David Jones, BP in a marriage of convenience
David Jones has struck an unlikely partnership with BP that could see customers able to pick up gourmet meals with their petrol.
David Jones has struck an unlikely partnership with petrol station operator BP that could see customers able to pick up some smoked salmon or gourmet chicken spice rub with their petrol as it reaches out beyond its up-market department stores to capture shoppers on the go.
For David Jones the marriage of premium petrol and premium food makes sense, and comes at a time when all food retailers are shifting their gaze to convenience foods — or as the industry is calling it, “food on the go” and “food for later”.
The agreement will see a first fleet of 10 BP service stations refurbished into specialist food hubs selling premium DJs packaged goods.
David Jones is following a similar strategy rolled out in Britain, where Marks & Spencer has teamed up with BP to offer “the convenience of everyday luxury” at more than 200 M&S Simply Food sites at BP petrol stations.
M&S has a close working relationship with South Africa’s Woolworths Holdings, the parent company of David Jones.
Coles and Woolworths are already pouring hundreds of millions of dollars into packaged meal innovations, specially refurbished stores and deals with Marley Spoon and Uber Eats to cater for the growth of convenience and food on the go offers.
This month Coles launched a new store format that devotes more space to convenience foods, packaged meals and other pre-cooked meals.
The Coles “store of the future” features a much larger space for fresh food, gourmet foods and fridges packed with meal kits, and will be rolled out to 100 stores this year.
It is this trend that DJs and BP have locked their sights on, hoping shoppers will embrace better quality fresh food and packaged meals when making dining decisions.
DJs’ new range will have more than 350 products on offer, including “food for now” and “food for later” options, as well as a range of fresh items such as sandwiches, sushi and free-range rotisserie chicken, plus pre-prepared meals and long-life groceries. During the next six months the 10 sites positioned around major arterial roads and key suburban regions of Melbourne and Sydney will be renovated to highlight the new offer.
Pieter de Wet, managing director David Jones Food, told The Australian that busy, urban, health-conscious people would be key customers in the link-up with BP.
“One of the challenges we have had so far is just being accessible. We have big stores in CBDs that aren’t always conducive to convenience shopping, and what BP brings to us is incredibly good locations that bring the brand to the customer,” Mr de Wet said.
“We have done a lot of work in developing incredible products but what’s key is getting it in the hands of our customers. Part of the rationale of this deal is that BP is the market leader in premium fuel and there is a high overlap in our customer base as it is.”
Brooke Miller, BP Australia vice-president sales and marketing, said: “The traditional service station offer of today will not fulfil the retail customer needs of tomorrow.
“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. Australia does not have this offer and so it is a huge opportunity.’’
Ms Miller declined to detail what would be stripped out of the new David Jones-branded BP sites to make room for the department store’s food offer, but said the offers would be harmonised to keep all shoppers happy.
Three years ago David Jones unveiled its $100 million food strategy to build a strong retail food business within its flagship stores around Australia.