The Newtown and Springwood supermarkets - owned by Australian retail experts, the Lionis family - showed a combined annual sales turnover of AUD30 million last year and their coming on board is considered a major coup, Pick n' Pay said.
This move follows the announcement at Pick 'n Pay's preliminary results last month that the company had reaffirmed its commitment to Franklins, with an injection of AUD50 million in new capital - to be used mainly for refurbishments and upgrades.
"The addition of these two extremely successful stores, as well having the Lionis family on board, is significantly good news for us," said Pick 'n Pay CEO Nick Badminton.
Franklins cut its trading loss from AUD19.0 million to AUD8.8 million during the last financial year, and held market share in the past year. "We are now looking to improve our position with new store development and an improved performance in existing stores," said Badminton. "Franklins' original two franchise stores - based on the hugely successful Pick 'n Pay franchise model - have shown real growth in turnover and the roll-out of further stores is now a priority."
The company recently concluded agreements for the conversion of a further two stores (in addition to the IGA stores) to the Franklins franchise system, which will take the total number of franchise stores to six. "This is an exciting time for Franklins - we have invested an enormous amount of time in researching options to expand our operations and improve customer offering - and our efforts are starting to bear fruit. Having been through a period of consolidation, our focus will now turn to top-line growth."
I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge
