Ritchies has bought three Franklins stores from Metcash and will convert them to the IGA brand.
The Bateau Bay, Erina Heights and Woy Woy store are three of nine stores sold to the Ritchies across NSW.
Metcash chief executive Andrew Reitzer said the Ritchies tender was very competitive and he was very pleased to have entered into the agreement with a IGA retailer.
“We have a very strong relationship with Ritchies who have IGA Stores across Queensland, Victoria and New South Wales. They have a great track record of running top quality supermarkets,” he 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 the Bateau Bay, Erina Heights and Woy Woy stores quickly become very competitive.”
The other Franklin stores being sold to Ritiches are Broadmeadow, Crows Nest, North Ryde, Singleton, Spit Junction and Taren Point.
Fred Harrison, Ritchies Stores chief executive officer, said the stores would increase his company’s footprint in New South Wales in several key areas.
“We wanted to increase our presence in New South Wales, the biggest retail market in the country and with the Franklins stores we have that opportunity,” he said.
“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.”