David Jones to expand BP partnership

Nick Miles
Head of Insight - Asia Pacific
@RetailAnalysis

Date : 31 July 2020

David Jones and BP have announced that they will convert an additional 21 sites to David Jones Food stores by the end of 2020.

Further sites across Melbourne and Sydney

David Jones and BP teamed up last year, with the first David Jones Food store on a BP forecourt opening in November 2019 at BP Bayside Gateway in Melbourne. Since then the retailer has opened 9 further sites in both Melbourne and Sydney to test the concept. This week the partnership has confirmed that a further 21 stores will open before the end of 2020, taking the total trading to 31 across the two cities. Seven of the new stores will be in Melbourne and 14 in Sydney. The new sites are in Caroline Springs, Clyde, Eltham, Epping, Greenvale, Kingsway and Merrifield in Melbourne and Asquith, Caringbah, Engadine, Kellyville, Marsden Park, Mosman Ourimbah, Peninsula, Penrith, Seven Hills, Sydenham, Thornleigh, West Ryde and Willoughby in Sydney.

Source: IGD Research

Exciting new forecourt concept for Australia

We visited the BP Bayside Gateway store in Melbourne in early 2020 and the management team were very pleased with the initial results. Although some are sceptical that David Jones and BP can bring a more premium convenience concept to Australia, and whether BP has enough upmarket locations to suit the brand. We believe that the new format is a significant improvement and brings a fresh, new and exciting concept to Australian forecourt retailing. David Jones works very closely with BP, who still operate the sites, blending core and best elements of a forecourt store with a significantly upweight and high quality, but affordable fresh food-for-now and later offer. David Jones is also leveraging off the significant experience that its parent company Woolworths Holdings has from operating forecourt stores in South Africa.

Source: IGD Research

Forecourt competition hotting up...

The plans to roll out further stores have been delayed by COVID-19 distruption, but with convenience innovation around forecourts starting to heat up, David Jones and BP are now ready to push ahead. EG Group, who bought Woolworths fuel business in 2019 plans to open 100 Olivers Food to Go outlets in partnership with Olivers Real Food, while Woolworths is looking to develop its Metro format on Caltex forecourts.The new stores will help David Jones and BP learn more about the new concept, with flexibility in its approach a key element towards ongoing success. David Jones Food managing director, Pieter de Wet, commented, "We have been delighted with the performance of our 10 trial stores in Victoria and NSW, and the feedback and response from our customers has been very positive."

Source: IGD Research