Market Review2020 THE ROAD AHEAD Become a Total success We are proud to announce that we are developing a network of service stations with the support and expertise of Total. Becoming a Total dealership allows you to be part of one of the world’s largest oil brands. More than a brand, Total is a reference and a guarantee of quality and safety. By joining us, you will benefit from the strength of the brand, access to Total’s premium fuels, security of supply from a leading fuel distributor and expert advice from our dedicated UK team. To find out how we can fuel your business contact us today. +44 (0)1932 843 354 harvestenergy.com 002_PRA_2020.indd 1 11/12/2019 14:20 Market Review2020 HELP US TO HELP YOU, THE INDEPENDENT CONTENTS FORECOURT RETAILER, BY SUPPORTING REVIEW OF YOUR TRADE ASSOCIATION NOW POLITICAL “Together we WORKING FOR YOU MEMBERS are stronger” THE PRA ON THE ROAD AGAIN ASSOCIATE MEMBERS TECHNICAL RAY BLAKE ASKS: TO EV OR NOT TO EV? CAR WASH CAR WASH ASSOCIATION BRIAN MADDERSON CAR WASH EUROPE CHAIRMAN OIL MARKET OVERVIEW arket Review 2020 is the sixth issue of MARKET BY NUMBERS FROM EXPERIAN CATALIST PRA’s annual publication with more pages ENERGY TRANSITION Mdedicated to the Car Wash Association’s (CWA) aairs and even greater emphasis on our ALLEGO TALKS ELECTROMOBILITY role representing members’ interests with the ACCENTURE ON HOW THE FORECOURT IS GETTING PERSONAL UK and Scottish Governments and the devolved TOTAL RETURNS TO THE UK WITH HARVEST ENERGY assemblies. BUSINESS I am delighted that the publication continues BUSINESS RATES UPDATE FROM MUA to generate so much interest and acts as a starting CHRISTIE & CO’S PROPERTY VIEW point for developing discussion at our popular “Business Breakouts” and Roadshows. Details of LEGAL UPDATE FROM MILS these important regional events, when we bring RETAIL PRA/CWA and key suppliers to meet members, are FORECOURT TRADER OF THE YEAR to be found on our website www.ukpra.co.uk Throughout next year, we will be focusing on alternative fuels – with electricity supply, charging Who’s who at the PRA points, forecourt safety issues and hybrid/pure PRA MANAGEMENT TEAM Aziz Patel, The Brookeld Group electric vehicles all commanding close attention. Brian Madderson, Chairman Hemant Tandon, Park Garage Group There will be ample time to meet suppliers and 07768 608332 [email protected] Mark Wilson, Fraser’s Retail other retailers to discuss your views and concerns at Gordon Balmer, Commercial Manager our events. 07771 834073 [email protected] PRA TECHNICAL COMMITTEE Gordon Balmer, PRA Roadside retailing is denitely not an industry Phil Monger, Technical Director 07831 327990 [email protected] Matthew Bellamy, Certas Energy sector on its knees, but one that is displaying Ray Blake, Technical Manager Ray Blake, PRA renewed optimism and strength for the future as 07496 967269 [email protected] Nicholas Brocklehurst, Westbridge Motors you will see by reading the pages that follow, with Steve Coombe, Membership Manager (Northampton) Ltd thanks to all the contributors for their extremely 07831 373205 [email protected] J Brownsey, Fordingbridge Garage Rodney Carter, Vapour Control Systems valuable insights and to all advertisers for Alexander Russell, Director of Strategy 07881 502581 [email protected]π Michael Garner, The Garner Group supporting this publication so generously. Gill Howkins, F Howkins and Son PRA EXECUTIVE COMMITTEE Graham Lambert, St Michaels Garage Ltd Brian Madderson, Chairman Andrew Lawrence, Lawrence Garages Mike Garner, The Garner Group Ben Lawrence, Lawrence Garages Ashley Kay, The Kay Group Emma McVie, Southern Co-operative Sue Kembrey, Stanishawe Services Phil Monger, PRA Graham Lambert, St Michaels Garage Ltd Barry Onions, Petroassist Andrew Lawrence, Lawrence Garages (London) David Sommers, Hampshire Trading Standards Cover image: Shutterstock Paul Suchodolski, Rontec The Retail Motor Industry Federation (RMI) is a leading automotive trade body in the Publisher: Simon Lewis UK, representing franchised car PRA MARKET REVIEW is published by Editor: Tracy West and commercial vehicle dealers; Lewis Business Media Ltd, Art Editor: Sarah Crowhurst independent garages; bodyshops; motorcycle dealers; petrol Suite A, Arun House, Office Village, Sales: Rachel Hallett retailers; auction houses and cherished number plate dealers; River Way, Uckfield, TN22 1SL Printed by: Stephens & George Print Group, who provide sales and services to motorists and businesses Tel: 01825 983105 Goat Mill Road, Dowlais, Merthyr Tydfil, CF48 3TD across the UK. Fax: 01825 983108 ©Lewis Business Media Ltd 2020 201 Great Portland Street, London W1W 5AB Email: [email protected] All rights reserved. Tel: 020 7307 3598 • Fax: 020 7307 3406 • www.ukpra.co.uk www.ukpra.co.uk 03 REVIEW OF 2019 Market Review 2020 : LULL BEFORE THE after the Volkswagen ‘dieselgate’ scandal. While there is no imminent UK ELECTRIC STORM? ban planned for diesel cars, under the Government’s 2017 UK Air Quality plan, PRA and CWA chairman Brian Madderson reviews the key the sale of both new diesel and petrol developments aecting our industry in 2019 and beyond cars will be stopped by 2040 Consumers and eet operators have been moving quickly to change he result of the General Election businesses, plus investment in exciting from diesel, with new registrations in December returned Prime new developments. falling by 22% year-on-year, and whilst TMinister Boris Johnson with petrol car sales have increased slightly, a clear majority for the new-look FUEL alternatively fuelled vehicles had record Conservatives to deliver Brexit as With so much emphasis by scientists sales in November 2019. soon as possible. For business and and environmentalists across the The publication of Road to Zero by the consumer, the prospect of greater globe on the adverse impact of climate the Department for Transport proposes economic certainty and growth in 2020 change on weather systems producing that by 2040 no internal combustion is very welcome after three long years exceptional rainfall and oods, heat engines (ICE) will be permitted in of delay and procrastination – we wish and droughts, ice melt and oceans new cars and there are now pressures everyone a successful New Year. rising and accusatory ngers pointing to bring this date forward to 2035 or As we look back on 2019, the at the oil industry, it really does feel like even 2030. Local authorities are being roadside retailing sector has the lull before the (electric?) storm. Not encouraged to introduce their own outperformed almost all other retail only that but air quality has become policies and Bristol is set to become sectors such as high street shops, a major issue at a local level with hotels, restaurants, care homes lawyers taking governments to task and pubs. Property asset values and winning High Court judgements “Consumers and eet have increased, cashow has been that impose timescales and stringent strong and very steady on the back targets. operators have been of improving fuel and shop margins. Diesel cars, especially older ones, are moving quickly to Recent meetings with banks have said to produce more nitrogen oxides conrmed their continuing appetite to (NOx) than petrol cars. They have change from diesel” lend to our sector, which in turn has come under scrutiny over concerns ensured good demand for existing about their emissions, especially EG’s Barton the rst city in the UK to ban diesel Upon Humber site vehicles in its city centre. There will also be a wider Clean Air Zone (CAZ) which commercial diesel vehicles, such as buses, vans and lorries, will be charged to enter, unless they meet emissions standards. These proposals need Government approval before coming into force in 2021 Drivers of more polluting cars including most diesels, have to pay a daily fee to drive in central London under the Ultra Low Emission Zone (ULEZ), which came into force in April 2019 to help tackle dangerously high levels of air pollution in the capital. This was 17 months earlier than originally proposed. In October 2021, the zone will be expanded from the North Circular Road at the top and down to the South Circular. Other cities across the UK are also taking action to improve air quality and reduce pollution. These include: Aberdeen, Dundee, Edinburgh and Glasgow: The Scottish Government has promised low emission zones for each ▹ 04 www.ukpra.co.uk Supporting independent dealerships Going places together 24/7 >20 500 service from our supply locations in-house drivers dedicated UK team nationwide We have what it takes to ensure your business succeeds. To find out more about our winning formula, call our Territory Managers 020 7404 7700 greenergy.com/independent-retailers THE NATIONAL BRANDED WHOLESALER FOR ESSO 005_PRA_2020.indd 1 11/12/2019 14:22 Service driven business solutions Health and Low cost Realtime Online and safety payments fuel loss face to face specialists made simple detection staff training For information contact your friendly team of experts today. 01772 790901 [email protected] www.suresite.co.uk Suresite® is a registered trade mark of Suresite Group Limited © Suresite Group 1119SS 006_PRA_2020.indd 1 11/12/2019 14:23 REVIEW OF 2019 Market Review 2020 and are committed to further rapid expansion. Not only are the ‘big four’ supermarkets being hit by this external competition, they are being adversely aected by cannibalism: losing high margin main store sales to their fast-growing own brand convenience stores: eg. Tesco Express and Metro, Morrisons Daily and Sainsbury’s Local and also increasingly to online shopping where the eye-watering labour costs of picking, packing and delivery virtually eliminate previous margin levels. This has forced the ‘big four’ to take more margin from fuel so closing the price gap on other players ▹ of these cities between 2018 and 2020.