Thorntons delivered ‘record convenience gross margin’ in 2022, BP’s CEO says

Dive Brief:

Although BP provided few updates on its U.S. retail business during its earnings call Tuesday, the company is “particularly excited” about its progress in America, noting its Thorntons c-store arm delivered a record convenience gross margin last year, CEO Bernard Looney said.
Louisville, Kentucky-based Thorntons opened four new c-stores in 2022 — in Ohio, Illinois, Kentucky and Tennessee — all of which feature self checkout, 15 to 20 fuel pumps and the retailer’s prepared foodservice program, among other amenities.
BP’s re-entry into fully owned and operated convenience stores in the U.S. has coincided with its expansion into the broader energy market, highlighted by last year’s $4 billion acquisition of Houston-based biogas company Archaea Energy.

Dive Insight:

Aside from its plans to build out its electric vehicle charging infrastructure globally — BP currently has 22,000 charging points in service, Looney said — it’s unclear how BP’s mission to become an integrated energy company will coexist with its focus on its c-store business.

Regarding BP’s EV charging program in the U.S., Looney noted how the company is “building scale,” referring to BP’s partnership with car rental company Hertz from last September. At the time, BP and Hertz agreed to develop a national network of EV charging stations powered by BP pulse, BP’s global electrification and charging solution brand, that would see BP managing Hertz’s charging infrastructure.

When it comes to Archaea, Looney called the acquisition “a real game changer” for BP. He noted that BP is focused on integrating Archaea into its network and building out its pipeline development, which includes the launch of 80 renewable gas projects within the next couple years, Looney said.

“We're putting more money into Archaea than Archaea would have on their own,” Looney said during the call. “They could have probably done 20 sites a year of that 80. We'll do more quickly because we have the balance sheet to be able to lean into that investment.”

London-based BP has a variety of retail models across the U.S., including company-owned retail stores, strategic partnerships, brand licensing, wholesale, business-to-business, dealer-owned and franchise-owned locations. Besides its own branded stores and those of the Thorntons arm, BP’s mobility and convenience brands in the U.S. include Amoco and Ampm.