BP Connect: fewer M&S sites than planned
BP is planning to open 150 of its joint venture stores with M&S Simply Food by the end of next year, less than the initial target for 200.
"The offer does not work in every location," said Karen Hubbard, UK convenience retail director.
Speaking at Insight’s Future of International Retailing Conference, Hubbard told delegates: "The mistake we almost made was identifying a gap in the market but not if there was a market in the gap."
The company has also launched a ‘half and half’ marketing campaign to highlight the combined offer because M&S customers were not used to stores with cigarettes, magazines or brands.
A new queuing system has also been introduced. "It’s been great for sales – chilled foods, sandwiches, bakery and hot food are the winners; grocery, tobacco, news and household are the losers," said Hubbard.
Hubbard told delegates the first franchise of a BP Connect with M&S Simply Food would open by the end of this year and BP was "moving into franchising in big way". It is keen to focus on central England, where it has less coverage at present, she said.
The company is also rolling out standalone Wild Bean Cafes, following the opening of a trial site at the Portsmouth ferry terminal.
Wild Bean Cafe: standalone format
According to Hubbard, BP plans to open 100 cafes over the next two years. "We are looking at other locations where we can put them in," she said. "It’s a quick offer for a limited dwell time for people that know our brand."
Hubbard said sales per square metre had been very encouraging.