The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

AML Foods’ future may involve a shift into the ‘neighbourhood food store’ business to provide more competition and consumer choice, its chief executive has disclosed.

Gavin Watchorn, in a recent interview, told Tribune Business that the BISX-listed food retail and franchise group had received numerous requests to open a location in eastern New Providence.

While AML Foods had “no expansion plans in the immediate future”, Mr Watchorn indicated that “going into those neighbourhoods” was not something it would necessarily rule out.

And, with the BISX-listed group well-funded and possessing a strong balance sheet, he alluded to unspecified “opportunities arising 12-13 months out”.

Mr Watchorn told Tribune Business: “We are getting lots and lots of requests in eastern New Providence to open up something to provide competition in the marketplace.

“AML has traditionally opened destination stores, and perhaps some of the future is to go into those neighbourhoods and provide some choice, because when you don’t have a choice it’s never good for the consumer.”

As Mr Watchorn indicated, any move by AML Foods into the so-called ‘neighbourhood food store’ business would mark a radical departure from a retailing model that has served the group well since its post-2003 turnaround to achieve multiple years of solid profitability.

Via its Solomon’s SuperCentre, Solomon’s Fresh Market and Cost Right brands, the BISX-listed group has instead established itself among the Bahamas’ leading destination retailers.

Observers will likely feel the best strategy is for AML Foods to play to its strengths, and concentrate on its existing business formats. When it comes to eastern New Providence, it serves the area largely via Solomon’s SuperCentre opposite Marathon Mall, plus Solomon’s Fresh Market at Harbour Bay.

However, AML Foods has in the past been open to exploiting whatever potential growth opportunities come its way. Tribune Business understands that, at one point in 2010, it would have contemplated acquiring the then-struggling City Markets business when it was offered for just $1.

Mr Watchorn, meanwhile, told Tribune Business that AML Foods hoped to “shortly” obtain all the planning approvals necessary for a second Carl’s Jnr location on New Providence.

Declining to identify the likely site, he said of the franchise’s first location: “It’s met and exceeded our sales expectations.

“It’s difficult to come into the market when there have been a number of established players for a long time, and there’s not been a new launch.

“You’ve got to come in and fight for your market share, but we’ve achieved our sales targets and will continue on plan.”

That is a reference to the fact Carl’s Jnr has had to establish itself in a highly competitive fast food hamburger market that has long been dominated by Wendy’s, Burger King and McDonald’s.

As for AML Foods’ other franchise, Mr Watchorn added: “We are very pleased with Domino’s . The investment we have made in upgrading our stores is paying dividends.”