Maxol announces €100m upgrade as focus shifts to convenience
Forecourt operator also signals it is on track to post double-digit profit growth for 2018
Maxol M3 Mulhuddart: the forecourt retailer currently generates about 60 per cent of its turnover from fuel sales with the remaining 40 per cent coming from food services
Forecourt operator Maxol is to invest €100 million in upgrading its service station network in the Republic as it shifts the focus of the business from fuel to convenience.
The family-run firm, which has a network of 231 stations here – 115 of which are directly owned by the company – also signalled it was on track to post double-digit profit growth for 2018, which would leave it with a pretax profit for the year of more than €15 million.
Maxol currently generates about 60 per cent of its turnover from fuel sales with the remaining 40 per cent coming from food services.
However, a growing consumer preference for better convenience options combined with the shift to more fuel-efficient motoring will see this metric reversed within the space of two years , chief executive Brian Donaldson said.
Maxol rival Applegreen already generates most of its revenue from non-fuel sources.
Mr Donaldson said the €100 investment would see the rollout of new-look stores across its network as well as the launch of its own-label food and coffee brand.
The two-year investment plan, which includes €37 million this year, will also see the addition of five new stations and redevelopment of several others.
These include redevelopments in Maxol Enniscorthy, Maxol Dolphin’s Barn in Dublin and Maxol Clarecastle in Co Mayo, which is scheduled for completion in August following a €4 million investment.
In Dublin, Maxol has recently completed redevelopments at Harold’s Cross, Turvey, M3 Mulhuddart, Ballycoolin, Mespil Road, Lucan and Adamstown with the new-look at Maxol Sandyford due to be completed in June.
By the end of 2019, the company plans to have six Maxol stations in city centre locations in Dublin, Cork and Galway with electric charging points. The company, which is owned by the McMullan family, will also be trialling new pay-at-pump technologies, including mobile payment options, to improve customer convenience.
The company has also launched a new coffee brand, Rosa, and a number of own-label products, including its own-brand milk and water, while a new pre-packed sandwich range is to be launched next month.
“Maxol operates in an incredibly competitive market so we’re constantly looking at ways we can redesign and reshape our model to future-proof our business, with the main aim of transforming from being a fuel provider to a full convenience retail fuel offering,” Mr Donaldson said.
He also dismissed speculation that Maxol’s owners were considering selling the business or seeking a public listing.