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Kerbside convenience: our moves to reimagine retail

Release date:
16 February 2023
Our convenience business is constantly expanding and adapting as our customers’ needs change. From home deliveries to checkout-free tech, here is a regular update of what’s happening in this fast-moving sector

In 2022

Our convenience business delivered a record $1.5 billion gross margin in 2022 – 9% per annum growth compared to 2021*. 

 

By 2025

We aim to increase our customer touchpoints from around 12 million a day in 2022 to more than 15 million.

By 2030

We aim to more than double our 2019 adjusted EBITDA across our convenience and mobility businesses to $9-11 billion; at the same time, doubling our global strategic convenience sites from 1,600 to around 3,500.

 

Latest news in redefining convenience

Coast-to-coast convenience and mobility

bp has announced an agreement to acquire TravelCenters of America (TA) – a coast-to-coast network of large-scale mobility and convenience sites serving US highways. 


The TA travel centres average 25 acres per site (an American football field is about an acre!) and offer drivers a huge range of amenities when they need a break on the road – from coffee to dining, stores to truck maintenance and repairs. 


The deal, which is subject to regulatory and TA shareholder approval, will add around 280 sites across 44 states to our retail network – almost doubling bp’s worldwide convenience gross margin overnight. 


It complements our existing network stateside, as our bp, ampm or Thorntons LLC sites are mainly found at off-highway locations. 

 

“This is bp’s strategy in action. We are doing exactly what we said we would, leaning into our transition growth engines. This deal will grow our convenience and mobility footprint across the US and grow earnings with attractive returns.”


Bernard Looney, bp chief executive officer

 

Find out more in the press release.

New menu for Merrifield 

bp Merrifield, north of Melbourne, is the location for bp’s first store in Australia to offer its customers a new menu developed entirely in-house by our own team. 


In the lead-up to the store’s grand opening, the retail team spent more than 10 weeks in the test kitchen perfecting the recipes for loaded fries, crunchy toasties, roasted chicken, and delicious salads.  


But it’s not just the food that’s new. Every aspect of the retail experience has been improved – from the new look and feel store to enhanced digital and loyalty offers. And while they’re there, customers can get a first glimpse at our refreshed Wild Bean Cafe brand.  

 

“We’ve spent a lot of time developing, testing and perfecting the food offer, and it’s brilliant to see that translate into something our customers love.”   


Matt Elliott, VP mobility and convenience, ANZ 

 

 ampm hits the Big Apple 

Our US convenience brand, ampm, is branching out from its West Coast roots with the opening of its first store in New York City.  


Located in the Bronx, the new bp-owned and operated store is part of a pilot project to open four ampm sites in the New York market. It features bp branding on the forecourt for fuel and ampm’s food menu, including a hot deli and grocery.  


The entire customer-centric experience is run using the operating processes of Thorntons, the renowned Kentucky-based fuel and convenience retailer that bp took full ownership of in 2021. 

 

“Our offer will be key to attracting and retaining customers of the future, and with New Yorkers always on the go, the Empire State is a perfect fit for this pilot.” 

 

Dave Lawler, chairman and president, bp America 

 

The new site joins the more than 1,000 stores in the chain located from southern California up to Washington state, that serve upwards of 3,500 different products.  

 

Find out more in the press release.

 

Going global with Uber Eats

All the favourites from in store available for delivery to your door, as bp becomes the first convenience retailer to team up with Uber Eats on a global level. 

 

The first 120 bp UK sites are set to be live on the delivery app by the end of June with everyday essentials and our Wild Bean Cafe menu available for rapid delivery. 

 

In three years, bp aims to have more than 3,000 retail sites on the delivery platform, including growing in existing markets: Australia, New Zealand, Poland, South Africa and the west coast of US. Sites in the eastern US will also be added to the app for the first time this year, with plans to launch in other European markets from 2023. 


Our existing home delivery service is already popular. In the US, shoppers spend two-three times what they would usually in store. Popular items include energy drinks, ice creams and salty snacks.

 

In the UK, busy customers are using the service for must-need grocery items, such as milk, bread and bananas. 


bp and Uber already work together on next-generation mobility, with bp providing electric vehicle charging for Uber’s ride-hail drivers in some markets. 

 

Find out more in the full press release.

Extending our winning partnership with M&S

bp and M&S Food have extended their convenience agreement until at least 2030, aiming to build on the ‎success of the two companies’ 16-year collaboration and work together to evolve the forecourt offer as customers’ ‎behaviour changes over the next decade.‎

 

The pair first teamed up in 2005 to introduce M&S Food stores at bp retail sites in the UK and ‎transformed the market by offering a range of fresh, quality food for the customer on ‎the move. M&S Food is now available at almost 300 bp-operated sites across the country.

 

‎“bp’s partnership with M&S Food has led the way in the UK and we aim to continue ‎to innovate and grow to meet our customers’ needs,” says bp Alex Jensen, senior vice president for mobility and convenience, ‎Europe and Southern Africa.

 

Find out more about how the partnership has helped to change the way we shop in our feature article.

Improving the customer experience with checkout-free tech

We’re aiming to make the customer experience even more convenient with two trials of checkout-free tech at our convenience stores in the US. 

 

We’ve teamed up with Silicon Valley start-up Grabango to pilot checkout-free shopping at 10 Amoco and ampm locations in Pennsylvania and California. The technology allows shoppers to skip the line altogether and save time. There’s no need to scan shopping on the way out; payment is automatic and contactless.

 

And we’re piloting Mashgin’s instant, touchless self-checkout technology – the fastest in the world – at four ampm stores in California’s Bay Area.

 

Powered by AI, it uses computer vision to scan items for purchase instantly. Customers simply place their items on Mashgin’s tray, pay electronically, and can be on their way in as little as five seconds.

 

“This is a small step for now, but with great potential to transform an entire network in future,” says Emma Delaney, executive vice president, customers & products.

Latest news in growth markets

Launching Wild Bean Cafe in India

India became the latest country in our global Wild Bean Cafe network, when we opened our first Jio-bp mobility station in Mumbai in 2021 – tapping into the growth potential of this market.  

 

As well as the brand’s signature coffee, WBC in India offers a range of tasty snacks and beverages tailored with a distinct local flavour, including masala chai, samosas and paneer tikka rolls.

 

Part of our joint venture with Reliance Industries, the Jio-bp network offers customers a wealth of other products and services, including additivized fuels, Castrol Express oil changes and EV charging. 

 

Find out more about what’s on offer at the mobility station.

Taking full ownership of Thorntons in the US

bp has grown its presence in the well-established US convenience market, with the acquisition of the majority share of Thorntons in 2021.

 

The deal sees bp become a leading convenience operator in the Midwest, thanks to the brand’s 208 owned and operated locations across six states, including Kentucky, Illinois, Indiana, Ohio, Tennessee and Florida.

 

David Lawler, chairman and president, bp America, said: “We have a proud history of high-quality retail brands across the country. Incorporating Thorntons into our business combines their customer-first culture with our existing US retail network and will help us to deliver our convenience strategy of offering customers what they want, where and when they want it.”

 

Find out more in the full press release.

*At constant foreign exchange.

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