BP New Zealand has signed an agreement with food distributor, Foodstuffs, which will see fuel sold at outlets in the car parks of Pak'N Save supermarkets.
Under the agreement, Pak'N Save will offer its customers vouchers that provide a rebate on petrol and diesel purchased at the outlets, depending on how much they spend on groceries. The cost of the rebate will be paid by Pak'N Save. The self-serve outlets will open progressively over the next five years.
While the outlets will be operated by Pak'N Save supermarket owner-operators as agents for BP, BP will set the pump prices according to the prevailing street price in each market. The fuel will not be BP branded, and customers of the outlets will not be eligible to use BP Fuelcard, AA Rewards, or take part in Kachingo! or any BP marketing and promotional programmes.
The outlets will be located in cities and towns with an existing Pak'N Save supermarket. They will target customers who do their regular large grocery shops at Pak'N Save.
Another channel for BP
BP Managing Director Peter Griffiths said the fuel outlets are another example of the revolution the industry has been through in the 14 years since deregulation. He said BP chose to come on board in order to have a further channel for selling its fuel. "The more fuel we sell the lower our costs are. Lower costs let us stay ahead of our competitors and provide ongoing support to our independent network of service stations."
BP provides fuel through similar ventures to supermarket customers in Australia, Europe and the United Kingdom.
The Foodstuffs chain is claimed to be New Zealand's largest food distributor and the country's fourth largest business. It is totally owned and operated by New Zealand interests and consists of three separate, regionally based, retailer-owned co-operative companies, together with their Federation body, Foodstuffs (NZ) Ltd. It runs both wholesale and retail operations. Its full service supermarkets trade under the name of New World; the foodbarns/retail food warehouses under the names of Pak'N Save or Write Price and the conventional main order grocery stores and convenience stores principally under the names of Four Square, Four Square Discount or On the Spot. Each individual store is owner-operated by a co-operative member.
Foodstuffs New Zealand, along with Bank of New Zealand, Shell New Zealand and State Insurance jointly owns Loyalty New Zealand, the company that manages the New Zealand Fly Buys loyalty programme, which was launched in 1996. By July this year more than a million households (over 2.2 million individual cardholders) - some seven in ten New Zealand households - had signed up. Members collect points from over 36 participating retailers who collectively operate more than 2,000 outlets and cover more than 70% of everyday household expenditure categories.