CHICAGO -- Changes to the leadership of BP Products North America's convenience-retailing arm may help usher in significant shifts to the company's U.S. strategy. Furthermore, optimistic marketers suggest the leadership change could lead to a more collaborative relationship between BP and its growing jobber and franchisee network.
BP has confirmed previous reports concerning key leadership changes to its U.S. convenience retailing team. Fiona MacLeod is going to head up our U.S. convenience retailing efforts, BP spokesperson Scott Dean told CSP Daily [image-nocss] News. She brings tremendous retailing experience from our businesses here and overseas.
MacLeod is the former chief of staff to John Manzoni, managing director and CEO of BP refining and marketing, as reported earlier this week. In her new position, she will oversee the company's U.S. marketing, merchandising, operations, franchise development and other key downstream activities. Her predecessor, Polly Flinn, is expected to take another position in London.
While the announcement has sparked optimism among members of BP's retail network, it's much too early to tell how the change will affect the company's U.S. performance, according to marketer attorney Bob Bassman, whose clients include the BP Amoco Marketers Association, Savannah, Ga.
Everyone's talking about it, but only time will tell, Bassman told CSP Daily News. There's lots of speculation and some optimism, but right now that's the bottom line: speculation. The big changes we know of now are just the people; the divestment of assets is nothing new. It's too early to know what the marching orders from London will be.
Previous reports also suggested BP would continue to spin off company-operated sites around the country to franchisees and other members of the independent community, which Dean also confirmed. The plan moving forward is to increase the amount of retail sites in the hands of independent franchisees and jobbers, and we continue to make progress there, he said. We've sold surplus properties and created branded franchised opportunities to market under ampm c-store brand.
The divestment strategy is part of BP's drive to free up capital and move it into other projects with higher profits for investors, according to Dean. The company needs to make investment opportunities based on the current business environment, while effectively keeping a popular, powerful brand in front of customers. Working with more entrepreneurial-minded members of the franchise community should help.
Results of a pilot test in Southeast Florida's Miami market will largely determine the growth of the ampm brand east of the Rockies. Stores in the Miami test offer the best of ampm with BP Connect staples such as the Wild Bean Caf a. If the pilot is deemed successful in Florida, ampm could become BP's dominant c-store brand.
We are continuing our strategy ofpiloting ampm c-store model in some of company-operated stores in South Florida, said Dean. We've learned that the ampm c-store model is highly successful, and it's a strong, internationally known brand. It has proven to be very popular. It's married with the Wild Bean Caf a and bakery offer, which was pioneered at BP Connect sites, and we're giving it very strong consideration elsewhere.
One industry observer close to BP expected lukewarm results from the Florida test. BP is really high on [ampm], but I have my doubts, he told CSP Daily News on condition of anonymity. If you were to compare ampm to, say, Wawa, you would not be that crazy about ampm. They do own the Wild Bean concept, and the BP Connects that had the concept before were beautiful, but I don't think those stores made any money.
BP has approximately 14,000 U.S. stations under the BP, ARCO and Amoco gasoline brands. Of those, about 3,500 are company- or dealer-operated stores, while 10,500 are owned or supplied by independent marketers.
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