Shoppers will soon be able to pick up a rotisserie chicken with their tank of fuel from a selection of BP petrol stations thanks to a new partnership between the oil giant and retailer David Jones.
Ten BP sites across Sydney and Melbourne will be done-up with David Jones branding and filled with 350 premium food products in a push to further diversify the retailers’ offerings.
The partnership will also expand David Jones’ nascent food division, which it kicked off in 2017 with a $100 million investment to bring high-end food products to its store network.
Customers will have access to ready to eat and packaged meals along with long-life groceries from the BP locations, which the two companies expect to have up and running in the next six months.
Prices will be higher than what shoppers expect from Coles or Woolworths supermarkets. A free-range rotisserie chicken will sell for $12 at the new stations, compared to Woolies’ $10 RSPCA-approved roast chook.
A 350g chicken tikka masala with rice will set you back $9.95 at DJs, compared to $5 at Coles, and customers can expect to pay $6.50 for a fresh sandwich, slightly more than 7-Eleven’s $5 offerings.
David Jones food managing director Pieter de Wet acknowledged the move was a departure from David Jones’ typical “absolute top-end” positioning but said it was necessary when approaching a convenience offering.
“You’ve got to position a convenience offering that’s the best quality, the most convenient, and the healthiest, and it’s got to be accessible,” he said.
“We’ve done a lot of work before launch to make sure pricing is more competitive, and at the right entry point for customers. We don’t want to alienate BP’s existing customer base.”
Partnerships are no new deal
While a unique pairing in Australia, both companies have experience with similar partnerships internationally.
BP has a long-standing food partnership with similar upmarket retailer Marks & Spencer in the UK, while David Jones’ parent company Woolworths Holdings has a similar deal with South African oil company Engen.
Mr de Wet said its parent company’s experience in the space meant the retailer was uniquely positioned to do the same in the Australian market.
This includes exclusive intellectual property and suppliers for fresh products, which BP vice-president of sales and marketing Brooke Miller said was a major draw for the company.
“Both parties are bringing very complementary skills, and David Jones’ IP and new product development in this space is unmatched,” she said.
“We have a really strong vision to transform convenience in Australia.”
The first 10 sites will vary in size and provide the two retailers insights for further site launches, with a national rollout forecast.
Extracted from The Sydney Morning Herald