Cars fuel Spar sales
Redditch is home to one of teh country's most successful forecourt operations, a family business thst stays alive to new ideas. Tony Hurren reports
A Spar petrol forecourt shop at Redditch, Worcestershire, is taking more than £22,000 a week and there are clear signs that this impressive figure can still be improved upon. When weekly fuel sales of £60,000 are added to the shop turnover, it becomes clear that the forecourt operation run by John Bryant & Sons is one of the best in the UK.
The business was founded by the Bryant family 25 years ago, but the site was flattened and redeveloped in 1990 at a cost of £500,000. It was then dispensing Esso fuel, but switched to BP three years ago. The site includes a number of units that John Bryant leases to individual business people.
Before the site was flattened, the shop was only 500 sq ft, stocking mainly confectionery, tobacco and soft drinks. Turnover reached £7,000 a week.
Managing director Ian Bryant believes that shop sales can still grow, but he says tobacco and grocery, while still responsible for a large chunk of the turnover, are at best static.
He adds: "We need to have a reappraisal at least every two years. We get our heads together with our wholesaler, AF Blakemore, and always come up with an idea or two that can take the business forward.
"We work closely with our wholesaler. As a BP dealer we could use that fascia, but Spar has worked well for us for more than a decade and I believe the group is at the forefront of c-store trading."
The last major development was the installation of a Food to Go section two years ago at a cost of £30,000. This is the big growth area. Current weekly sales from hot and cold food are around £2,500 with large sausage rolls (320 a week), bacon & cheese turnovers (210) and meat & potato pasties (190), filled sandwiches and baguettes the demand lines.
The 1,600 sq ft store had a £25,000 refit six years ago when a lot of the money was spent on new refrigeration, including frozen food cabinets, chillers and dairy units.
Both the fuel and shop sides of the operation open round the clock, although there is a serving hatch function between 11pm and 5am. The gross margin from shop sales is 22%, although Food to Go returns 53%.
The Spar shop carries a comprehensive c-store inventory, with small sections for greetings cards, batteries, films, motor accessories, household cleaners, toiletries, chemist sundries, cut flowers, coal and logs.
Newspapers and magazines have always been part of the mix, but there is no off licence. Store manager Nicky Baxter says: "We have a limited amount of space and had to opt for either Food to Go or an off licence. We knew the difficulties that forecourt sites have in obtaining a drinks licence, went for the fast food option and have no regrets."
The Spar store has had the national lottery since its inception and offers a number of services, including photocopying and a Moneybox ATM, which was installed six months ago.
The store is situated in the Park Farm area of Redditch, on a main road which links the M42 with the town centre. It has no immediate competition and obtains its trade from nearby factory units, passing trade and from what Baxter describes as a "rough and ready housing estate".
There are Tesco and Safeway superstores a mile away, and a Sainsbury store about two miles from the Spar shop.
SALES BREAKDOWN
- Tobacco 37.8%
- Lottery tickets 17.5%
- Grocery (including confectionery, soft drinks and non-foods) 15.1%
- Food to Go (hot and cold) 9.9%
- News and magazines 4.7%
- Phonecards 4.4%
- Chilled and frozen 3.4%
- Milk, bread and cakes 3.3%
- All other (including car accessories) 3.9%
SITE FACTS
- Store size: 1,600 sq ft
- Trading hours: 24 hours a day (serving hatch between 11pm and 5am)
- Shop sales: £22,685 per week
- Food to Go sales (hot and cold): £2,500 per week
- Night time fuel sales: £1,400
- Night time shop sales: £500
- Fuel sales: £59,749 per week
- Lottery tickets: £4,000 per week
- Shop gross margin: 22%
- Food to Go gross margin 53%
- Staff: manager, assistant manager, four full time cashiers, one full time Food to Go assistant and six part-time
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