RETAILING: BP and PnP Launch Convenience Store
Recent Western Cape Business News
The new partnership between BP and Pick n Pay materialised when the first Pick n Pay Express store was opened at a BP service station in Hout Bay, Western Cape, yesterday.
In terms of this agreement, Pick n Pay, South Africa’s leading food retailer, will take over the convenience stores currently operated by BP at selected BP service stations throughout the country. The new dispensation will enable BP, the leading petroleum brand, to focus on its core business, which is refining, supply and wholesaling of fuel, while the convenience side of the business will be managed by Pick n Pay. The two companies signed a Memorandum of Understanding earlier this year to this effect.
The Hout Bay Pick n Pay Express is being launched as one of the two pilot sites in the Western Cape, and based on the success of this model, it will be rolled out nationally at selected BP service stations. It is hoped that the new model will not only benefit the two companies, but will also change the landscape of convenience shopping at service stations for the consumer.
The new convenience stores will stock just over 1,700 lines and will trade 24 hours a day, seven days a week. The Hout Bay store will have a trading space of 110m2 and will be operated by the Pick n Pay franchisee, Luke Musgrave.
In terms of the agreement, which involves both existing and potential new sites, BP is to act as landlord and fuel supplier, and Pick n Pay to act as the tenant with their own franchisee appointed to operate both the forecourt and the on-site Pick n Pay Express convenience store. Where an existing BP franchisee has tenancy, the franchise agreement will, by agreement be converted to a Pick n Pay Express franchise.
Pick n Pay Express stores are intended to replace the current BP Express stores, offering a range of Pick n Pay fresh and convenience items, specifically identified to meet the needs of convenience shoppers, including a Wild Bean Café.
“This is one of the most exciting retail initiatives in which Pick n Pay has become involved in many years, and will be an important part of our plans to increase our convenience offering to our customers, which is an area of great potential growth,” says Pick n Pay CEO Nick Badminton. “Our research has shown that our shoppers want more convenience, both in terms of ease of shopping and location – and Pick n Pay Express, in conjunction with our other small store formats, will give them just that.
Says BP’s CEO, Sipho Maseko: “This will build on the strong platform that BP Express has created but we are convinced that partnering with Pick n Pay will take our offer to greater heights. BP will focus its core capability on maintaining our leadership in fuel.
“In addition, our agreement paves the way for extensive enterprise development through the building up of existing and new franchisees, particularly in small and medium-sized business development, and it holds great promise for the advancement of black economic empowerment.”
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