PL

Retail

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  • Goal 9
  • Goal 11

In 2022, the ORLEN Group strengthened its presence in Slovakia, becoming one of the four largest operators on this market. It also expanded its retail network to a new market, Hungary, where it is already present in the wholesale area. As a result of the successful expansion of its sales network, the ORLEN Group ensures security of fuel and energy supplies not only in Poland, but also in Central and Eastern Europe. Commitment and good market recognition will allow us to offer new customers in Europe the highest quality products and services, in line with their expectations.

Market position and environment

The ORLEN Group is the undisputed leader in retail fuel sales in Central Europe. At the end of 2022, the ORLEN Group had a total of 3,097 stations, which included 90 stations that were acquired as part of the merger with Grupa LOTOS Group. The ORLEN Group had 820 operational RUCH retail outlets at the end of 2022. The reduction in their number was a result of measures taken to optimize their performance and ensure profitability of Ruch's retail operations.

In 2022, the ORLEN Paczka service continued to expand, replacing the previous' Traffic Paczka 'service. Following the change, e-commerce customers were offered a larger number of pickup points: parcel lockers (1,847), and, as before, Ruch kiosks and partner outlets. In the coming years, the ORLEN Group intends to further expand the geographical coverage of the ‘Orlen Parcel’ service. In order to increase the capacity and efficiency of the ‘Orlen Paczka’ logistics network, a new sorter and central sorting facility were launched in Stryków.

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, they are branded as Benzina or Benzina ORLEN, while in Slovakia and 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. As of December 2022, the ORLEN Group owns 79 service stations in Hungary under the ORLEN brand.

The number of service stations and ORLEN Group’s market shares at the end of 2022.

Source: In-house analysis.

Storage capacities of the ORLEN Group.

Food outlets and RUCH outlets at the ORLEN Group.

Polish market

According to the Polish Organisation of Oil Industry and Trade (POPiHN), there were more than 7,879 service stations in Poland at the end of September 2022, an increase of 55 or so compared with the end of September 2021. The number of supermarket fuel stations and independent stations decreased compared to the previous year. In contrast, large chain operators continued to invest in new facilities, resulting in an increase in the number of stations they own year on year.

The completion of the merger between ORLEN and Grupa LOTOS in 2022 had a significant impact on the ownership structure of service stations operating in Poland. Following the completion of the merger, by the end of the year ORLEN's network increased by 90 service stations owned by the former Grupa LOTOS.

As at the end of 2022, the ORLEN Group had a network of 1,920 service stations on the Polish market (approximately 24% of all stations in the country), while the stations operated by international chains (BP, MOL, Shell, Circle-K, Amic, and Total) represented approximately 26% of the total. Independent operator stations (including smaller chains operating under a single brand) accounted for about 47% of all service stations in Poland. The MOYA chain demonstrated the strongest growth among the independents. The number of supermarket stations fell slightly year on year, to 171, representing around 2% of all service stations in Poland.

Service stations in Poland.

Source: In-house study based on POPiHN data as at September 30th 2022.

ORLEN had a 34.3% market share in Poland in 2022.

Czech market

The ORLEN Group maintained its leading position on the market, both in terms of the volume of sales and the size of the service station chain. In 2022, the Benzina network increased the number of stations to 431 locations, but its market share declined to 22.2% mainly due to the economic situation related to the war in Ukraine and pressures from lower-priced competitors. Hungary's MOL, which is the second-largest network in the Czech market, had 306 stations, and its market share in volume-terms reached 9%. Other international players in the market are Shell and OMV (in aggregate 317 stations and a market share of about 20%). An important competitor in terms of capacity is Tank Ono (44 stations, 15% market share).

Slovak market

The number of fuel stations operating in the Slovak market in 2022 remained relatively stable, with a total of 910 facilities, which was similar to the previous year. In 2022, there was a noticeable trend towards consolidation in the market, which could potentially result in significant changes in the structure of fuel market players in the country. As part of the changes taking place in the Slovak market, the ORLEN Group acquired 27 OLIVA stations, Slovnaft took over 16 Lukoil stations, and Dalioil acquired 6 Oktan stations. At the end of 2022, Slovnaft remained the market leader with 272 stations, followed by OMV (104 stations), Shell (91 stations), Jurki (59 stations) and the ORLEN Group with 51 stations. In 2023, the ORLEN Group plans to complete the acquisition of 37 stations from Slovnaft and pursue other acquisition projects.

Hungarian market

In 2022, the ORLEN Group entered the Hungarian market through an asset swap with the MOL Group. In December 2022, ORLEN acquired 79 stations of the Normbenz network (out of 143 stations), which represented a 4% share and 4th place in the Hungarian market. In 2022, the total number of gas stations in Hungary will was about 2,000 facilities. About 48% of the Hungarian market is controlled by the four largest players. In terms of network size, the leader is the MOL Group with 464 stations, holding a 23% market share. The second largest player is OMV with 205 stations and a 10% market share. The third largest player in the Hungarian market is Shell with 187 stations and a 9% market share. The other market participants have a total of 1,068 stations and an aggregate market share of 52%. The asset swap with MOL is set to be finalized in 2024, resulting in a network of 143 stations that will cover the entirety of Hungary and give the ORLEN Group a 7% share of the Hungarian market.

German market

The total number of services stations in Germany has been relatively stable for years and has not changed significantly. In 2022, the entire network of fuel stations numbered about 14.4 thousand facilities, 360 of which were motorway service areas. ORLEN Deutschland's main competitors on the German market include the international networks Aral (BP Group), Shell, ESSO, Total (jointly operate about 45% of the total number of stations) and the economy networks Jet (ConocoPhilipps) and HEM (Tamoil), with a nearly 9% share in the total number of stations. At the end of 2022, ORLEN Deutschland's network of fuel stations included 587 facilities and , despite strong competition, maintained a market share of 6.0%.

Lithuanian market

About 63% of the Lithuanian market is controlled by the six largest players. The leader in terms of network size is the Viada Group with 216 stations (130 Viada stations and 86 Baltic Petroleum stations) and a 29% market share. The second largest retail chain is Circle K, the operator of 95 service stations (including 11 automated self-service locations) with a 15% market share. Neste is also a significant player, with a network of 80 self-service stations and anearly 12% market share. ORLEN's retail network in Lithuania, operated by its subsidiary ORLEN Baltics Retail, had 29 stations at the end of 2022 and a market share of about 4%.

Sales volume

Volume sales of the ORLEN Group's Retail segment in 2022 were about 9,352 thousand tonnes, an increase of 4.2% (y/y). The sales growth was positively impacted by the relaxation of restrictions and limitations associated with the COVID-19 pandemic, which resulted in an increase in vehicle traffic. Russia's invasion of Ukraine in February 2022 caused a temporary surge in fuel demand, but the situation quickly normalized. The economic and geopolitical situation, including rising inflation, contributed to a decline in volume sales in the second half of the year. As a result, volume sales in the Polish market increased throughout 2022, while declines continued in other home markets. Throughout 2022, all ORLEN Group companies implemented various measures to ensure the continuity of sales and network operations, while prioritizing the safety of service station staff and customers.

Sales of the ORLEN Group Retail segment [PLNm/thousand tonnes].

Revenue structure of the ORLEN Group Retail segment

Sales markets

The ORLEN Group’s retail home markets include Poland (where the retail business is managed by ORLEN), Germany (with a retail chain operated by ORLEN Deutschland), the Czech Republic, Slovakia and Hungary (service stations under the brand ORLEN 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).

Retail sales volumes on the ORLEN Group's home markets [thousand tonnes].

Revenue structure of the ORLEN Group Retail segment.

Polish market

In 2022, the ORLEN Group's fuel sales volume within its Retail segment on the Polish market increased by 13.7% (y/y). The average annual flow per CODO station was 4.8 million litres. The sales growth was positively impacted by the relaxation of restrictions and limitations associated with the COVID-19 pandemic, which resulted in an increase in vehicle traffic. Russia's invasion of Ukraine in February 2022 caused a temporary surge in fuel demand, but the situation quickly normalized in the latter half of the year.

Sales volumes of the ORLEN Group Retail segment in Poland [thousand tonnes].

Sales structure of the ORLEN Group Retail segment in Poland.

In 2022, the total number of ORLEN stations increased by 101 locations, to 1,920 at year end.

Including 1,471 CODO stations, a net year-on-year increase of 78 locations (19 new locations, 66 stations taken over from the LOTOS network, 7 stations closed down). As a result of the continuing investment programme, 19 new CODO stations were added to the retail chain (including four in motorway service areas at motorways and expressways, and MikroPremium stations built on the EPC basis).

In 2022, 28 technical upgrades were completed, including six major upgrade projects involving the launch of Stop Cafe 2.0 and two Demolish & Build projects.

The number of DOFO franchise stations at the end of 2022 was 449 facilities, having increased by 23 locations year on year. ORLEN expanded its DOFO network by adding 14 new facilities and bringing 22 DOFO stations, acquired from the LOTOS network, into operation. At the same time, the Company terminated cooperation with 13 stations. In the reporting period, the ORLEN Group signed 49 long-term annexes to extend cooperation agreements with station owners.

In 2022, the FLOTA and MIKROFLOTA loyalty programmes expanded their service portfolio to include Electromobility. This enabled fleet customers to charge their electric-powered cars at the charging stations available on the ORLEN Group network. In the SME segment, purchasing limits were increased for customers participating in the MIKROFLOTA programme, from PLN 8 thousand to PLN 10 thousand. We introduced flexible discounts for customers in the Micro segment who use the BIZNESTANK programme. The discounts vary depending on the amount of fuel purchased per month.

In 2022, ORLEN successfully entered the emerging infrastructure market for hydrogen-powered cars. The Company emerged as the successful bidder for the alternative fuel market tender announced by MPK Poznań, a municipal transport company.

In 2022, sales of non-fuel products increased in all areas, including food service, convenience store, and car wash services. Food service operations saw growth in 2022 for hot beverages and hot snacks, with margins increasing by 18% and 11% (y/y), respectively. There was also an increase in volume and value of sales in both categories. To enhance the appeal of its offering, the ORLEN Group diversified its food service product portfolio in major categories, such as hot dogs, fresh sandwiches, hot beverages, oven products, and restaurant meals.

The convenience store area also saw higher volumes, value and margins for tobacco products, operating liquids, functional beverages, alcoholic beverages and confectionery. To increase product turnover, the assortment was optimised, with slow-moving products replaced with new offerings.

In carwash operations, the lead over competing stations was gradually increased throughout 2022. There was an increase in volumes and value of sales as well as margins for automatic and manual car washes (11% year-on-year increase in margins).

The Stop Cafe 2.0 food & drink service concept was rolled out at a further 114 locations, which brought the number of ORLEN stations featuring this format to 1,023 (including 266 DOFO stations) at the end of 2022. In total, ORLEN had 1,828 stations offering food services across all formats (Stop Cafe, Stop Cafe Bistro and Stop Cafe 2.0).

In 2022, seven new car wash facilities were built.

As at the end of 2022, the ORLEN Group operated 820 active retail outlets of RUCH. The reduction in their number was a result of measures taken to optimize their performance and ensure profitability of Ruch's retail operations. The ORLEN Group is implementing the Nowa Bryła project, which in 2022 involved the opening of 10 outlets in a simplified version of the kiosks branded ‘Orlen w Ruchu’.

In 2022, there was further development of the ‘Orlen Paczka’ service, which replaced ‘Paczka w Ruchu’ a year earlier. The new courier service enables e-commerce customers to pick up their orders at more locations, including parcel lockers (with plans to increase their number from 2,000 to 4,000 by the end of 2023), ORLEN stations (over 1,000 locations), RUCH kiosks, and partner outlets. Orders are delivered to the pickup points within 1–2 business days. In the coming years, the ORLEN Group intends to further expand the geographical coverage of the ‘Orlen Parcel’ service. To increase the capacity and efficiency of the ‘Orlen Paczka’ logistics network, a new sorter and central sorting facility were launched in Stryków.

In 2022, 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. As part of the service, customers have the option to pay with payment cards, fleet cards, or cash, and Mobile Cashiers can print invoices and receipts. In addition, customers can earn VITAY points through the service. The Mobile Cashier service also supports stations that serve customers making e-ticket purchases for travel on toll sections of state highways. In 2022, Mobile Cashiers served more than 5.5 million customers.

As of the end of 2022, the ORLEN Group had 490 electric car charging stations in Poland, accounting for almost 20% of the market (the Group’s shares in the AC and DC segments of the Polish market exceed 17% and 23%, respectively). ORLEN is one of the two leading operators of the charging station network in Poland. It is also the clear leader in the number of charging stations of 100 kW and above on the Trans-European Transport Network (TEN-T), with more than half of the locations equipped with such devices located at ORLEN fuel stations.

At the beginning of 2022, the payment rules for car charging services were simplified. Pre-authorization is no longer required, and customers are charged for the amount of electricity consumed during the charging session, directly from their account. Since the summer, users of the ORLEN FLOTA and MIKROFLOTA programmes have been able to activate the Electromobility service for their vehicles. In the second half of the year, ORLEN Charge customers were given access to the first ultra-fast 175 kW charger.

ORLEN's strategic goal for electromobility by 2030 is to install approximately 2.7 thousand fast charging stations throughout Poland. ORLEN is continually refining its strategy for EV development and analyzing the needs of EV drivers to provide tailored offerings. As part of its efforts to reduce CO2 emissions, ORLEN plans to deploy approximately 425 units at multi-port charging stations in major cities and at transit locations, as well as 120 single chargers at ORLEN service stations throughout Poland by the end of 2027. All chargers will be capable of delivering 150 kW of power to an electric car battery and will be equipped with the most widely used connectors in the European market.

All charging stations are powered by renewable energy sources, as confirmed by guarantee of origin certificates obtained by ORLEN.

German market

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 2022 there were seven stations under the ORLEN brand positioned in the premium segment. In 2022, the ORLEN Group recorded an 11.4% year-on-year drop in its fuel sales volumes on the German market. The average annual flow per station was 4.3 million litres.

Sales volumes of the ORLEN Group Retail segment in Germany [thousand tonnes].

Sales structure of the ORLEN Group Retail segment in Germany.

The number of service stations managed by ORLEN Deutschland was 587, including nine premium stations (ORLEN), 561 economy stations (Star), and 17 supermarket stations (Familia). Over 85% of them were CODO stations, with the remaining sites being DODO stations.

In 2022, the Star Connect food & drink service was launched at two new locations, as a result of which at the end of 2022 the format was already available at 164 ORLEN Deutschland stations. In 2022, three more Stop Cafe 2.0 stations were put into operation in Germany. Taking all formats into account (Star Connect and Stop Cafe 2.0), food & drink service was available at 173 stations within the chain.

ORLEN Deutschland has the largest network of car washes in the entire ORLEN Group, with a total of 494 locations. In 2022, two more car washes were opened, and 46 were upgraded. The car wash segment experienced an 8% increase in turnover compared to the previous year, driven by growth in both sales and the average price per wash.

In 2022, the number of service stations in the network managed by ORLEN Deutschland remained unchanged (two new locations opened, two locations decommissioned). The acquisition of new stations in the German market is planned for 2023. The Star network had one hydrogen station (one hydrogen station was decommissioned) and 17 stations with access to electric car chargers (an increase of 10 charging stations).

Czech, Slovak and Hungarian markets

In 2022, fuel sales on the Czech, Slovak and Hungarian markets fell 8.0% year on year. The average annual flow per station was 2.4 million litres in the Czech market, 1.8 million litres in the Slovak market and 2.4 million litres in the Hungarian market.

Sales volumes of the ORLEN Group Retail segment in the Czech Republic, Slovakia and Hungary [thousand tonnes].

Sales structure of the ORLEN Group Retail segment in the Czech Republic, Slovakia and Hungary.

As at the end of 2022, the ORLEN Group managed a network of 431 stations in the Czech Republic, including 412 CODO and 19 DOFO outlets. Most of the retail stations in the Czech market operated under the Benzina brand. In addition, the ORLEN brand operated 22 stations in the market, and the network grew by another 19 stations during the year.

In Slovakia, the ORLEN Group managed a network of 51 service stations, including five service stations under the Benzina brand and 46 service stations under the ORLEN brand (during the year the chain expanded by another 40 service stations). All of them operated under the CODO/COCO model.

At the end of 2022, ORLEN Group managed a network of 79 fuel stations in Hungary located mainly in the Budapest area. The network includes 20 rural stations, 33 urban stations, 19 transit stations and six stations along motorways and expressways.

In 2022, the Benzina network continued to invest in modernizing and developing its network of gas stations in the Czech Republic and Slovakia. The Stop Cafe 2.0 format was expanded to more outlets, and by the end of 2022, there were 279 locations with this format in the Czech Republic and 15 stations in Slovakia. The network had a total of 366 stations with catering offerings, including all catering formats (Stop Cafe, Stop Cafe Bistro, Stop Cafe 2.0). An automatic car wash at one location was upgraded. A total of 135 car washes operate in the Benzina chain in the Czech Republic.

The ORLEN Group expanded its food service offerings in Hungary with five stations in the Piknik format following the acquisition of 79 stations in the country. In addition, the network sells coffee at 70 stations and hot dogs at 52 stations.

In 2022, Benzina expanded its network with seven new service stations in the Czech Republic and 29 new stations in Slovakia.

In 2022, Benzina continued to test two convinience stores (stand-alone non-fuel stores) in the Czech Republic. Development of contactless payments at coffee vending machines continues.

In the Czech and Hungarian markets, the ORLEN Group operated a total of 88 electric car chargers (79 in the Czech Republic and nine in Hungary).

Lithuanian market

In 2022, fuel sales on the Lithuanian market fell 7.2% year on year and the average annual flow per station was 2.9 million litres.

Sales volumes of the ORLEN Group Retail segment in Lithuania [thousand tonnes].

Sales structure of the ORLEN Group Retail segment in Lithuania.

The number of CODO stations at the end of 2022 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.

Supply sources

In 2022, 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 2022, the volume of supplies from the Czech Republic did not change year on year, meeting approximately 20% of ORLEN Deutschland’s fuel demand.

Read also:

Service quality and customer satisfaction

Strategic growth directions for the ORLEN Group's business segments

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ORLEN Group 2022 Integrated Report

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