David Jones partners with BP to enter $4.7bn convenience sector
Department store David Jones is getting into the $4.7 billion convenience game by way of a partnership with BP, which will see selected BP sites offer exclusive, high-quality products under the David Jones Food banner.
Over the next six months, 10 strategically positioned sites around key regions in Melbourne and Sydney will be transformed to focus on busy, urban, health-conscious consumers.
The offer will add a further 350 products, including food-for-now and food-for-later options, as well as fresh items such as sandwiches, sushi, rotisserie-chicken, and long-life groceries.
“The traditional service station offer of today will not fulfil the retail customer needs of tomorrow,” BP Australia vice president of sales and marketing Brooke Miller said.
“BP’s vision is to transform convenience retailing in Australia, and enhancing our brand via strategic partnerships underpins our strategy to deliver market-leading fuels, technology, rewards and convenience offers to Australian consumers.”
Pieter de Wet, managing director of David Jones Food said the launch will signify a new chapter for the department store’s food banner.
“Consumer behaviour is changing and demand for fresh, food-for-now and food-for-later options to grow. Customers expect convenience and quality to go hand in hand, and our collaboration with BP enables us to share the David Jones Food offering with more customers than ever before,” de Wet said.
“We are committed to the ongoing development of the range and together with BP see an opportunity to deliver an experience that fits with the busy lives and changing needs and preferences of our customers.”
The lessons learned in these initial 10 sites will inform the next phase of development, though BP and David Jones expects to expand the offer through the national BP network.
The changing face of convenience
The convenience sector has seen large changes in the last decade, as consumer behaviour shifts away from the classic three-meals-a-day and an all-encompassing grocery shop on the weekend.
BP Australia general manager of retail Amanda Woollard previously told Inside FMCG that customers have influenced the speed of change in the convenience industry, and that the traditional ‘servo’ of old has been superseded.
“Clustering product and service offers in one space is proving popular; it all comes back to creating the best experience in the most convenient way,” Wollard told Inside FMCG.
“A key pillar of our strategy is about giving customers time back in their day. We’re seeing a rise in urbanisation so we’re focused on providing time-pressed, urban shoppers the flexibility to buy what they need, when they need it, and in a location that is convenient to them.”