bp has big ambitions in global convenience retail and mobility, and is walking the walk as well as talking the talk.
The energy giant is aiming to double its convenience gross margin to $1.5bn by 2030 and is also investing $15bn in convenience and EV charging globally, reports David Pitron, the bp executive with responsibility for the company’s global convenience proposition and strategy.
In addition to his global role, Pitron has recently picked up accountability for the European convenience offer development team and will oversee eight key convenience markets in Europe: Germany, the UK, the Netherlands, Poland, Spain, Portugal, Austria and Luxembourg.
The aim is twofold, he says: to evolve existing offers and identify where the business needs new propositions.
bp has identified convenience as a key transition growth engine, alongside EV charging, bioenergy, hydrogen and renewables & power, Pitron reports.
“We are investing in the convenience business – it’s a big investment and demonstrates great confidence from bp in the future of convenience and mobility.
We are putting our money where our mouth is,” he says.
bp pulse Catfish, Shenzhen, China, a fast-charging site at the Huanan Logistics Hub, perfectly spotlights that level of investment and commitment. Shortlisted in Insight’s ‘Best EV Hub in the World 2024’, Catfish is a supersize-hub with 386 charging points, serving both B2B and B2C drivers and providing 30,000 daily charging sessions.
“The aim is to become the first choice for customers and give them what they want, when and where they need it,” Pitron says.
“The site is fascinating and absolutely huge,” he says. Pitron visited the site six months ago and was wowed.
“The first thing that hits you is the scale and how we accommodate the different types of drivers’ needs with the right convenience offer.”
That convenience offer comprises:
- A hot food canteen where hot meals and drinks are served to the customers
- Vending featuring the latest “Ubox” vending technology using camera sensors
- A drivers’ lounge, providing a much-welcomed, air-conditioned private space for drivers, plus massage chairs
- An access controlled autonomous convenience store
- According to Pitron, the site has a broad array of services for all types of drivers and is a test bed for new offers, which can be accessed at any time of day.
Understanding and fulfilling customer needs are paramount for bp across all markets, he adds.
“We run tests across many of our key markets because we are seeking to learn what the customer needs are in each location and how to service them,” he explains.
The 5 Cs
The bp team in China is incredibly passionate about the Catfish location and has distilled the site proposition into five Cs: Charging, Coffee, Canteen, Car wash and Convenience store, Pitron reports.
“It’s a nice way of thinking about the range of offers that we are going to need in any given location.
In some locations we will only need a subset of that range but in others we will need all five Cs,” he says.
Pitron reveals there are currently eight bp pilots in China testing various combinations of convenience offers with EV charging, for example, car washing and valeting, or vending and lounge, tailored to the pilots’ locations.
“We constantly talk to customers to understand their different missions and needs, and test and learn what EV charging and convenience offers will make bp a first choice for customers,” Pitron says.
“The scale of our ambition for doubling our convenience margin and EV charging [bp has a target for 100,000 charge points globally by 2030] is so significant that, when we work out the formula, we will apply it to a huge number of locations,” he says.
European evolution and new-to-industry sites
In Europe, meanwhile, where bp is dealing with very advanced existing networks, the customer needs and missions are totally different and there’s a divergent competitor landscape.
Here, bp is focused on evolving the convenience and mobility proposition by deploying EV charging at retail sites with a strategic partnership store, for example M&S Food in the UK, REWE To Go in Germany, EasyAuchan in Poland, Albert Heijn to go in the Netherlands, BILLA NOW in Austria, Pingo Doce & Go in Portugal and MyAuchan in Luxembourg.
In tandem, bp is beginning to test EV-only locations and infill its overall network.
One recent example is at the NEC, Birmingham, UK where BP has deployed 30 ultra-fast 150kW and 150 fast 7kW charge points enabling 180 EVs to charge simultaneously, with a new-to-industry location adjacent to a Starbucks.
As in China, pilot programmes of all types of EV convenience solutions, ranging from vending to third-party food-for-now, are underway or coming soon at locations in the UK, Germany, Spain and the US.
Third party food service development
While bp has a strong proprietary food service business in the wild bean cafe, Thorntons and ampm brands in many markets around the world, it is also leveraging the ability to work with third-party brands, Pitron reports.
A good example can be found at TravelCenters of America (TA), bp’s latest major acquisition in the US in May 2023.
Brands such as Burger King, Popeyes and many others are operated by the TA teams – these are combined with a proprietary convenience store food service offer and third party and proprietary full service restaurant offers in many locations, providing a breadth of food solutions for leisure travelers through to professional drivers.
As well as winning branded food service expertise, bp is benefiting from the digital solutions operated by the QSRs including self-serve kiosks, which drive basket sales, speed customer journeys and reduce operating costs.
Moving forward, bp plans to introduce EV charging at the TA sites, Pitron reports.
Next steps
With convenience positioned as a key growth engine for bp, there’s no standing still. “We are constantly seeking to improve the execution of our offer everyday,” Pitron says.
Network evolution is critical too.
“There are changes happening across multiple markets in which we operate and we need to make sure it’s right for the market,” he adds.
Recent acquisitions, such as TravelCenters of America and, prior to that, Thorntons are instrumental in ensuring the network is in the right shape, Pitron says.
Understanding the convenience offers customers want while charging their EVs, extending our winning offers as a franchise, and underpinning and then building on the business’s digital foundations, will win the company more traction with customers too.
Pitron, with his global and now European perspective, is well placed to observe the changes taking place across different markets and learn how to fulfil changing customer needs.
“We don’t have a one size fits all approach but tailor our offers locally,” he says.
In bp parlance, that sees wild bean cafe serving a samosa in India, a sausage roll in Australia and a hot dog in Poland.
Focusing on the existing business – bp is piloting the next generation made to order fresh food offer in a 10-store pilot in UK wild bean cafes – while still having a view on the horizon is fundamental too, Pitron says.
“It’s one of the most exciting times in the business,” he smiles.
“We aim to double the convenience gross margin and the number of strategic convenience sites by 2030 and are investing $15bn in convenience and EV charging – bp’s commitment to convenience is strong.”
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