RETAIL

GRI Disclosures:
SDGs:

The ORLEN Group is the undisputed leader in retail fuel sales in Central Europe. As at the end of 2020, the total number of service stations was 2,855, including the first service station operating in Germany under the ORLEN brand.

RETAIL SERVICE STATIONS

2020

 

Units

ORLEN
Group

Poland

Germany

Czech Republic

Slovakia

Lithuania

Total sales

‘000 tonnes

8,849

5,318

2,608

850

nd

73

Market share

%

15.7

33.5

6.5

24.8

0.6

4.5

Number of service stations, of which:

number

2,855

1,811

583

419

13

29

Premium

number

1,967

1,761

1

164

13

28

Economy

number

837

27

566

244

-

-

Other

number

51

23

16

11

-

1

CODO/COCO1

number

2,323

1,380

497

404

13

29

DOFO/DODO1

number

532

431

86

15

-

-

Number of EV charging stations

number

114

84

7

23

-

-

Number of hydrogen refuelling stations

number

2

-

2

-

-

-

FOOD SERVICE AND RUCH OUTLETS

2020

 

Units

ORLEN
Group

Poland

Germany

Czech Republic

Slovakia

Lithuania

Total, of which:

number

2,218

1,725

139

313

13

28

Stop Cafe

number

801

710

-

79

-

12

Stop Cafe Bistro

number

301

287

-

12

2

-

Stop Cafe 2.0

number

978

728

1

222

11

16

Star connect

number

138

-

138

-

-

-

RUCH outlets

number

1,209

1,209

-

-

-

-

The number of service stations and ORLEN Group’s market shares at the end of 2020

Source: In-house analysis 1,811 Poland on the market since market share fuel stations -0.6 p.p (r/r) +0.2 p.p (r/r) Czechia on the market since fuel stations market share -0.1 p.p (r/r) Germany on the market since fuel stations market share Slovakia on the market since fuel stations market share Lithuania on the market since fuel stations market share -0.2 p.p (r/r)

In Poland, our service stations operate under the ORLEN brand in the premium segment and under the Bliska brand (1.5% of the total number of stations within the chain, that share having declined year on year) in the economy segment. In the Czech Republic and Slovakia, they are branded as Benzina ORLEN and BenzinaPlus 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 2020, the first ORLEN-branded service station was opened in Germany (Seeberg-Ost motorway service station near Berlin), which is positioned as a premium location.

The Group aims to expand the range of its stores and food services beyond the service station chain, building on the nationwide network of 1,209 RUCH outlets acquired by PKN ORLEN in 2020. ORLEN also plans to roll out its own network of parcel collection points (2,000 locations) and e-commerce services.

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

Retailsales volumes

In 2020, the volume of sales in the ORLEN Group Retail segment fell by 9.8% year on year, to 8,849 thousand tonnes. As a result of the outbreak of the COVID-19 pandemic in the first quarter of 2020 and the related restrictions, domestic economy experienced a major slowdown, reflected in fuel sale figures in all home markets where the ORLEN Group operates its service stations. 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.

Sales of the ORLEN Group Retail segment [PLNmillion/’000 tonnes]

Sales

2020

2019

% change

Value

Volumes

Value

Volumes

1

2

3

4

5

6

7

Light distillates1)

11,713.0

3,454.9

14,659.0

3,775.5

(20.1%)

(8.5%)

Medium distillates2)

15,208.0

5,394.0

20,405.0

6,039.1

(25.5%)

(10.7%)

Other3)

3,916.0

0.0

3,846.0

0.0

1.8%

-

Total

30,837.0

8,848.9

38,910.0

9,814.6

(20.7%)

(9.8%)


1) Gasoline, LPG.
2) Diesel oil; light fuel oil sold by ORLEN Deutschland.
3) Other – includes revenue from sale of non-fuel merchandise and services.

Medium distillatesLight distillatesOther Revenue structure of the ORLEN Group Retail segment 52.4% 49.3% 38.0% 37.7% 12.7% 9.9% 2020 2019

Markets

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 volumes of the ORLEN Group Retail segment in home markets [‘000 tonnes]

Sales

2020

2019

change

% change

1

2

3

4

5

Poland

5,318.5

5,883.0

-564.5

(9.6%)

Germany

2,607.6

2,960.7

-353.1

(11.9%)

Czech Republic

849.5

893.0

-43.5

(4.9%)

Lithuania

73.3

77.9

-4.6

(5.9%)

Total

8,848.9

9,814.6

-965.7

(9.8%)

PolandGermanyCzech RepublicLithuania Sales structure of the ORLEN Group Retail segment in the home markets 59.9% 60.1% 29.5% 30.2% 9.6% 9.1% 0.8% 0.8% 2020 2019

Polishmarket

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. Despite these efforts, the volume of fuels sold in the Retail segment fell by 9.6% year on year in 2020, directly reflecting the market slowdown caused by the pandemic. The average annual flow per station was 4.3 million litres for CODO stations.

Sales volumes of the ORLEN Group Retail segment in Poland [‘000 tonnes]

Sales

2020

2019

change

% change

2

3

4

5

Light distillates

2,000.4

2,168.3

-167.9

(7.7%)

Medium distillates

3,318.1

3,714.7

-396.6

(10.7%)

Total

5,318.5

5,883.0

-564.5

(9.6%)

Sales structure of the ORLEN Group Retail segment in Poland 2020 2019 Medium distillatesLight distillates 63.1% 62.4% 37.6% 36.9%

In 2020, the total number of PKN ORLEN stations increased by 11, to 1,811 at the year’s end.

The number of CODO stations amounted 1,380 and it increased by 19 stationsduring 2020. As a result of an investment programme, 20 new CODO stations were added to our retail chain (including seven MSA facilities at motorways and expressways). In 2020, one CODO station was closed down.

As part of our efforts to expand the ORLEN retail chain in Poland, several dozen sites were secured for the construction of new service stations in the coming years, including five in Motorway Service Areas.

During 2020, more than 117 stations underwent technical upgrades. The rebranding of the Bliska chain to ORLEN is nearing completion. In 2020, the number of both CODO and DOFO Bliska stations was reduced from 38 to 27.

As at the end of 2020, PKN ORLEN had 431 DOFO stations, a decrease by 8 locations year on year. In 2020, 15 new sites were added to PKN ORLEN’s DOFO chain, and more than 280 annexes (both short- and long-term ones) were signed to extend the existing agreements.

Given the pandemic, PKN ORLEN encouraged its fleet customers to use safe buying methods in 2020, reporting a 50% year-on-year increase in the number of customers who have activated the mFlota service.

2020 was a difficult year for non-fuel sales, food services in particular, because of the pandemic-related restrictions. Gross margin on non-fuel sales dropped 13% year on year.

In order to mitigate the impacts of the pandemic, the product range at stores was quickly adapted to market needs by launching personal protective equipment. The availability of food products was actively managed to ensure compliance with legal requirements and respond to lower demand. The own brand development programme was continued, with the Verva line of medium and highly mineralised water added to the range.

The Stop Cafe 2.0 food & drink service concept was rolled out at a further 170 locations, which brought the number of ORLEN stations featuring this format to 728 (including 129 DOFO stations) at the end of 2020. In total, PKN ORLEN had 1,726 stations offering food services across all formats (Stop Cafe, Stop Cafe Bistro and Stop Cafe 2.0). In 2020, 15 new car wash facilities were built.

In 2020, PKN ORLEN acquired RUCH, Poland’s countrywide newsagent chain. Based on the chain of 1,209 RUCH outlets, the Group will expand its range of stores and food services beyond service stations. ORLEN also plans to roll out its own network of parcel collection points (2,000 locations) and e-commerce services.

In 2020, PKN ORLEN continued to implement a range of measures to improve its customer service. Further stations made available the Mobile Cashier service, enabling payments in the driveway when traffic is at its heaviest (400 sites at the end of year). Further service stations (including those at MSAs) rolled out the Fast Lane service, which consists in directing fuel customers to selected pumps supported by Mobile Cashier. All CODO stations were covered by the filling queue system, whereby another filling can be made before the previous one is paid for. More than 1,150 service stations offer the possibility of refuelling a car on both sides, regardless of the fuel tank flap location.

In 2020, ORLEN continued its partnership with Nextbike Polska, whereby 36 sites in Warsaw and Płock launched a bike rental service, with a total of 360 (both standard and electric) bicycles available.



As at the end of 2020, ORLEN had a network of 84 electric vehicle charging stations.

Germanmarket

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. The first ORLEN-branded service station was opened in 2020 (Seeberg-Ost motorway service station near Berlin). It is positioned as a premium location.

In 2020, the ORLEN Group recorded a 11.9% 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 4.5 million litres.

Sales volumes of the ORLEN Group Retail segment in Germany [‘000 tonnes]

Sales

2020

2019

change

% change

 1

2

3

4

5

Light distillates

1,168.9

1,299.5

-130.6

(10.1%)

Medium distillates

1,438.7

1,661.2

-222.5

(13.4%)

Total

2,607.6

2,960.7

-353.1

(11.9%)

Sales structure of the ORLEN Group Retail segment in Germany 2020 2019 Medium distillatesLight distillates 44.8% 43.9% 56.1% 55.2%

The number of service stations managed by ORLEN Deutschland was 583, including one premium station (Orlen), 566 economy stations (star), and 16 supermarket stations (Familia). Over 85% of them were CODO stations, with the remaining sites being DODO stations.

In 2020, the first ORLEN-branded motorway service station was opened near Berlin (Seeberg-Ost), featuring an onsite bistro and store with an area of 400 m2 and offering a wide range of Stop Cafe 2.0 food and drink products, including products that are also sold at ORLEN stations in Poland.

In 2020, the star Connect food & drink service was launched at new locations, as a result of which at the end of 2020 the format was already available at 138 ORLEN Deutschland stations. Taking all formats into account (Star connect and stop Cafe 2.0), food & drink service was available at 139 stations within the chain.

The ORLEN Deutschland network has the highest number of car washes among all retail chains managed by the ORLEN Group (including 412 portal facilities and 55 self-service facilities). In 2020, 40 portal and one self-service wash were upgraded.

In 2020, four ‘knock-down and rebuild’ projects were completed in Bochum, Kamp-Lintfort, Düsseldorf and Bünde.

An important step was the launch of a second Star station in Bavaria (Kulmbach), which marked a milestone in ORLEN Deutschland’s network rollout in the south of Germany.

The star network includes two hydrogen refuelling stations and seven electric car chargers.

Czech and Slovakianmarkets

The COVID-19 pandemic caused a 4.9% year-on-year drop in fuel sales in the Czech and Slovakian markets. The average annual flow per station was 2.5 million litres

Sales volumes of the ORLEN Group Retail segment in the Czech Republic [‘000 tonnes]

Sales

2020

2019

change

% change

 1

2

3

4

5

Light distillates

271.1

292.5

-21.4

(7.3%)

Medium distillates

578.4

600.5

-22.1

(3.7%)

Total

849.5

893.0

-43.5

(4.9%)

Medium distillatesLight distillates Sales structure of the ORLEN Group Retail segment in the Czech Republic 67.2% 68.1% 31.9% 32.8% 2020 2019

As at the end of 2020, the ORLEN Group managed a network of 419 stations in the Czech Republic (404 CODO and 15 DOFO stations). Its retail stations on the Czech market operated under the Benzina brand, but there was also one ORLEN-branded station. During the year, three new service stations were added to the chain.

As at the end of 2020, the number of Benzina-branded stations on the Slovak market was 13, 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 2020 it was already available at 222 stations within the Benzina chain. In total, 313 Benzina stations offered food & drink services across all formats (Stop Cafe, Stop Cafe Bistro and Stop Cafe 2.0). In addition, automatic car washeswere upgraded at 22 locations.

The pandemic had a significant effect on non-fuel sales. With a 5% decline year on year, food sales were affected the most. On the other hand, in-store sales increased by 11% year on year.

The Benzina network includes 43 CNG stations and 23 electric vehicle chargers.

Lithuanianmarket

In 2020, fuel sales on the Lithuanian market fell 5.9% year on year and the average annual flow per station was 3.3 million litres.

Sales volumes of the ORLEN Group Retail segment in Lithuania [‘000 tonnes]

Sales

2020

2019

change

% change

 1

2

3

4

5

Light distillates

14.5

15.2

-0.7

(4.6%)

Medium distillates

58.8

62.7

-3.9

(6.2%)

Total

73.3

77.9

-4.6

(5.9%)

Medium distillatesLight distillates Sales structure of the ORLEN Group Retail segment in the Lithuanian market 2020 2019 80.5% 80.2% 19.8% 19.5%
The number of stations at the end of 2020 was 29 (COCO locations). Four new stations were commissioned and one ‘knock-down and rebuild’ project was completed. As at the end of 2020, 55% of the network was operated to the Stop Cafe 2.0 standard.

Supplysources

In 2020, 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 2020, the volume of supplies from the Czech Republic did not change year on year, meeting almost 20% of ORLEN Deutschland’s fuel demand.

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