21/09/22; Inside Retail
Shell Philippines plans to open retail stores and eateries in more than one-third of its gas stations nationwide by 2025.
The plan is part of the oil company’s strategy to increase revenue beyond gasoline, and it plans to host a variety of brands at its gas stations, including Starbucks, Adidas, McDonald’s and Jollibee.
In an interview with Bloomberg, CEO Lorelie Quiambao Osial said the company wants non-fuel retail revenues to drive growth by at least 15 per cent annually and create an income stream that eventually accounts for 25 per cent of sales. The business intends to open shops and dining establishments inside 550 of its 1400 stations across the country by 2025.
“We are transforming what you’d normally call petro retail stations into mobility destinations,” Osial told Bloomberg.
“Before it was motorist-driven. Now, it’s something for the passengers to enjoy as well.”
According to a McKinsey report, many oil and gas corporations plan to dramatically scale up the share of their revenue derived from nonfuel retailing, including China’s Sinopec, Thailand’s PTT (which owns Cafe Amazon), and Malaysia’s Petronas.
Changing consumer behaviour and the impact of Covid-19 are driving the change, according to McKinsey, which says with more people working from home, shopping online and buying groceries from convenience stores rather than supermarkets, consumer purchasing of gasoline will decline due to fewer car journeys.
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