Buying an IGA Supermarket: A Comprehensive Guide

Introduction to IGA Supermarkets

IGA supermarkets are a significant part of the Australian retail landscape, with a distinct presence in various regions. Unlike Coles or Woolworths, which are major national chains, IGA supermarkets are independent entities, often owned by local families. These stores are characterized by their proximity to communities and the personalized service that comes with their local management.

Ownership Structures

IGA supermarkets typically operate in distinct blocks, with a few families holding the majority stakes. For example, in Queensland, the Cornett family owns the majority of IGA stores, while in Northern New South Wales, the Ritchie family is the dominant player. Another notable group is Drakes, which has been expanding its presence in recent years.

Buying an IGA Supermarket

If you're considering purchasing an IGA supermarket, the first step is to understand the different ownership structures. Here's how you can go about it:

Contacting the Head Office

Your best bet is to contact the head office of each grouping. They will provide you with information about the available stores and the sale process. This can be a good starting point to gather preliminary information and determine your interest.

Identifying Available Stores

IGA supermarkets occasionally come up for sale. A well-known example is the IGA on Bribie Island, which was formerly part of the BILO store chain. It was purchased initially by the Cornett family but was subsequently on-sold to Woolworths. These instances highlight the importance of staying updated with the market.

Pro Tips for Potential Buyers

Buying an IGA supermarket is not just about snapping up a property. It's about acquiring a business with a strong local presence. Here are some key points to consider:

Research Local Markets: Understand the local economic conditions and consumer trends. High population density and disposable income are crucial factors. Assess the Store's History: Examine the store's history, especially if it has formerly been part of a larger chain that went belly-up. This can provide insights into the potential challenges and opportunities. Inspect the Physical Property: Prior to purchase, conduct a thorough inspection of the physical property, including the building, equipment, and the condition of in-store fixtures. Consider the Competitive Landscape: Analyze the competition in the area. IGA stores may face competition from other grocery chains, convenience stores, and online retailers.

Conclusion

Buying an IGA supermarket involves careful planning and thorough research. By understanding the ownership structures, contacting the relevant head offices, and conducting meticulous due diligence, you can navigate the process successfully. Whether it's a store in Queensland, Northern New South Wales, or elsewhere, IGA supermarkets present unique opportunities for entrepreneurs willing to put in the effort.

Frequently Asked Questions (FAQs)

Q1: Are IGA supermarkets owned by one family or multiple families?

IGA supermarkets are usually owned by a few families, but the ownership can vary across different regions. For example, the Cornett family owns the majority of IGA stores in Queensland, whereas in Northern New South Wales, the Ritchie family is prominent.

Q2: How often do IGA supermarkets become available for sale?

IGA supermarkets can occasionally become available for sale. It's important to stay informed about these opportunities, as they may present unique buying situations, such as the example of the Bribie Island store.

Q3: Is it crucial to inspect the physical property before purchasing?

A thorough inspection is essential before purchasing an IGA supermarket. This includes evaluating the condition of the building, equipment, and the overall in-store environment. It helps ensure you're making an informed decision.