Caltex plans convenience overhaul

CALTEX is planning to overhaul its petrol stations to become a major retail force offering everything from dry cleaning to haircuts.

West Petrol Station

CALTEX is setting its sights on a revamped convenience offering where motorists may some day be able to pop down to the servo for everything from ready meals to haircuts.

Speaking to The Australian Financial Review, Caltex chief executive Julian Segal said the company wanted to become a major retail force by taking advantage of its store network with new digital platforms and partnerships.

Mr Segal said the company intended to significantly expand its food and beverage sales, expand into salads and prepared meals, and develop an online ordering system so goods could be picked up on the way home from work.

“By definition we will not be competing with the big supermarkets,” Mr Segal told the AFR. “The size of our stores means we’re going to focus on what the customer wants on the way to work or on the way home ... but there’s a lot there we can provide.”

He cited services such as haircuts, dry cleaning and delivery of online purchases.

Caltex supplies fuel to 2000 sites across Australia — making up roughly one third of Australia’s fuel market — and serves around three million customers per week across its 800 owned or leased service stations.

Its retail convenience operations generate sales of around $1.2 billion.

Caltex spokesman Sam Collyer told news.com.au said the shift in thinking was about “expanding the definition of convenience”.

“I think realistically we’re probably not going to find ourselves cutting people’s hair, but if there are things that are complementary to our current business then of course we’d be interested,” he said.

“These are not specific plans that will be launched tomorrow. We don’t see any major change to our current role in the short to medium-term.

“We’re really just talking about, what does the business look like in the future? What we’re seeing is the customer’s idea of convenience is moving beyond the traditional definition.”

He cited Caltex’s $2.5 million investment last month in peer-to-peer car-sharing platform Car Next Door, which will help the start-up push into new areas and expand its car owner and borrower base.

Mr Segal told the AFR different aspects of the new convenience concept would begin to appear over the next 12 to 18 months.