Cooroy Service Station EIA 21_06_16

3.0 COMPETITIVE NETWORK
3.1       KEY TRENDS

Service station development in South East Queensland is changing, driven by numerous trends
in consumer behaviour and other market forces. This Section examines the trends that may
influence development at the subject site, particularly as they pertain to fuel retailing and fast-
food.

Fuel Retail

         The number of service station sites in Australia has reduced from around 20,000 in 1970
          to around 6,300 and has been one of the most significant changes in this sector as
          independent operators were absorbed through site acquisitions and mergers.

         The entry of the major supermarket chains Coles and Woolworths into the fuel retailing
          sector through partnerships, relationships and direct supply, has also had a significant
          impact on Australia’s fuel retailing sector. The major supermarket chains Coles and
          Woolworths now control around 45% of the fuel retailing market, increasing the
          competition on fuel prices and ensuring that the industry remains a high-volume, low-
          margin business, in turn requiring the diversification of service stations to include better
          convenience store offers and a wider range of services to remain viable.

         The ACCC estimated that the profits generated by convenience stores at service stations
          were significant compared to the profits from fuel as “the average net profit on petrol
          over the past 6 years was 0.79 cents per litre.” (2011).

         The very narrow margins for fuel retailing mean that service stations need to offer a wider
          variety of products/services in order to be viable. Convenience retailing, servicing of
          vehicles, vehicle hire, cafes, prepared meals, phone credit top-up, ATMs, bottled gas and
          ice are some of the other means of supplementing the core fuel retailing business.

         Larger ‘service centres’ are establishing providing ‘one-stop-shops’ for refuelling, retailing
          and refreshment. These centres are most commonly located in outer urban fringe areas
          with exposure and access to major arterial and commuter road networks.

         The emergence of service centres including the co-location of complementary service and
          vehicle oriented activities has presented opportunities for both fuel retailing and other
          outlets such as fast food, drive through coffee and service industries to enjoy the benefits
          of co-location with access to motorists and for motorists to enjoy improved accessibility
          and convenience.




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