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BP, supermarket form retail chain

Aug. 3, 1998

BP Oil Ltd. and Safeway, one of a number of supermarkets that have recently captured a share of U.K. retail sales, have announced a retailing joint venture. The companies plan to spend £100 million ($160 million) to convert 100 existing BP gasoline stations across U.K. into mini-supermarket and forecourt sites over the next 3-4 years. BP said the 50-50 venture follows successful trials in seven towns. The new stores will offer more than 3,000 products, including fruit, vegetables, meat,

BP Oil Ltd. and Safeway, one of a number of supermarkets that have recently captured a share of U.K. retail sales, have announced a retailing joint venture.

The companies plan to spend £100 million ($160 million) to convert 100 existing BP gasoline stations across U.K. into mini-supermarket and forecourt sites over the next 3-4 years.

BP said the 50-50 venture follows successful trials in seven towns. The new stores will offer more than 3,000 products, including fruit, vegetables, meat, and dairy products along with the normal retail station shop lines.

BP has 900 retail stations in the U.K. and anticipates the new mini-supermarket sites will generate sales of £700 million/year ($1.2 billion/year) in all and create 2,000 jobs.

Peter Backhouse, director of BP Oil, said, "Sales from the seven trial sites of both fuel and groceries have exceeded the challenging targets set for the trial, and we now look forward to extending this offer to new customers across the U.K."