David Jones enters $4.7b convenience sector

David Jones has entered the $4.7 billion convenience sector following a partnership agreement with bp.

Within six months, 350 David Jones branded products will be offered at 10 “strategically positioned” service stations accross Sydney and Melbourne.

The range will include food-for-now and meals-for-later options, pre-prepared products, long life groceries and fresh items such as sandwiches and sushi and rotisserie chicken.

bp vice president – sales, Brooke Miller, said “the traditional service station offer of today will not fulfil the retail customer needs of tomorrow”.

“[Our] 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 to Australian consumers.

“The new stores will invite customers to explore the future possibilities of retail convenience in Australia,” Ms Miller added.

“Drawing on the very best of each partner, the contemporary design will be ideal for our customers to shop the fresh, vibrant David Jones Food range or enjoy BP’s Wild Bean café”.

“Multiple shopping missions will be catered for”.

bp Australia vice president – sales, Brooke Miller with Pieter de Wet, managing director of David Jones Food.

Pieter de Wet, managing director David Jones Food, added that consumer behaviour is changing and “demand for fresh, food-for-now and food-for-later options continues to grow”.

“Customers expect convenience and quality to go hand in hand, and our collaboration with bp enables us to share the David Jones Food offerings with more customers than ever before.

“We are committed to the ongoing development of the range and together with bp see an opportunity to deliver an experience that fits with the busy lives and changing needs and preferences of our customers” (story continues below).

Partnership hoped will fill gap in the market

The partnership reflects the evolution of convenience retailing and global urbanisation trends, a joint statement about the partnership, said.

“Household sizes are getting smaller and the notion of three seated meals a day and an hour of grocery shopping on the weekend no longer holds for many busy Australians.

“Customers are eating on the go more frequently and planning their meals in advance less and less.

“With Australians doing their grocery shopping via multiple smaller shops, small-format convenience stores are playing an increasingly important role.

“In fact, studies show 48 per cent of consumers visit petrol and convenience stores for eating, drinking or snacking options between meals”.

David Jones, bp, hoping to trade from more sites next year

A second round of service stations is expected to be rebranded once “insights garnered from the initial 10 sites” come in.

Insights garnered from the initial 10 sites will inform the next phase of development for the partnership, with bp and David Jones considering going national.

David Jones will launch its first standalone food store, at South Yarra’s Capitol Grand building, in October.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.