South Africa’s hidden retail giant

As fuel retail sales decline globally and in South Africa, forecourts are shifting focus to non-fuel retail, with convenience stores, food services, and multifunctional spaces driving growth and redefining the industry.

Nedbank national retail services manager Karen Keylock recently explained that the fuel retail sector has been in decline for several years.

She said this decline, which is happening for several reasons, is expected to continue.

“The long-term expectation is a 9.2% decline in global value to $79 billion (R1.46 trillion) in 2030, driven by efficiency improvements, regulations to curb emissions, and the rise of electrification and shared mobility,” Keylock said.

“On top of this, consumer behaviour is changing, with more people working from home and shopping online.”

“However, the decline in fuel retail income is expected to be offset by gains in non-fuel retail, with global forecourt value expected to increase by 36% to $30 billion (R552.76 billion) in 2030.”

A study undertaken by Nedbank’s research partner, Trade Intelligence, showed that South African trends align with global expectations.

“While fuel retail sales in South Africa have dropped by 7.6% over the past 5 years, the number of fuel station forecourts has increased significantly, with forecourt convenience store turnovers increasing by 14% last year alone,” she said.

Lightstone research from 2018 revealed that the average South African visits a fuel forecourt 10 times a month.

According to the latest Lightstone data as of 2025, this number has dropped to, on average, 7 times over the last 12 months.

Interestingly, few of those visits are for refuelling. Trade Intelligence said a notable 74% of visitors shop at the grocery store, 68% buy takeaways, and many use ATMs and grab a coffee on the go.

The Fuel Retailers Association (FRA) – another key Nedbank partner in the sector – believes that South African fuel and convenience retailers need to shift their focus from servicing vehicles to meeting the needs of drivers and passengers.

“This means viewing fuel forecourts as ecosystems that include fuel, ATMs, quick service restaurants, grocery stores, and more, essentially replacing the old-school corner café or tearoom,” Keylock explained

To really thrive, Keylock said that fuel retailers must think outside the box to create a competitive edge.

“International fuel retailers are way ahead in this sphere, and South Africa can learn from countries like Thailand, Brazil, and Japan,” she said.

At a recent FRA Conference, Mark Wohltmann from the National Association of Convenience Stores in the US outlined cutting-edge trends in forecourt convenience store retailing.

According to Wohltmann, several interconnected trends can help fuel retailers diversify their reliance on fuel income.

Firstly, he noted the importance of architecture, pointing out that prioritising design over function creates a postive atmosphere.

He urged fuel retailers to consider making the forecourt the backcourt, as the fuel is no longer the main attraction.

Increased urbanisation also presents opportunities, according to Wohltmann.

Since people now live in smaller apartments, they need conveniently located laundromats and ready-made meals. Stylish, comfortable co-working spaces with great WiFi, coffee, and food are also in demand.

Beyond basic offerings like milk, sweets and pies, food service offers great potential, particularly coffee.

Wohltmann conducted unofficial research at conferences held globally. He learned that close to 50% of fuel retailers offer filter coffee and other basic options, followed by 23% offering a Barista-style experience.

But the fuel stations that are truly maximising this opportunity are the 15% offering the full coffee shop experience, with seating, coffee shop-style food and co-working spaces.

A solid example is Thailand’s Café Amazon, owned by PTT Public Company Limited, which is Thailand’s largest state-owned oil and gas company. Since its launch in 2002, Café Amazon has become the world’s sixth-largest coffee chain.

Wohltmann added that success in convenience retail hinges on understanding the local customer and matching the perfect experience.

For example, a coffee shop at a fuel station in Helsinki will have a vastly different look and feel than one in Dubai.

The first is likely to have a warm and cosy atmosphere with dark wood and plush seating, while the latter will probably be lighter and brighter with pale wood accents and a feeling of openness.

Wohltmann referenced Japan, especially Tokyo, as being particularly successful in terms of stores having adapted to meet specific local needs.