$200m Foodland expansion to add 22 new SA stores

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Foodland Supermarkets will build 22 new stores across South Australia and develop a major new warehouse/distribution centre as part of a five-year $200 million expansion program.

Speaking before the Foodland 2020 conference last week, CEO Con Sciacca said the new stores would create an additional 2,600 jobs in the retail sector and further consolidate Foodland’s position in the South Australian market.

“New store locations have been identified and construction has already commenced on a number of sites, including McLaren Vale, Salisbury East and Mawson Lakes,” he said. “New outlets will also be opening in country areas as part of our state-wide commitment.”

In addition to the new supermarkets, up to 25 per cent of Foodland’s existing 118 stores will be refurbished, generating a further 200 jobs as the group gears up to increase its offering.

“It’s about building on our already strong Foodland brand, a South Australian icon and one of the state’s most trusted names,” Mr Sciacca said.

Roy Morgan Research reported that Foodland had the most satisfied customers in Australia between January and August 2015 and the group was also ranked second most valued supermarket brand in Australia for 2014 by Canstar.

Mr Sciacca said the new stores would range in size from around 1,000sqm to 4,000sqm.

“Many of these will match or exceed the standards already set by existing stores at Golden Grove, Norwood, Mitcham, North Adelaide, Frewville and Woodcroft, which have all won the IGA International Retailer of the Year award in recent years as the best supermarkets globally for the International Grocers Alliance network,” he said.

“Foodland differentiates itself in the market by its strong commitment to South Australian and Australian producers, meaning our stores frequently stock brands the other major supermarkets do not.

“All our supermarket owners are South Australian, so profits also remain in this state, while we have an unmatched commitment to service and the local community, which means quicker, better service for our customers.”

Foodland has about 32 per cent of the supermarket retail share in SA, the highest state market share for independent supermarkets in Australia. It also has a 96 per cent awareness rate in the state.

“Rather than looking to hold our position, Foodland is determined to increase its share of the market in South Australia by continuing to provide service and commitment to South Australia,” Mr Sciacca said.

A new warehouse/distribution centre will be built in conjunction with Metcash and will help facilitate Foodland’s ongoing growth.

Foodland will also be launching a major new advertising and marketing plan in coming weeks.

The expansion announcement comes ahead of ALDI’s first store openings in the state in February as part of the discount supermarket chain’s plan to open 50 stores in SA suburban and regional centres.