Following a review of David Jones’ food business, which was signalled by chief executive Scott Fyfe in March, the department store’s partnership with convenience chain BP is ending.
The 35 dual-branded sites built over the past year will be transitioned in the coming months as DJs continues to streamline its Food business.
“Our organisations have collectively agreed to work through a managed transition that will see our relationship end in the coming months,” a BP spokesperson said.
“We know the needs of consumers are changing and we are excited by the growth opportunity this presents for BP in Australia.
“A differentiated offer which is delivered well clearly resonates with our consumers, who lead busy lives and want easy access to healthy and delicious food.”
David Jones, on the other hand, will refocus its food efforts toward bespoke Food Halls in its Elizabeth Street and Bondi Junction locations, as well as its pantry and seasonal ranges.
“We thank BP for its strong collaboration throughout the partnership and wish the business all the best in the next phase of its development,” a David Jones spokesperson told C&I.
“David Jones remains committed to delivering an exceptional food range reflective of our customers’ needs and preferences while reducing cost and enhancing overall business performance.”
The issue seems to have stemmed from David Jones’ failure to make a profit from its Food ventures, with parent company Woolworths Holdings group chief executive Roy Bagattini stating the business has “not transitioned fast enough“ during an analyst call last September.
And, that while the David Jones Food convenience locations were progressing well, the larger format David Jones Food business trades at a loss.
At a minimum, Bagattini said he hoped a review would get the food business to a break-even position by the 2022 financial year.