Caltex Woolworths

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Caltex Woolworths(EG Group)
Joint venture
IndustryAutomotive and retail
Founded1996 as Woolworths Plus Petrol, 2003 as Caltex Woolworths
Headquarters,
Key people
Brad Banducci, Chief Executive Officer, Woolworths Limited
James Aylen, General Manager Petrol, Woolworths Limited
ProductsPetrol, convenience and grocery
ParentWoolworths Limited, Caltex Australia
Websitewww.woolworths.com.au/Shop/Discover/petrol

Caltex Woolworths was an Australian chain of petrol stations, currently operated by Caltex Australia and Woolworths Limited in a joint venture. In Victoria, it traded as Caltex Safeway until Woolworths scrapped the name in late 2008. Euro Garages bought the company in 2019 for 1.7b.

As of the end of 2018, there are 540 Woolworths-operated sites.

In December 2016, Woolworths announced it had agreed to sell its own operated sites to BP for AU$1.75 billion, and would enter into a franchise agreement. That deal fell through after it was blocked by the Australian Consumer and Customer Commission in August 2017. In November 2018 Woolworths announced it will sell its 540 service stations to the British company EG Group for $1.72 billion.

History[edit]

Caltex Woolworths station in Wagga Wagga, New South Wales

Woolworths' foray into the petrol business began in 1996 with a Woolworths Plus Petrol station in Dubbo, New South Wales.[1]

In 2003, Woolworths announced a joint venture with Caltex. Caltex would supply fuel to the outlets and they would be co-branded. All Woolworths Petrol and selected Caltex sites near Woolworths supermarkets were rebranded accordingly.[2][3]

In late 2014, Woolworths and Caltex revised the terms of their alliance, with the changes affecting the 131 Caltex-operated sites. 92 of the sites would be rebranded as either as Star Mart or Star Shop convenience stores while continuing to accept the Woolworths fuel discount redemption while the remainder would exit the Caltex–Woolworths alliance entirely.[4]

In December 2016, Woolworths announced it would sell its own operated sites to BP for AU$1.75 billion, and would enter into a franchise agreement to retain its branded stores at the sites.[5] The ACCC blocked the deal in August 2017 over concerns it would reduce competition and result in motorists paying more for petrol. BP pulled out of the deal in July 2018, saying the concessions that would have been required to satisfy the ACCC would make the deal commercially unviable.

In November 2018 Woolworths announced it will sell its stores to the British company EG Group for $1.72 billion. Woolworths has said it will enter a 15-year agreement with EG that will maintain its 4¢ a litre fuel discount shopper dockets across the network, and enable Woolworths Rewards points to be earned on fuel transactions across its network. Woolworths will also sell wholesale food and groceries to the chain of service stations under the agreement.

Fuel discount offer[edit]

Caltex Woolworths offers a 4¢ per litre discount off the pump price for customers who present a docket, obtained after spending a qualifying amount of $30 or more at Woolworths and Safeway supermarkets and Tasmanian Big W department stores (Previously nationwide; mainland Big W stores stopped issuing fuel dockets in September 2010).

The offer initially involved an escalating scale of discount off the price of petrol, depending on the amount spent to qualify – $30.00-$59.99 for 2¢ per litre, $60.00-$149.99 for 4¢ per litre, and $150.00 and above for 6¢ per litre.[6] However, the offer eventually settled on a median 4¢ per litre discount with purchases of $30.00 and over, after the launch of rival Coles' equivalent fuel discount offer through Coles Express service stations in 2003.

The 4¢ per litre discount is doubled to 8¢ if a petrol buyer also purchases goods to the value of at least $5 at the petrol station convenience store and pays for both petrol and goods in the same transaction.

In 2008, Woolworths launched its Woolworths Rewards loyalty card. With the card, customers can obtain their fuel discount vouchers by swiping their cards at Woolworths, Safeway and Big W (Tasmania only) checkouts nationwide and then redeem the discount by swiping their cards at Caltex Woolworths petrol stations.

References[edit]

  1. ^ "Our Story". Woolworths Petrol. Archived from the original on 30 January 2016. Retrieved 30 January 2016.
  2. ^ "Woolies and Caltex join forces". ABC News. Australian Broadcasting Corporation. 22 August 2003. Archived from the original on 30 January 2016. Retrieved 30 January 2016.
  3. ^ "Woolworths, Caltex finalise petrol deal". Sydney Morning Herald. 28 April 2004. Archived from the original on 30 January 2016. Retrieved 30 January 2016.
  4. ^ "Changes to Caltex-Woolworths alliance" (Press release). Caltex Australia. 20 November 2014. Archived from the original on 3 February 2016. Retrieved 30 January 2016.
  5. ^ Westbrook, Tom (28 December 2016). "Australia's Woolworths sells petrol chain to BP for $1.3 billion". Reuters. Retrieved 28 December 2016.
  6. ^ "SENATE – Legislation" (PDF). Official Committee Hansard. Canberra: Commonwealth of Australia Rural And Regional Affairs And Transport. 12 March 1999. p. 107. Archived from the original (PDF) on 8 September 2007. Retrieved 17 September 2007.

External links[edit]