IGA (Australian supermarket group)

Last updated

Independent Grocery Alliance
Subsidiary
IndustryRetailer
Founded1988;32 years ago (1988) (as Independent Grocers of Australia)
Headquarters,
Key people
Scott Marshall
ProductsGroceries & general products
RevenueIncrease2.svg A$14.12 billion (2017)
Parent Metcash
Subsidiaries Supa IGA
IGA Supermarkets
IGA X-press
Progressive Supa IGA (WA)
Foodland (SA)
Website http://www.iga.com.au
An IGA supermarket in Forest Hill, New South Wales Forest Hill Shopping Centre.jpg
An IGA supermarket in Forest Hill, New South Wales
Igacommchest.jpg

Independent Grocery Alliance (IGA) is an Australian chain of supermarkets. IGA is owned by Metcash, but individual IGA stores are owned independently. [1] It is the Australian branch of the international American-based Independent Grocers Association. Its main competitors are Woolworths, Coles and Aldi Süd. It is the fourth largest chain, since Aldi overtook Metcash in supermarket revenues. In 2019 it was reported that IGA had 7 per cent of the grocery market. [2]

Contents

Markets

The U.S. IGA has over 5,000 stores in over 30 countries. IGA was brought to Australia by Davids Holdings in 1988 when 10 stores became members of IGA. There are over 1600 IGA stores in Australia. [3]

Operations

Australia

In New South Wales (NSW), Queensland, Victoria and the Australian Capital Territory, IGA has three retail formats:

In 2005, 13 ACT IGA stores left the IGA group and were re-branded as "Shop-Rite", a former ACT independent brand that was re-branded IGA in 1992. Deliveries were sourced from Queensland, rather than Metcash in Blacktown. In 2006, these stores returned to IGAs and Metcash. One Shop-Rite remains in Belconnen. Richies is the largest IGA franchisor in Australia.

IGA was launched in Queensland and northern New South Wales in 1998. There are now over 200 stores operating from Port Macquarie to Cooktown, and west to Mount Isa. After the takeover of FAL Foodland Associated Limited from Perth, Action Supermarkets across Queensland and NSW became Supa IGA stores.

On 1 July 2010, it was announced that all 85 Franklins stores (NSW) had been sold to Metcash for A$215 million, to become part of the IGA chain.

South Australia

In South Australia, large IGA supermarkets are branded as Foodland rather than Supa IGA, following Metcash's acquisition of the Foodland brand in 2005. [4] Small-to-medium supermarkets and convenience stores using the IGA brand also exist.

Tasmania

In Tasmania, IGA operates differently. The IGA brand is used by retailers belonging to the Tasmanian Independent Retailers cooperative. There is no formal trading relationship with IGA retailers in Tasmania and Metcash Limited, merely an agreement between Tasmanian Independent Retailers and Metcash for use of the IGA brand. As such, while sourcing some stock from IGA>D (the Metcash owned distribution company), members of Tasmanian Independent Retailers have been supplied for the most part by Statewide Independent Wholesalers, a company in which TIR members have a business interest. SIW also supplies Tasmanian Woolworths stores.

Progressively, the relationship between TIR and Metcash Ltd. has allowed for greater involvement for Tasmanian IGA retailers in national IGA programs.

A Tasmanian store with the Festival IGA brand (2007). Wilkes-IGA-Beaconsfield-20070419-010.jpg
A Tasmanian store with the Festival IGA brand (2007).

In 2009, Tasmanian Independent Retailers underwent a brand rationalisation in which the IGA channels in Tasmania moved towards the model accepted on the Eastern Seaboard of mainland Australia:

  • IGA X-press: small format convenience.
  • IGA Everyday: a medium format store which exist mostly in regional areas, often as local general stores. It had been known as Value Plus IGA, and before that as Sam's Cut Price Stores.
  • Supa IGA: Full service supermarket, in direct competition with the major chains. It had been known as Festival IGA, and before that as Festival Supermarkets.

"Everyday" was added to the IGA medium format channel in Tasmania to differentiate it from the other two channels. This was required as Tasmanian Independent Retailers have traditionally provided extensive channel-specific advertising for its members.

Western Australia

There are 3 IGA business channels in Western Australia: Supa IGA, IGA, Progressive Supa IGA. In 2005 Metcash Limited purchased Foodland Associated Limited (FAL). As part of this purchase the independent network of Action, Dewsons, Dewsons Express and Supa Valu Supermarkets, which had been supplied by FAL changed their banners to IGA while retaining the same independent ownership. A group of 11 Action supermarkets (that had been operated by FAL) was sold to a consortium and these stores now trade as Progressive Supa IGA. Metcash still holds a percentage interest in these stores. The rest of the Action Supermarkets were sold to independent grocery operators who trade as Supa IGA. IGA Western Australia's Head Office is still located at 218 Bannister Road Canning Vale. Action consisted of 34 Action stores in Western Australia, and 40 in Queensland and northern New South Wales.

IGA Western Australia's slogan is "How the WA Locals Like It".

IGA channels in WA include IGA X-press small format convenience stores, IGA: medium format stores which exist mostly in regional and metropolitan areas (often as local general stores), Supa IGA full service supermarkets, in direct competition with the major chains, and Eziway small format convenience stores which run similar to IGA X-press.

Foodland Associated Limited has used these store trading names:
Action Supermarkets (company owned): Full service supermarkets, in direct competition with the major chains. Action offered full Fresh Produce, Meat, Bakery, Seafood, Deli, Dairy and Grocery departments. Action's slogans were "Action Means a great deal", "Packed Full of Great Shopping Ideas" and "Packed Full of Good Taste".
Dewsons: large format stores which existed mostly in regional and metropolitan areas, often as local general stores. Dewsons' slogan was "Fresh as the Morning".
Supa Valu/Dewsons Express: medium format stores which existed mostly in regional and metropolitan areas, often as local general stores. Supa Valu's slogan was "Your local supermarket", and Dewsons Express' was "Quick and Easy".

FAL has also operated:

  • Action Supermarkets (defunct in 2006)
  • Supa Valu Supermarkets (defunct in 2006)
  • Dewsons Supermarkets (defunct in 2006)
  • Dewsons Express Supermarkets (defunct in 2006)
  • Foodland Supermarkets (defunct in 2003, all stores transferred to Supa Valu)
  • Rules Supermarkets (defunct in 1996, all stores transferred to Dewsons)
  • Advantage Supermarkets (defunct in 2000 when Woolworths purchased the four stores)
  • 4 Square Supermarkets (defunct in 2003)
  • Cheap Foods Supermarkets (defunct in 1996)
  • Eziway Food Stores (still operating)

Metcash WA also supplies the Farmer Jacks FoodWorks group of supermarkets.

New Zealand

In New Zealand, FAL used to own a small chain of IGA shops, and the largest supermarket group in the country, Progressive Enterprises Limited, which operate the Woolworths, Foodtown, Countdown, Fresh Choice and Super Value Supermarkets. In 2006 Progressive was sold to Woolworths Limited Australia at the time FAL was being purchased by Metcash.

Brands

IGA's main store brand is Black and Gold, a generic food brand which also sells in FoodWorks across the country. Items are easily distinguished because of the gold/yellow packaging with the black writing on the item. Alongside the Black and Gold brand is the recently introduced IGA Signature range,[ when? ] which can be identified by its "stylish metallic Signature Band". The new IGA Signature Range brand is similar to the old Foodland Associated Limited (FAL) home brand Signature Range which was stocked in Action, Supa Valu, Dewsons supermarkets across Western Australia. "No Frills" previously Franklins home brand which is now available in all IGA and selected IGA stores across WA.

Previous IGA store trading names

Western Australia - Foodland Associated Limited (FAL), now IGA Distribution WA Pty LTD

East Coast of Australia

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References

  1. "About IGA | IGA Australia". IGA Australia. Retrieved 26 May 2016.
  2. "Supermarkets are learning there is more to selling food than just price". ABC News. Retrieved 7 December 2019.
  3. http://www.iga.com.au
  4. "About The Company: History". Metcash. Retrieved 22 March 2016.