Essar UK shifts focus on leasing to enhance its retail arm
The company aims to lease dealer sites and recruit dealers to the brand in an effort to expand its network of service stations.
Essar Oil UK has confirmed a shift on its retail strategy to focus on leasing sites, whether they be from existing service station owners or developers. The company is looking to grow its retail network and brand across the country from its current 72 dealer-owned and operated sites.
According to a recent interview by the Forecourt Trader magazine, the firm seeks to establish a total footprint of 400 branded locations over the next four years. In addition, it aims to become a nationally recognised brand thanks to a series of new dealer signings soon to be announced.
“We are very keen for dealers to come on board, but our focus has shifted. We want to grow in the direct retail segment - we want to be called a retailer. But we are not going to buy sites, we want to lease them,” said Carlos Rojas, Head of Marketing and Logistics of Essar UK.
Rojas talked to the magazine about the implementation of its strategy and specified that it will focus on leasing sites to be run by a commission operator. A number of dealers will also have an opportunity to lease out their site, in case of retirement for example, to guarantee them an income instead of selling the site.
The company representative joined its ranks last October and is spearheading this shift in strategy to broaden the brand’s exposure. Part of this process involves the announcement of a new dealer for the North West, which is described as one of the largest DODO sites in the nation, as well as eight service stations in the pipeline that are moving to the lease model.
