Queenstown station has no off-season
Caltex Queenstown is on the market for sale, offering what is said to be one of the best opportunities in the fuel retail industry. ABC broker Alex Ingrosso says the business, operated from leased premises at 43-45 Gorge Rd, is one of the best in the Caltex network.
“The Queenstown site is fantastic — it is a highly desirable spot that benefits hugely from the rapidly expanding tourism and population growth there,” says Ingrosso.
“This business is on Gorge St, a main arterial route leading all the way to Arrowtown, plus feeding Gibbston and Closburn.
“The station pumps more than seven-million-litres of fuel per annum, making this site one of the busiest in the South Island.
“And with so many tourism operations and hospitality venues in this part of the country it’s kept busy both summer and winter; Caltex Queenstown doesn’t experience much of an off-season.”
This differentiates it from similar fuel retailing sites elsewhere in the South Island, which do experience notable seasonality, he points out.
A complete fit-out in 2008 set the foundation of a robust infrastructure, while in addition pumps were upgraded three-years-ago.
“Another important factor with service stations is their other-profitcentres”, says Ingrosso.
“For most sites the majority of the profit comes from these add-ons rather than the fuel itself. This Queenstown site has a stellar coffee and hot food operation, along with car wash, gas bottle re-fills and international money transfers.”
Ingrosso notes that Queenstown draws more than two million visitors annually, laying on more than 200 attractions, activities and entertainments for them to choose from.
However, he believes the future of the business lies in further developing profit centres away from fuel sales, with more diverse offerings in the shop and value-added services to locals.
“I have been told some sites in the United States, for instance, are utilising space as distribution centres for the likes of Amazon deliveries, and why not?” says Ingrosso.
“There are some sites which have experimented with electric charging points, though at present the technology is still evolving in this regard.
“True, non-standardised charging times and plugs mean that — at this point anyway — not all cars can use all the charging points. But I’m sure this will change in due time.
“What people need to remember about service stations is that fuel is just one part of the operation. As time goes by these businesses will adapt; I believe they will be around long after fossil fuels have gone — even if they end up looking will a bit different to how they do now.”
Ingrosso says the current owner has been in the industry over 33 years so for them it is about moving on to a quieter lifestyle, away from running a business. “In my view, this decision offers potential new owner one of the best business opportunities in the adventure capital of New Zealand.”
Ingrosso says the role takes up around 30 to 40 hours per week and compared to some industries the number of staff versus turnover is low, so that side of the management is not too complicated.
The asking price $3.5m, plus stock, with lease details available from the broker.