South African retailer, Pick n Pay, and BP service station have signed a merger that will boost their businesses in the metropolitan cities of South Africa.

Pick n Pay Express stocks between 1500 to 2,500 product lines and open all day to customers. With this new partnership, more Pick n Pay stores will open in BP stations across South Africa.

The companies had earlier in 2008 signed an MOU to test the model by opening PnP stores BP stations in Hout Bay and Tokai in Western Cape. There are currently nine Pick n Pay stores in BP service stations.

“We have tested the format over the past three years and the feedback from customers is very positive,” says Pick n Pay Deputy CEO, Richard Van Rensburg.

The plan is for 120 BP Express stores to be converted to Pick n Pay Express stores over the next five years, although additional stores may be converted after the initial five years period. BP says the partnership is part of its growth and investment plan in the next two years.

Earlier this week Pick n Pay Reported a 15% fall in full year profit.