Two of Australia’s major independent supermarket retail groups, IGA Foodland and IGA Ritchies have each announced their own independent expansion plans.

 

IGA Foodland says it will be opening 22 new stores across South Australia over the next five years. The growth plan will total AUD$200 million and includes building a new warehouse/distribution centre in conjunction with grocery wholesaler Metcash.

 

Ritchies IGA stores has revealed it will be expanding its network after acquiring 13 supermarkets across Victoria which were formerly owned by the Fishers Supa IGA network.

 

Foodland expansion

 

Foodland’s CEO, Con Sciacca said the new SA stores are expected to create 2, 600 jobs.

 

“New store locations have been identified and construction has already commenced on a number of sites, including McLaren Vale, Salisbury East and Mawson Lakes,” said Sciacca.

“New outlets will also be opening in country areas as part of our state-wide commitment.”

 

The new stores will range in size from approximately 400 square metres to 1000 square metres.

 

“Many of these will match or exceed the standards already set by existing stores at Golden Groves, Norwood, Mitcham, North Adelaide, Frewville and Woodcroft which have all won the IGA International Retailer of the Year award in recent years as the best supermarkets globally for the International Grocers Alliance network,” said Sciacca.

 

Foodland has a 32% per share of the supermarket retail market in South Australia which is the highest state market share for independent supermarkets in Australia. Foodland has a 96 per cent awareness rate in the state but will soon be competing against Aldi which will open in SA in 2016.

 

 Ritchies takeover

 

The transition of Ritchies IGA’s from the Fishers network is expected to occur by 1 March 2016. Ritchies is currently the largest independent supermarket chain in Australia and the Fishers network is the second.

 

Chief Executive for Ritchies told The Australian that the acquisition was a good fit for his business in fighting the bigger chains. He said that it will give Ritchies more of an opportunity to provide better pricing and trading terms.