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Groceries Prove a Pandemic Bright Spot for BP and Shell Groceries Prove a Pandemic Bright Spot for BP and Shell
Oil majors bet offering more fresh food and services at gas-station stores can help offset declining oil income
published : 19 Jan 2021 at 04:00 Customers are served in a Deli by Shell store in Kemerovo, Russia. BLOOMBERG
Coffee and groceries are becoming a bigger part of BP PLC and Royal Dutch Shell PLC s bottom line.
Gas stations have emerged as one of the most profitable parts of the major oil companies sprawling operations during the pandemic, with higher spending on food and drink offsetting weaker demand for fuel.
Provided by Dow Jones
By Sarah McFarlane LONDON Coffee and groceries are becoming a bigger part of BP PLC and Royal Dutch Shell PLC s bottom line. Gas stations have emerged as one of the most profitable parts of the major oil companies sprawling operations during the pandemic, with higher spending on food and drink offsetting weaker demand for fuel. That is encouraging both companies to push ahead with plans to expand their retail businesses, which they are betting can help offset declining oil income longer term. Shell plans to add 10,000 branded retail sites to its 45,000-strong network world-wide larger than Starbucks Corp. or McDonald s Corp in the next five years. BP, which currently has 19,000 locations, wants to add 6,700 sites in growth markets by 2030.