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| Ritchies buys nine Franklins stores |
   
Posted Date: 01/02/2012
By Inside Retail
Independent grocery operator Ritchies is to buy nine Franklins stores and convert them to the IGA banner.
Grocery and liquor wholesaler Metcash announced it had reached agreement to sell nine Franklins stores to Ritchies Stores as part of the ongoing divestment of the Franklins chain it acquired from South Africa's Pick n Pay late last year. It takes the Ritchies store network to nearly 60.
Metcash CEO Andrew Reitzer said the Ritchies tender was very competitive and he was pleased to have entered into the agreement with a leading IGA retailer.
“We have a very strong relationship with Ritchies who have IGA Stores in Queensland, Victoria and NSW. They have a great track record of running top quality supermarkets,” Reitzer said.
“The combination of the Ritchies‟ IGA retailing expertise and Metcash‟s national buying power, world class supply chain, marketing and merchandising programs will see these stores become very competitive very quickly. Local consumers are the big winners with this announcement today, Reitzer said.
Fred Harrison, Ritchies Stores CEO, said the stores would increase his company's footprint in NSW in several key areas.
“We wanted to increase our presence in NSW, the biggest retail market in the country and with the Franklins stores we have that opportunity,” Harrison said.
“At Ritchies we have a reputation as a strong independent retailer who does things 'how the locals like it'. We are bringing this experience and expertise to nine new areas in the NSW market.
“We are confident we will turn the nine Franklins stores around quickly as Supa IGA and IGA stores. They will provide locals with exactly the packaged grocery and fresh products they want at very competitive prices.
“In addition each of these stores will immediately become part of our Community Benefit Card Program where we donate a percentage of the money spent by customers to local charities, schools and clubs. Ritchies has donated close to $40 million to the communities in which we operate in recent years. This significant financial contribution is our way of showing that we care about the local communities in which we operate,” Harrison said.
While the store handovers are subject to landlord consent, Metcash and Ritchies are confident of finalising the deal in coming days.
The Franklins stores being sold to Ritchies by Metcash are in the following locations:
- Bateau Bay
- Singleton
- Broadmeadow
- Spit Junction
- Crows Nest
- Taren Point
- Erina Heights
- Woy Woy
- North Ryde
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Thursday, February 02, 2012 by Andy
Jim & Peter, I own an independent supermarket supplied by Metcash too, as it appears you may. Whether its Ritchies, Drakes in SA or Progressive in WA, They are independently owned and not huge public companies, although Metcash is of course. We need the likes of them to grow to ensure we keep a market share big enough to keep suppliers investing with us. And I would much prefer to read the independent is doing well rather than loosing the battle. If it was Metcash or Davids I know where I would buy...
Thursday, February 02, 2012 by Jim
Well said Peter!
Just more of the usual spin ! They think we are all a bunch of muppets who can't remember what they say a week ago let alone weeks / months ago ! We are not all as dumb as they would like to think we are !!
Thursday, February 02, 2012 by Peter
I find it interesting that Mr. Reitzer seems to present Metcash's business objectives in somewhat different ways with every press release. Here we have the understandably pleasing announcement for Metcash that it's distribution can grow through the increase of the number Ritchies stores (which Metcash has some ownership of) but last in last weeks announcement of a COO appointment he talks of Australians wanting to shop in stores that are 'family owned and operated' and how they will 'protect and develop' this. Which is it? Just more spin from the Food distributor that the small independents have to buy from.
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