British Petroleum Co. plc is to build its first gasoline stations in Japan under a pilot scheme in conjunction with Iseya Kosan, operator of the Beisia chain of shopping malls and DIY stores.
Japan only recently began restructuring its downstream sector to allow greater penetration by foreign companies (OGJ, July 7, 1997, p. 51).
Initially, BP will build five retail stations alongside new Beisia sites in Gunma Prefecture, about 100 km from central Tokyo. The first is expected to open in Miyako by year end, and four more will open by April 1998.
BP said that if the pilot sites are successful, the scheme will be extended to other Beisia stores during the next 6-7 years, creating a network of more than 100 filling stations.
Gordon Souter, president of BP Japan, said, "This is a very exciting opportunity for BP to enter the Japanese retail business with a partner that is well respected in the local community.
"We believe that Beisia and BP customer offers are complementary and that together we can provide an added benefit of one-stop shopping. Our first joint location, Beisia Super Mall Isesaki, is one of the best locations in Japan."
New attraction
A BP official told OGJ the company has been looking to invest in Japan's retail sector for a while.
A number of key developments, particularly deregulation of retailing, increasing development of out-of-town shopping centers, and legislation expected next year to allow self-service in gasoline stations, persuaded BP the pilot scheme was worth pursuing.
"Lots of retail sites are struggling in Japan since deregulation," said the official, "but the top 20% of stations do well. We are aiming to be in that top sector."
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