David Jones and BP will end their upmarket food offer

The upmarket department store is shrinking its once promising food offer by exiting 35 BP petrol stations.

At the time of the launch in August 2019: BP Australia's vice president of sales and marketing, Brooke Miller with David Jones managing director of food, Pieter de Wet. Aaron Francis/The Australian

The unlikely retail partnership launched less than two years ago between upmarket department store David Jones and fuel supplier BP to sell a range of upmarket packaged and fresh food at BP service stations is to end, with David Jones to shut down its 35 co-located stores to tighten its focus on clothing and fashion.

Described by both David Jones and BP as a “mutual decision”, it leaves David Jones with a vastly shrunken food strategy that was up until a few years ago to be spearheaded by an ambitious roll out of food courts, food stores and BP outlets but which will now only have two food stores in Sydney.

Recently appointed David Jones chief executive Scott Fyfe has decided to end the BP co-located store strategy in one of his first major moves since appointed the boss of the department store, as he cuts costs and returns the retailer to its core competencies around fashion and apparel.

David Jones and BP were planning a string of high-end convenience stores across Sydney. Picture: Supplied

The fate of David Jones much-hyped push into food looked sealed earlier this year when Roy Bagattini, the CEO of Woolworths Holdings, the South African retailer which owns David Jones, said the mounting losses at the food business couldn’t continue. Woolworths Holdings revealed in February that its high-end food halls in Australia had continued to be a drag on the bottom line and lost $12 million in the December half.

In March David Jones announced a ‘streamlining’ of its food offer, announcing the closure of two food stores in Melbourne.

Now David Jones is moving to end the losses with a further reduction of its bricks and mortar strategy, closing down 35 co-located food outlets within BP service stations to leave it with its food halls in Bondi and the Sydney CBD while the closed Bourke Street mall food hall in Melbourne will reopen as a smaller offering next year. David Jones is also putting resources into an online food offer.

David Jones had planned to partner with BP service stations and open a string of high-end convenience stores across Sydney, including Seven Hills and Marsden Park. Picture: Supplied

“David Jones and BP have agreed our pilot convenience partnership will end in the coming months. This follows a strategic review by David Jones of our food business to focus exclusively on bespoke food hall experiences at our Elizabeth Street and Bondi Junction locations, and premium pantry and seasonal gifting ranges instore and online,” a spokesman for David Jones said.

“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.”

It was only in July last year that David Jones and BP agreed to ramp up their sites, with plans to double the roll out to more than 30 stores with customers offering ranges of pre-packaged meals, condiments and cooking ingredients branded with the David Jones logo.

David Jones and BP both had dreams of transforming the convenience food sector and after a trial of 10 pilot stores across New South Wales and Victoria.

But now those 30-plus David Jones ailes in BP petrol stations will be reclaimed by the petrol operator.

“BP confirms that, following a review by David Jones of its food strategy, our organisations have collectively agreed to work through a managed transition that will see our relationship end in the coming months,” a spokesman for BP said.

“The 35 current BP and David Jones stores in Sydney and Melbourne will transition away from being dual-branded, however will continue to offer a wide range of distinctive, fresh and high quality products.

“BP remains committed to delivering the best possible experience for our customers and will continue to actively pursue our strategy of transforming retail convenience and putting customers at the heart of everything we do.

“We know the needs of consumers are changing and we are excited by the growth opportunity this presents for BP in Australia.”

Originally published as David Jones and BP will end their upmarket food offer