Reduced fuel volumes and lower margins due to “targeted competitor actions” in Q3 wiped $20 million off of Caltex’s forecasted EBIT range for this year.
The revised range for the convenience retail arm of the business has fallen to $275-$295 million in CY18.
However, Caltex is targeting a $120-$150 million uplift in 2018 profits for its convenience retail arm partially through its 15-year partnership with supermarket giant Woolworths, which will see 10-12 Metro stores being opened.
Four Metro sites are slated to open in the first half of 2019, with a larger roll-out occurring in the second half of the year.
The stores will capitalise on the growing demand for easy, quick food, with Caltex noting a 27 per cent increase in take-home food sales over the previous 12 months, as well as a 13 per cent increase in on-the-go foods.
Partnerships with QSR brands such as Boost and Guzman Y Gomez also have proved successful in driving traffic to its sites.
Extracted from Inside Retail