May 18, 2012
The Age
SUPERMARKET chain IGA is to take on its larger competitors with a national rollout of concept stores that will offer late-night, gourmet food in suburban high streets.
It is the latest plan from retailers in the war to attract customers.
Already ”pop up” or short-term stores are now seen as an integral part of the retail landscape.
According to Westfield’s co-chief executive, Steven Lowy, it’s the reason why landlords can maintain higher revenue at the same time their tenants are struggling.
Mr Lowy said occupancy levels across the vast Westfield portfolio was close to 99.8 per cent due to the flexibility of leasing out stores on short or long-term leases.
He said pop up concepts were one of many new ways to keep a mall attractive, vibrant and profitable.
According to analysts, landlords not only generate rent from tenants but can open and close stores with ease to keep malls operating at full capacity.
Using the newly acquired store portfolio of Franklins, IGA plans to target a range of customers from the inner-city dwellers to suburbia.
The concept will be in direct competition with the Coles Express and Woolworths’ Metro chains.
The chief operating officer of Metcash, which owns IGA, Silvestro Morabito, said the first of the new stores, called IGA Marketplace, will be at the former IGA Darlinghurst on Oxford Street. ”It features a vast selection of more than 11,000 grocery products, with a heavy emphasis on fresh and gourmet foods, coupled with a full-service delicatessen and cafe,” he said.
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