Retail

The ORLEN Group is the undisputed leader in retail fuel sales in Central Europe. At the end of 2021, it operated a total of 2,881 service stations. At the end of 2021, the ORLEN Group had 1,028 active retail outlets of RUCH. The drop in the number of points was due to the optimization and profitability of the retail operations of Ruch and the epidemiological situation. In June, the first retail outlet in the new format was opened in Warsaw under the brand name „ORLEN w Ruchu”. The next points were launched, among others in Bydgoszcz, Leszno and Tychy.

The number of service stations and ORLEN Group’s market shares at the end of 2021

Source: In-house analysis.

In Poland, our service stations operate under the ORLEN brand in the premium segment and under the Bliska brand in the economy segment (with the share of the economy segment gradually declining year on year). In the Czech Republic and Slovakia, they are branded as Benzina ORLEN and Benzina Plus ORLEN, and in Lithuania − as ORLEN. On the German market, ORLEN Deutschland operates economy stations under the umbrella brand STAR ORLEN and the network is complemented by more than a dozen Familia supermarket stations.

In September 2021, the new service ORLEN Paczka (ORLEN Parcel) was launched in place of Paczka w Ruchu (Parcel in Motion). With this new courier service e-commerce customers were offered a larger number of pickup points: parcel lockers (over 300 already operating, the target is over 2,000), ORLEN service stations (over 1, 000), and, as before, Ruch kiosks and partner outlets. Orders are delivered to the pickup points within 1–2 business days. In the coming years, the ORLEN Group plans to further expand the geographical coverage of the ‘ORLEN Parcel’ service.

More information on the ORLEN Group’s shares on individual markets and competitors can be found in the `Competitive environment` section.

Information on market trends in Retail can be found in the `Market Environment` section.

In 2021, the volume of sales in the ORLEN Group Retail segment grew by 1.4% year on year, to 8,969 thousand tonnes. Despite the continuing COVID-19 pandemic and the introduction of a range of restrictions, the volumes of fuel sales in the ORLEN Group’s home markets started to recover: on the Polish and Czech markets sales increased year on year, while slight decreases were recorded on the German and Lithuanian markets. All ORLEN Group companies took numerous steps to maintain the continuity of sales and network operations and to ensure the safety of service station staff and customers.

Revenue structure of the ORLEN Group Retail segment

The ORLEN Group’s retail home markets include Poland (where the retail business is managed by PKN ORLEN), Germany (with a retail chain operated by ORLEN Deutschland), the Czech Republic and Slovakia (service stations under the brand Benzina, a member of the Unipetrol Group – a subsidiary of the ORLEN Group), and Lithuania (a service station chain managed by AB ORLEN Baltics Retail, a subsidiary).

Sales structure of the ORLEN Group Retail segment in the home markets

In connection with the ongoing COVID-19 pandemic, numerous steps were taken to maintain the continuity of sales and network operations and to ensure the safety of service station staff and customers. In 2021, despite the persisting pandemic, the Retail segment’s fuel sales volume grew by 2.2% year on year. The average annual flow per station was 4.3m litres for CODO stations.

Sales structure of the ORLEN Group Retail segment in Poland

In 2021, the total number of PKN ORLEN stations increased by 8 locations, to 1,819 at year end,

Including 1,393 CODO stations, a net year-on-year increase of 13 locations (21 new locations, 8 stations closed down). As a result of the continuing investment programme, 21 new CODO stations were added to the retail chain (including three in motorway service areas at motorways and expressways, and MikroPremium stations built on the EPC basis).

In 2021, 69 technical upgrades were completed, including 18 major upgrade projects involving the launch of Stop Cafe 2.0 and three Demolish & Build projects.

As at the end of 2021, PKN ORLEN had 426 DOFO stations, a decrease by 5 locations year on year. In 2021, 16 new sites were added to PKN ORLEN’s DOFO chain. 52 long-term annexes and 227 short-term annexes extending agreements with service station operators were signed.

In 2021, PKN ORLEN continued to promote safe purchase methods among fleet customers: a virtual e-card was introduced in the BIZNESTANK and MIKROFLOTA programmes, and the mFlota mobile application was expanded to include the possibility of paying for motorway tolls. In 2021, fleet systems were adapted to support the eBilet product and the eToll system.

The MIKROFLOTA programme was enhanced to include the possibility of securing the client’s transactions with a purchase limit, solution designed for customers whose transactions are not secured by an insurer.

2021 was another difficult year for non-fuel sales, in particular food services, because of the pandemic-related restrictions and a permanent change in customers’ habits, consisting in eating out less frequently. Additionally, margins were under pressure from rising commodity and raw material prices. Nonetheless, we achieved gross margin growth of 18% compared with 2020 and 3% compared with 2019 through active promotional campaigns and strong media support.

In order to limit the customer’s interest in the gastronomic and shop offer, 3 promotions of non-fuel products related to the sale of fuel (burgers, wraps, pizza, products) were carried out. In 2021, the own brand development programme was continued.

The Stop Cafe 2.0 food & drink service concept was rolled out at a further 181 locations, which brought the number of ORLEN stations featuring this format to 909 (including 201 DOFO stations) at the end of 2021. In total, PKN ORLEN had 1,748 stations offering food services across all formats (Stop Cafe, Stop Cafe Bistro and Stop Cafe 2.0). In 2021, seven new car wash facilities were built.

As at the end of 2021, the ORLEN Group operated 1,028 active retail outlets of RUCH. Their number was reduced as a result of measures taken to optimise performance and ensure profitability of Ruch’s retail operations, and as a consequence of the Covid pandemic. In June, the first retail outlet was opened in Warsaw in a new format under the ORLEN w Ruchu (ORLEN in Motion) brand, Followed by further locations in Bydgoszcz, Leszno, Tychy and other places.

In September 2021, the new service ORLEN Paczka (ORLEN Parcel) was launched in place of Paczka w Ruchu (Parcel in Motion). With this new courier service e-commerce customers were offered a larger number of pickup points: parcel lockers (over 300 already operating, the target is over 2,000), ORLEN service stations (over 1, 000), and, as before, Ruch kiosks and partner outlets. Orders are delivered to the pickup points within 1–2 business days. In the coming years, the ORLEN Group plans to further expand the geographical coverage of the ‘ORLEN Parcel’ service.

In 2021, PKN ORLEN continued to implement a range of measures to improve its customer service. At more than 430 service stations, customers can now be served directly at the pumps by mobile service assistants (the Mobile Cashier service). A Mobile Cashier is an employee equipped with a tablet with a mobile checkout application, a fiscal printer and a POS payment terminal, to accept payments for fuel directly at the driveway. The chief purpose of the Mobile Cashier service is to increase service efficiency at pumps during busy periods at large transit stations and in motor service areas. Customers can pay with payment cards, fleet cards and cash. A Mobile Cashier can print an invoice and receipt for the customer and credit Vitay points. In 2021, Mobile Cashiers served nearly 7 million customers, a year-on-year increase of 236% in the number of transactions.

As at the end of 2021, the ORLEN Group had a network of 372 electric vehicle charging stations in Poland.

On the German market, ORLEN Deutschland operates economy stations under the Star brand and the network is complemented by more than a dozen of Familia supermarket stations. At the end of 2021 there were seven stations under the ORLEN brand positioned in the premium segment.

In 2021, the ORLEN Group recorded a 2.2% year-on-year drop in its fuel sales volumes on the German market as an effect of the COVID-19 pandemic. The average annual flow per station was 4.2m litres.

Sales structure of the ORLEN Group Retail segment in Germany

The number of service stations managed by ORLEN Deutschland was 587, including 7 premium stations (ORLEN), 563 economy stations (Star), and 17 supermarket stations (Familia). Over 85% of them were CODO stations, with the remaining sites being DODO stations.

In 2021, the Star Connect food & drink service was launched at 24 new locations, as a result of which at the end of 2021 the format was already available at 162 ORLEN Deutschland stations. In 2021, further Stop Café 2.0 stations were put into service in Germany. Taking all formats into account (Star Connect and Stop Cafe 2.0), food & drink service was available at 168 stations within the chain.

The ORLEN Deutschland network has the highest number (502) of car washes among all retail chains managed by the ORLEN Group. About 60 car washes were upgraded in 2021.

In 2021, ORLEN Deutschland expanded its station chain by four stations (five new locations, one station closed down).

The Star network includes two hydrogen refuelling stations and seventeen electric car chargers.

Despite the persisting COVID-19 pandemic, in 2021 fuel sales in the Czech and Slovak markets grew by 7.1% year on year. The average annual flow per station was 2.6m litres.

Sales structure of the ORLEN Group Retail segment in the Czech Republic

As at the end of 2021, the ORLEN Group managed a network of 424 stations in the Czech Republic, including 408 CODO and 16 DOFO outlets. The retail network on the Czech market included stations operating under the Benzina brand and three stations operating under the ORLEN brand (during the year, two new service stations were added).

As at the end of 2021, the number of Benzina-branded stations on the Slovak market was 22. All of them operated under the CODO model.

Benzina continued to invest in upgrading and expanding the service station chain in the Czech Republic and Slovakia. The Stop Cafe 2.0 format was rolled out into further sites, so at the end of 2021 it was already available at 276 stations in the Czech Republic and 13 in Slovakia within the Benzina chain. In total, 352 Benzina stations offered food & drink services across all formats (Stop Cafe, Stop Cafe Bistro and Stop Cafe 2.0). In addition, automatic car washes were upgraded at 12 locations. A total of 134 car washes operates in the Benzina chain in the Czech Republic.

In 2021, Benzina expanded its chain with 5 service stations in the Czech Republic (6 new locations, 1 station closed down) and 9 new service stations in Slovakia.

Since the beginning of 2021, Benzina has opened two new convenience (stand-alone non-fuel) stores in the Czech Republic. Development of contactless payments at coffee vending machines continues.

The Benzina network includes 44 CNG stations and 65 electric vehicle chargers. The plan was to open 2 hydrogen stations in 2021 but was postponed due to the COVID-19 restrictions.

In 2021, fuel sales on the Lithuanian market fell 2.7% year on year and the average annual flow per station was 3.1m litres.

Sales structure of the ORLEN Group Retail segment in the Lithuanian market

The number of CODO stations at the end of 2021 was 29, including 19 Stop Cafe 2.0 stations and 10 Stop Cafe stations. Investments made to improve the quality standard of the stations and expand the range of non-fuel products sold at the stores translated into a significant increase in the non-fuel margin.

In 2021, the ORLEN Group’s refining assets were the main source of fuel supplies for the Polish, Czech, Slovak and Lithuanian service station chains. The Group does not operate its own production plants in Germany. Unlike in the case of other local markets, ORLEN Deutschland works with suppliers operating on the German wholesale market, including Deutsche BP AG, Shell Deutschland Oil GmbH, Total Deutschland GmbH, and Esso Deutschland GmbH. A considerable volume of fuels sold by ORLEN Deutschland comes from the Litvínov refinery run by Unipetrol RPA s.r.o., part of the ORLEN Group. In 2021, the volume of supplies from the Czech Republic did not change year on year, meeting more than 20% of ORLEN Deutschland’s fuel demand.