The forecourt retail market at service stations has become increasingly competitive. Spar entered the market a year ago with Shell‚ while other partnerships include BP and Pick n Pay‚ Caltex and FreshStop‚ and Engen and Woolworths.
Famous Brands‚ which already supplies its Mugg & Bean coffee brand at Total SA's stations‚ said Wednesday, 17 September, it had extended this partnership by introducing the Thrupps grocer business.
Thrupps is a high-end family-owned business that started in 1892‚ and now sells and delivers from Illovo‚ Johannesburg.
Under the agreement‚ some of Total's Bonjour shops‚ aimed at more affluent customers‚ will be rebranded as Thrupps stores with a Mugg & Bean alongside it.
The "pilot" combination will be opened late next month in Senderwood‚ Bedfordview.
Vestact portfolio manager Byron Lotter said in a note on Wednesday: "Their biggest competitor is Woolworths‚ with their convenience stores‚ but I think this will be a level above.
"Knowing the quality that Thrupps (provides)‚ these convenience stores will be a huge hit‚ especially with upper-end consumers who are always on the go. In SA‚ we do not have the high street culture.... Our cities are big and spread out‚ and petrol stations are a great stopping point for quick and easy consumption - now we have a high-end quality option‚" Lotter said.
Famous Brands CEO Kevin Hedderwick said assuming the trial store at Senderwood was successful‚ "there is potential to roll out Thrupps to at least 50 other Total sites".
The initial focus would be in Gauteng‚ where Thrupps' brand equity was strongest.
Hedderwick said the Thrupps brand was extremely strong. "To this day‚ the northern-suburbs Illovo store delivers to customers as far afield as Benoni‚ Krugersdorp‚ Pretoria and Soweto‚" he said.
Each Thrupps store will provide services including a bakery‚ hot food selection‚ pre-prepared and made-to-order cold food‚ salads‚ fresh produce‚ a delicatessen range‚ fresh flowers‚ and a limited high-end grocery and commodity convenience product range.
"On all other sites which are not suitable for Thrupps‚ the Bonjour brand will continue to be used‚" Hedderwick said.
Total also planned to expand Mugg & Bean across its network using a range of trading formats wherever it was practical.
Source: BDpro via I-Net Bridge
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