East coast-based independent grocery brand group FoodWorks and the Western Australian controlled Supermarkets West today announced that Supermarkets West had committed 23 Farmer Jacks supermarkets to joining the FoodWorks group.
East coast-based independent grocery brand group FoodWorks and the Western Australian controlled Supermarkets West today announced that Supermarkets West had committed 23 Farmer Jacks supermarkets to joining the FoodWorks group, officially enabling FoodWorks to operate and compete on a national scale.
The inclusion of Supermarkets West's brand, Farmer Jacks' 23 stores into the "FoodWorks family" opens the door to numerous opportunities in the Western Australian market and allows FoodWorks to operate in a seventh state/territory. It also signifies a massive lift to the Company's annual sales, bringing the anticipated total to $1.35 billion - a 10-12% sales revenue increase - and the number of FoodWorks stores to 705 nationally.
FoodWorks is the brand created by the merger of the FoodWorks Supermarket Group Ltd (FSG) and Australian United Retailers (AUR) in November 2004 in response to rapid industry consolidation and increased competition which resulted in the Australian United Retailers Limited (AURL), an independent retail supermarket group.
In recent times, FoodWorks has grown to be Australia's second largest leading independent supermarket retailing group with 685 stores spanning six states and territories, until now largely situated across the eastern seaboard, and supporting approximately $1.2 billion in annual sales at the retail level.
The CEO of FoodWorks, Mr Peter Noble said "With the inclusion of Supermarkets West, FoodWorks is now a truly national business and with an even stronger new platform from which to further build the brand and accelerate the growth.
"The addition of the quality and highly regarded Supermarkets West group to the fold strengthens FoodWorks ability to offer even a broader range of brand choice, value and product diversity to a greater reach of customers," Mr Noble said.
The General Manager of Supermarkets West, Mr Peter Kapinga said after extensive market assessment, the final decision to move the majority of the Farmer Jacks stores into the FoodWorks brand was not a difficult one.
"The Farmer Jacks group began from humble beginnings twenty years ago in 1987 and we have always maintained a healthy relationship with FoodWorks over the years, so taking the next step of alignment with them makes a lot of business sense.
"FoodWorks has similar values and ambitions that fit with our culture and objectives and we're delighted to secure our future by joining with them," Mr Kapinga said.
"We anticipate the transition will be smooth and the results will soon be evident. We feel confident our 23 significant independent stores are now set with a solid platform for long term growth and we look forward to a lasting and prosperous alliance with FoodWorks."
Metcash, Australia's leading supermarket warehouse supply chain business, will continue to be the primary source of supply for the Farmer Jacks stores, as it is with the FoodWorks Group - providing national access to an extensive product range of 20,000 grocery, perishable, general merchandise, tobacco and packaged liquor items.
FoodWorks is undergoing significant changes on many levels, with FoodWorks' 700 retailer store owners and shareholders, voting earlier this month to approve changes to the Company's structure that would allow for raising capital for the first time exclusive to internal investors. The Company is seeking to raise up to $15 million of capital to fund store refurbishments, expansion, brand building, a differentiated merchandise offer and new generation retailer development programs.
"In choosing to align our business with FoodWorks, we have publicly expressed faith that our future growth prospects are enhanced by the Brand and systems they have established," Mr Kapinga said.
