Shell Introduces the Tenant Mix Concept: Diversifying Service Station Offerings to Embrace Consumer Lifestyles and Achieve Growth for Business Partners

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.

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.

“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 shell.nfrservice@cbre.co.th. These services are available starting today.

Cautionary note

The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this announcement, “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this announcement refer to entities over which Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. “Joint ventures” and “joint operations” are collectively referred to as “joint arrangements”. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

Forward-Looking Statements

This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, “milestones”, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2022 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader. Each forward-looking statement speaks only as of the date of this announcement, [15^th August, 2023]. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this announcement.

Shell’s net carbon intensity

Also, in this announcement we may refer to Shell’s “Net Carbon Intensity”, which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Intensity” is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s net-Zero Emissions Target

Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Intensity (NCI) targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCI target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Forward Looking Non-GAAP measures

This announcement may contain certain forward-looking non-GAAP measures such as [cash capital expenditure] and [divestments]. We are unable to provide a reconciliation of these forward-looking Non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those Non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.

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