Viva Energy boss Scott Wyatt is banking on Australians having an increased appetite for convenience store spending as Coles’ decision to sell its fuel business paves the way for Viva to reimagine petrol stations.

Coles called time on its involvement in the fuel space on Wednesday, handing its Coles Express business to long-time partner Viva in a $300 million deal.

It’s just under 20 years since Coles entered fuel sector in 2003, but chief executive Steven Cain said it was time for the supermarket operator to refocus on its grocery and liquor operations, which are much larger revenue drivers for the retailer.

He said on Wednesday that Coles had managed to turn its fuel business into a profitable enterprise over the years and that petrol discount dockets for shoppers had led to higher supermarket sales. “As far as M&A goes, this overall was a very good deal for Coles,” he said.

The supermarket giant’s decision to exit the space will also see $816 million worth of leases transferred off its balance sheet. While Coles will keep supplying its products to the convenience stores and keep its fuel discount docket program going, the move will see the ‘Coles Express’ brand erased over the next three and a half years.

The Coles Express business was hit by COVID lockdowns in 2021 and the company recorded earnings before interest and tax of $42 million for the 2022 financial year, a drop of 37.3 per cent.

For Viva, the transaction transforms it into the biggest single owner of fuel and convenience owners in the country, giving it a national reach that boss Scott Wyatt said gave it a significant advantage over competitors.

He told The Sydney Morning Herald and The Age that COVID had accelerated the trend of consumers shopping locally and that Viva was eager to expand the range of services that servos offered.

“The pandemic has changed forever how people shop,” he said.