A powerful shift for the fuel retail market
October 30, 2020
RESEARCH REPORT
In brief
In brief
- The fuel and convenience retail industry is facing disruptive threats, spurring a strategic shift for the industry.
- Accenture analysis shows North American fuel demand could shrink by as much as 26% (40 billion gallons) within the next 15 years.
- Disruption will be more acute among developed economies—across the dimensions of technology, society, policy and business models.
- Accenture shares three critical steps fuel retailers can take to actively address disruption today.
The fuel and convenience retail industry is facing disruptive threats, spurring a powerful shift for the industry.
What elements are contributing to this shift?
Supply
The supply-side shock stemming from OPEC+ and engulfing North America.
Demand
Peaking per capita energy consumption indicating that we will need less energy to meet tomorrow’s consumer needs.
Value
An abundance of energy supply sources creating a lower-cost supply curve, dramatically slashing enterprise value.
World
No clear path to limit rising temperatures to mitigate the effects of climate change without a drastic change in behavior.
Trust
Consumers, employees and investors seeking a lower carbon footprint, greater business integrity and higher returns.
Globalization
Serious attempts to solve climate change will require coordinated policymaking.
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North American fuel demand could shrink by as much as 26% (40 billion gallons) within the next 15 years.
Dimensions of disruption
Disruption can be more acute among developed economies—across the dimensions of technology, society, policy and business models.
While individual changes can go unnoticed, they add up to create industry disruption, which in turn, can accelerate how business model archetypes evolve.
3 ways fuel retailers can actively address disruption today
1. Transform the heart of the business
Increase efficiency and unlock trapped value to reinvest growth.
2. Grow the heart of the business
Apply new technologies to fuel; continued innovation and investment; expand faster; outpace expectations.
3. Rethink the benefits and business models
Embrace new technologies, creating innovative products and services.
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