary depending on your fuel supply and calculates the weighted and considering site-specific characteristics contract. The pole price you decide blended cost of the fuel remaining and dry-stock offering. on is not only influenced by your cost in your tanks. This means you can Gideon Carroll, Founder of price, but can be squeezed by nearby access your volumes and your EdgePetrol, says: “We have been competition. margins from anywhere in the world, careful with our recommendations Since the start of 2017, EdgePetrol in real-time, from one source of truth. to clients at the early stages of their have been talking to UK independents Independents like Highway Stops are MyEdge subscription. Retailers know about these challenges and how you already seeing the benefits. their sites better than anyone and can overcome them. There are two “We received an alert at the end there are so many variables that can consistent problems that retailers face: of August from the MyEdge product influence the volumes of a specific site 1. Low data visibility in real-time stating our volumes spiked up at any time. hinders important decisions such as considerably at two of our 11 sites. It “You have internal and external pricing and stock ordering turns out these sites were in areas of factors. Everyone knows they impact 2.Business reporting and management low affluence and that pay day was volumes, but it is important to be able to information is unreliable and driving demand. This gave us the understand them on a site-specific level involves time-consuming manual knowledge to either lower the price before offering an optimal pole price. calculations. to drive volumes or increase the Getting it wrong is not an option.” One of the retailers facing these price to drive margins, depending on Another common problem amongst issues was Highway Stops Retail Ltd, a market needs. This also allowed our retailers is the need for a reliable Top 50 independent with 11 sites. Tony commission operator to adjust his source of competitor prices. EdgePetrol Head, Development Director, explains: dry-stock offering around the increased have solved this by providing the live “Immediate data visibility was a little demand,” says Tony. prices of platform subscribers. behind the times, particularly in terms It doesn’t stop there. EdgePetrol’s Toby Butterworth, Product Manager of live blended fuel margin achieved by intelligent model constantly learns at EdgePetrol, explains: “If you share both Platts and margin share supply about your sites, meaning that if they your live price, you will receive the live deals across our network. are influenced by anomalies such price of other users, meaning you no “Historically, to find out our actual as pay day, local events, traffic and longer have to rely on outdated pricing blended gross margin involved a lot of weather, they can accurately forecast information when making decisions manual labour across various different your stock cover days and ullages by around your marker sites. supply terms with different fuel grade. This means you aren’t relying “We will continue to work with petrol suppliers, which involved physically on sales data and cost price to make retailers in 2018 to build a relevant and pulling out the cost prices across 11 purchasing decisions. Cheaper fuel specific product for the needs of the sites with four grades. This is now fully means further flexibility on pricing to market.”

16 www.ukpra.co.uk www.edgepetrol.com – 020 3865 8689

017_PRA_2018.indd 1 08/12/2017 18:00 BEYOND THE PUMP exciting time for those of us in the Shell UK Retail Future Fuels transport fuels industry, with no one Manager, Jane Lindsay-Green, knowing exactly what the route to a discusses what ‘future fuels’ mean low carbon future will look like. I’ve been fascinated – and encouraged for the future of fuels retailers – by the many opportunities and innovations that are emerging to take ver the last year, stories with brands including Jaguar Land us there. If there is one thing we do about air quality and the Rover, Volkswagen, BMW and Daimler seem to agree on, it is that there isn’t Ofuture of transport have all announcing plans for hybrid and a single or simple path. been headline news. In 2017, the UK battery-electric vehicles. A mosaic of transport fuels will Government made headlines after be needed for a successful energy announcing plans to halt the sale A HOT TOPIC transition, not only in the UK but of petrol and diesel-only vehicles by In short, we’ve quickly seen the across the world. And we need to 2040. For Londoners, the Mayor laid future of transport shift from being remember this is a transition. For the out ambitious plans to encourage the a conversation between fuel retailers use of electric and hydrogen vehicles and energy industry analysts, to being to tackle air pollution in the capital. a hot topic for business and policy- A mosaic of transport Vehicle manufacturers also made makers, and of great interest to the clear commitments to electrification general public. People are increasingly fuels will be needed – with Volvo being the first to tell us talking about what the transport that every car it launches from 2019 system of tomorrow will look like, and for a successful will have an electric motor. In the what this could mean for them and months that followed, other major their vehicle choices today. energy transition motor manufacturers followed suit, As such, this is a tremendously

18 www.ukpra.co.uk Market Review 2018 foreseeable future, these ‘future fuels’ even over the next few years. Despite will complement petrol and diesel, keen interest and direction from with drivers using an increasing range governments and business, we must of energy sources as new technologies remember that consumers still want evolve to co-exist with traditional to know what the energy transition transport fuels. means for them. I believe more For Shell, that means that we will people will choose to drive EVs if they need to offer a growing portfolio of can access a range of reliable and fuels. This will include more electricity, convenient charging solutions. natural gas and hydrogen, which all have an important role to play ELECTRIC CHARGING SOLUTIONS in meeting the varied needs of the Last October, we also announced different types of customer, journey the acquisition of NewMotion, one and vehicle. of Europe’s largest EV charging As Shell’s UK Future Fuels Manager, providers. Investments like these I am constantly working towards are vital to ensuring customers have enabling the energy transition in this choice, so that EVs become a credible country, and we are laying strong transport option for them, ensuring foundations for the low-carbon future that EV drivers can travel ever longer that we all want to see. In early 2017, distances with confidence. That’s why our CEO unveiled Shell Retail’s global Shell is developing a full raft of electric and will open two more in the UK in Shell Recharge allows EV drivers to charge ambition of achieving 20% of its fuel vehicle charging solutions to meet a early 2018. Although it takes time for their vehicles in margins from low-emission fuels by variety of needs, whether at home, at any new energy technology to really around 30 minutes 2025. It’s a challenge that inspires my work or on the road. take off, hydrogen vehicles could be colleagues and me every day. Electric vehicle charging solutions an important part of the future fuel So we are pushing ahead. In are just one of the ways that Shell is mix because they can help to reduce October 2017, we announced the aiming to deliver more and cleaner carbon emissions and pollution, are launch of Shell Recharge – our new energy to around 5 million fuel currently quicker to refuel than EVs, on-forecourt electric vehicle (EV) customers who visit our UK stations and have a driving range of more rapid charging service. The service every week. We are also working to than 200 miles. is now available at 10 of our UK enhance petrol and diesel vehicle A fundamental shift in the UK service stations, allowing EV drivers efficiency, including by providing transport fuel mix will take many to charge their vehicles in around 30 minutes. Collaboration is vital too, as developing the infrastructure alone will require significant investments by Hydrogen vehicles could be an companies across multiple sectors, all sustained over many years. important part of the future fuel mix It is important during any transition to retain perspective. EV sales are advanced lubricants that can improve years, if not decades. But it’s a shift certainly gathering pace, however they fuel economy. that Shell is already starting to make are doing so from a very low base. A In tackling emissions, cars are not because – in the simplest terms – it is real step-change in transport clearly the only challenge. Older, larger trucks about offering our customers greater isn’t going to happen overnight, or are typically the biggest emitters of choice. We want to ensure that no sulphur, nitrogen oxides emissions matter what vehicles people drive, and other particulates – which are we have the products and services to causing pressing air quality problems meet their needs. That means listening for many parts of the UK. Going back to what they need now, understanding to the idea of a mosaic of solutions, what they will need tomorrow, and here, liquefied natural gas (LNG) has preparing for their evolving needs over an important role to play. There are the decades to come. already around 1,500 trucks running For more than 100 years, Shell on LNG in mainland Europe and we has been at the forefront of fuels plan to offer this cleaner fuel in the and lubricants innovation. We pride Shell UK Retail network this year. ourselves on our ability to evolve our We are also laying early foundations business, and we are currently focused for hydrogen to be a part of fuelling on becoming a full ‘mobility services’ the future of transport. We opened and convenience retailer. our first hydrogen refuelling station We’re also thinking about what Shell’s new on-forecourt rapid charging service in Cobham, Surrey in February 2017, this could mean for the design of our ▹

www.ukpra.co.uk 19 Market Review 2018

▹

▹ forecourts. For example, in urban retail brands such as , The forecourt retail with PayPal, Apple Pay and Android experience needs areas where the urgent need to tackle Waitrose and Budgens to expand our to offer covenience, Pay. Jaguar Land Rover and Shell local air pollution is already driving high-quality food and drink offering. quality and choice also launched the world’s first in-car growth in EV and hydrogen bus use, We are changing the way we serve payment system in early 2017, allowing we are exploring prototype designs customers according to their changing drivers of certain models to pay for which will look and feel quite different expectations around convenience, fuel at participating Shell service to the service stations with which we service and digitalisation, and stations in the UK via their car’s are all very familiar. delivering innovative services that touchscreen. We are also looking beyond the can make their journeys better. As the world becomes increasingly fuel pump to offer more efficient, connected by digital technology, we sustainable and smarter services DIGITAL SERVICES will continue to think about the future to help our customers get on with An initiative we’re particularly proud of of our forecourts in terms beyond fast-paced modern life. We are is our collaboration with fuelService, the bricks and mortar of the stations forming partnerships with other with whom we joined forces in 2017. themselves. Nobody can claim to Together, we offer UK disabled drivers assistance with their refuelling via an app, so they have the confidence of Continued success knowing someone will be available to assist them when they arrive at means listening to our the service station. All our customers also have the option to use their customers and adapting smartphones to pay for their fuel at the pump using our Fill Up & Go to their needs service, developed in collaboration

know what the future of fuel retail will look like 20, or even 10, years from now. Indeed, nobody can even predict what the transport-related news headlines will be in 2018. But we do know that continued success means listening to our customers and adapting to their needs – providing an evolving range of quality fuels, welcoming breaks on their journeys and retail experiences that offer convenience, quality and choice.

20 www.ukpra.co.uk 021_PRA_2018.indd 1 08/12/2017 17:46 83% of dealers approached are opting to replace existing Bank Guarantees with our FuelBond*

*30 out of 36 dealers approached during the pilot phase **When replacing an existing bank guarantee and for security amounts up to £1m

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022-023_PRA_2018.indd 23 18/12/2017 11:52 Market Review 2018

ITM’s hydrogen station at Shell’s M25 Cobham Services in Surrey HYDROGEN Q&A Dr Graham Cooley, CEO of ITM Power, answers questions on hydrogen power

Tell us a bit about hydrogen power As more FCEVs are rolled out there will Hydrogen is the most abundant be a stronger demand for hydrogen element on earth, but it’s locked refuelling stations in the UK. This will Hydrogen circumvents within water and hydrocarbons. It is be driven both by a need to improve the difficulties produced from these resources and the geographic spread of hydrogen used in many applications, including refuelling stations across the country associated with battery oil refining, ammonia production, float and by the use of fleet vehicles by glass production and as a transport commercial operators, including FC electric vehicles by fuel for Fuel Cell Electric Vehicles vans, buses and, in due course, trucks. (FCEV). In addition, there are energy In addition it is expected that the use offering longer range storage applications for balancing of green hydrogen at refineries will electricity grids and various renewable grow as a means of decarbonising chemistry applications where green existing fuels and chemicals, while market development for hydrogen in hydrogen can be used to reduce the the gas distribution networks admit the mobility sector, with funding for carbon footprint. increasing concentrations of hydrogen stations and FCEVs. The funding levels to assist their decarbonisation. are quite modest compared with the How is the power made? Overall, green hydrogen will support for battery electric vehicles Hydrogen can be made using an ITM contribute across the energy system and charge points, but hydrogen is Power electrolyser. This uses a process (with applications in the transport, increasingly being seen as the next called electrolysis where electricity heat and power sectors) and in the wave for decarbonising road transport. is used to split water into hydrogen long-term hydrogen will be stored in Indeed in most market segments it gas and oxygen. This approach underground salt caverns to provide will provide a superior solution than allows the fuel to be made on-site, a buffer for managing high energy plug-in electric vehicles on the one which eliminates fuel deliveries demand periods in winter. hand and petrol/diesel vehicles on the and downtime at the forecourt. The other hand. Hydrogen circumvents hydrogen is then used by FCEV, or in The Government seems very ‘pro’ the difficulties associated with battery stationary applications to generate electric, are you in talks with the electric vehicles by offering longer electrical power or chemicals. Government about hydrogen power? range, rapid refuelling, no waiting for a There are a number of EU and UK charging space, and no need to invest How do you see the hydrogen government schemes in place which in electricity networks to enable wide market developing in the UK? are providing support to enable early adoption of home charging. ▹

24 www.ukpra.co.uk Advertisement feature 2018

TLM LAUNCH NEW CLOUD-BASED REPORTING & ALERTING APPLICATION FOR CONVENIENCE & FUEL

TLM Technologies provides world-class technology and support to convenience & fuel retailers. Covering EPOS, back office and head office the TLM team develop unique technologies and integrate the systems necessary to make smarter, more profitable decisions. TLM recently announced the launch of evo+, the latest solution from the TLM ‘evolution’ product suite. Officially on sale from October 2017, evo+ promises to revolutionise business decision making, giving convenience & fuel retailers unparalleled access to their store’s data from anywhere, enabling them to maximise profit, increase sales and optimise margins. The data generated from the various systems in a cstore, on a forecourt or from an estate of sites is invaluable, but the time taken to compile this can become a burden, and knowing what it means and what to do with it can be equally difficult. evo+ brings all this data together in a user-friendly cloud-based application that provides customisable reports to help retailers take control and improve visibility of their businesses, no matter where they are. maximum freedom of choice and flexibility. Clare Halesworth, Office Manager at Budgens Key features include snapshot dashboards Holt said, “having seen evo+ at the recent TLM with drill-down capabilities, real-time reports evolution user group I was really impressed; – available anywhere on any device, central I am definitely looking forward to trialling it reporting for multi-site retailers, trend analysis instore – the reporting capabilities have so – so retailers can make informed business much potential, and the notifications that you decisions based on store data and intuitive key can set about events such as discounts will be THE GATEWAY TO EVOLUTION line reporting, and configurable email alerts. invaluable for auditing purposes!” Fuel retailers will be able to take advantage of The TLM team saw the opportunity for evo+ is a cloud-based real-time reporting tool, functionality such as wet stock monitoring, retailers to use the data from their stores to giving retailers trend analysis, dashboards, fuel specific alerts such as pump not used for improve their margins and make more profit exception reporting and alerts anywhere, a defined time period, and fuel price changes – – they just needed the tools to be able to do on any device. One affordable monthly fee all from their smartphone. so. evo+ solves the problem of data analysis includes software support, licensing and Adrian Felton, CTO at TLM said, “we are for retailers; not only compiling their data hosting so users of the solution can be safe in really excited to bring this solution to the and presenting it in a meaningful way to help the knowledge that their subscription covers market; with critical real-time data and rich them make smarter business decisions, but everything they need. reporting capabilities at their fingertips, also using the live data to alert them to instore Seamless integration into the existing our customers can take control of their events enabling them to take action to avert Oracle CFS EPOS solutions means that businesses, getting right to the heart of what potential issues, saving them time and money. existing customers don’t need to wait until each transaction means for their stores.” For more information on how evo+ from the launch of TLM’s evoPOS – they can start “THE REPORTING CAPABILITIES HAVE TLM can help your business grow, visit http:// using evo+ straight away, acting as the gateway SO MUCH POTENTIAL” www.tlmtechnologies.co.uk/evo-plus-enquiry to the evolution product suite whilst ensuring

25

025_PRA_2018.indd 1 21/12/2017 15:22 stationmanager365 The future of forecourt management

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©2018. Fairbanks, the Fairbanks logo and combinations thereof are trademarks or registered trademarks of Fairbanks, in the United Kingdom and other countries. Dover Fueling Solutions, the Dover Fueling Solutions logo, and combinations thereof are trademarks of Dover Corporation, in the United States and other countries. Other names are for informational purposes and may be trademarks of their respective owners.

026_PRA_2018.indd 1 19/12/2017 11:47 Market Review 2018

▹ Can you outline the pros and cons of hydrogen versus electric? ITM’s Dr Graham Essentially a FCEV is a form of electric Cooley with Dr Johan van Zyl, President car. The electric powertrain provides and CEO Toyota the highest efficiency means of Motor Europe converting stored energy to motion – about twice as efficient as a modern diesel car. The FC vehicle stores energy as hydrogen and utilises a fuel cell to generate the required electricity; the battery electric vehicle relies on the electricity grid and stores the energy in a large battery to provide the electricity. The battery vehicle cannot be refuelled as quickly as a conventional diesel/petrol vehicle, whereas the FC vehicle can. The battery vehicle cannot achieve the same range as a petrol car, whereas a hydrogen car can. Battery vehicles cannot provide the long range and rapid refuel characteristics required by commercial fleet operators of heavy be developed to provide basic national vehicles (buses, vans and trucks), coverage. In addition we will see ITM Power has in place but hydrogen vehicles can. Hydrogen hydrogen refuelling stations emerge vehicles do not perturb the normal at bus depots in towns and cities to a siting agreement with routine of private or commercial enable bus operators to transition vehicle operators, while battery their fleets to the zero emission, rapid Shell so that hydrogen vehicles do. Therefore, when the refuel, long range solution that only overarching objectives are to achieve hydrogen can provide. stations can be located very large reductions in atmospheric ITM Power has also recently won a in convenient locations pollutants and CO2 per mile travelled, tender to supply a 10MW electrolyser transitioning to hydrogen is the to Shell, which is to be used at a relatively straightforward option for all refinery in Germany. and ignites and spreads. types of vehicle and all types of user. How is the industry communicating How often is maintenance required? Are forecourt sites the best places to to drivers about hydrogen? Planned maintenance occurs at offer hydrogen power to drivers? The number of FC vehicles in the UK regular intervals, with annual run time Yes. Forecourts offer a familiar is growing and drivers are trained to availabilities of >98% or >8500h. environment to locate hydrogen refuel upon receiving the vehicle. ITM refuelling points. But in some Power has held station opening events Are there any figures re costings to locations hydrogen refuelling stations at every station which has resulted drivers for hydrogen fuelled vehicles? at new sites make sense, for example in press coverage. We also engage in The Toyota Mirai is available with where electricity is to be taken from social media and are invited to present incentives to receive free fuel for two an adjacent solar or wind farm, or in at events, where we can communicate years. The hydrogen gas is £12/kg districts where the electricity network messages further afield. (including VAT), most vehicles would operator is seeking new load to help hold 4-5kg (so £45-55 for 350 miles). manage constraints and supply/ How safe is hydrogen on-site? In addition, an FCEV avoids any clean demand variability due to rising On-site production, storage and air/emissions charges. A service renewable power levels. dispensing enables the whole solution consists of a 20-minute check. The to be carefully engineered as one replacement parts would only be tyres, What is ITM’s deal with Shell? system. Hydrogen doesn’t leak from brakes, windscreen wipers (there is no ITM Power has in place a siting the electrolysis, compression, storage gearbox, clutch, exhaust, starter motor, agreement with Shell so that hydrogen or dispensing processes. alternator etc.). stations can be located in convenient In an extreme emergency situation At the end of life, the vehicles will locations for users, in order to enable where a leak occurs or the gas is not depreciate at the same rate as a the growth of early markets for FC vented, it escapes rapidly upwards conventional vehicle. They have many vehicles. In the UK, South East and disperses into the atmosphere, parts which do not move or degrade, England is the initial geographic focus compared to diesel/petrol which and importantly the fuel cell catalyst but in time a network of stations will pools around the base of a vehicle can be recycled.

www.ukpra.co.uk 27 Market 2018Review GOOD PRACTICE PRA Technical Director Phil Monger explains the new (ACOP L133) form

n 1990, a committee was set up the duties between three duty by HSE to draft new legislation holders: the tanker operator, Ifor the transport, loading and the tanker driver and the site offloading of petrol. In 1992, after operator. On an assisted extensive consultation, the Carriage of delivery, the duties of the Dangerous Substances in Road Tankers site operator are to provide and Tank Containers Regulations were the necessary information published. Amongst the schedules regarding the ullage to was Schedule 4, which prescribed how the driver and, as far as is tankers must be unloaded at PFSs and, practicable, ensure that for the first time, controls on driver- there are no sources of only offloading were introduced (Driver ignition likely to enter Controlled Deliveries or DCDs).Before the hazard zone, that no a site could be considered for DCDs, activity is going on outside an application had to be made to the the hazard zone that Petroleum Licensing Authorities (PLA). might pose a risk to the unloading Other sites, where the site operator process, that vehicles are monitored so was present, were defined as Licensee that they don’t collide with the tanker Control Deliveries, which was a and generally look after the safety of PELG approved misnomer as suppliers nearly always the public on site, and to be on hand to the production of a new advisory dictated what had to take place, assist in an emergency. note (PELG-PETEL 18) which in spite of the duty to provide the Unfortunately, the failure of some notifies petroleum authorities, information to the driver being on the companies to fully follow the ACOP retailers, suppliers and site operator, who is also the Primary (approved codes of practice) has led hauliers, of the new Duty Holder in law. to a proliferation of various forms for standard form to ensure In 1996 the legislation was the provision of information to the that everyone involved repealed and replaced by the Carriage driver and to the continuing erroneous in fuel deliveries is fully of Dangerous Goods by Road practice of drawing site operators into aware of what procedures Regulations (CDG) and Schedule the unloading process, in particular and forms they should be 4 was carried forward to become signing for delivery hose connections, using. It is also expected Schedule 12. At the time of drafting, thereby preventing them from that petroleum inspectors it was with the mistaken belief that it complying with their duties whilst the will ensure that the right forms was better to have two people to do road tanker is being unloaded. are being used when inspecting site the offloading. During the following All in all, it was not a good situation, records and documentation. We hope period, the number of delivery which is why the work to get a that use of the standard delivery form incidents (spillages/overfills) increased common form agreed has taken place. will lead to a reduction in the numbers and various investigations led to one The Petroleum Enforcement Liaison of incidents and improve the safe common cause in most cases, which Group (PELG) decided that the only unloading of fuel on PFS. was confusion between the site way to ensure compliance was to We also give a timely reminder operator and tanker driver with each produce a Standard Delivery Form, that predictive ullage figures are not Information relating blaming the other for the error. based fully on the format in L133. acceptable and must not be used. to PETEL 18 and the When the EU Chemical Agents The PRA delivery form, which we L133 makes this clear. Various factors standard delivery form is contained in Directive and Explosive Atmospheres developed in 2003 using the model might affect the available ullage by the the member section Directive had to be transposed into contained in Annex 1 in the first time a tanker is parked for offloading. of the PRA’s website, under “Technical UK law, it was agreed that a code of edition of L133, was used as its basis. L133 states: “It is acceptable for the matters, petrol practice for the unloading of road An extensive consultation then took information to be given to the driver delivery forms”. This section contains tankers would be put together. When place. After taking into consideration when they leave the terminal, provided an explanation of HSE drafted the first issue it got rid all the comments made, the form was that the ullage figure is the actual the forms and a link to the site where of the flawed system of having two eventually signed off by PELG last May. ullage and is always greater than the you can order your people doing the unloading and split At its meeting in September 2017, quantity to be delivered”. own pads.

28 www.ukpra.co.uk Advertisement feature 2018 “Volumatic fits very much with our own ethos” Operating 15 sites, and expanding, The Kay Group (UK) Ltd has won multiple awards for design, innovation and customer service with its fuel and convenience offer forecourts.

he Kay Group’s ethos has always been MovingM forward with the trial rredeploye time in other areas of the business. that of high standards, with the focus “CCi“C enables us to save site management up EEspecially,s in terms of customer service. The being on the customer experience, toto 2 hours per day that can be reallocated to bbenefitse were clear. With The Kay Group along with the quality of their sites. It othero areas of the business. We can clearly see ggrowingr from strength to strength, the CCi wasT a fitting combination for them to seek out ssolutiono has now become an integral part of benefitsb in time saving” Volumatic to solve their cash handling issues. After identifying that Volumatic could offer eeacha sites set up moving forward. Richard Cox, Managing Director of The a solution to streamline their current cash Kay Group, was faced with the challenge to handlingh processes, a two-month trial was ‘’Furthermore, it received a positive find a new cash handling solution that would agreeda and the first installation of Volumatic’s rresponsee from the management team on revolutionise their current processes. In a bid CCiC was introduced to one of their main sites. eeacha site. If asked to go back to the old way of to overcome their challenges, Richard attended KeyK teams from both companies worked closely rreconciliatione of daily taking we would now face ones of Europe’s biggest industry events, toto implement CCi. Volumatic’s involvement rresistance.e As it does exactly what it says on PetroForum, where he was first introduced wasw integral to ensuring that the trial was a ttheh tin!” to Volumatic, and their CCi (Counter Cache success.s Volumatic UK Sales Director, Mike Intelligent) solution which can reduce cash Severs,S along with the technical department handling costs and speed up the time it takes workedw closely with The Kay Group’s accounts to reconcile cash on a daily basis. anda operations teams to create a bespoke spreadsheets to enable fast efficient and Overcoming the challenge accuratea reconciliation. By tradition, their existing process would CCi would prove itself to save The Kay involve sales staff skimming their tills multiple GroupG time, making the shift handovers times a day, forcing downtime. It consumed smoothers and quicker, resulting in zero impact valuable time and prevented staff from giving ono customer service and reducing their security their full attention to the customer. Other concerns.co In short, the solution was a no issues were the possibility for human error and brainer!b security risks associated with excess amounts of cash being left in the tills. CCiC becomes a part of the setup One of the key obstacles they face is that ItIt was not long before The Kay Group began they operate 24 hours a day, every day. With toto see the significant benefits that the CCi a cut off point for banking reconciliation at presented.p Instantly it offered reliability, around 11pm, till points need to be reconciled accuracy,a security and quicker reconciliation to the penny for that day. So, they looked reportsre from the click of a button. Additionally, to transition from their current method to theth instant forgery detection removed any something that would revolutionise the way in concernsco regarding forged notes. For Richard, which they operate, and free up valuable time, theth ROI for him was proven with the additional allowing more focus on their customer’s needs. timeti enabling the management team being able 29

029_PRA_2018.indd 1 18/12/2017 09:44 Market Review 2018

have joined the scheme. Prior to the Knowing that you implementation of the new regime, are compliant is becoming much a member could cherry-pick the more of a puzzle categories of legislation they wished to have covered by their participation in the partnership. Now, they are deemed to be covered for all the ‘regulatory functions’ enforced by the PA. However, they can choose whether to abide by any Primary Authority Advice given by the PA. From the perspective of the operators of petrol stations, the ‘regulatory functions’ are as follows: Trading Standards – such as metrology and age-related sales Petrol Storage Certification – all legislation related to the safe keeping of petrol and other motor fuels Explosives – storage and sale of fireworks Licensing – sale of alcohol. We are now able to work with Hampshire to begin the process of providing Primary Authority advice. During 2018 and beyond, we aim to publish advice on the following matters: The PRA/Safety Passport Alliance, E-Learning package for forecourt staff WORKING The unmanned operation of petrol filling stations The filling of customer-owned TOGETHER refillable LPG cylinders from autogas dispensers The PRA’s Ray Blake outlines the Primary The use of the standardised Authority Partnership scheme delivery form. The scheme is free for members to join. All help and advice currently s members will be aware, resultant changes were implemented provided to members by the Technical the PRA entered into a Co- from October 1, 2017. This led to us Officers remains included within the Aordinated Primary Authority transitioning from one set of operating annual membership fee. The only time Partnership with Hampshire County arrangements to another during the additional costs could be incurred Council during February 2017. We second half of 2017. would be if an individual member must admit that while this initiative From the members’ point of view, requires specific statutory advice, was and remains, well intentioned, the the service that can be provided or should there be a need for the timing could have been better. This is remains fundamentally unchanged; it PA to intervene if a local authority is because the legislation and guidance is simply a matter of how it is managed proposing enforcement action. under which the scheme is operated by the Technical Team of the PRA and As a direct result of the reduction was undergoing review and the their colleagues within Hampshire in the number of expert enforcing County Council. Previously, the officers, the Technical Officers are partnership was between the member receiving an increasing number of We believe the PA and the Primary Authority (PA), with enquiries from members. Often this liaison through the PRA. Now the is where less experienced officers are scheme will become partnership is between the PA and the imposing unjustified requirements. PRA, which represents all members We believe that in the not-too-distant a common route of that have signed up to the scheme. future, the PA scheme will become a To date, a good cross-section of common route of resolving issues. resolving issues members – from a large national You can contact Ray Blake on 07496 operator to some with only one site – 967269 or [email protected]

30 www.ukpra.co.uk THE COMPLETE PACKAGE FOR PETROL RETAILERS Solicitors

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can be charged using a wall outlet or charging station, by the internal combustion engine, or through regenerative braking. Moving on from 2040, an even more restrictive target from DEFRA is to ensure new cars have zero tailpipe emissions after 2050. • Trade effluent – One of the issues which gives unregulated hand car washes (HCW) an unfair competitive advantage over automated mechanical car washes (ACW) is the indifference shown by the Environment Agency for England to their handling of trade effluent. ran for an initial period of six years. PRA has closely collaborated with Budget 2017 made reference to Scottish Environment Protection WORKING the fact that the Scheme 1 for the Agency (SEPA), Northern Ireland Scottish Isles and Isles of Scilly Environment Agency (NIEA) and has been extended until 2023. The Natural Resources Wales (NRW) to FOR YOU Scheme 2 applying to mainland produce an updated guideline GPP13, areas runs to 2021. which was launched in June 2017, Chairman Brian for those countries but ignored in Madderson runs us DEPARTMENT FOR England. We are working to persuade ENVIRONMENT, FOOD AND DEFRA Ministers to prioritise this through the PRA’s RURAL AFFAIRS (DEFRA) national pollution epidemic. vital lobbying work • Clean Air - Following successful court action by ClientEarth, the DEPARTMENT FOR TRANSPORT TREASURY/HMRC Secretary of State was under legal (DFT) • Fuel Duty – both retail petrol and pressure to tackle harmful NO2 (or • Fuel quality – considerable effort has diesel have been levied at 57.95ppl Nox) caused by dirty diesel fumes. been expended to better understand and the latest 2018/19 freeze means Having consulted with industry, the the cause(s) of Filter Blocking it will have been frozen for eight Air Quality Plan was announced Tendency (FBT) which is manifested years, but these levels, especially in July 2017. The steps highlight 19 more in winter months and down diesel, still leave the UK with higher Local Authority areas with 51 “hot the east coast. This has involved duty than most other EU countries. spots” requiring immediate action Working Parties formed by officials PRA lobbied firmly, with support but did not: and relevant trade associations. from freight haulage associations, • Impose a blanket ban on diesel • RTFO – the Road Traffic Fuels to maintain parity between grades, vehicles across cities and towns. Obligation has been updated with against any rise in duty and for a • Introduce an unattractive diesel implications across industry. fuel duty cut. scrappage scheme. • Biofuels – PRA has met the • HGV Levy – each year some two • Allow unfair penalties to be imposed appropriate Minister to discuss million trucks enter the UK via Dover on diesel drivers by Local Authorities repeated attempts by the ferries and Eurotunnel. In April 2014, without seeking alternative policies Government to introduce a higher a new Levy was implemented by the • Apply to large vans, HGVs, ethanol content petrol (E10). A UK Government but with charges motorbikes, tractors and other off-the- significant number of vehicles, restricted by the EU. Brexit provides road equipment. perhaps as many as 5%, are an opportunity to review these The principal aspiration for non-compliant (at least 40% of charges and again PRA is working improving future air quality related motorcycles/scooters affected) with freight haulage associations to a ban on new cars after 2040 with and would have to use a protection plus local MPs and DfT. conventional petrol or diesel engines. grade (98 or 99) at higher costs. E10 • Rural Fuel Duty Rebate Scheme – PRA’s subsequent discussions with has a lower mileage performance PRA worked closely with the Treasury DfT confirmed that plug-in hybrid and DfT has so far been unable to to successfully introduce both electric vehicles (PHEVs) would still persuade HMT to reduce fuel duty Schemes 1 and 2. The derogations be permitted after this date. PHEVs to compensate. Experience with a under Article 19 of EU Directive use batteries to power an electric market-led introduction in Germany 2003/96, authorising the UK to apply motor and use another fuel, such as has been deeply unsatisfactory. In reduced levels of taxation to motor gasoline or diesel, to power an internal France, where E10 was launched in fuels under the rural fuel scheme, combustion engine. PHEV batteries 2009 and a duty incentive provided, ▹

32 www.ukpra.co.uk Advertisement feature 2018 Electric vehicles – the opportunity for forecourts The Automated and Electric Vehicles Bill, announced by government in October 2017, sets out proposals to require large fuel retailers and service areas to provide charging points for electric vehicles.

hile, as Brian Madderson said cchargers installed on their forecourts at no rapidra charging. The units also fall below in his evidence to the Public Bill ccost,o with the additional incentive that it will planningp permission height in most cases, Committee, this could appear uundoubtedly attract marginal business from EV makingm them quick to install. Our investment to be “all stick and no carrot” ddrivers who want to buy food or drink and other programmep is enabling us to deploy these rapid Wfor petrol retailers, this will certainly not be iitemst while they are topping up for 20 minutes chargersch at no cost to sites hosts, providing the case if retailers take advantage of the oor so. they are 24/7 accessible, allocated dedicated opportunity from Chargemaster, the UK’s David Martell, chief executive EV charging bays and have sufficient largest provider of EV charging infrastructure. oof Chargemaster explains: “Our power available to supply the unit. Chargemaster was founded in 2008 and UUltracharge units are the only rapid “We have a successful programme has since installed more than 40,000 charging cchargers made in the UK and can with a major hospitality chain where we points at homes, workplaces and in public ccharge any EV that is capable of are seeing over 50% of drivers going locations. It operates POLAR, the UK’s into the destination when they stop to largest EV public charging charge, and it is reasonable to assume network, which has more this figure would be even higher than 5,500 charging points for petrol forecourts, which offer a across the country. greater number of convenience It is unlikely that most items.” forecourts want cars parked The benefit of choosing on their sites several for Chargemaster, and operating hours charging up on the rapid chargers on the slower 3kW or 7kW charge POLAR network, is that it points, so the opportunity already has around 40,000 for petrol retailers lies in EV drivers using its charge rapid charging instead, points, who will seek out which can charge most pure new locations as they appear. electric cars to around 80% Retailers will not want to in 30 minutes. have infrastructure on their Chargemaster is forecourt if it is not being currently deploying rapid used. chargers around the country free of charge to site hosts, If petrol retailers are already targeting strategic interested in looking at the locations such as hotels and potential to get a rapid charger restaurants near motorway installed at no cost, they can junctions. email the Chargemaster team So, the “carrot” for on info@chargemasterplc. retailers is the potential com and quote ‘PRA Market to have one of these rapid Review’. 33

033_PRA_2018.indd 1 08/12/2017 17:55 Market Review 2018

▹ consumer acceptance has been methodology for valuing standalone PRA is working to halt very slow and retailers are having convenience stores on an ITSA (in to manage three grades of petrol: terms of square area) basis can the penal treatment of 38% E10 (95), 38% std (95) and 24% provide a significant competitive premium (98), which would not advantage over forecourt shops, ATMs with separate be feasible for the majority of UK which are valued by turnover. This retailers. We oppose the introduction unreasonable practice must be business rates of E10 unless it is mandated amended for the next Scheme with appropriate new grades Revaluation. the problem but officials say they and compensations provided. To • Business Rates (Inflation) – PRA have no resource to combat this tax date, our arguments have proved joined with other trade associations evasion. We are working with HMRC persuasive. to demand that the RPI measure of and HMT to try to find a way of • Automated & Electric Vehicles Bill inflation be replaced with the lower deterring this practice. – PRA was invited to the Standing CPI. This successful campaign has • Illicit Trade – PRA has undertaken Committee, with the Minister resulted in a change for April 2018. a review of measures with present, to give oral evidence. Main Salford and London-based staff issues were compelling motorway HOME OFFICE to counter illicit trade in tobacco service areas (MSAs) and “large • Forecourt Crime – PRA was a and human trafficking. We have fuel retailers” to install EV charging founder member of the Forecourt a close relationship with HMRC’s points and the lack of funding as Crime Senior Steering Group Belfast office which has UK-wide seed investment. The PRA made (FCSSG), which was established in responsibility for fuel laundering clear this amounted to “too much early 2016 under the aegis of the and smuggling. stick and not enough carrot”. This Tackling Crime Unit reporting to the position has subsequently been Minister for Crime & Vulnerability. BUSINESS, ENERGY & formally confirmed to the Minister Some progress was made but lack of INDUSTRIAL STRATEGY (DBEIS) and in a personal meeting explained engagement by the Police Authorities • National Emergency Plan (Fuels) – to the Head of the Office for Low restricted its effectiveness. The PRA and some major retailers have Emission Vehicles (OLEV). real key to self-help by retailers been advising on the total revision • Alternative Fuels: the PRA is taking and their professional advisers is to this plan. We have been in contact every opportunity to ensure that to have an electronic feed to DVLA with retailers with Designated Filling Government makes a balanced for Registered Keeper data. This Station (DFS) and engaging with assessment so that electric vehicles data is already provided to the car Local Resilience Forums (LRF). are considered along with hydrogen, park industry and, prompted by • Emergency Supply – PRA has CNG, LPG, GTL, LNG for different PRA, pressure is being brought to attended all Working Parties on applications. It is imperative that bear on the DfT and DVLA by MPs the deployment of alternative rapid improvements with cleanliness to allow this data to be accessed manpower, equipment and site and performance of fossil fuels are electronically by petrol retailers. monitoring. After an introduction by not unfairly sidelined by Government • Human Trafficking and Slavery the London Emergency Supply Team in the trendy rush to EVs. – PRA met the new Minister to the devolved Emergency Supply responsible and is now working team in Northern Ireland, PRA has DEPARTMENT FOR with the Office for Labour Market been appointed to be their media COMMUNITIES AND LOCAL Enforcement (LME) set up earlier spokesperson in any fuel crisis. The GOVERNMENT (DCLG) this year under Sir David Metcalf same already applies in Scotland. • Business Rates at ATMs – PRA is (see pages 38 and 40) as well as the • Energy Statistics – PRA has been working with ATMIA and others to Gangmasters’ Labour and Abuse working closely with the team halt the penal treatment of through- Authority on measures to root out producing all energy-related data. the-wall (TTW) and external pod modern slavery at hand car washes. ATMs with separate business rates. DEPARTMENT FOR HEALTH The result of this move, together REVENUE & CUSTOMS (HMRC) • Tobacco – PRA continues to consult with increases to interchange fees, is • Fuel Duty – PRA has been meeting with members and input into that forecourt retailers face a choice Treasury (HMT) and HMRC officials Government consultations on tobacco. between charging for the service in joint meetings throughout 2017 to • E-cigarettes – PRA has engaged with at £1.50 to £2 per transaction or make the case that increases in fuel both the Westminster and Scottish removing the equipment. At a time duty would be counterproductive. Government to consider age-related when both banks and the post office • HGV Levy – Fuel purchased on the sales, advertising and promotion and are severely reducing their branch Continent and brought to the UK in licensing proposals for e-cigarettes. numbers, the “last man standing” tanks which were not fitted by the • Low-burn products – PRA has been for cash provision in many rural vehicle manufacturer is liable to UK learning about these products areas has been the local forecourt. excise duty. In meetings with the and considering what rules are • Business Rates (Shop) – the PRA, HMRC have acknowledged appropriate for them. 34 www.ukpra.co.uk FOR URTS SMAR CO T B RE US O IN F E T S R S A E M S S

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035_PRA_2018.indd 1 12/12/2017 11:34 GEARING UP FOR A NEW FUTURE Accenture looks at the move towards electric vehicles

he UK government recently diesel cars to alternative fuel vehicles households do not meet this criterion announced plans to ban the is taking longer than anticipated. (40% in London). To help consumers Tsale of new ‘conventional’ New car registrations are nearly get over this barrier to adoption, the petrol and diesel cars from 2040, as 4% behind where they were this time UK government introduced a grant to part of its strategy for tackling nitrogen last year, with private sales down by provide residential on-street charge dioxide emissions. This means that over 6%. They also show year-to-date points. The Office for Low Emission from 2040 only plug-in electric or diesel registrations down 13.4% (since Vehicles has allocated £2.5m in hybrid vehicles will be available to new September 2016) with new alternative funding to this with the maximum car buyers. This spells the end of a fuel vehicle registrations rising by just funding per charge point of £7,500. near 150-year reign for the traditional under 35%. Fuel retailers are already starting internal combustion engine (ICE). In Most automotive original their electric mobility journeys in taking this step, the UK is following equipment manufacturers (OEMs) preparation for the impending rise in the footsteps of other leading are already planning to introduce in demand for EVs. They’re doing economies that have announced electrified vehicle fleets. And as this by purchasing, or evaluating similar bans including France, Norway, more consumers start to trust the the purchase of, large EV charging India and China. There’s also pressure technology, manufacturers will networks. This demonstrates their from Germany for the EU to introduce release additional EV models and readiness to improve and increase the a more far-reaching law. a competitive marketplace will be infrastructure available to consumers. Today, electric vehicles (EVs) created. Infrastructure will be key to Reactions to the market shift and account for just 1.8% of the current ensuring the widespread rollout of EVs new legislation are also evident in share of total car registrations in across the UK. other sectors. For example, we’re the UK. But this figure has been For mass-market ownership of EVs seeing postal and delivery companies trending upwards since 2012. This to be viable, consumers will require starting to bring EVs into their fleets. can be attributed, in part, to the UK access to charging points on demand. Consumers currently view car government’s introduction in 2011 of Statistics show that only 3% of refuelling as a distress purchase. a programme for plug-in car grants, consumers charge their car en route, Because they see the forecourt as an geared to help reduce the upfront meaning that fuel retailers will need to unwelcoming environment, they seek cost of eligible EVs. This was the UK diversify and originate new solutions to minimise the time they spend there. government’s first move towards in order to compete. This is in direct contrast with the encouraging consumers to purchase Currently, EVs are recommended current perception of electric charging zero-emission vehicles. primarily for drivers with access to as a clean, bright, guilt-free source of The transition from petrol and off-street parking. However, 30% of UK energy.

36 www.ukpra.co.uk Market Review 2018

Fuel retailers need to alter this revenue from fuel sales, retailers will perception if they’re to attract need to identify ways to make up this consumers to ‘charge’ their vehicles. delta. This could include using the There’s no doubt that This could be achieved by making forecourt to provide space for outlets the fuel retail industry use of renewable sources of energy to that consumers can use while they power the station, positioning retail wait (beauty/hair salons, coffee shops will look different fuel stations in consumers’ eyes as or gyms, for example). forward-thinking and environmentally Fuel retailers should also be ready conscious energy sources. By for increased collaboration with utility There’s no doubt that the fuel retail incorporating a ‘clean agenda’ providers, which will supply power industry will look very different in 25 throughout their sites, retailers will to charging points, avoid power to 30 years’ time. It is currently in the play their part in preparing the way for surges during peak times and also early stages of a major transition. EV roll-out at scale. store power that may be generated by This is the biggest change in the As the focus for the consumer road renewable resources, such as solar industry for over 150 years and it’s vehicle industry shifts from traditional panels, on the forecourt. hard to predict exactly what the internal combustion engines to The move from petrol/diesel- future will look like. However, this electrified drivetrains, there are many powered cars to fully electric vehicles uncertainty means there are numerous unknowns for fuel retailers. However, will not be immediate. Because they opportunities for fuel retailers to there’s likely to be continuing strong continue to offer the ‘best of both diversify and establish new identities demand for petrol and diesel. It will worlds’, hybrid cars are likely to that ensure they can remain relevant. be more than 20 years before the dominate the market for a long time. It’s likely that fuel retailers’ legislation takes full effect and hybrid This means fuel retailers will need to businesses will move away from the fuel vehicles – exempt from the hold on to their fuel pumps for several forecourt, with retailers going to the government’s ban – will still make up a years after the implementation of the consumer to offer their services, rather large proportion of road vehicles. legislation, adopting a gradual phase- than the other way around. That said, We’ve talked before about the out approach. some retailers may look to develop possible transition to ‘energy hubs’, Fuel retailers can take advantage new ways to attract consumers to that’s to say single sites offering a of this dynamic by offering a similarly the forecourt. With charging times converging range of services and retail ‘hybrid’ forecourt, with both fuel significantly longer than refuelling offers. These will present UK retailers pumps and charging stations. They times, there may be scope for a range with opportunities to enhance their could also offer battery swap-out of innovative new approaches. customer service proposition. services to allow for faster powering- Whichever route a retailer takes, Future proofing for EVs may be up of EVs and replacement of faulty transformation will be needed to keep a good way to promote a cleaner, batteries. This could be run in tandem pace with the fast-changing industry. forward-facing brand image – with battery lease schemes. The top priority? Changing current especially when coupled with a Another opportunity for fuel retailers perceptions of the fuel retailer brand/ revitalised service-based in-store is roadside charging points. Innovative image. Fuel retailers need to find ways experience. Greater emphasis will need on-street charging solutions such as to prove to consumers that they are to be placed on what the forecourt can lamp-post charging, pop-up bollards moving with the times by offering offer the consumer over and above and cable channels can provide a way alternative means of refuelling. This refilling or recharging their vehicle. for fuel retailers to supply power to their will ensure that they are disrupting, With an expected decrease in consumers where they live and work. and not being disrupted.

www.ukpra.co.uk 37 Market Review 2018 A NEW DAWN BECKONS PRA Chairman Brian Madderson on how hand car washes are being brought to order

he decision, in late 2016, by the Petrol Retailers Association T(PRA) to take on the running of the defunct Car Wash Association (CWA) was warmly welcomed by both our members and by equipment manufacturers. As our industry faces the prospect of alternative energy sources reducing demand for conventional fossil fuels, it will be essential to offer diverse attractions to ensure that motorists still appreciate your forecourt as a destination. Whether your diesel or petrol driver migrates to electric only or even to hydrogen drive train, the vehicle will still need cleaning. By offering a range of high quality premises of the big grocers with strong agricultural and food processing washing and valeting facilities that brands and a reputation for quality has industries. meet all relevant regulations, there led the public to believe the hand car With further financial and personnel is a great opportunity beckoning to washing activity was legally compliant, resource, it is now known as the re-create a significant profit centre that even though in 99% of cases it wasn’t. Gangmaster’s and Labour Abuse your customers will really appreciate. Hand car washing (HCW) is a Authority (GLAA) reporting to another For a long period of time, perhaps peculiarly British phenomenon that has new department, the Office for Labour 10 to 15 years, regulated Automatic just grown and grown as our regulatory Market Enforcement (LME). Car Washes (ACW) had struggled enforcers have turned a blind eye to the Sir David Metcalf was appointed to compete with low cost hand car activity – due to lack of resources and Head of LME in January 2017 and washes that sprang up on disused being preoccupied with other priorities. reports jointly to the Home Office forecourts, on empty brownfield sites Nowhere else in the EU is this activity and to the Department for Business, and on so many car parks operated by tolerated to the same extent. Energy and Industrial Strategy. supermarket retailers. The latter tended The pie chart depicting market share The CWA recently held a meeting in to be controlled by gangmasters by wash type clearly reveals that with London bringing together officials from who rented out wash trolleys on a an estimated 16,000 to 20,000 outlets, the LME, GLAA, Association of Labour daily basis to all and sundry. The fact unregulated HCW now have more than Providers (ALP), Independent Anti- that this activity takes place on the a 70% share. This has badly damaged Slavery Commission (IASC) and the the ACW sector and the many forecourt Church of England. The purpose was ANNUAL WASHES (% MARKET SHARE) retailers for whom this had been a to pool ideas and actions to identify Conveyor valuable ancillary activity. HCW that should be investigated for 7% Fortunately, one of the more potential infringements of immigration Rollover successful initiatives completed by the laws, tax evasion, environmental HCW 13% Other present Prime Minister (The Rt Hon breaches, money laundering etc. 39% Theresa May MP) was to sponsor the Separately, one of the large grocers Modern Slavery Act 2015 when she has already invested heavily in new was Home Secretary. This became facilities for both ACW and HCW that the Immigration Bill in September meet all the regulatory requirements. Jet Wash 2016 and prompted Government to CWA has been invited to participate 9% extend the power of the Gangmaster’s in the conversion of all the major Licensing Authority (GLA). retailers’ car wash activities to similar Trolley Washes After the Morecambe Bay tragedy in standards. For certain, 2018 promises 7% 2004 when at least 21 illegal Chinese to provide a new dawn for regulated immigrants drowned picking cockles, car washes as we create a competitive HCW in Old HCW in the GLA had been established to but level playing field, as authorities Petrol Stations Rollover Bay better regulate the employment of take action against rogue hand car 19% 6% casual/seasonal labour in the fishing, washes across the country.

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TACKLING MODERN SLAVERY Independent Anti-Slavery Commissioner Kevin Hyland OBE talks us through what’s being done to stamp out exploitation and forced labour

n August 2016, 40-year-old Sandu working on our high streets in high hour days, earning markedly under the Laurentiu-Sava was electrocuted to risk, unregulated industries like hand National Minimum Wage and without Ideath in the shower. He was living car washes. adequate protective gear. Some had in cramped, rat-infested living quarters A number of steps are being taken no identification documents or bank above the east London hand car wash to crack down on this pernicious trade. accounts, leaving them trapped. at which he worked. This tragic case I have been pleased to support the Innovative new ways of identifying drew attention to the exploitation efforts of the Clewer Initiative which abuse are also being developed. The and forced labour happening in hand is working with Church of England University of Nottingham’s Rights Lab Kevin Hyland OBE car washes across the country. The dioceses and wider networks to train is working on computer modelling to economics should make it obvious: communities on detecting the signs of help identify high risk car washes. By if these businesses are offering slavery in hand car washes. using traffic data to estimate how many services for strikingly low prices, yet Understanding the signs of slavery cars are being cleaned and seeing how appear to have a number of workers and what to do when we suspect many workers are based at a business, on their premises, how can they be wrongdoing is crucial. In hand car the programme will be able to paying them National Minimum Wage washes, this can mean spotting that determine the likely profits being made rates and still make a profit? As the workers are not wearing appropriate and whether they make sense when UK’s first Independent Anti-Slavery gear to protect them from chemical cross-checked against the number Commissioner, my role is to spearhead splashes or water-logging. Identifying of workers on-site. Tackling slavery is our efforts to eradicate modern slavery whether the workers seem hungry, a complex task, but to eradicate this and protect victims like Sandu. intimidated or are living on the car abuse requires the will and work of a The most recent global estimate wash site in containers or other squalid cross-section of organisations and the from the International Labour conditions are also tell-tale signs. public. Exploitative practices are hidden Organization and the WalkFree It is not just civil society which in plain sight and so we must urgently Foundation, in partnership with has a role to play in wiping out this ensure health, safety and employment the International Organization for egregious practice. Law enforcement is regulations are adhered to. Migration, shows that more than 40 also taking up the helm. A recent joint I am pleased that the Petrol million people around the world are in operation between the Gangmasters Retailers Association is taking this modern slavery. Of those 40 million, and Labour Abuse Authority (GLAA), issue seriously, working hard to raise around 16 million are working in the HMRC and the Met’s Modern Slavery awareness and drive up standards in private sector. Many of these will be in and Kidnap Unit saw raids on a the sector. I believe that together, we the supply chains of large companies, number of hand car washes. can eradicate this crime from British but a significant proportion are People were found to be working 12- high streets.

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041_PRA_2018.indd 1 19/12/2017 11:27 Market Review 2018 EXPERIAN CATALIST MARKET SUMMARY REPORT (Data released November 2017)

ere we provide you with a summary of the data in the latest MARKET SHARE BY OWNERSHIP release of the Experian Catalist UK database. The table below shows how the UK market is divided according HAll data is based on ‘open’ sites (including sites under to ownership. development and excluding non-retail sites). Ownership Number Average % % Effective- of open volume per Market share Outlet ness MARKET SHARE BY BRAND sites site (kl p.a.) MF volume share Brands are listed in order of market share for motor fuel volume COMPANY 1,290 5,004 17.9 15.3 1.16 sales (see definition below). DEALER 5,577 2,418 37.6 66.3 0.57 Brand* Number Average MF % % Effectiveness HYPERMARKET 1,540 10,418 44.6 18.3 2.43 of open volume per Market Outlet **** sites site (kl p/a) share MF share TOTAL 8,407 4,277 ** *** volume DEFINITIONS: Company: owned by the supplying oil company whose name appears on the TESCO 504 11,449 16.1 6.0 2.69 brand sign. Dealer: an independently owned site usually supplied under an agreement with an oil company whose name usually appears on the brand sign. Also includes unbranded sites BP 1,287 4,254 15.2 15.3 0.99 with no oil company identification. Hypermarket: owned and operated by the multiple retailers (hypermarket groups). Also includes sites that may be away from the main hypermarket store but SHELL 1,028 4,748 13.5 12.2 1.11 are owned and branded by the hypermarket; and includes Co-op Stores with Co-op fuel branded ESSO 1,083 3,772 11.4 12.9 0.88 forecourts. SAINSBURY’S 311 11,830 10.3 3.7 2.77 MORRISONS 333 10,541 9.8 4.0 2.47 MARKET DEVELOPMENT BY BRAND 310 8,796 7.6 3.7 2.05 This table compares the number of open and under development sites TEXACO 751 2,558 5.4 8.9 0.60 by brand, for the current release of data and the same period last year. CERTAS ENERGY † 790 1,275 2.8 9.4 0.30 It also shows the change in site numbers for each brand during the JET 331 2,413 2.2 3.9 0.56 past 12 months to give a clearer picture of which brands are expanding UNBRANDED 595 551 0.9 7.1 0.13 and which brands are reducing their site numbers. FOOD STORE 100 3,121 0.9 1.2 0.72 APPLEGREEN 85 3,506 0.8 1.0 0.81 Brand No. open sites No. open sites Difference V3 2016 V3 2017 MINOR 218 1,103 0.7 2.6 0.26 BRAND APPLEGREEN 75 85 10 MURCO 189 1,189 0.6 2.2 0.28 ASDA 295 310 15 HARVEST 89 2,183 0.5 1.1 0.51 BP 1,277 1,287 10 ENERGY CERTAS ENERGY 843 790 -53 FOOD STORE 100 3,121 0.9 1.2 0.72 ESSAR † 0 40 40 MAXOL 97 1,594 0.4 1.2 0.37 ESSO 1,070 1,083 13 TOPAZ 49 1,685 0.2 0.6 0.40 FOOD STORE † † 76 100 24 ESSAR † † 40 1,470 0.2 0.5 0.34 GLEANER 62 59 -3 SOLO 60 877 0.1 0.7 0.21 HARVEST ENERGY 91 89 -2 GLEANER 59 817 0.1 0.7 0.19 JET 332 331 -1 STAR 35 1,170 0.1 0.4 0.27 MAXOL 96 97 1 RIX 33 787 0.1 0.4 0.18 MINOR BRAND 231 218 -13 THAMES 30 772 0.1 0.4 0.18 MORRISONS 334 333 -1 TOTAL 8,407 4,277 MURCO 204 189 -15 NOTE: † Certas Energy – includes Gulf, Pace, Power, Scottish Fuels, UK and other brands RIX 36 33 -3 †† Essar sites were previously included in Minor Brand * Brands include sub-brands or subsidiaries as appropriate (identified as Share Brand in the SAINSBURY’S 306 311 5 database). SHELL 1,023 1.028 5 ** Open sites includes all currently operating petrol stations and those sites that are under development at time of publishing. SOLO 63 60 -3 *** MF Volume refers to all grades of fuel bought on the forecourt by cars, vans and light commercial vehicles (petrol, diesel, LPG etc) and is based on Experian Catalist estimates. This STAR 35 35 0 excludes fuel sold to the HGV commercial sector usually through separate facilities away from the normal forecourt. TESCO 504 504 0 **** Effectiveness is Volume Market Share divided by Outlet Market Share. TEXACO 769 751 -18 TOP 5 DEALER GROUPS – THAMES 34 30 -4 SITES BY FUEL BRAND: TOPAZ 46 49 3 BP ESSO JET SHELL TEXACO OTHER TOTAL UNBRANDED 657 595 -62 MRH (GB) 173 265 13 22 8 8 489 TOTAL 8,459 8,407 -52 MOTOR FUEL LTD 156 0 62 114 87 4 423 NOTE: EURO 71 210 0 72 1 1 355 † Essar sites were previously included in Minor Brand GARAGES †† Food Store – during 2016, a number of Co-op owned sites reverted to own branding and are now included under Food Store Share Brand and classified RONTEC 50 171 0 1 18 0 240 under hypermarket ownership CO-OP GROUP 0 3 3 1 94 49 150 TOTAL 450 649 78 210 208 62 1657

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043_PRA_2018.indd 1 21/12/2017 10:02 Market Review 2018 COMPARISON OF SHOP SALES IN RELATION TO SHOP AND FUEL SALES This table gives average shop sales per annum and average shop size and looks at the relationship between the two. It also shows average shop sales per annum per thousand litres of fuel sold, which gives an insight into the strength of the relationship between fuel and shop sales across the various brands.

Brand Average Average Average Shop Average Shop Sales Shop Size Sales/Sq shop sales in (£’000 p.a.) (sq m) Metre Shop £/’000 litres Space fuel sold APPLEGREEN 644 81 7,918 184 ASDA 515 66 7,745 57 BP 802 99 8,076 188 CERTAS 325 51 6,384 204 ENERGY ESSAR 273 49 5,582 180 ESSO 889 90 9,936 236 FOOD STORE 962 120 8,011 309 GLEANER 195 43 4,482 199 HARVEST 336 44 7,710 151 ENERGY NUMBER OF SITES WITH A SHOP JET 395 57 6,904 163 OR WASH BY BRAND MAXOL 776 92 8,446 471 The table below shows the percentage of sites with a shop and MINOR 302 50 6,064 249 car wash by brand. BRAND Brand Number of % Sites with % Sites with MORRISONS 401 38 10,648 38 Open Sites Shop Car Wash MURCO 340 56 6,031 264 APPLEGREEN 85 100 52 RIX 326 48 6,810 280 ASDA 310 20 36 BP 1,287 100 57 SAINSBURY’S 595 67 8,825 49 CERTAS ENERGY 790 72 29 SHELL 593 72 8,223 125 ESSAR 40 95 25 SOLO 418 56 7,455 466 ESSO 1,083 100 45 STAR 641 73 8,775 547 FOOD STORE 100 98 72 TESCO 501 46 10,802 43 GLEANER 59 71 46 HARVEST ENERGY 89 94 34 TEXACO 570 75 7,579 222 JET 331 99 63 THAMES 163 36 4,501 165 MAXOL 97 90 60 TOPAZ 961 106 9,032 571 MINOR BRAND 218 58 27 UNBRANDED 227 44 5,134 299 MORRISONS 333 99 91 MURCO 189 87 26 RIX 33 48 3 SAINSBURY’S 311 97 64 SHELL 1,028 100 52 SOLO 60 93 40 STAR 35 100 46 TESCO 504 98 49 TEXACO 751 99 56 THAMES 30 70 53 TOPAZ 49 100 31 UNBRANDED 595 52 18 TOTAL 8,407

FURTHER INFORMATION ARTHUR RENSHAW JAMES HAIGH For an explanation of these figures or Major Account Manager, Business Consultant if you require any further information, UK and Ireland Experian Catalist please contact: Experian Catalist Mob: +44 (0) 777 914 0937 Tel: +44 (0) 7971 070 716 Email: [email protected] Email: [email protected]

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045_PRA_2018.indd 1 08/12/2017 18:02 Market Review 2018 THE DEVIL’S IN THE DETAIL Paul Sewell, managing director of MUA Property Services, brings us up-to-date with business rates

he 2017 Revaluation became effective in April 2017, which T is when the appeal period opened. An appeal now comprises the new government process of Check/ Challenge/Appeal (CCA). The initial impact of CCA was horrendous with that rates bills in England will rise in another tenant, they now have to difficulty registering and accessing April by 3% rather than the previously each be assessed separately, with assessments on the new public Beta expected 3.9%. The cost of this switch implications for loss of sole property website. This is slowly improving is estimated at £2.3bn over five reliefs like SBR, loss of allowances for and we have Checks and Challenges years. In terms of detail on individual configuration and possible increases underway on a selection of sites and properties, however, this is a drop in to unit prices due to loss of quantum results are being achieved, although it the ocean. For example, a property with adjustments. The Chancellor now says is still early days. a rateable value of £100,000 will save a he will legislate so that an occupier Despite an accepted Valuation mere £430 on 2018/19 rates. affected by this can have their original Scheme, we are still finding a need to The Chancellor confirmed that, after bill reinstated and backdated, if they so go to CCA on over 50% of sites. the next Revaluation, the cycle will choose. As ever, the devil will be in Anyone who hasn’t registered yet become three-yearly. This suggests the detail. My take on what he said should go to: www.tax.service.gov.uk/ Revaluations in 2022, 2025, 2028 and is that this will not alter the current business-rates-property-linking/start 2031 and so on, and this matches situation where a split in assessment the new cycle in Scotland that was has taken place because there is more TIPS ON REGISTRATION announced recently. than one occupier. In other words, It is easier to start a new Gateway Meanwhile, you may have heard it will not affect the situation where rather than sharing an existing tax one of the Staircase Tax, which is an the VOA starts to assess an ATM or Don’t click too quickly as it does emotive term covering the changes delivery locker. need to settle at times. Allow plenty of to assessment following the Supreme Moving onto ATMs, the test cases time for the whole process Court decision in the Mazars case. went 80:20 in the VOA’s favour at Have your ownership evidence If an occupier has two areas Upper Tribunal. All parties have ready in soft copy (eg a rates bill). of accommodation, but they are appealed to the Court of Appeal, so Meanwhile, the Chancellor separated by common parts or we are expecting this process to run announced key points relating to for another two years at least. This is Business Rates in the Budget in holding up the resolution of 2010 List November. The switch to CPI from Despite an accepted appeals on sites with an ATM, as we RPI in order to determine the annual endeavour not to agree any reductions increase in rates payments for Valuation Scheme, we which could be overwritten by properties outside of transitional successful appeals in the higher courts. relief will now take place two years still need to go to CCA • MUA are Chartered Surveyors, earlier than planned. By bringing this acting on behalf of over 1,500 petrol change forward from April 2020 to on over 50% of sites stations. Details can be found in the 2018, the Chancellor has ensured PRA Members’ section.

46 www.ukpra.co.uk You want flexibility and commitment. We want you.

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047_PRA_2018.indd 1 15/12/2017 11:12 Market Review 2018

acquisitions when sites are better than those already owned. This leads to the possibility for estate churn in 2018. We have seen a surge in the value of PFS due to a number of overarching factors. Petrol stations are valued on their trading potential, measured by profitability. For the last few years, many businesses have seen results move into increasing profitability. So it follows that values should rise. Interest rates remain historically low, fuelling demand which exceeds the supply of available sites. This has driven prices achieved through a formal sale process. Finally, the Private Equity-backed operators have deep cash resources. The need to grow their business for investors has resulted in the best groups being snapped up often off-market at premium pricing. Retailers will have to innovate to combat the higher prices that are coming on the consumer level as a result of the National Living Wage and inflation, particularly in food. Food-to-go is now growing 16 times CONVENIENCE faster than grocery and is expected to account for £21.7bn in sales in the UK by 2021. Likewise, the convenience CREDENTIALS of food and drink on-the-go has contributed to a new sustainable level Christie & Co’s MD – Retail, Steve Rodell, looks of profitability in the PFS market over Steve Rodell at what’s driving the forecourt property market the last few years. The success of retailers such as Eat orecourts continue to fuel growth Successful strides into the wider 17, an independently owned group but all eyes are on convenience to indie convenience sector have been that effectively fuses dining and food Fdrive increased profitability and a made, such as Morrisons unveiling shopping, is likely to encourage others new world of innovation. The market a deal with McColl’s Group to supply to evolve the convenience model. is experiencing massive change driven their 800 stores, while the Co-op and Exactly this type of concept would be by the bigger supermarkets, who are Sainsbury’s came close to buying Nisa. welcomed in our rapidly changing anxious to find an alternative route to More recently the demise of P&H left town centres, where the demise in income as they combat the ceaseless the way clear for the Co-op Wholesale high street retail could be replaced by rise of new Aldis and Lidls, and this Society (CWS) to supply Costcutter residential developments. change can be seen on three levels – the (and associated branded) stores from Additionally, major change is consumer, property and supply levels. spring 2018. expected to occur in the car industry. One way big supermarkets As supermarkets have drastically The UK wants to be at the forefront have tackled this is to boost their reduced the number of large store of the technological revolution convenience credentials and some developments, they have also with Electric Vehicles (EVs) and are pinning their hopes on expanding reduced the number of associated Alternatively-Fuelled Vehicles (AFVs) at their presence on forecourts through PFS proposals, which are now the centre of Budget and Government franchising. Indies now own the virtually non-existent. Almost all proposals. The question then becomes majority of the PFS market as a result planning applications for PFS related how the Government will roll out these of divestment programmes. As a developments are now made by plans and in what timeframe? result indies have priced for margin, indies who are either investing in their • Christie & Co is proud to support superseding the major oil companies’ existing estates or new industry sites. the important work done by the PRA in high volume strategy. In terms of property, the top indies lobbying for independent fuel retailers At the same time, major grocers will grow as much as they can in and we look forward to meeting are also developing their channel to the short-term, but the balance will members around the UK at the 2018 market through independent retailers. likely tip in favour of selective single Business Breakout meetings. 48 www.ukpra.co.uk Advertisement feature 2018

The Ultra Fast Charge

If driving an electric vehicle were 10 times more expensive than driving an equivalent petrol vehicle, how many drivers would switch?

ne of the great myths about electric Most people will need to use public charging points vehicles (EV’s) is that drivers can charge at home. According to the National Grid, 4 out of 5 drivers Owould have to use public charging points 22% because they either live in an apartment or a Car parked overnight in house that has no suitable drive or garage. garage This would mean if all cars were electric around 30 million drivers using public charging points. 59% 19% For this widespread adoption of EV’s No Garage Garage used the charge time must be reduced to 5 or 10 for storage or converted to 4 out of 5 drivers in the UK would be unable to plug-in and minutes, which is the time it takes to fill a tank another room charge an electric vehicle in a garage at home because either with petrol or diesel today. If not drivers will they dont have a garage, or it has been converted for another ‘block’ chargers for hours, and forecourts would purpose. In inner city areas most people live in apartments, become waiting areas and ‘free’ car parks. so very few will be able to charge at home. To make 5 or 10 minute charging possible, new National Grid infrastructure is required that would require billions of pounds of new investment. If the cost of this infrastructure was HowH the system works: on board telematics unit seeks out the recovered through the price of electricity, then 1. A bank of ultra-fast charging C-Ion cells is nearest filling station equipped with C-Ion the running cost of an EV would be 10 times installed on board the EV, alongside the energy storage and a ‘spot’ price is agreed electronically. more expensive than an equivalent petrol or lithium-ion (Li-ion) battery pack. diesel vehicle. 5. The EV is remotely allotted a portion of So, wouldn’t the Government just subsidise 2. Also, a large bank of 1 MWh (Mega Watt this? the stored electricity in the C-Ion bank and hour) C-Ion is installed in a shipping Well if they did it would be a double when the driver arrives plugs in for a few container. Ultimately these may be in whammy, because not only would they lose the minutes while the energy is transferred to storage tanks underground in a similar 70% VAT and fuel duty, the tax on electricity the C-Ion cells on board the vehicle. way that petrol and diesel fuel is stored is only 5% and raising general taxation on today. This is possible with C-Ion because electricity is politically a non-starter. 6. The energy transfers to the vehicle at they do not catch fire; it would not be 350kW DC, so that 30kWh of energy can The Zap&Go solution possible for highly flammable batteries be transferred in around 5 minutes. A bit of geeky stuff first: to drive a mid-size EV like Li-ion. family car with more than one person in the HHow does the filling station make money? vehicle for 100 miles at motorway speeds with 3. There is a standard electrical connection The filling station makes money on the the heating or air conditioning on, requires to the bank of C-Ion cells. On a filling aarbitrager of the electricity. Zap&Go plans 500 about 30kWh (kilo-Watt hours) of energy. station site this may be a spur from the ooff their energy storage sites across the UK To deliver 30kWh of energy onto a vehicle in on-site shop, and is likely to provide a pproviding a 500MWh grid storage capability. 5-minutes requires a 350kW high-rate DC (Direct standard 43kW (kilo-Watt) AC (Alternating EElectricity is purchased at ‘wholesale’ rates and Current) charger. Current) 3-phase connection. This ssoldo through Artificial Intelligence (AI) software 350kW chargers don’t exist yet in the UK. The electricity will be provided on a standard llinkedin to the vehicle sat-nav systems at a ‘spot- highest rate chargers installed are about 120kW variable tariff, and low-cost electricity may pprice’. because this is the maximum rate that the be available overnight. The C-Ion bank As the kWh of energy required by the vehicle current generation of batteries, called lithium- may be charged up overnight at a cheap aandn the estimated time of arrival at the filling ion (Li-ion), can safely charge at. rate, but also topped up during the day as sstationt site is predictable, the price can be fixed Zap&Go has developed the next generation required. It will take about 24 hours to fill bbeforee the vehicle arrives. of batteries called Carbon-Ion (C-Ion) that do the 1 MWh bank at a rate of 43kW. This makes the price competitive, because not catch fire, and can be charged at this 350kW tthereh is no National Grid infrastructure to pay rate. The C-Ion cells are installed on both the 4. An EV out on the road signals to the driver ffor.o If high rate cables and switching equipment vehicle and at the charger. that it will need to recharge soon. The hhasa to be installed at the filling station the price ooff the electricity would have to rise to recover People imagine that we plug in electric vehicles directly to the national grid, and that the grid will be able to tthish cost. respond instantly with unlimited amounts of energy, at anytime of the day - this is just not possible Zap&Go in Oxford is looking for filling sstationt sites for the trial of a new system that pprovides 5-minute EV charging but without rrequiringe the grid infrastructure investment.

FForo further details, please contact Stephen Voller, ttheh CEO, on 01235 567228 or [email protected]

TThereh is a free White Paper describing the ssystemy at https://www.zapgo.com/wp-content/ uuploads/2016/09/Electrification-p oof-Transportation-2.pdff

Large banks of energy storage will be filled up with electricity by then national grid, a bit like having large batteries in the ground. Vehicles are then re-charged quickly from the banks of energy storage at very high charge rates. 49

049_PRA_2018.indd 1 08/12/2017 17:56 Market Review 2018

For 2018 we plan to re-brand our events to BUSINESS BREAKOUTS and there will be 10 of these PRA EVENTS alongside five Roadshows. 2017 was another busy year for the PRA team, Please look on our website for further details coming soon. with events held all across the UK www.ukpra.co.uk/events

he PRA stages events on behalf of • GPC Solutions – From Spill To ULSD Wholesale Price members and it is great to see so Recoverable Material – Dealing with • Shell – Building a network of future fuels Tmany investing precious time to Forecourt Spillage • TLM – Evolution of POS come along to support them. We staged 12 • Keep Scotland Beautiful – Roadside Litter • Topaz – Miles, Quality for the future “Live and Locals” and five “Roadshows” Campaign • Valero – Don’t Blend In, Stand Out With in 2017 visiting, amongst other venues, • KPMG – Small Business Accounting: Real The Crowd Belfast, Cardiff, Dartford and Plymouth. Time Information For Petrol Retailers • Winckworth Sherwood – Legal Update, We have put these on in some interesting • Instavolt – Free Electric Vehicle Charging Alcohol Licensing and Immigration venues including sports grounds, for For Petrol Retailers • Shopworks – Effective Staff Rostering, example: Brighton and Hove Albion FC’s • LCM – Fuel Quality Update Saving You Time And Money Amex Stadium, Leicester Tigers RFC Welford • Grip Hero – Hand Protection On The • SPA – How Do You Provide Your Staff Road and also racecourses such as Warwick Forecourt: A Revolutionary Approach With Adequate Training? Racecourse and Stirling University. • Jackaman Insurance Services – Are You We have also enjoyed a record amount of Fully Covered? Members who attend get the opportunity to: support from a diverse range of companies • Platts – An Overview Of Platts • Find out what is going on in the industry who come along to address members. Approach To Assessing Petrol and • Learn about the valuable lobbying work In 2017 the following companies the PRA undertakes on members’ behalf supported us and a big thanks goes to What you say: • Ensure they are up to date on all matters all of them: “It was a pleasure meeting you at the PRA technical from the PRA’s Technical Team event and I hope to attend similar events • See how the application of new on a regular basis. I found the opportunities • a2i Systems – Petrol Pricing Automation technology can help their business to be fantastic and met many influential & Optimisation with Pricecast Fuel market-specific businesses” • Learn about products and services from a • Accenture – Opportunities for forecourt Nicole Goodman, Ecotop UK diverse range of companies retailers in an EV market in the UK “I thought the Roadshow in Wakefield • Network with other members and non- • Blazin Digital – Delivering the Future of was very well organised, the presentations members. Forecourt Advertising perfect in substance and length, and the • – Energy Efficiency Fund occasion very well attended as testament to These events are put on solely for the the popularity of the PRA. • CBE – Innovators in EPOS Technology benefit of members and all members within Congratulations to all....” Certas – Fuel Supply With Quality, a reasonable distance of the events will • Paul Jervis, Chase Petroleum Endurance and Passion receive an email invitation. Please look out “We have used several companies that • Christie & Co – Trends in the UK Property have sponsored the PRA over the past for this and also don’t forget to check your Market years. As well as changing our banking and spam file. • Contacta – Inclusive Systems: Hearing communications, we have also received The PRA’s website also contains full Loops & Popular Refuelling Assistant Tool invaluable advice from other affiliated details of all events including an opportunity companies. – MyHailo to register for them. “This has been very beneficial to the • Essar – A Fresh Approach To Fuel smooth running of our company and has A considerable amount of time and effort Retailing more than covered our subscription over is invested in delivering these events to • Forecourt Eye – How To Try and Reduce these years…” members and we believe that if you invest Crime On The Forecourt Andrew Lawrence, Lawrence Garages your time, you will get a return.

50 www.ukpra.co.uk COSSU (CUSTOMER OPERATED SELF SERVICE UNIT) BY BRENNTAG – THE ADBLUE® CAR DISPENSING SOLUTION

In response to growing requirements Key features of Brenntag’s Customer for AdBlue into the passenger car and Operated Self Service Unit (COSSU): light vehicle markets, Brenntag - one • Specifically designed for passenger cars of the main distributors of AdBlue on and vans the world stage - have designed an • Small footprint – will fit on almost any innovative, low cost, environmentally forecourt friendly solution for the forecourt owner. • Sited away from fuel lanes to maximise revenue Although diesel registrations are • Minimal installation with no disruption to declining, current European emissions forecourt legislation means that all new diesel • Token or contactless payment options vehicles need to meet increasingly • Fixed dispense – time or volume enables lower levels of harmful pollutants. This simple & accurate profit calculation cannot be done in most cases without the use of AdBlue in the vehicle. Even • Increases footfall in to the shop with reduced diesel car registrations, it • Low investment/quick and increasing is estimated that 6-7 millions cars will returns. require AdBlue within 10 years.

As limits become tighter, more AdBlue is required and where once the thought was that top-ups would be a ‘service’ item, drivers will now be required to put AdBlue in their vehicles between services. There is a huge opportunity Also available: for forecourt operators, with currently 4 Litre, spill-free less than 10 car AdBlue dispensers in Canister the whole of the UK & Ireland.

Dispensed AdBlue means a higher margin than packed, and means no empty plastic containers on the forecourt. It is a proven fact that early adopters of AdBlue dispensing sell more diesel and increase shop sales.

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051_PRA_2018.indd 1 15/12/2017 12:35 Market Review 2018

developed and used in other sectors. Some of these are card-based, but others centre on mobile payments. Unlike many articles, this piece is not intended to frighten retailers, but is meant to be a helpful nudge in the right direction and a guide to future-proofing retail technology to stay aligned with the wider retail marketplace. As I mentioned, I believe payments should become invisible, so you can focus more on managing customers and spend less time worrying about: Managing and maintaining IT requirements and hardware Changing financial and security regulations Data security Managing fraud and identity THE FUTURE Complex governance and managing multiple suppliers.

OF PAYMENTS WHAT THIS MEANS FOR YOU When selecting a retail automation Dr Mark Goldspink, CEO of the ai Corporation, solution, you need to carefully select an ponders payment on the forecourt omni-channel payment provider, which gives you and your customers the control you need to make payments have worked in and around the have seen the biggest changes in the invisible. Pay-as-you-go cloud-based petrol retail sector for 30 years, it is retail payments sector. To be honest services, which are based around Ione of those businesses that simply it is hard to keep up with the plethora well-defined service agreements, are gets into your blood. Over the last 17 of new payment types beyond debit/ imperative. If you are looking to accept years, my career has moved into the credit cards and cash. Recent forecasts new mobile payment types, and you world of payments and my team and I suggest by 2026, global payments should, it is important to ensure your work with some of the world’s largest revenue will increase by USD 0.9 provider has a state-of-the-art fraud merchants and banks. trillion as emerging markets continue prevention solution. Despite all the hype and the to grow and cashless transactions In order to take advantage of the excitement, I have always believed become more widespread. mobile payment revolution (taking that petrol will remain the fastest of I believe the main reasons for this either bank cards or fuel cards) it is all FMCGs. As a result, not being able change are: essential that your payment technology to make a payment is essentially an The investment that has taken provider has a robust fraud solution operational disaster. The internet may place in the financial technology space and can help you navigate through new operate in real time, but if a payment (Fintech). Digital tools, technologies payment types as they appear in the transaction fails while you are sat on and capabilities are changing the marketplace. your sofa, you simply go to another way customers purchase goods and Even though the quest of seamless website. That doesn’t apply to a petrol services. payments may seem daunting, from purchase. New and easier ways to manage what I have described above, the reality I started selling payment solutions point of sale devices. is that your chosen provider should be to petrol retailers in 1990, with Texaco As someone who lives and breathes helping you. These elements coupled Card Services, and it is only when you payment and fraud management with well documented functionality see payment practices in other sectors, every day, I can categorically say that roadmaps, will help ensure that your that you realise how innovative the the payment landscape is changing – business is future-proofed. petrol retail sector has been. But is it payment digitisation is here to stay. • Find out how ai can provide innovative prepared for the future? Just like the evolution of payment technology that will help you grow profitably I would say that the last two years cards, new payment methods are being by visiting www.aicorporation.com

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053_PRA_2018.indd 1 14/12/2017 16:40 Market Review 2018

Applegreen M1 Lisburn includes a mezzanine floor which can be accessed by an escalator PHOTOS: Courtesy of Forecourt Trader of Forecourt Courtesy PHOTOS: A WORTHY WINNER M1 Lisburn took the top prize at the Forecourt Trader of the Year Awards 2017

f you haven’t got to see Applegreen’s highest-scoring operation across all the award-winning Lisburn site on the regional entries in the awards, “with its IM1 southbound in Northern Ireland striking design, full of innovation and yet, don’t worry, as plans are afoot for flair”. That innovation and flair spans similar sites in the mainland UK. across a total floor area of 1,560sq m, At the time of writing, Applegreen including seating for 300 customers had three motorway service area and a third of the building dedicated applications in for planning at: Jct 33 to ‘customer circulation’. This means at Rotherham, Kirby Hill on the A1M, there’s space for people to move and one on the M42. John Diviney, around and rest, no matter how UK managing director of Applegreen, busy the site is. says they intend to use M1 Lisburn Diviney says customer feedback as a template for the new sites and has been excellent; they love all the expand on it. And what a template it is. facilities and the food offer. M1 Lisburn was Judges at the 2017 Forecourt Trader of As well as a traditional forecourt designed to be bigger and better than the Year Awards said it was a site with convenience mix of grocery and anything Applegreen the ‘wow’ factor and as such was the impulse food and drink, there’s a had done before self-service coffee and snacks island plus six more food offers: , Chopstix, , Lavazza, Subway and Applegreen’s own brand café called The Bakewell. There is also a mezzanine floor which can be accessed via an escalator. Half of this upstairs is used for the Applegreen lounge. “We identified a customer need for an area within our services where people could meet safely, close to the motorway,” explains Diviney. “The area

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055_PRA_2018.indd 1 18/12/2017 09:32 Advertisement feature 2018 Have we reached the tipping point for electric vehicles? Was 2017 the tipping point for electric vehicles? There barely seems to have been a day in the last year when either a car manufacturer hasn’t made an announcement on a new line of plug-in electric vehicles (PEVs) or a nation hasn’t promised a future ban on petrol and diesel cars.

pertinent question, though, when Adetermining whether we’ve really hit the tipping point is: what does tipping point even mean? The Cambridge Dictionary defines a tipping point as “the time at which a change or an effect cannot be stopped.” Meanwhile, in his book “The Tipping Point”, Malcolm Gladwell asserts that when 10% of the population holds an unshakable belief, the majority of society will eventually adopt it. Using these definitions and drilling down – to use a petrochemical term - the figures therefore suggest that the world is still some way off hitting the tipping point when it comes to electric vehicles. To date, only one country globally has passed Gladwell’s 10 % tipping point – albeit spectacularly. iinstallingn electric vehicle charging stations and, ooff PEVs in 2040 from 46 million to 266 million, Despite a population of just over five million, eevenv with this investment, has been struggling wwhileh a 2017 study by Bloomberg New Energy 43,700 PEVs were sold in the Scandinavian ttoo keep up with rising demand and avoid long FFinancei predicted a staggering 530 million nation of Norway in the first nine months of qqueues at stations – something that could eelectricle cars sold by 2040. 2017 – making Norway the third largest market hhalt market growth. In January 2017 there were Predicting the uptake of new, transforming for electrically chargeable vehicles. Only the jjustu under 12,000 charging stations in the UK ttechnologye is notoriously difficult but recent USA and China have higher total plug-in – 4,000 more than in Norway – but catering hhistoryi points to dramatic underestimations. sales. Regarding plug-in share, then, Norway ttoo a population twelve times the size. In the PPerhapse a useful comparator can be drawn is the undisputed leader, with 32%; no other UUK government’s November budget, a total wwithi the mobile phone industry. In the mobile country is even close to this result. Of the G20 oof £500 million was allocated to boosting the eera’sr 1980s infancy, Motorola, the then-leading countries, China leads the way but with just eelectric vehicle market. Just £100 million of this UUSS telecommunications company and mobile 1.6% of plug-in electric vehicle market share for wwill be allocated to encourage drivers to switch pphoneh pioneer, predicted that in the year 2000 January - September 2017, closely followed by ttoo buy a PEV by guaranteeing the continuation mmobile phone sales in the US would amount France and the UK. oof the Plug-In Car Grant until 2020 to help with ttoo around 200,000. The actual figure in 2000 The question on the lips of many industry ttheh cost of purchasing a new battery electric wwasa 109 million. The electric vehicle industry experts is whether Norway is a case study of vvehicle. Currently under the Plug-In Grant, ttodayo is in a far more advanced position than what lies ahead for the UK. Norway was always ddrivers can receive a £4,500 contribution ttheh mobile phone industry was in 1980, but the in a pioneering position, having been the first ttowardso a new all-electric car. The remainder is iinabilityn of experts to predict the timing of the market to reach 1% PEV share back in 2011; in bbeing allocated to roll-out advanced charging aadvanced of transforming technology is perhaps 2013 again it was first and this time to reach iinfrastructuren across the UK, though critics ttheh one thing in which we can be certain of. 5% share. However, as with other countries, the ssay this is insufficient to provide a substantive growth of electric vehicles in Norway is little bboost to the sector. about environmental reasons and a great deal WWith only one country past Gladwell’s tipping about economic reasons. PEVs in Norway are ppoint, it is clear that currently the uptick in exempt from purchase taxes: 25% VAT; annual eelectric vehicle purchase and use globally road tax; and all public parking fees and toll iiss not yet significantly denting oil demand payments. According to the Norwegian Electric oor impacting current oil prices. However, Vehicle Association, about 72% of buyers are ttheh point at which major economies hit the Contact: choosing an electric car for economic reasons ttippingi point is highly uncertain with industry Andrew Bonnington and just 26% for environmental ones. The UK’s eexpertsx frequently upgrading their electric Editorial Director, Strategic Oil Markets subsidy scheme for electric vehicles remains far vvehicle forecasts. In 2016, the Organization for Development, S&P Global Platts less generous than that of Norway. However, PPetroleum Exporting Countries (OPEC) - an a bigger barrier to the UK’s own Norwegian oorganization with little incentive to bullishly Telephone: +44 (0)20 7176 6164 style boom is the all-important charging ppromote the uptake of PEVs - increased by Email: [email protected] infrastructure. Norway has been aggressively 5500%0 its earlier 2015 forecast for the amount Web: www.spglobal.com/platts 56

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057_PRA_2018.indd 1 14/12/2017 12:51 The Tesco/Booker deal has been given the go ahead

merger of equals, it’s a takeover. And why does Tesco want Booker? WHOLESALE Three reasons, I think. The first is Booker CEO Charles Wilson, a widely admired figure who’s credited with CHANGE turning the wholesaling giant from a basket case 10 years ago into the Kevin Whitlock, editor of Wholesale News, company it is today. The second is that discusses the changes in the wholesale sector Tesco has seen that the real growth in food and drink is not in retail grocery, ow often do you think about takeover or merger there, punctuated but foodservice. your wholesaler? Not, by the occasional management The term foodservice covers a Hperhaps, as often as you think buyout. Until 2017, that is. number of markets – from high-end about your customers or your petrol The year began with quite a restaurants through to the guy who supplier; as long as your forecourt is momentous event: on the morning sells coffee from a van parked outside supplied with everything you need, of January 27, the UK’s biggest the railway station. In between, you when you want it, at a price you are retailer, Tesco, announced that it have pubs, clubs, burger vans, cafés, willing to pay, why would you? was ‘merging’ with the UK’s biggest coffee shops, care homes, schools, In a way, invisibility is how the wholesaler, Booker. hospitals, takeaways, canteens and best wholesalers should operate – In wholesaling, Booker is a giant hotels. This food-to-go market is quietly, seamlessly and unobtrusively. – it has hundreds of thousands of regarded as the engine of growth in In the background, they’re busy customers: independent shops and the wholesale sector. The wholesale adding value to the supply chain and c-stores, forecourts, caterers and small channel was formerly divided up providing a conduit between supplier/ businesses. It owns and supplies into retail-focused and foodservice manufacturer and retailer. the Londis, Premier, Budgens and specialists but, in recent years, with And the UK wholesaling industry Family Shopper retail fascia shops. It cash and carry operators sensing has operated pretty efficiently for owns Makro. It supplies a number of the higher margins to be had in decades; which is why wholesaling prestigious national accounts such as foodservice, more have become hybrid has always been seen as a bit of a Enterprise, Wagamama and Rick Stein. operators. A foodservice offering can backwater – a bit of technology here, a Sales through its Booker Wholesale also help wholesalers offset the huge and Makro cash and carry depots declines in tobacco sales in cash and totalled £3bn in the year to March carries. Food-to-go is regarded 2017; its direct and delivered sales Research body, the Institute of topped £2.3bn in the same period. Grocery Distribution (IGD) forecasts as an engine of growth In the world of UK wholesaling, it the UK wholesaling industry will be is a giant, admired, respected and worth £31bn by 2021, representing a in the wholesale sector feared. Yet Tesco is about 10 times its compound annual growth rate (CAGR) size, and for all both parties’ talk of a of just under 1% – but foodservice

58 www.ukpra.co.uk Market Review 2018

Left: Booker’s Charles CAGR is above 2.5%. IGD believes In November, another catastrophic Wilson and Tesco’s that by 2022, the food-to-go sector event happened. The UK’s second Dave Lewis shake on the merger deal will be worth a staggering £23.5bn. So biggest wholesaler (and the biggest Below: Booker is a hospitality’s definitely the place to be. delivered operator), Palmer & Harvey, £5.3bn business; the Co-op bought Nisa; Tesco tried doing the hospitality fell into administration on November and P&H is no more thing a few years ago, purchasing 28. This was not entirely unexpected the Harris & Hoole coffee shop and – P&H’s parlous financial state was Giraffe restaurant chains. Neither was subject to speculation all year – but a huge success, but buying Booker the fall-out was dramatic. gives it access to the latter’s 441,000 First of all, most of P&H’s 90,000 catering customers. customers found themselves without And thirdly, Tesco (along with rival supplies on the morning of November Morrisons) seems to have woken 29. Secondly, 2,500 people lost their up to the idea that if the big grocery jobs; and finally, P&H’s major creditors multiples are to achieve further lost hundreds of millions of pounds. growth, it won’t be from opening new Blame for the collapse was directed at stores; the UK grocery market is well both P&H management, and the CMA served by stores and, perhaps, over- for provisionally (at that time) waving served. through the Tesco-Booker deal. In addition, the growth of the While in the short-term, other German discounters, Aldi and Lidl, wholesalers were able to step into has been largely at the expense of the the breach (in the forecourt sector multiples, who are reduced to gaining Shell, Rontec and Moto activated We will undoubtedly growth by stealing market share contingency plans to ensure their see more multiples from each other. Growth can only outlets were supplied), long-term the move in on the come from elsewhere – and the big P&H collapse will, like the ‘Tesbook’ wholesale sector. As grocers, with their highly developed deal, lead to further shake-ups in well as Tesco and infrastructures, are well placed to the formerly sleepy wholesale sector. Morrisons, the Co-op enter the wholesaling sector, supplying First of all, there will be increased now has Nisa, and will independent retailers and/or caterers. competition for your custom. start supplying Costcutter This is what Tesco wants to do Secondly, there will be increased shops this year. It’s difficult to see Sainsbury’s and Asda standing by while three of their biggest The Booker-Tesco deal was rivals start hoovering up wholesalers. Finally, there’s the question of The always controversial – described Great Disruptor – Amazon. Many wonder how much a threat Amazon as ‘wholesaling’s Brexit’ poses to the wholesale sector. I think its B2B offer could be attractive to small- and medium-sized businesses, with the Booker deal, and what consolidation – wholesalers joining the kind of people who currently buy Morrisons was thinking when in together to gain scale to protect from the likes of Makro or Costco. August it struck a surprise supply deal themselves against predators. It’ll be But despite the much-hyped with the 1,650-store McColl’s chain much more difficult for wholesalers purchase of Whole Foods last June, with groceries. And presumably the to survive outside groups (Landmark, Amazon has yet to break into the UK Co-op was of the same mind when Today’s, Sugro, Confex and the like) market (Whole Foods had just nine UK in November it bought the mutually- and eventually only the true giants – stores at the time of its acquisition, owned wholesale operator and retail Bestway, Bidfood, Brakes and Costco – two of which have since closed). It chain Nisa (with the approval of will be outside of groups. These giants is likely that for the moment at least, members) for £137.5m. (Bestway in particular, which is known Amazon is interested in the B2C The Booker-Tesco deal was always to be looking for acquisitions) will be space as opposed to the B2B sector controversial – it was memorably themselves looking to buy, increasing occupied by wholesalers. Someone described as ‘wholesaling’s Brexit’ their scale and reach. like Ocado or upscale supermarket – and most of Booker’s wholesaling In December, one group – Fairway Booths would be a much better fit for rivals were (privately at least) against Foodservice – even joined a larger Amazon than the likes of Blakemore it. A number of leading operators group (Landmark Wholesale) and I Wholesale or any of the other names lobbied the Competition & Markets predict that this year we may see more touted about. Authority (CMA), urging it to block the groups joining together (if not actually Who’d have thought that a low- deal. But the CMA waved it through merging) to share certain buying and margin, relatively unsexy industry like in December. administrative functions. wholesaling could be so interesting?

www.ukpra.co.uk 59 Market 2018Review

chilled offer with a bespoke forecourt There are many symbol options promotion package and our dedicated for independent ALLIED FOR Forecourt Development Team has forecourt retailers a wealth of experience in forecourt retailing focused on making sure our SUCCESS package is fit for the future and well The biggest and the best in the forecourt set to help our retailers maximise any opportunity.” world opt for the symbol route Forecourts currently represent almost half of Londis’ 1,900-strong RH signs supply deal its 60th anniversary. Speaking at estate and numbers are growing all with Booker and extends the celebratory event, Spar UK MD, the time. “As well as independent MBudgens. Shell UK and Debbie Robinson, said the Spar brand forecourt operators, we are delighted Booker sign new three year deal. has gone from strength to strength to serve large multiple site operators Award-winning retailer David Charman globally in recent years with this global such as MFG and Petrogas, and also signs to Spar for another five years. success reflected in the UK with six a number of regional groups. Best-one excels in Which? c-store consecutive years of growth, and sales “While we recognise that forecourts survey… These were just some of the and profits up. are increasingly becoming more success stories surrounding symbol Meanwhile at Booker Premier, like convenience stores, we still groups during 2017. brand director Martyn Parkinson appreciate that they have a unique set Around 64% of forecourt sites says the group is committed to of needs to maximise both sales and now sport a symbol brand fascia delivering more profits for retailers, profits,” says Swadling. above their shop. The reasons for driving footfall and delivering a better Booker’s Budgens brand can be this are many and varied. Specifics shopping experience for consumers. seen on more than 200 stores, half of vary according to symbol operator “By listening to and working closely which are on forecourts. Mike Baker, but benefits generally include: a with our Premier customers, Premier brand director Budgens, says: “Our recognised name about your door; a has enjoyed 14 years of consecutive knowledge of the fast developing reliable supply chain; access to better growth,” he explains. convenience and forecourt sectors deals and margins; co-investment in He adds that backed by Booker, coupled with our comprehensive return for loyalty; business advice and Premier retailers can take advantage fresh food ranges provides support; marketing investment; access of delivery at cash and carry prices, independent retailers with a market- to training… the list goes on. as well as having the ease and leading solution.” Booker’s Premier is the UK’s convenience of shopping at any Budgens is well known for its fresh number one symbol group with over Booker branch. and chilled offer of over 2,000 lines 3,300 stores nationwide. However, it Then there’s Londis. Brand director and, in response to market trends for is Spar that has the biggest presence Martin Swadling, says: “We have a ever more ‘out of home’ eating, new on forecourts, with 1,200 stores on specifically designed forecourt package food to go ranges are currently being sites. In 2017, the group celebrated which combines the strength of our developed and trialled in stores.

60 www.ukpra.co.uk “With Londis my sales have tripled and profits have increased and I’m now more of a that sells fuel.”

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061_PRA_2018.indd 1 22/12/2017 13:37 Market 2018Review

the data subject is party or in order to take steps at the request of the data subject prior to entering into a contract; (c) processing is necessary for compliance with a legal obligation to which the controller is subject; (d) processing is necessary in order to protect the vital interests of the data subject or of another natural person; (e) processing is necessary for the performance of a task carried out in the public interest or in the exercise of official authority vested in the controller; and (f) processing is necessary for the purposes of the legitimate interests pursued by the controller or by a third party, except where such interests are overridden by the interests or fundamental rights and freedoms of the data subject which require protection of personal data, in particular where the data subject is a child. However, there are some ARE YOU READY activities such as unsolicited marketing which can only be done with consent.

FOR THE NEW I run a newsletter for my customers I give them an option to opt out, is this okay? From May 25, 2018 this will not DATA REGS? be enough. In order for any consent to be valid there will have to be some kind Motor Industry Legal Services (MILS Solicitors) outlines of positive action. You cannot assume the new General Data Protection Regulation (GDPR) people consent if they have not opted out. It must be the other way around.

he GDPR has effectively same as under the DPA, the eight data I don’t take any personal details rewritten the Data Protection protection principles are similar but do I need to do anything? Yes. The TDirective, the mainstay of with added detail in places, and there GDPR will also apply to employee the current data protection regime. are new accountability requirements. data. It can also apply to credit card From May 2018, the GDPR will There is also an increase in data and banking data where an individual have a significant effect on your subjects rights as well as restrictions can be identified. As a minimum you responsibilities when storing data on how data can be used. There will should carry out a data audit to assess and the uses you can put data to. All be ‘conditions for processing’, which precisely what data you hold and how businesses are affected. Failure to get means there must be a legal basis it is used. this right can result in fines, or worse. before personal data can be processed. Petrol retailers are probably the least In May 2016, GDPR replaced the Under the GDPR it becomes more likely to be affected from a customer Data Protection Directive, which is of an issue because the legal basis standpoint. However, it must be the European legislation governing for processing has an effect on an remembered that the GDPR will apply the way data is processed. The current individual’s rights. to employee records and how these are legislation, the Data Protection Act held and used. Businesses will need 1998 (DPA), was drafted when storage COMMON QUESTIONS to review how data is collected, used, was large filing cabinets and before I’ve been told I can only use data stored and destroyed and ensure their computers took over. The GDPR is with the subject’s consent is this true? policies comply with the GDPR. geared towards electronic storage No. Any processing, including storage, For further information please visit the Informa- and processing, and will therefore be must be lawful, fair and transparent. tion Commissioner’s Office website at: https://ico. more rigorous as it is a comprehensive Even without clear evidence of consent org.uk/for-organisations/data-protection-reform/ overview-of-the-gdpr/ rewriting of the rules which increases there are six lawful grounds to process Remember, as an RMI member you have access to the RMI legal advice line, as well as a number obligations on both data controllers personal data. These are: (a) consent; of industry experts for your assistance. Should you require further information in respect of the and data processes. (b) processing is necessary for the article above, contact the legal advice line at any The definitions are broadly the performance of a contract to which stage for advice and assistance as appropriate.

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063_PRA_2018.indd 1 08/12/2017 17:44 My customers associate JET with great customer“ service and high quality fuel. Fuel volumes have jumped by 20% and convenience sales are up by as much as 100% Mr S Patel, owner of SK Fuels, operates nine JET forecourts throughout Yorkshire” and Humberside

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064_PRA_2018.indd 1 19/12/2017 15:29