Delahey’s new Supa Valu IGA has been catering to residents feeling the pinch in a tightening economy.
The new store model opened in July, around when conversations around cost of living were ramping up.
Morgan’s IGA Supermarkets managing director Neal Morgan said it was one of the biggest launches they have had in their 50-year history.
“Compared to previous years, the old model, it’s going extremely well, and I put it down to timing,” he said.
“I think the cost of living is hurting people…cost of fuel, cost of electricity, mortgages, interest rates increasing.
“The timing was perfect, and we’re delivering groceries at a much lower price which helps people get through each week.”
Mr Morgan said demand for fresh food has doubled this year.
“My reading on that is people are buying a lot of products and preparing their own food instead of going out, and trying to save money that way,” he said.
Mr Morgan said that customer traffic has increased by 30 per cent, and their average sale has increased by more than 15 per cent since the Delahey store relaunched as a Supa Valu IGA.
The store received a refurbishment which began in February, and took on a new business model which Mr Morgan said reduces costs and allows for cheaper prices.
“If you wanted to compare it to anything, you’d say it was somewhere between Aldi and Costco,” he said.
The new model has cut down prices by stocking larger amounts of a smaller range and storing items on warehouse shelves.
This allowed the Morgan’s IGA Supermarkets to buy goods from direct suppliers and a wholesaler when they are at their cheapest and keep them on the shelf.
Mr Morgan says this kept prices at least as cheap as Coles and Woolworths.
Liam McNally
