Expert Reveals Trends, Demands, and Elements For Retail Petrol Station Success in Tanzania and East Africa.
By serving as an advisor and a hub of information and resources, our movement hopes to bring us together to elevate the energy industry in Tanzania and Africa. In this interview, Simon Martin, VP international Sales of Kalibrate, a data analytic platform for the fuel retail sector. He talks about the growth trends, demands, and elements for petrol station success in Tanzania and East Africa.
HUSSEIN BOFFU brings the excerpts.
1. How do you see the future of retail fuel stations in Tanzania and East Africa?
In general market dynamics appear to represent growth opportunities for both investors and entrepreneurs. Demand for conventional fuels (such as diesel, petrol, lubricants, and LPG) will remain for decades, and non-fuel retail will become increasingly relevant in terms of convenience retail, food service, car wash service, and other ancillary offers.
2. From your perspective, what are the key elements for retail fuel station success?
Location of sites is fundamental – selecting optimal sites relative to demand pockets, and enhancing consumer offer at existing locations (facility/merchandising/operations) across the fuel and non-fuel offers are going to be essential for fuel retailers to maintain and grow their business in the market as it evolves.
3. What is your advice for investors and entrepreneurs seeking to start a new petrol station or acquire an existing fuel station?
Any entrepreneur looking to establish themselves in the petrol station business needs to first ensure they are going to be investing with a high probability of success – whether that be an existing site being acquired or a new industry location, the investor should make an assessment of the consumer demand, competitive environment and the composition of the location they are investing in.
Utilizing a single site analysis service such as that provided by Kalibrate will provide a detailed overview of market and consumer dynamics, as well as a volume forecast that will either support the investor and give confidence or indicate that a location will not perform at the required level to generate a return in an acceptable time frame.
All this can be achieved before commitment to property, acquisitions, or any significant capital outlay.
4. What is the importance of data analytics in the fuel retail sector?
As markets evolve, they become more competitive and more complex. Consumer behavior continues to evolve and has accelerated in the post-COVID era.
As such, many of the prior knowns concerning site selection and optimization are now not necessarily still correct. The use of appropriately combined data and predictive analytics such as those offered by Kalibrate can validate which assumptions are correct, and unlock new opportunities and ideas for fuel retailers to further develop their business.
5. What are key trends in the retail fuel station industry?
Continued enhancement of the basics (quality/quantity of road fuels offered) – well-planned locations situated proximate to demand. Also, non-fuel offers development like food services, restaurants, mini supermarkets, coffee shops, car washes, garages, and other complimentary services. The last trend is international and oil marketing companies driving up standards to keep pace with consumer needs.
