Across Australia, petrol and convenience (P&C) retailers are embracing technology to improve efficiency and security on the forecourt, adding value to their customers and improving their bottom line.
Fuel is the most expensive and high-risk product that petrol stations offer. It is also one of the smallest profit margin products, so even small losses can have a big impact on the bottom line of the business.
Petrol theft is costing Australian retailers as much as $82 million annually and is on the rise as the cost-of-living increases for Australians. This is according to SenSen, whose Scancam technology uses artificial intelligence to help prevent theft at the bowser.
“Scancam’s affordability and simplicity make it an attractive choice for fuel stations seeking effective anti-theft measures,” said the spokesperson.
“For the consumers that do the right thing, this system helps to maintain Australia’s efficient and customer-friendly fuel retail system and helps fuel retailers to keep prices down,” they said.
SenSen’s Scancam system combines cutting-edge technology, including computer vision, AI, cloud computing, and the Internet of Things (IoT), to address the ongoing problem that fuel retailers face – post-payment for fuel means that some people drive off, having filled their car, without paying.
To work, Scancam scans license plates as vehicles approach the fuel pump. Within seconds, it alerts the operator if the motorist is a known offender who should not be allowed to post-pay. Additionally, Scancam displays license plate information prominently on-site to ensure motorists know they’re being monitored and to deter opportunistic drive-offs.
If a drive-off occurs without payment, Scancam generates an incident report, including video footage, with minimal management follow-up.
Scancam has grown fast, and over the last two months there has been 38 per cent growth in new orders, facilitating the recovery of more than $2.5 million for retailers, including 7-Eleven, Ampol, bp, Caltex, EG, Liberty, Metro, OTR, Puma, S24, United and Vibe.
The SenSen spokesperson explained the Scancam system and how it has been helping to prevent fuel theft across Australia’s major petrol retailers.
“Scancam directly addresses fuel theft, protecting retailers’ profits. Its rapid installation and seamless integration with existing workflows make it easy for retailers to adopt. The automated report process minimises management effort, ensuring key personnel can focus on customer service,” they said.
“Furthermore, Scancam partners with Fuel Recovery Services, a debt collection agency, to handle the recovery process without additional fees or time from the business owner.
Scancam stands out as SenSen’s flagship product for the convenience sector due to its effectiveness in preventing fuel theft.
The convenience sector faces increasing pressure to adopt new technologies. Scancam’s integration of AI, computer vision, and IoT demonstrates the industry’s commitment to staying ahead.
“One thing that’s important to note is that Scancam benefits from what we call the Network Effect. The more stores that have Scancam installed the more data will be available for the AI to leverage, and the system’s ability to operate in real-time and identify likely cases of fuel theft before they occur will be enhanced,” says the spokesperson.
“This then becomes a valued service and source of data for police, too, making overall engagement between police and the stores more effective.”
EV Advancements
As demand for electric vehicles continues to increase in Australia, so to does the need for petrol retailers to invest in EV charging technology in their forecourts.
Theo Foukkare, CEO of the Australian Association of Convenience Stores (AACS) says that there is no doubt that EV charging will have a role to play over the longer term for the industry, and the positioning of charging equipment will vary by retailer, being either close to the shop or as far away as possible so as not to disrupt the flow of where the volume of fuel customers are.
“We are seeing various models of this play out globally and I believe that there is a lot more to be understood in this area prior to the right approach coming to fruition,” he says.
“The major retailers in our channel are focused on delivering fast charging experiences on their forecourts and mobility hubs, as this is what the on-the-go Australian consumer needs and now expects, along with great food, clean bathrooms, a place to sit and relax while they recharge themselves and their vehicles.
“In late 2023, the Federal Government announced its intention to legislate automotive Fuel Efficiency Standards, to bring Australia in line with the rest of the world. This has been met with mixed views by industry so it will be interesting to see how this plays out.
“It is also important to note that EVs will form only one part of the future energy types available to consumers, commercial transport, and heavy industry. Biofuels, zero-emission fuel options, and hydrogen are also seeing significant investment both globally and in Australia.”
Digital signage
Moving away from fuel and EV charging technology, there are also opportunities for P&C retailers to communicate and engage with their customers through digital signage on the forecourt, opening potential new revenue streams.
Anthony Irwin, Product Manager, Hardware and Fujivision Photo Imaging Division at Fujifilm Australia, explains how Fujivision offers a full-service digital signage solution for the convenience industry, covering all aspects of what customers would need.
“We are a part of Fujifilm and have been in the imaging business for over 90 years. Given our large footprint across various imaging areas, our point of difference is that we offer a complete solution, from project scoping, brand agnostic hardware sourcing using our volume pricing, industry leading cloud CMS with integrated analytics abilities through to an internal support team. We have a proven track record across the convenience and retail industries of installing the full suite of signage products, from LED/LCD in standard and custom solutions to fit all budgets,” he explains.
“We help to communicate the messages that retailers want to deliver. From daily specials and product focus areas through to supplier advertising, digital signage is a great way to quickly and effectively talk to your customers. This creates a more positive shopping experience that will keep them coming back. Having the ability to run a coffee special in the morning, lunch offers, snacks in the afternoon, through to dinner can all be scheduled ahead of time and pushed to multiple screens from a single PC through our cloud software.”
Within the P&C channel, LED banners are a top performing product category for Fujifilm. These are thin banners ideally suited to the top of fridges, or shelf displays and can be linked together to allow for cohesive messaging around the store.
But beyond this, Irwin says that outdoor signage is a great opportunity for retailers who have traditionally relied on static posters.
“Outdoor signage can be incorporated into the petrol pricing main signage, placed on columns and shop windows to optimise the available real estate to display targeted messages that can change depending on the time/day of the week to appeal to customers on the forecourt at that time,” he says.
Fujifilm can capture audience analytics through its signage, as Irwin explains.
“We offer the ability to measure the demographics of customers viewing the signage. This helps better understand your market and better target communication for improved sales. We can also change the content to match the people viewing it at that time,” he says.
Fujifilm has a new technology transparent LED product that it is excited to be launching. This offers the ability to cover whole shop windows into space where images can be displayed, while keeping light coming into the store.
“There is a great opportunity to sell the space on these new screens to suppliers to offset the cost of the signage and have a long-term additional revenue stream for business owners. Having your own screen network means you keep full control over what information is displayed, so you can talk to your local audience to boost presence in your community and gain more repeat business,” says Irwin.
“As the technology is so flexible, we encourage P&C customers to think outside static images on a screen. Look to movement to gain more attention and longer dwell time, so the message gets through.
“Develop offers to different demographics to create more specific interest. Content is easier to create than ever through new cloud-based services, so try different themes and see what works best.
“Balance keeping your content branding consistent as it will boost professionalism and make a better experience on repeat visits, however, update regularly to keep messaging interesting,” suggests Irwin.
Having travelled through Europe and the US in recent years, Foukkare has observed that Australia still has some way to go when it comes to the implementation of retail media on fuel pump technology that integrates digital display, prepay for fuel and ordering shop items using the digital screen.
“These are widely used in many countries globally however in Australia their use is more limited. The major retailers are investing in loyalty programs using proprietary apps to be able to deliver personalised consumer offers based on preferences as well as the ability to prepay and purchase shop items from your device,” he says.
One such retailer is 7-Eleven whose My 7-Eleven App enhances its offer for customers both inside the store and outside on the forecourt by providing customers with options that can save them time and money.
Paul Wallace, Area Lead-Digital at 7-Eleven, says: “My 7-Eleven App has Pay & Go functionality, which is active in all stores. This feature removes payment fiction by skipping the traditional Point of Sale Checkout.
“The My 7-Eleven App Fuel Price Lock feature allows our customers to search for the best price at the five closest 7-Eleven stores to their current location, and then to lock that price in to use at any 7-Eleven fuel store in Australia for the next seven days for a maximum saving of 25 cents per litre.”
7-Eleven is just one example of a retailer that is using apps well, but AACS’s Foukkare believes there is still a greater opportunity for retailers in this space.
“There are strong arguments of pay at the pump/app vs pay in-store – but my view is that retailers should allow the fuel only customers to pay outside allowing customers who want to shop to have more space and dwell time in-store while also freeing up labour to focus on customer service.
“Retailers are also investing in the adoption of various AI technology to support their compliance requirements from a health and safety perspective as well as cleaning schedules. The other area of investment is in automatic number plate recognition as a vehicle to address the growing cost of fuel drive offs.”
Looking ahead
Foukkare says that there are lots of opportunities for the forecourt in the future, from being a mobility hub to hire/drop off e-bikes and rental cars, to a place to be able to test drive a new EV as some brands don’t have any (or many) showrooms to do this.
“We will see a merging of multiple food brands into convenience retail formats either via brand partnerships with well-known QSRs or through the development of private label brands.
“Aussie’s love their drive-through options and we are starting to see a lot more investment into the rollout of drive-through across the convenience retail channel. This will need careful planning for all new build or renovated stores as traffic flow from the drive-throughs has the potential to build unnecessary traffic for all other customers.
“Over the years we have also seen Amazon and Australia Post Parcel delivery and pickup boxes some and go, perhaps they were ahead of their time, and they might have a role to play in the future.
“We have to also consider some of the more radical opportunities like drone delivery hubs for recharging and dispatch and delivery bots that use the forecourt as a base to deliver to the local community. We are seeing this around the world however currently its use is still very limited and targeted in high density living areas.”
So, from anti fuel theft technology to fast EV charging stations, QSRs and advancements in digital signage, there are many ways for retailers to move their forecourt into the future.
This article was written by Deb Jackson and originally appeared in the June/July issue of Convenience and Impulse Retailing magazine.
To stay up to date on the latest industry headlines, sign up to the C&I e-newsletter.