David Jones and BP announce new partnership

Date : 27 August 2019

David Jones and BP have decided to join forces to roll out a new forecourt convenience concept to 10 locations in Australia.

Stores to focus on fresh food and healthy snacking

The new premium David Jones branded forecast stores will open over the next six months, with five in Sydney and five in Melbourne. Compared to Australia's typical forecast store offer, the shops will focus on providing high quality fresh food and healthy snacking solutions. Stores will stock over 350 products ranging from groceries, to fresh produce, food-to-go items, ready meals and rotisserie chickens. They will also retain the best elements of a standard BP offer, such as BP's Wild Bean cafe, a core range of drinks and snacks, plus the functionality of the BPme app and self-service checkouts.

Range of formats will be trialled... 

BP has a vision to 'transform convenience retail in Australia'. The initial locations will be carefully chosen, with a range of different formats trialled across the 10 locations. If successful more sites are likely to host the new offer and with BP having around1,400 forecourts in Australia, of which 350 are company-owned, the oppotunity could be substantial. The new deal has drawn comparisions with the successful partnership that BP has with Marks and Spencers in the UK.

Expect more investment in David Jones food in 2019/20

Woolworths Holdings, who owns David Jones, recently wrote down the value of the retailer by AU$437m following poor performance. However, this latest development shows how David Jones is looking to diversify its portfolio in Australia and reposition its food offering. Food has typically been tacked onto David Jones department stores as foodhalls, however through opening more stores in convenient and standalone locations and also diversify the offer, food could become a more privotal part of the business. David Jones food managing director, Pieter de Wet, said, “We are investing in different parts of the business to set ourselves up for the future, and food is one of those areas.”