Australia’s regional petrol and convenience (P&C) retailers serve a unique and vital role in the communities they operate in. From supporting remote workers and Indigenous communities to catering to travellers and local residents, these businesses form the backbone of many rural economies.
However, operating in these areas comes with significant challenges, from supply chain logistics to staffing shortages. Yet, through technological advancements, community engagement, and adaptive business strategies, regional P&C retailers are finding ways to thrive.
Regional P&C’s essential role
Unlike their metropolitan counterparts, regional P&C stores serve as more than just fuel stations or convenience shops. They often act as community hubs, providing essential goods, food, and services to locals and travellers alike.
Karl Wilson, Senior Executive Retail Operations at APCO, highlights the deeply embedded nature of regional convenience stores.
“Regional stores are essential hubs for the communities, run by family businesses, generally husband and wife teams or family members working in the business embedded in community. They sponsor within their local community through local events, sporting clubs, as well as local charities.
“Most of their customers come from a 3km radius and frequent their stores up to five times per week whether this be through fuel purchase, grocery or cafe.”
For Outback Stores, which was established to support Indigenous communities, maintaining food security and promoting healthy eating are core priorities.
Michael Borg, CEO of Outback Stores, explained that any store profits are retained by local store owners and are utilised by those owners for the benefit of the community.
“The stores we service are either considered ‘managed’ or ‘supported’. Managed stores are generally commercially self-sufficient and generate a profit. Supported stores require financial support on an ongoing basis.
“For non-profitable stores, Outback Stores supports the store with financial underpinning to ensure that food security is maintained.”
Meanwhile, in the Energy and Resources sector, Sodexo operates a unique convenience and tavern offering for Fly-In/Fly-Out (FIFO) workers.
Daniel Zarew, Head of Retail at Sodexo Australia, said that with necessities provided at ‘no cost’, on-site retail and tavern service offerings are often the only areas where FIFO workers can spend their money.
“Our value proposition caters to the ‘little things’ that make their swing a little more comfortable – often snacks, convenience food items, and functional products such as cold beverages.”
Overcoming regional challenges
Despite their essential role, regional P&C operators face significant operational hurdles. One of the most pressing challenges is supply chain reliability, especially in remote locations.
“The communities in which Outback Stores operates are some of the most remote in Australia, with the closest regional centres sometimes hundreds of kilometres away,” says Borg.
“It is not uncommon for communities to be inaccessible by road for weeks or even months during wet season. Stock often has to be flown in by light plane or helicopter. Despite this, the range and quality of fresh fruit, vegetables and other healthy staples remains at a consistently high standard all year round.”
Mark Smith, Chief Operating Officer for OTR Group, echoes similar concerns: “Depending on how remote the location is, weather can be a major challenge, not just to the supply chains if roads are washed out, but we’ve had sites damaged through recent floods, high winds and bushfires.”
“Whenever there’s a major weather incident, we need to work with our team members and local services to keep things running. We know that locals rely on us for fuel, food, water and emergency items, and we’ve got to be able to deliver these essential goods until other retailers can get up and running again.”
In response to these difficulties, retailers have adopted proactive stock management strategies, with Borg explaining that maintaining appropriate stock levels as critical in order to ensure food security is no compromised for many of the communities it works with.
“Outback Stores manages a broad network of supply and suppliers across some of the most remote areas in Australia, we work with our suppliers and freight providers to ensure a consistent supply, and availability of products.
“Each year Outback Stores prepares for the wet season by ordering extra stock for certain communities, to allow for the months that they will be cut off from main supply roads.”
For Sodexo, technology plays a crucial role in managing supply chains, with Zarew explaining that Sodexo has a highly valued and extensive network of suppliers and distributors who support its operations.
“Our supply chain doesn’t only restock our retail offering but is the lifeblood to the remote sites we service. Weekly deliveries are made via a cross-dock freight provider out of relevant state capital city depots and then make the long haul up to site.”
The evolving customer landscape
Understanding the differences in customer behaviour between regional and metropolitan areas is critical for P&C operators.
“Local customers visit us more often, so we’re able to build relationships with them when they shop with us regularly,” says Smith. “Travellers tend to purchase fuel, coffee, food to go, and snacks for their road trips.”
APCO’s Wilson notes that regional stores tend to have a larger footprint and cater to more sit-down dining experiences.
“We’re more of a central hub in regional areas with a bigger footprint, e.g., larger cafe and supermarket with greater parking spaces, and people are more inclined to stay longer and shop these stores.
Wilson explained that customers passing through generally stick to what they know, such as a ham and cheese sandwich or fried food but has noted a larger portion also take up healthier choice.
For Outback Stores, its customer base has very distinct purchasing preferences compared to metro areas.
“Visitors passing through remote communities (such as grey nomads) will typically stock up on pantry items and fresh fruit and vegetables to last them a few days.
“Remote community residents typically visit the store every day and only purchase what they need for that meal. This is due to a variety of reasons ranging from limited access to refrigeration, to lack of cooking utensils and cultural obligations.
“Frozen kangaroo tails are a big seller in most of the 58 stores we service. Kangaroo tail cooked in foil on an open fire is considered a favourite family meal in many remote Aboriginal communities,” said Borg.
Seasonal and environmental factors
Seasonal variations impact regional P&C businesses in ways that metro stores rarely experience. Tourism-driven regions see spikes in demand, while extreme weather can make operations nearly impossible.
“In coastal areas, the season has an uplift in summer periods, and our seasonal offering changes such as larger salads, ready-to-eat, healthy choices being offered and purchased,” Wilson explains. “In winter periods, we have a larger selection of heavier comfort food such as burgers, pizzas and our traditional fried offering.”
For Smith, there are obvious seasonal trends that happen each year, such as more cold drinks sold in summer than winter as well as inclement weather that can impact a region with bushfires or floods.
“Some of our regional areas are popular with tourists so we find school holidays, Easter and Christmas make it even busier for us, so our supply teams do a lot of planning to ensure we have the right amount of stock on hand.”
For Sodexo’s remote operations, planning is key, explains Zarew.
“Sodexo has to not only act to service demand in the moment but use resident purchasing habits and data to forecast and ‘stock up’ on products ahead of seasonal changes to ensure an uninterrupted service to our residents.”
Technology and innovation
Advancements in technology are helping regional P&C operators improve efficiency and customer experience.
Borg explains that they utilise a fully integrated Point-of-Sale (POS) system across all stores combined with EFTPOS terminals ensuring smooth payment transactions and that self-checkout systems are not required due to the remoteness of its store locations.
Sodexo on the other hand, has taken an industry-leading approach with its implementation of remote autonomous stores.
“In February 2025, we deployed our first, and what is also an Australian first, remote autonomous store,” Zarew says. “Using innovative AI software to track purchases, this offering removes the requirement of manned and self-serve POS. As a pilot, we’re constantly reviewing performance to see how it can be implemented in our other locations.
APCO is experimenting with self-checkouts and mobile app integration.
“Currently, we have our Mobile App for fuel, grocery and cafe purchases. Self-checkout is currently being experimented with and hopefully being implemented in a number of our sites in the near future,” Wilson shares.
Opportunities for growth
Despite the challenges, the regional P&C industry presents significant opportunities for growth.
“The biggest opportunity for growth is normalising retail and ensuring regional and remote communities have access to the same level of service we expect in metro areas,” Zarew states. “To capitalise on this opportunity, Sodexo is focusing on local business, including Indigenous, to give back to these communities.”
Much the same as its metro counterparts, Wilson sees increasing demand for fresh and fast food offerings.
“Customers continue to look for a fresh product and a fast product which is prepared to order and easily accessible,” he says.
For Smith, community engagement is key, and that as people move out of the city and regional areas grow, they have to ensure its sites and infrastructure meet their needs.
“It’s imperative to be a part of your local community, not just as a fuel provider or retail outlet, but as an engaged partner who understands what the community wants.”
This article was originally published in the April/May issue of Convenience and Impulse Retailing magazine.
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