Metcash has reached an agreement with Ritchies for the sale of nine Franklins stores, which will be rebranded under the IGA banner.
Metcash was given the green light to buy Franklins from South African retailer Pick n Pay at the end of last year, and CEO Andrew Reitzer said he’s pleased to have signed the agreement with the leading independent retailer.
“We have a very strong relationship with Ritchies who have IGA Stores in Queensland, Victoria and New South Wales. They have a great track record of running top quality supermarkets,” he said.
Reitzer said the combination of Ritchies’ IGA retailing experience and Metcash’s national buying power, supply chain and marketing and merchandising programs will see the stores become competitive “very quickly.”
Ritchies CEO Fred Harrison said the purchase was a result of the retailer’s desire to boost its footprint in New South Wales.
“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 New South Wales market,” he said.
The store handovers are subject to landlord consent, but Metcash and Ritchies are confident of finalising the deal in coming days.
The Franklins outlets sold to Ritchies are:
- Bateau Bay
- Broadmeadow
- Crows Nest
- Erina Heights
- North Ryde
- Singleton
- Spit Junction
- Taren Point
- Woy Woy
