BP Polska sees space to optimise its service station network (interview)
BP Polska, owner of around 570 petrol stations, plans to open in 2024,10 own stations and a similar number of franchise outlets. At the same time, the company sees room for network optimisation, CEO Bogdan Kucharski told an interview with PAP Biznes. The concern sees development potential in the Polish market and calls for stable regulations.
"This year we plan to open 10 new own stations, six of which will be motorway stations. We also open around 10 franchise stations every year. The network growth is a few stations a year due to network optimisation," CEO of BP in Poland Bogdan Kucharski told PAP Biznes.
"There appears to be a trend in the market towards a greater focus on quality rather than the number of stations. Many competitors are choosing to sell single sites, small station packages. We, too, are optimising the network either by selling, selling to external operators with stations remaining under our brand, or even closing," he added.
When asked if the company has been considering petrol stations acquisitions in the Polish market, Kucharski said that BP Polska is looking at market opportunities, however, the company would take a selective approach to such actions.
"(...) over 30 years of presence in Poland we have built such a solid position that we would approach station acquisitions very selectively. I do not see any ground to act aggressively, especially as there is a lot of room to optimise the network, and large acquisitions would be difficult or impossible due to possible remedial conditions."
According to Kucharski, on a macro scale, Poland does not need more than 7,000-7,500 fuel stations.
The CEO believes that networks will be optimised. The format of the stations will also change.
"While today a visit of a customer to a station lasts about 5 minutes on average, including refuelling, buying coffee, etc., with the progressive electrification of the market, the customers will need an entirely different offer because when charging an electric car, they will spend 15–20 minutes at the station," he pointed out.
"Stations' formats will have to be different, so some places will close, and others will open," he added.
As Kucharski noted, the BP group has tens of thousands of electric cars charging points globally, while in Poland it is just starting in this area.
"We have launched charging points at a new motorway station near Lodz and another one is waiting for permits on the road between Bialystok and Warsaw," he reported.
"We assess that it is not yet the moment to develop this project on a large scale. We will do it selectively, on new sites, mainly motorways," the CEO added.
Bogdan Kucharski stressed that BP Polska is investing heavily in its non-fuel offering.
"We have been running the Wild Bean Cafe concept at our stations for almost two decades. In addition to that, we are heavily betting on in-store sales. We have tried to develop this ourselves, tested it with external partners and are now developing a network of Auchan shops at our stations. There are almost 80 outlets, with a few more coming by the end of the year and at least a few dozen more in the next year. Once the offer is proven, we can consider introducing it to franchised outlets," the CEO said.
"Fuel cards are an important part of our offer, and we are developing this segment too, increasing the package of additional services. We are also developing the loyalty offer," he added.
In an era of inflation costs, including energy and labour costs, the petrol chain is taking optimisation measures, such as putting in more efficient refrigeration or air conditioning equipment, launching self-service checkouts.
The CEO of BP in Poland assesses that the Polish market has great potential for development.
"The new government has announced that it will allow more focus on business, and this can be seen. Business finds itself best on its own in the economic environment and makes rational decisions. We will all be able to focus on investing resources, including in the energy transition," Kucharski said.
"There are signs that there will be a willingness to liberalise regulations, to allow open competition, and this has been violated in the case of some infrastructure projects," he added, pointing, for example, to the way concessions were granted for offshore wind farms in the so-called phase II.
As Kucharski assessed, the market is still developing, the peak of the demand mountain is not yet visible.
"There is probably still a decade of economic development ahead of us - new roads, motorways, bypasses are being built, so there are opportunities to invest, but the interference in the economy that we have seen excessively in the last year puts a question mark over the long-term credibility of the local market, the predictability of the law, competitiveness," the BP Polska's CEO said.
Anna Pelka
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