Saved from being a one-stop-shop town, Gloucester’s supermarket duopoly finally appears secure, with the new owners of the IGA here to stay.
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It comes after several business around town have shut down, but the large investment of both business and building is a sign of confidence from new owners Peter Trappel and James Lovegrove that Gloucester’s future is worth it.
No strangers to the retail business, Peter and James’s recent acquisition expanded their IGA supermarket network in Dungog and Clarence Town.
Metcash had intially taken over the lease of the store, then a Foodworks, when former owner Innes Garner shut up shop in March.
Metcash owns the IGA brand, and so converted it from a Foodworks to an IGA supermarket, before sending out expressions of interest to retailers to make it their own.
The Dungog businessmen took over from Metcash suddenly at the end of September, when the publicly listed company announced their lease on the business was about to expire.
“This IGA has added to our network stores and heightened our opportunities to increase efficiencies in buying power. But more importantly, we like Gloucester as a country town,” Peter said.
Peter lives near Dungog, and said that the fact that Gloucester is only an hour’s drive away added to its appeal as a business opportunity.
The former dairy farmer also sat on Dungog Council for nine years and says it gave him a real appreciation of what’s important locally.
“It really showed me what makes up the fabric of a regional town. Dungog and Gloucester are very similar in many ways, although perhaps with slightly different demographics.”
When the deregulation of the dairy industry occurred, Peter said he watched Gloucester enhance its main street thanks to extra funding.
“The main street is so important to the health and wellbeing of regional communities,” he said.
“It’s vital to maintain its vibrancy. I think that losing this IGA would have had an adverse impact on the street.”
Certainly, he knows it won’t be easy. Fully aware of recent business closures in the area, he is hoping things will turn around. For his part, he is planning on joining the business chamber.
“As a business owner, you need to become a part of the local community.”
Whilst he sees Woolworths as a very tough competitor, he said the independent supermarket model is very different from the ‘majors.’
“The majors – Coles, Woolies, Aldi – deal directly from supplier to customer. The independents have a wholesaler – Metcash – between them and most of the suppliers.”
As a contracted rather than franchise model, Peter said that can control the buying process but it tends to average out to 70 per cent Metcash provided products, and 30 per cent local.
“I’m really keen to touch base with any local producers because part of the independents strength is that they have the local aspect, they have the ability to buy locally and support locally. It can be anything. We need to have a point of difference against the chains,” he said.
Whilst Metcash controls the external marketing, it is up to each owner to manage their own in-store offers.
“We just need to make sure we have offers that are appealing and meet the needs of customers,” he said.
“We’re not kidding ourselves that it’s going to be easy, but it’s up to us, not you, but us,” he said.
With an ongoing staff of 35 and a well setup shop, Peter said he is not anticipating many changes.