1. Notes from a big country
The rise and rise of the super stores
Insights for Australian
Petrol & Convenience
"Five years ago our (McDonalds) competitors were KFC and Burger King, then it
was Starbucks and in my last year we were worried about convenience
retailers like Wawa and QuikTrip"
Steve Turner (formally with McDonalds) - now Head of Food Service at RaceTrac
"We are always working to create the business that will put Sheetz, as we know
it today, out of business"
Steve Sheetz, ex CEO and current
Board Director of Sheetz

2. ~150,000 C stores owned by
90,000 operators of which
51% are single store
owners
The overwhelming majority of US gas stations are no better
than those in Australia

3. The changes we have identified in our own market
structure are equally apparent in the US.
Traditional mainstays of the gas station / C store (Fuel,
Tobacco and Beer) are declining in sales and squeezed
of margin.
Competing retail channels are competing for the same
customer missions.
Oil companies are moving upstream and out of retail.

4. In the midst of this, some ‘smaller’ regional players have grown their market presence
and advanced beyond their home markets.
They have done this by redefining the business they are in. They are no longer just a gas
station or just a convenience store. They are constantly evolving their offer and reach
They have leap frogged their immediate competition and customers have responded
favorably.
Large food service stores (500sqm+), huge canopies (20+dispensers) and multiple parking
spots (40-50 spaces).
Some of the best of the major players, Sheetz, Wawa, QuikTrip and RaceTrac - all private
companies with long histories.

5. Running contrary to the falling fuel volumes the leading operators are constructing
500sqm + stores on 6000 sqm + blocks resulting in an overwhelmingly compelling offer

6. These brands are part of the ongoing
blurring of traditional channel lines
across multiple retail sectors.
It’s getting hard to tell the QSR from the
gas station.
The drug stores are selling sandwiches
and the grocers are offering sit down
meals.

7. They have become category killers in gas
The bigger the better.

11. The evidence is that there is no safe middle
ground for food service.
You are either in food service (Made To
Order) or you are not
As MTO offers proliferate traditional offers
(Made To Go) will continue to give way

12. With food service
offers commensurate
to QSR’s
Menus and amenities that rival the very
best QSR’s

13. Always open cleaner, brighter, safer,
smarter and more accessible stores

14. These brands are loved by their
customers and by their employees

15. They have created compelling
offers dominating their home
markets and are now exporting
it across state borders.
The impact on traditional gas
stations / C stores is devastating.
These stores combine superior
fuel facilities combined with QSR
standard food service, the
breadth of range expected from
a C store and package it a clean,
safe and comfortable
environment.
For existing P&C operators in the
Australian market it represents a
threat.
Not necessarily from these US
retailers but from anyone who
sees the broader opportunity
their strategies represent.