South Africa’s leading food retailer, Pick n Pay, has joined forces with BP to pilot a new convenience forecourt format, Pick n Pay Express.
New convenience format
Two trial sites will open in the Cape before the year-end with a future roll out plan concentrated on BP’s top national sites.
Pick n Pay will franchise new and existing sites from BP and operate both the convenience and fuel business.
The existing BP Express stores will be phased out and, where an existing BP franchisee has tenancy, the franchise agreement will, by agreement, be converted to a Pick n Pay franchise.
According to Pick n Pay, the new format will serve time-pressed South African customers who are increasingly in search of efficient and affordable convenience retailing.
Customers will also benefit from discounted diesel. Petrol, which remains regulated, will be sold at the set prices.
Pick n Pay Express will stock 1,500 lines and stay open 24 hours a day. The stores will offer a range of fresh food and convenience items plus BP’s Wild Bean Cafe concept.
Nick Badminton, Pick n Pay ceo, said: "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.
"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."
Pick n Pay opened its first small format store on 23 September 2008 in Johannesburg. Called Pick n Pay Daily, it offers 6,500 lines and is targeted at customers who shop frequently with smaller basket sizes.
Badminton added: "BP is South Africa’s most admired fuel retailer and by entering into a partnership with them, we will be able to offer our customers the essentials they need, where they need them – in a one-stop offering. And in these times of rocketing fuel prices, we believe that motorists will leap at the opportunity to buy discounted diesel.
"Our chairman, Raymond Ackerman, has for decades promoted the idea of selling discounted fuel – and while we by law cannot sell cheaper petrol yet, we will be allowed to sell cheaper diesel."
BP ceo, Sipho Maseko, said: "BP has been acknowledged by customers as a leader in fuel and convenience retailing and this is due to our focus on providing innovative solutions for customers through our fuel and convenience offers.
"This partnership with Pick n Pay is yet another proof point of our passion with innovation and with keeping our leadership position in the forecourt channel.
"It will be a logical 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."
Global Convenience Store Focus readers can be among the first to visit the new Pick n Pay Express format by joining Insight/NACS’ new South African Convenience Tour and Industry Summit, 30 January to 4 February 2009.
As well as the new BP joint venture, the study tour will visit retailers including an Engen-Woolworths 1 forecourt store, Sasol’s new Delight! forecourt format, world-class Spar stores and Food Lover’s Market
The Convenience Africa Summit on Tuesday 3rd February in Johannesburg will include Wayne Klahs, CEO, Chevron SA, Garth Greyling, Retail strategist for Convenience at Engen, Adolf Fourie, National Convenience Manager at Sasol and Mike Coppin, MD at Fruit & Vege City.
For further details visit http://www.insightreport.co.uk/conferences/rmf2008/index.html