The Tribune

By NEIL HARTNELL

Tribune Business Editor

SUPER Value owner Rupert Roberts yesterday blasted claims that his impending acquisition of City Markets' remaining store locations would give him an 80 per cent market share as "garbage" and "total rubbish", telling Tribune Business he would only have 35 per cent of New Providence's food retail market.

Dismissing claims by Dionisio D'Aguilar, chairman of rival BISX-listed food group, AML Foods, that the deal would give Super Value a "virtual monopoly" over the New Providence grocery market, Mr Roberts pointed out that 60 per cent - the majority - was controlled by a combination of gas stations, 'Mom and Pop' stores and neighbourhood food store chains.

Speaking to Tribune Business from the US, the Super Value president said his 11-store supermarket chain currently had just a 25 per cent market share, and acquiring the remaining four City Markets' store location would give him another 10 per cent at most.

And, adding that he Super Value was "not going to do the business City Markets did five-10 years ago" from the sites it was taking over from its former rival, Mr Roberts said the existence of government price controls meant it was impossible for any grocery retailer - no matter how big - to "price gouge" Bahamian consumers.

Emphasising that he had no intention of doing so, Mr Roberts told Tribune Business that the 20 per cent of grocery items that generated 80 per cent of supermarket sales were all price-controlled, permitting him just an 18 per cent gross margin on them.

"The hundreds of gas stations, the likes of Centreville and Blue Hill Meat Marts, the hundreds of convenience stores and health food stores, they represent 60 per cent of the food market," the Super Value president told this newspaper.

"That blows the 80 per cent monopoly claim right there. Of the other 40 per cent, we have 25 per cent of it. The thing with City Markets gives us four more stores, and I'm trying to work something that will make that three. There are a lot of problems to be worked out with that business, because the customers and business went elsewhere."

Pointing out that some of the neighbourhood food store chains were up to eight locations strong, Mr Roberts said that, at most, the City Markets acquisition would give Super Value another 10 per cent, taking its share to 35 per cent, with AML holding the balance.

"Super Value has to put food on the table at the best possible price. We don't want a monopoly, and in any event 80 per cent is not a monopoly. BEC is a monopoly," the Super Value chief told Tribune Business, responding to Mr D'Aguilar's claims about lack of consumer choice and 'pricing sameness'.

"We have price controls. Twenty per cent of the items in the supermarket business represent 80 per cent of the sales. We have price controls on those 20 per cent of items, and they give us 18 per cent gross margins. That doesn't leave any room for gouging the public. The Government has that controlled."

Referring to recent disclosures by AML Foods regarding its newly-opened Solomon's Fresh Market store in western New Providence, and that its expected contribution was set to take the BISX-listed group's annual sales over the $100 million mark, Mr Roberts said its top-line was "trailing us very closely" - implying that Super Value's annual top-line is also above that figure.

Comparing the two companies, he added: "We have only four large stores - Golden Gates, Winton, Top-of-the-Hill, and Cable Beach. The rest of the stores are like inner-city stores, one-quarter of what the bigger stores have.

"They [AML Foods] have one less large store than we have. They have a monopoly in Freeport." That is a reference to the fact that, apart from the first Solomon's SuperCentre and Cost Right, AML Foods has just taken over the former City Markets store at Lucaya.

"In talking about 80 per cent of the market, that's garbage," Mr Roberts told Tribune Business. "That is total rubbish. I was shocked with my experience to think that somebody would think those figures are realistic. That's a no, no.

"I don't know where anyone is getting that from. Even the public knows better than that. They know the range of shops they have on the island of New Providence, and that they have choices of chains.

"Sixty per cent of all businesses goes to locations of convenience. Those 'Mom and Pop' stores are doing roaring business in their neighbourhoods, and are open while we are closed. Mr Finlayson did a roaring business at City Markets with that 24-hour opening."

With accountants having to certify a company's 'volume' or annual sales for Business Licence tax purposes, Mr Roberts said the Government knew the true market share figures, based on those returns, for every food store business in New Providence.

He added: "If we take over City Markets, we're not going to do the business City Markets did five-10 years ago. I would say that business has dried up. The economy has dried up 20 per cent."