Google AI


Modern Australian

Why BP is getting into bed with David Jones. The promising marriage of petrol and gourmet food

  • Written by: Gary Mortimer, Professor of Marketing and Consumer Behaviour, Queensland University of Technology

“Fill ’er up?”

That was the immediate greeting from the driveway attendant when pulling into the service station in the days before self-serve pumps.

Yes, once there was someone to pump your fuel and check your oil and water.

The colloquially named “servo” actually provided service.

Then, in order to reduce operational costs and remain competitive, they became “self-service” – you pumped your own fuel, pumped your own tyres, and didn’t dare ask for mechanical assistance.

Why BP is getting into bed with David Jones. The promising marriage of petrol and gourmet food An attendant pumps petrol at Griffin’s Garage at Victor Harbor, South Australia circa 1921. RAA

Today’s announcement that David Jones and BP are joining forces to to “create all-new centres of convenience” appears to mean servos are getting back into service, taking the focus off fuel prices and putting it back onto customer experience.

DJs loves food

David Jones has long held food ambitions.

Back in 2015, the new South African owner of David Jones, Woolworths Holdings (which shouldn’t be confused with Australia’s Woolworths) asked South African retailing veteran Pieter de Wet to overhaul its food business.

At first he rolled out “Food Stores”, similar to British retailer Marks & Spencers “Food Halls”, inside existing David Jones stores. Then earlier this year, he launched DJ’s first stand-alone food store in Melbourne’s South Yarra.

Moving into fuel and convenience is a logical, although risky, move. Two service station chains have moved first.

Read more: David Jones seeks to exploit top end gap in Australian grocery

Rather than competing only on fuel prices or 4 cent discounts, they are competing on “customer experience”. Stay a little longer, charge your phone and deal with some important emails. Have a barista-made espresso, or a Boost Juice. Grab a YouFoodz meal to take home for dinner.

Service stations are rediscovering service

When Singapore-based multinational Puma Energy entered Australia’s petrol market in 2013, it acquired Ausfuel Gull, Matilda, Neumann and Central Combined Group, making it Australia’s largest fuel retailer outside the big four; Caltex, BP, Shell and Mobil.

In 2016 it began installing 7th Street artisan café and convenience stores in its service stations, offering barista-made coffee, fresh baguettes, free Wi-Fi and phone recharging stations.

Why BP is getting into bed with David Jones. The promising marriage of petrol and gourmet food Puma Energy Then, in 2017, Caltex also opened its first Foodary, offering “breakfast, lunch and dinner options to go, locally roasted barista-made coffee and goods from local businesses”. The meal kits are from The Corner Store, the baked goods from Brasserie Bread. Why BP is getting into bed with David Jones. The promising marriage of petrol and gourmet food Caltex The thinking is that convenience is king. We are more time poor than ever, but we don’t want to scrimp on quality. The same phenomenon is contributing to the growth of meal delivery services. One-third of consumers are now using a restaurant or meal delivery service, and 7% get delivery once a week. The “premiumisation” of convenient fast food is an enormous growth opportunity, with market research company IbisWorld forecasting revenue growth of 4.7% through 2018-19 to A$7.6 billion, something David Jones wants to grab a part of in partnership with BP. It won’t happen everywhere Don’t expect to see a David Jones infused BP service station in your own neighbourhood any time soon. DJs says over the next six months they will be “strategically positioned” in 10 key locations in Sydney and Melbourne populated by a high proportion of “busy, urban, health-conscious customers”. It can be thought of as customer segmentation, this time based on time and income. It will fragment the fuel and convenience sector. At one end will be Coles Express and Caltex Starmart, offering value and low prices. At the other will be Caltex with The Foodary, Puma with 7th Street, and David Jones/BP offering “gourmet convenience”. But it might take our minds off prices Offering a premium food and customer experience will help insulate BP from the effect of high fuel prices. Last week, Coles Express announced a decline of almost 70% in earnings before interest in tax. When your offer is low prices and convenience but you can’t control fuel prices, you are at risk of losing customers. Read more: Aussie retailers need to adapt to a world built on speed Aiming at time-poor high income motorists offers protection. People filling up their BMW don’t care whether the price is $1.50 or $1.80 a litre. Of course while there would be winners, there would also be losers, the biggest being traditional convenience stores and second tier supermarkets bearing brands such as IGA and Foodland, supplied by the listed wholesaler Metcash. The ability to zip in, fill up and grab a quality food might become another nail in the coffin of the local convenience store.

Authors: Gary Mortimer, Professor of Marketing and Consumer Behaviour, Queensland University of Technology

Read more http://theconversation.com/why-bp-is-getting-into-bed-with-david-jones-the-promising-marriage-of-petrol-and-gourmet-food-122450

What to Do When an Older Car Is No Longer Worth Keeping in Melbourne

Ever looked at another repair quote and wondered whether your old car is still worth the trouble? It is a common turning point for Melbourne motoris...

Your Baby's First Year: A Local Guide to Feeding, Sleep, and When to Get Extra Support

Ask ten parents in a Brisbane mothers' group how their baby is feeding or sleeping, and expect ten different answers.  Someone's baby sleeps throug...

Kitchen and Laundry Makeover Ideas That Don't Require a Full Renovation

Full kitchen renos are expensive — and most people don't actually need one.  They need the kitchen to stop looking like it's stuck in 2009, or they...

How Technology Is Reshaping the Modern Australian Commercial Kitchen

The commercial kitchen has always been shaped by technology. Refrigeration changed how ingredients could be stored, modern ventilation transformed k...

The Number on a Roller Blind Fabric That Nobody Explains

Somewhere in the fabric book, next to the colour name, there is a percentage. Three per cent. Five per cent. Ten per cent. Nobody explains it, most c...

What’s Trending in Men’s Jewellery This Father’s Day!

Finding a Father’s Day gift that feels personal, stylish and genuinely wearable is not always easy. While socks and novelty mugs have traditionally ...

Road Signs: Understanding Their Role in Clear and Effective Signage

Effective signage and display hardware can help businesses communicate information, promote products and organise customer or visitor movement. Road...

Bottle Label Printing: Key Factors to Consider Before Your Next Packaging Run

Effective packaging begins with understanding the product, bottle material, artwork and production requirements when planning bottle label printing. H...

Planning a Long-Distance Move With Interstate Movers Melbourne

Moving between states involves more planning than a typical local relocation. Along with packing and transporting household belongings, you need to...

Understanding the Role of an I/O Controller in Industrial Automation

Modern industrial systems depend on accurate communication between sensors, machines and control systems. An I/O controller can help manage this commu...

How the Right Mining Hose Supports Demanding Operations

Mining environments place considerable demands on equipment used for material transfer, water management and processing. Hoses operating in these co...

Simple Ideas for Making Social Gatherings More Memorable

We have all been to those parties where everyone just stands around the kitchen island, staring at their phones, waiting for someone else to make a mo...

Outdoor Wall Lights: Improving Exterior Lighting Around Your Home

Lighting can influence how a room looks, feels and functions, so the right fitting should be selected according to both appearance and practical req...

Commercial Office Cleaning: Combining Routine Office Cleaning With Melbourne Service

Keeping a workplace clean requires a service that can accommodate everyday tasks as well as the particular needs of the business. Professional comme...

Caravan Sales in Queensland: How to Find the Right Caravan for Sale QLD

Caravan ownership is about more than having somewhere to sleep while travelling. For many Queenslanders, it is one of the best ways to explore regio...

What Sir Walter Buffalo Turf Actually Costs in 2026 (And Why Quotes Vary So Much)

Two quotes landed on a Hills District homeowner's kitchen table last spring for the exact same 80-square-metre backyard. One said $12 a metre. The o...

Nearly 1,300 NSW Hospital Beds Are Occupied By People Who Are Ready To Go Home

1,276 people in NSW hospitals have been medically cleared for discharge but remain in hospital because they're still waiting for NDIS or aged care sup...

National Survey Launched to Measure Operational Impacts of Federal NDIS Policy Reforms

The effects of recent NDIS reforms are beginning to move beyond policy papers and into day to day service delivery. A new national survey is asking ...