Why are Petrol Stations closing?
Why are Petrol Stations closing?
Author
Discussion

Jetl3on

Original Poster:

1,409 posts

226 months

Wednesday 5th November 2008
quotequote all
A number of stations across the capital have been replaced by apartments, whats going on? are they trying to make it hard to buy petrol and therefore we will drive less and keep prices high as demand increases? seems to be Esso and Texaco mainly...

Blib

48,122 posts

227 months

Wednesday 5th November 2008
quotequote all
No money in it for the independents. The older 'suburban' stations don't have enough space for the retail general store which is where the profit is nowadays.

haggy

1,955 posts

244 months

Wednesday 5th November 2008
quotequote all
Jetl3on said:
A number of stations across the capital have been replaced by apartments, whats going on? are they trying to make it hard to buy petrol and therefore we will drive less and keep prices high as demand increases? seems to be Esso and Texaco mainly...
Always seem to have gone - petrol station - used car site - apartments....what next?

sniff diesel

13,127 posts

242 months

Wednesday 5th November 2008
quotequote all
It's all a conspiracy so that we drive more to get fuel so use more overall.

Raffles

1,931 posts

260 months

Wednesday 5th November 2008
quotequote all
I guess it's cos there's no money in selling petrol anymore. It must be so competitive the profit margins will be tiny. If there's high rent and they have no space to diversify they will have to close.

Olf

11,978 posts

248 months

Wednesday 5th November 2008
quotequote all
Buying fuel is a massive ball ache nowadays. It inevitably means you experience one or more of the following...

A queue in the road to get into the petrol station
A queue at every set of pumps whilst the first set of pumps houses the owners vehicle.
No fuel at the set you chose to queue at.
No fuel at any of the other pumps either.
It takes an age or them to 'allow' you to draw fuel.
Your credit card gets raped 2 weeks later by some fraudulent sweat stinking little bd.
No watering cans,
No gloves.
No paper towels.
No Sunday Times.
No milk.
Plenty of loyalty cards.
Plenty of porn.
Plenty of kids hanging out next to the cash machine.
And inside.
And next to your car.
No toilet.
Sky high prices.
Closed. Not replaced.

Fecking pain in the arse.





Munter

31,331 posts

271 months

Wednesday 5th November 2008
quotequote all
Given the retailer makes bugger all on each liter of fuel if they cant flog you something else (e.g. Tesco), then they are in trouble.

Simpo Two

92,829 posts

295 months

Wednesday 5th November 2008
quotequote all
The small independent cannot compete with giants like Tesco, who could probably afford to give away petrol for free if they so wished.

So Mr Independent can either go bankrupt, or sell his plot to greedy developers and scamper off into the sunset with half a million.

Of course now that property has gone tits up, he's probably going to end up on the dole anyway, and when he retires his pension will be worth fk all.


jeff666

2,460 posts

221 months

Wednesday 5th November 2008
quotequote all
My old man bought our garage in 1979, petrol was 79p per gallon (remember that) we made 2p per gallon so decided to boot the pumps off and turn the site over to car sales, ive no idea how much profit an independant would have today but as soon as tesco's do there 5p off a ltr tickets the queue is around the block.

BIG BAVARIAN

452 posts

240 months

Wednesday 5th November 2008
quotequote all
most big name petrol sites are now franchises,(the big boys got out years ago)as said no profit in fuel alone, its all made in the mini mart kiosk,crisps choc bars,red bull etc,and also the supermarkets bulk buy upfront huge amounts (millons of litres a week) as opposed to the franchisee can only afford thousands of litres a week,hence the silly price differences between the two

Adz The Rat

18,932 posts

239 months

Wednesday 5th November 2008
quotequote all
We make next to nothing on fuel, as people have said the profit is made in the shop itself and we have a workshop & mot station.
Still really struggling though, it doesnt help when you have people in the paper saying that everyone should buy petrol from supermarkets that can afford to lose money on fuel.

B17NNS

18,506 posts

277 months

Wednesday 5th November 2008
quotequote all
I blame Subway

carl_w

10,762 posts

288 months

Wednesday 5th November 2008
quotequote all
Olf said:
No watering cans
They're handy if you have a Beetle with the little flower holder in the dash, but other than that I don't really miss 'em. wink

Zod

35,295 posts

288 months

Wednesday 5th November 2008
quotequote all
it's Shell stations in particularl. I can think of several that have closed in Central London in the last three years. I have a map of the remaining ones in my head.

Mark V8

1,535 posts

239 months

Wednesday 5th November 2008
quotequote all
Olf said:
Buying fuel is a massive ball ache nowadays. It inevitably means you experience one or more of the following...

A queue in the road to get into the petrol station
A queue at every set of pumps whilst the first set of pumps houses the owners vehicle.
No fuel at the set you chose to queue at.
No fuel at any of the other pumps either.
It takes an age or them to 'allow' you to draw fuel.
Your credit card gets raped 2 weeks later by some fraudulent sweat stinking little bd.
No watering cans,
No gloves.
No paper towels.
No Sunday Times.
No milk.
Plenty of loyalty cards.
Plenty of porn.
Plenty of kids hanging out next to the cash machine.
And inside.
And next to your car.
No toilet.
Sky high prices.
Closed. Not replaced.
And up to £1 to put air in your tyres.

hugh_

3,748 posts

271 months

Wednesday 5th November 2008
quotequote all
There was a massive expansion of PFSs in the 60's and 70's; those with smaller turn overs haven't replaced their tanks to date, as soon as their wet-stock records show a discrepancy, coupled with the low margins mean they aren't worth replacing in many cases.

thecremeegg

2,097 posts

233 months

Thursday 6th November 2008
quotequote all
Its simply that they cannot afford to keep going. The margins on petrol are so tiny that they have to charge a higher price, and thus people dont go there. Thats why nowadays most petrol stations have big shops, as they are what makes the money.

The petrol station I work out is a Shell but its run by the co-op in a franchised manner. We sell nearing on £200k of fuel a week, and from that prob only make a few £k in profit. That then has to go on maintaining the forecourt, paying staff etc etc. The shop itself makes far far more, which is the main reason we dont have pay at pump wink

As you can imagine, we sell a huge volume of petrol and make a tiny profit. Imagine a station selling a fraction of that, its just not viable

Jetl3on

Original Poster:

1,409 posts

226 months

Thursday 6th November 2008
quotequote all
thecremeegg said:
Its simply that they cannot afford to keep going. The margins on petrol are so tiny that they have to charge a higher price, and thus people dont go there. Thats why nowadays most petrol stations have big shops, as they are what makes the money.

The petrol station I work out is a Shell but its run by the co-op in a franchised manner. We sell nearing on £200k of fuel a week, and from that prob only make a few £k in profit. That then has to go on maintaining the forecourt, paying staff etc etc. The shop itself makes far far more, which is the main reason we dont have pay at pump wink

As you can imagine, we sell a huge volume of petrol and make a tiny profit. Imagine a station selling a fraction of that, its just not viable
Do staff get any employee discounts, cheap petrol? Imagine....

Edited by Jetl3on on Thursday 6th November 09:46

mcflurry

9,190 posts

283 months

Thursday 6th November 2008
quotequote all
My local Esso guy said he made more money if you buy a Sandwich and a can of coke than £20 of petrol... eek

wrighty78

6,313 posts

244 months

Thursday 6th November 2008
quotequote all
Essentially, in many cases, operators of low profit pfs's realised they were able to get shedloads of cash from resi developers for the sites...