Euro Garages Australia

Euro Garages Australia, branded as EG, is an Australian chain of petrol stations, selling Ampol (formerly Caltex Australia) fuel at its stations. In Victoria, the chain traded as Caltex Safeway until Woolworths scrapped the name in late 2008 and traded as Caltex Woolworths or Woolworths Petrol until its sale in 2019.

Euro Garages Australia
IndustryAutomotive and retail
Founded1996 as Woolworths Plus Petrol, 2003 as Caltex Woolworths, 2019 as Euro Garages Australia
Headquarters
North Sydney
,
Australia
Key people
Mike McMenamin - CEO
ProductsPetrol, convenience and grocery
ParentEG Group
Websitewww.eg-australia.com
Logo of Caltex Woolworths

In April 2019, Woolworths sold its 540 service stations to the British company EG Group for $1.72 billion.[1] Since the sale, Woolworths-branded service stations have been progressively rebranded into EG stations.

History

Woolworths' foray into the petrol business began in 1996 with a Woolworths Plus Petrol station in Dubbo, New South Wales.[2]

Caltex/Woolworths Petrol Station Signage in April 2020

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.[3][4]

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 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. Another 12 sites were added to the Caltex redemption network in 2015 for a total of 104 Caltex operated sites accepting the Woolworths fuel discount.[5][6]

In August 2016, Woolworths Rewards' members could collect points for every dollar spent in any Caltex Woolworths outlet for the first time, in addition to the already-existing fuel discount offer.[7]

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.[8] 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.

On 7 November 2018, it was announced that 125 Caltex sites had begun accepting the Woolworths fuel discount redemption, and 680 Caltex sites had also begun to allow Woolworths Rewards' members to earn points, joining the existing network of 538 Caltex Woolworths sites and 104 Caltex operated sites.[9] Two days later, on 9 November 2018, Woolworths announced it would sell its 540 stores to the British company EG Group for $1.72 billion.[10] Woolworths said it would enter a 15-year agreement with EG that would maintain its fuel discount redemption across the network, and enable Woolworths Rewards points to be earned on fuel transactions across its network. Woolworths would also sell wholesale food and groceries to the chain of service stations under the agreement. The acquisition was completed on 1 April 2019.[1]

Fuel discount offer
Original Design of Caltex Woolworths station in Wagga Wagga, New South Wales

As part of the agreement between EG and Woolworths, EG Australia and Caltex Woolworths service stations continue to offer a 4¢ per litre discount off the pump price for customers who present a fuel voucher in the form of a docket, their Everyday Rewards loyalty card (formerly Woolworths Rewards) or their Everyday Rewards app, obtained after spending a qualifying amount of $30 or more at Woolworths supermarkets and Tasmanian Big W department stores. Before September 2010, fuel dockets also could be obtained after spending at Big W nationwide. The 4¢ per litre discount can be doubled to 8¢ if the fuel customer also spends at least $5 of goods at the service station's store, and pays for both fuel and goods in the same transaction.

When the offer was first introduced in the 1990s, it 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.[11] 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.

References
  1. "EG Group taps former Caltex executive to run Woolworths Petrol". Australian Financial Review. 18 April 2019. Retrieved 4 March 2020.
  2. "Our Story". Woolworths Petrol. Archived from the original on 30 January 2016. Retrieved 30 January 2016.
  3. "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.
  4. "Woolworths, Caltex finalise petrol deal". Sydney Morning Herald. 28 April 2004. Archived from the original on 30 January 2016. Retrieved 30 January 2016.
  5. "Changes to Caltex-Woolworths alliance" (Press release). Woolworths Limited. 20 November 2014. Retrieved 16 October 2020.
  6. "Changes to Caltex-Woolworths alliance" (Press release). Caltex Australia. 20 November 2014. Archived from the original on 3 February 2016. Retrieved 30 January 2016.
  7. "Significant Improvements to Woolworths Rewards - Woolworths Limited". www.woolworthslimited.com.au. Archived from the original on 25 August 2016. Retrieved 2016-09-08.
  8. Westbrook, Tom (28 December 2016). "Australia's Woolworths sells petrol chain to BP for $1.3 billion". Reuters. Retrieved 28 December 2016.
  9. "Expanded Caltex and Woolworths partnership begins today, helping Australian consumers save money on fuel and earn more Rewards". Caltex Australia. 7 November 2018. Retrieved 4 March 2020.
  10. "Woolworths Group to sell Petrol business and enter into commercial alliance with EG Group". Woolworths Group. 9 November 2018. Retrieved 4 March 2020.
  11. "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.
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