The CEO of Maxol has said the cap on retail floorspace of 100m² in the forecourt and convenience retail sector should be lifted to facilitate growth.
Brian Donaldson said the service station of 2024 is very different to that of ten years ago, and retail planning guidelines, which have not been reviewed since 2012, are out of date.
He said the cap is one of the biggest impediments to business growth.
"In Northern Ireland, we can put in 350 or 400m² of retail space without those restrictions," he said. "It is preventing us from offering more choice, more range, more value, but also impedes us on how we future proof our business."
More than 40% of Maxol's gross profit now comes from non-fuel sales, which, the CEO said, is central to the repositioning of the company as a leading convenience retailer.
"Income from convenience retail and food and car washing together with new mobility offerings have grown significantly in importance for the group," he said.
Maxol has announced a partnership with Dunnes Stores, and currently has a trial up and running at a service station in Templeogue which is stocking products from the Simply Better range.
"We are very privileged to work with such a retailer as Dunnes Stores," Mr Donaldson said.
Maxol reported its trading results for last year, which showed group turnover was €756m which represented a decrease of €120m on the previous year, due to a drop in the cost of fuel.
Group profit after tax was €27.5m for 2023. The group finished 2023 in a strong financial position, with no net bank debt and a substantial cash surplus.
Mr Donaldson forecast an even stronger performance for 2024 following an investment programme of some €65m during 2023/2024.
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EV slow down
Maxol's investment strategy includes the roll out of more ultra rapid EV hubs, however Mr Donaldson explained that the slowdown in EV adoption could impact the speed at which the business would develop its EV charging network.
"We launched our first Ultra Rapid EV hub for the Republic of Ireland in Newbridge earlier this year. This followed the launch of Northern Ireland’s first dedicated Ultra Rapid EV hub in Kinnegar, Co Down in 2022 and Maxol Braid River, Ballymena in 2023," he said.
"However, EV adoption has slowed; new EV sales to October are down almost 26% on 2023. While we recognise that our sector has a key role to play in supporting EV adoption, we are faced with significant challenges," he said.
"Planning delays and access to power capacity have been issues from day one, but now we are also concerned about developing our charging network too quickly, when the demand isn’t there. EV technology is evolving continuously, so we have to manage the pace of our own development to safeguard against becoming outdated too soon," he stated.
"The market is experiencing a chicken and egg conundrum and all stakeholders, particularly government, need to revisit ways in which drivers can be better incentivised to make the switch to electric. Notwithstanding, we will open our next Ultra Rapid EV hub in Rathnew in 2025 and a number of other sites, where we can see the demand, are being considered," he added.
Acquisitions
The investment included the acquisition of nine new sites, which are now operating under the Maxol brand.
It also included the redevelopment retrofit of 12 stores in the Republic and five in Northern Ireland with innovations such as new food concepts, upgraded car wash and pay at pump facilities, Wi-Fi, more parking and more choice of goods and services for customers.
The group said the redevelopment of an additional three sites in Ireland and two in Northern Ireland are nearing completion, including M3 Mulhuddart, where there will be a new Zambrero and Supermacs drive-thru.
Maxol’s first Ultra Rapid EV Hub in Ireland in Newbridge also launched this year, featuring six high speed 200kw chargers offering a 15 minute charge time.
The group said Burger City, is now part of the enhanced food offering at Maxol Adamstown and Maxol M7 in Kill.
"This has been a very big year for the company with acquisitions and redevelopments dominating our growth strategy," said Brian Donaldson.
"We remain hugely ambitious and will go into 2025 looking to acquire more sites in good locations that present strong convenience retail opportunities. We are focused on sites where we know that non-fuel sales can yield over 67% of gross profit, in line with the repositioning of the Maxol business."
