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     Fuel-Shop Link

All retailers know that fuel pricing influences store traffic and hence store revenue and profit. The key questions are how strong the influence is, how it varies by site and over time. Answers to these questions help retailers manage fuel pricing in such a way as to increase overall site profitability, by considering the relative contribution of both fuel and store and how they interact on a site-by-site basis.

KSS can deliver answers to these questions and help retailers make appropriate use of the linkage through the way they manage fuels pricing

Stage 1 is data analysis and modeling to establish the relative strength and nature of the fuel-shop relationship, by site and over defined time periods. A report detailing the findings has value in its’ own right, in describing the relationships and indicating when and at which sites the relationship can be used to positive effect.

Stage 2 takes the findings from stage 1 to configure an extension to the PriceNet retails fuels pricing solution to help retailers set annual budgets for fuel volumes that will maximize the integrated margin for each site.
Once budgets are set, Fuel-Shop Link will track, analyze and report on progress. Low-performing sites are brought to attention, exceptions are highlighted and users are continually updated on the current strength of the fuel-shop relationship and the impact of fuel pricing on shop trends (volume, profit and unit sales). 

In  addition to helping operators steer towards maximizing their integrated margin, Fuel-Shop Link can help to fine-tune retail fuels pricing tactics, for example to take advantage of a stronger relationship between fuel and store at the weekends.

Benefits:

• Increase overall site gross profit margins
• Reduce instances of adverse shop performance caused by fuels pricing tactics
• Maximize contribution of major site profit centres toward overall profitability
• Gain unique insights into the dynamics of fuel-shop relationship - by site, by time period
• Deliver incremental sales by forward-planning for local events or seasonal demand patterns

Features:

• Set budgets for fuel and shop that will maximize integrated margin, by site
• Manage progress towards budgets via dedicated screens, reports and trend analysis
• Adjust retails fuels pricing tactics to grow overall margins, e.g. at weekends
• Continuously updated fuel-shop relationship data, together with shop performance figures, displayed within
• PriceNet Range of reports including integrated margin (year-to-date, quarter-to-date, month-to-date), contribution (fuel, shop, combined), fuel-shop sensitivity trend

To find out more about how Fuel-Shop Link could help grow overall site profits contact your local KSS office or send an email to info@kssg.com

 

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