Movers and Shapers in CEE Forecourt Retailing

Introduction

The developing Central and Eastern European (CEE) fuel retailing market is becoming increasingly complex. Competitor activity has been pronounced as players consolidate their position in this expanding sector. This brief investigates the recent M&A activity and strategies of the most prominent retailers, establishing their 2006 network share across 9 national markets.

Scope

• A historic review of the key M&A deals that influenced the regional balance of fuel retailing power up until 2005
• An examination of those retailers actively expanding their CEE presence, outlining their new competitive positions in terms of site share
• An understanding of the key non-fuel developments in this maturing region, identifying the strategic shifts that have been made in the past year
• A quantitative assessment of the new CEE fuel retailing landscape in 2006

Highlights

Lukoil's expanding geographic coverage and upstream strength are positioning it to become the dominant regional player. The Russian major expanded its site presence by 23% in 2005 alone. OMV and MOL are, however, rivalling Lukoil in its bid to become the key CEE retailer.

Lukoil is amongst the market players incorporating non-fuel sales and product differentiation into their expansion strategies. Some 99% of Lukoil sites and 100% of OMV branded outlets already have a shop. OMV is converting its Romanian sites to the acquired Petrom brand as only a fifth of Petrom filling stations currently have a forecourt shop.

Historically PKN accompanied OMV and MOL as a key mover and shaper of the CEE landscape. However, PKN has been in a strategic quandary over where to direct its investments. Its lack of focus on upstream activities compared to OMV and MOL means that it is behind them in terms of market valuation, decreasing PKN's market dominance.

Reasons to Purchase

• Ensure an understanding of the key acquisitions made in CEE forecourt retailing in 2005 and how this changes the market landscape.
• Assess how suppliers intend to maximise their market position by incorporating non-fuel sales and product differentiation into their proposition.
• Benchmark the site shares, fuel propositions and non-fuel activities of the CEE region's key movers and shapers.