Shell Introduces the Tenant Mix Concept: Diversifying Service Station Offerings to Embrace Consumer Lifestyles and Achieve Growth for Business Partners
Aug 15, 2023
Shell has adapted its strategy to expand store space in over 700 Shell service stations nationwide, offering customers a diverse range of experiences beyond just fuel services. This approach caters to the lifestyles of consumers who spend extended time away from home. We are prepared to collaborate with tenants and venture capitalists who share our vision and aim to evolve alongside Shell.
Shell embraces the consumer lifestyle and achieves growth for business partners with an effective Tenant Mix Concept.
Enjoy with a variety of foods
Seamless shopping for various products and services, without the need to commute to urban centers.
Shell is swiftly adapting its strategy to expand its user base at service stations by significantly expanding the retail space at over 700 of its service stations across the country. This strategic move aims to offer a diverse range of experiences to customers beyond traditional fuel services and caters to the evolving preferences of consumers who seek more than just refueling, aligning with the lifestyles of those who prefer spending extended time away from home. This initiative concurrently caters to the convenience-seeking nature of customers who desire seamless shopping for various products and services, without the need to commute to urban centers. As a result, this presents an opportunity for potential tenants and joint venture partners to grow collaboratively alongside Shell.
Shell's strategic realignment is in line with CBRE (Thailand) research which indicates an impending transformation in retail spaces driven by evolving consumer expectations, together with a demand for comprehensive shopping experiences. Maintaining a physical storefront remains vital, as ongoing enhancements in products and services are being orchestrated to effectively captivate and cater to the constantly shifting needs, lifestyles, and behaviors of consumers. Consequently, this trend is driving substantial investments and expansion in storefront spaces, with an emphasis on standalone formats with increased parking capacity.
Ms. Ornuthai Na Chiangmai, Deputy Country Chair of The Shell Company of Thailand Limited and Shareholder Representative - Shell Downstream Business, South Africa, and Ukraine, said, “Due to the shift in consumer lifestyles, with more people choosing to spend time outside of their homes shopping for goods and services in suburban areas rather than commuting to urban areas due to the horizontal expansion of housing, there has been a noticeable increase in the number of shops and everyday facilities. Given this trend, Shell Mobility Business, committed to making life’s journey better, has redefined its strategy. Our aim is to transform Shell service stations into captivating landmarks that entice consumers to extend their stay beyond refueling or basic maintenance (engine oil changes) by offering a diverse range of shops and facilities. As a result, the innovative 'Tenant Mix' concept has been introduced with a focus on enhancing the variety of shops and services available, directly catering to the needs and preferences of consumers.”
A steadfast commitment to making a difference is integral to the Powering Progress strategy, which strives to enhance everyone’s quality of life and overall well-being by fostering the expansion of customer-centric enterprises. At the same time, Shell remains dedicated to being dependable and unwavering in its support to business partners and customers, empowering them to achieve robust and sustainable growth.
Consumer lifestyles are shifting with a focus on time spent shopping for food and services in suburban areas rather than commuting to urban areas.
Shell provides services that are suitably aligned with customer lifestyles.
Shell strives to enhance everyone’s quality of life and overall well-being by fostering the expansion of customer-centric enterprises.
“We are not just fulfilling consumer needs but also simultaneously enhancing business opportunities for our partners who aim to thrive alongside Shell. Our proposition includes prime space offerings for expanding storefronts and branches in standalone store formats within our extensive network of over 700 Shell service stations nationwide. Strategically situated amid bustling business centers and residential communities, these locations serve as ideal distribution points for businesses with physical storefronts. Furthermore, they cater to customer convenience, enabling seamless product pickups. This strategic positioning also unlocks the potential for omnichannel marketing for entrepreneurs, providing customers an integrated experience with access to products and services, both online and offline. We expect this synergy will drive increased footfall at our service stations,” said Ms. Ornuthai.
The distribution of store types within Shell service stations is strategically balanced, with food establishments comprising 55% and non-food entities accounting for 45%. This balance is achieved through a proper tenant mix allocation or a combination of varied store categories, ensuring no redundancy in product or service offerings at a single service station. This approach seeks to enhance the appeal of Shell service station shops, positioning them as the preferred choice for consumers, providing services that are appropriately aligned with customer lifestyles, enabling Shell’s business partners to sustainably operate their ventures.
“Shell is committed to the relentless pursuit of developing a broad range of high-quality fuel, ensuring their delivery to consumers. For example, Shell V-Power stands out as Thailand’s first premium fuel, having earned enduring trust for its unrivalled quality. Shell has also been recognized with the highly esteemed TAQA award for eight consecutive years in Thailand for its lubricant products. We also provide access to over 436 Shell Helix Oil Change+ oil change service centers while our diverse array of offerings spans across more than 300 Shell Cafés and deli café all meticulously selecting ingredients of the highest quality. This quality-first approach also echoes through the 180-plus Shell Select convenience stores, the Shell GO+ community of over 3.4 million members under the Loyalty Program, and the Shell Card for corporate clients which has more than 100,000 cardholders. Considering these factors, tenants and partners of Shell service stations can confidently anticipate a steady stream of loyal customers visiting their establishments,” said Ms. Ornuthai.
Currently, Shell collaborates with a diverse group of tenant partners spanning various sectors. They encompass everything from single-branch retail stores and small to medium enterprises (SMEs) seeking franchise-driven expansion, to prominent brands aiming to broaden their customer reach. Shell remains receptive to alternative partnership models such as joint ventures, fostering mutual growth, and sustainable development. Furthermore, our partner stores will be provided with the prospect of extending their presence to Shell service stations on an international scale.
For inquiries regarding business opportunities at Shell service stations, please reach out to the Call Center (CBRE) at tel. 063-234-4747 or by email at email@example.com. These services are available starting today.
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