By George Henry and Ashford W. Meikle, Gleaner ReportersSUPERPLUS, THE supermarket chain headed by Wayne Chen, is set to deepen its presence in rural Jamaica with its acquisition of the Sam Fo supermarket in Spaldings, Wednesday Business understands.
"The entire family is very happy about the decision taken to have the business sold," the former managing director of Sam Fo, Paul Lyn, confirmed to Wednesday Business.
He reflected, "Even though there was some amount of emotions involved in disposing of the business ... we are proud and happy that we sold it to SuperPlus and not anybody else."
Sam Fo was started by Chinese immigrant, William Lyn, in 1942 originally as a bakery in Christiana (now controlled by SuperPlus).
Mr. Lyn revealed that he initiated the business overture with the SuperPlus CEO. "I approached Wayne Chen and then he approached me. At the end of the day Wayne got a business in which there are opportunities inherent and I was able to sell the business so that I can refocus and look at other things."
The acquisition of Sam Fo by SuperPlus was inevitable given the fact that the latter had an outlet next door to the former Chinese grocers. Headquartered in southern Jamaica, SuperPlus is the island's largest retailer with 33 stores island-wide with annual sales of approximately $9 billion. In recent years it has pursued an aggressive expansion drive, opening new stores and buying out competitors.
DECLINE IN SMALL BUSINESS
The arrival of Superplus on the market has meant a virtual decline in small supermarkets, especially neighbourhood ones.
In fact, just recently Wallace Campbell sold his Lenn Happ supermarket which he operated for almost 30 years to Docky Lym of Brooklyn Supermarket.
Mr. Lym along with Glady Loshusan (Sovereign Supermarket), Ken Loshusan (John R. Wong) and Sing Sung Chin (SuperValu) are members of Progressive Grocers of Jamaica which ostensibly was formed to buy goods in bulk but in reality seems to be a be an alliance against SuperPlus' hegemony.
In fact, Progressive Grocers bought the former Matalon-controlled Shoppers Fair chain of supermarkets as well as four JR bargain Stores which operate in rural Jamaica.
The group also operates D&Y, Savanna-la-Mar's largest supermarket.
The acquisition of Sam Fo further cements SuperPlus apparent dominance in the supermarket business and its distinction of being the largest retailer in Jamaica.
Mr. Lym admitted, "it will be very tough for the individual owner to survive in this industry."
A member of the Sam Fo clan agreed with him. Mr. Lyn said that when he took over the business from his father ten years ago, he decided that there was a need for expansion and set about doing so by establishing outlets in Kellits, Frankfield and Crooked River in Clarendon, Porus in Manchester and Priory in St. Ann.
ECONOMICS
But this expansion was not large enough to compete with the larger players in the industry.
He said the painful decision to sell the Spaldings' flagship store was simply a matter of economics.
Wednesday Business understands that SuperPlus plans to combine its store with the Sam Fo outlet into one entity.
Minor reconstruction work is scheduled to start soon. As part of the deal struck between Lyn and SuperPlus, the latter will lease the Sam Fo building for a ten-year renewable period.
SuperPlus will also rehire the 30 former employees of Sam Fo.
