Woolworths, Gull join hands

By DITA DE BONI

It's a case of deja vu as Woolworths prepares to jump back into one-stop-shop petrol and grocery marts around the North Island.

Woolworths and independent petrol retailer Gull Petroleum have formed an alliance that will convert most of Gull's 17 service stations, mainly in the Auckland and Bay of Plenty areas, into 24-hour mini-supermarkets called Woolworths at Gull.

Conversion of existing sites will begin in two weeks, with a further four sites under construction and five in the planning stage.

All "suitable" new Gull sites will also be dual-branded, the company says.

A similar deal between Woolworths and BP was abandoned when BP pulled the plug last April after a one-year trial.

BP described the New Zealand market as "over-pumped."

Woolworths chief executive Andrew Davidson says the previous foray was a pilot, and ended when BP decided to develop its own model.

He says the present proposal is different from other joint ventures between petrol providers and grocery retailers, such as the Caltex-owned Star Mart stores.

Although petrol forecourts with attached convenience stores often sell their groceries at a premium of around 20 per cent, the Woolworths-Gull partnership will offer "around 3000 products, including fresh foods ... at supermarket prices," Mr Davidson says.

Whether the stores will sell wine and beer has not been decided.

Neil Rae, Gull Petroleum executive director, says the independent petrol retailer saw an opportunity to improve its offer and the joint venture was a "natural marriage."

Neither would elaborate on how much business they intend to do through the petrol/grocery marts, nor discuss their respective market shares.

Mr Rae says the Woolworths at Gull idea may be expanded nation-wide and he hopes the idea will also be taken to Australia, where Western Australia-based Gull has 100 service stations in its home state.

Woolworths, a subsidiary of Hong Kong-based Dairy Farm Group, will provide staff to run the sites.

Gull petrol pumps are self-service.