Why are the Petrol Stations Closing??

P

pricilla

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The world of petrol stations seem to be going out of business in the Munster area. Why is this?
I know a girl working in a garage and she says they take in thousands upon thousands of Euro every morning, from the forecourt and food. Then the other day on the radio, they said that forecourt food is a really booming business, so what's going on then?
 
Maybe the value of the land is worth more to the owner than the value of the business turnover ?
 
They are making virtually nothing on the petrol, and are like any other newsagents/retail shop, making about 10% on that side ( I 'm told) and if they are closing its because they are simply not turning enough profit.
 
I think that ESSO are the ones closing all the stations.All the stations in and around the Cork area went up for sale last year and they are closing one by one.
I've been told by one employee that Esso are only after the Dublin market hense they are closing all the rest and selling them off.

D
 
They are making virtually nothing on the petrol, and are like any other newsagents/retail shop, making about 10% on that side ( I 'm told) and if they are closing its because they are simply not turning enough profit.
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Newsagents gross profit % should be somewhere in the mid to late 20's, depending on the mix of products sold...if they don't make that kind of gross profit then they are doing something very wrong, and are also likely to have a Revenue audit.

I'd agree that there is very little mark-up on petrol which is why you hardly ever see a petrol pump without a shop attached.
 
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