Buying a supermarket

[cleveland]

Hi all

I have been working in the supermarket game for 16 years in numerous positions and I have decided I'm going to explore the possibility of purchasing my own such as a iga or similar. Has any owned a independent and if so do you have any feedback. I understand it would be a lot of work but would be sharing the duties with my wife.

 

[Z_K]

Don't do it.

 

[Ghostwriter]

The bloke that runs my local iga stacks shelves all day, amazes me how it runs although he gets the checkout girl to do rosters but I am constantly amazed how little managing he does.

 

[Falchoon]

Hi all

I have been working in the supermarket game for 16 years in numerous positions and I have decided I'm going to explore the possibility of purchasing my own such as a iga or similar. Has any owned a independent and if so do you have any feedback. I understand it would be a lot of work but would be sharing the duties with my wife.

It's a tough game. 3 things to consider

Location location location.

But not too good a location that the big boys will open up nearby.

Even non grocery wise be aware that the cigarette and liquor sales are being constantly eroded as retail goes big box.

 

[neroblack]

Established area or growth area?

 

[Z_K]

It's a tough game. 3 things to consider

Location location location.

But not too good a location that the big boys will open up nearby.

Even non grocery wise be aware that the cigarette and liquor sales are being constantly eroded as retail goes big box.

Yeah, all that and don't do it.

Seriously, it's a tremendous amount of work. It's hard to appreciate how much work it is.
If you are super keen, take care of the location, get a proper lawyer, understand your lease and your rights and be prepared to look honestly and smartly at your operation constantly.

 

[Falchoon]

Established area or growth area?

Growth areas are saturated with Coles and Woolies.

Have a drive though Narre South/ Cranbourne Nth.

Where Coles would never open a store with less than anticipated sales of $500k per week they now don't blink about opening one with expectations under $300k.

 

[neroblack]

Growth areas are saturated with Coles and Woolies.

Have a drive though Narre South/ Cranbourne Nth.

Where Coles would never open a store with less than anticipated sales of $500k per week they now don't blink about opening one with expectations under $300k.

Coles and Woolworths are very good at getting in early with land owners who are designated with activity centres in Melbourne's growth areas. The full line supermarkets will come on line as early as Coles/Woolworths can manage, and even though the Precinct Structure Plans (which are now quite generic in all of Melbourne's growth areas) show smaller shopping centres, these wont be viable until the ultimate residential population have moved into the area (if at all...).

I'm assuming the question was more about the established areas - there are changes proposed to a number of planning zones that will make it easier to develop small supermarkets (2,000sqm). These changes should be implemented in the first half of this year, will probably create the best opportunity if you can find the right location (there's that word again ).

 

[Jordie_tackles]

Hi all

I have been working in the supermarket game for 16 years in numerous positions and I have decided I'm going to explore the possibility of purchasing my own such as a iga or similar. Has any owned a independent and if so do you have any feedback. I understand it would be a lot of work but would be sharing the duties with my wife.

I can just imagine that it will only get harder to run an IGA type deal mate, look at Coles and Woolies trying to kill ALL opposition, you cant compete with 1 dollar bread and 2 dollar milk ect. You would need a very good area, super clean operation and decent prices to even be able to think about it being successful imo.

 

[rocker_oz33]

There are more iga's in tassie than coles and woolies.Most iga's have really good specials but there normal prices seem pricer than the woolies and coles.There are 2 iga's in my area one around the corner seems to be run right nice clean store and stocked etc but the other one seems to be run by inbreeds.

 

[Troubadour]

Hi all

I have been working in the supermarket game for 16 years in numerous positions and I have decided I'm going to explore the possibility of purchasing my own such as a iga or similar. Has any owned a independent and if so do you have any feedback. I understand it would be a lot of work but would be sharing the duties with my wife.

Maybe something in an area that has a captive market.

Have you ever checked out the IGA at Tribeca in East Melbourne? Hundreds of units above it plus the other surrounding housing stock. People don;t necessarily do the full shop there, but plenty of people buying stuff for a single meal or convenience products.

Anyway, address is roughly 400 Victoria Parade - nearly opposite the Baden Powell Hotel.

 

[cynical]

too high a risk would not do

 

[sabre_ac]

After spending my highschool and University years working at a number of supermarkets I've always wondered what it would be like to own one. I think there would be a certain satisfaction from a days work in your own supermarket and there is a great sense of community in the private ones.

I can't really comment with any authority regarding the challenges you'd face in keeping costs down when competing with the big chains, other than to say I'm sure "economies of scale" is alive and well.

The non chain supermarkets that did the best didn't appear to try and compete price wise with Coles and Woolworths. Instead they focused on having premium hard to source or locally created items (Very local). They also seemed to be in areas that have a high proportion of retirees, people with enough time who appreciate getting to know the owner and make going shopping a highlight or main objective of the day. Another thing I noticed was they were always in small multi use shopping areas, they were never the only business in the premise.

Clearly all this makes for a very expensive startup and long hours by the owner, but if I still think it would be quite rewarding.