Liquor City plans to grow franchise portfolio

14/10/14 at 11:07am

Liquor City, which has about 300 franchised and owned stores across SA, plans to ramp up its franchise portfolio by taking under-pressure independent liquor retailers under its wing. 

"After 20 years we have just over 300 stores, and we’re hoping that within five years we will have at least another 150," Liquor City’s national trade marketing manager Vania Martins-Fouche said last week.

She said many independent outlets were under pressure in a highly competitive and low-margin retail environment, compounded by impending regulations to ban alcohol advertising.

Liquor chains including Norman Goodfellows, Ultra Liquors, and Liquor City are contending with competition from major listed retailers such as Shoprite, Pick n Pay and Spar. These retailers are growing the number of liquor stores in their portfolios, and have strong buying power given their size.

Ms Martins-Fouche said unlike large chains, independent retailers were not able to negotiate cost-competitive deals with suppliers.

This, together with a difficult retail environment, meant, "The situation is such that the big guys are getting bigger, and the smaller guys are dying out".

Read more:



» Categories: None