Supermarket sale tipped
AUCKLAND: The supermarket thought to have the largest revenue of any in New Zealand is tipped to be sold to a former shelf stacker.
The agreement — which could be for about about $50 million — is due to be settled later this year, although the owners are yet to confirm that.
Pak’nSave Albany, long owned by richlisters Paul and Liz Blackwell, was planned to be sold this August to New World Victoria Park owner Jason Witehira, food industry sources said.
Insiders at Foodstuffs, which owns the Pak’nSave and New World stores, said it was common knowledge within the business about the sale, which would then automatically trigger the sale of a second highprofile, highly profitable store because the owners could only have one supermarket each.
On the twostore ownership change, a Foodstuffs executive said yesterday ‘‘that allows for everything to be put in place’’.
‘‘Paul [Blackwell] just wanted to give them [Foodstuffs] enough time to make sure they found the right person to go into it.’’
He was referring to Foodstuffs’ business the National Trading Company, which owns almost every property in that giant supermarket chain and has jurisdiction over who buys a store.
‘‘It’s a cooperative, but it’s every man for himself.’’
Each store owner, although they are in the same group, competes with other store owners in the coop model.
Mr Witehira, who owns one of the largest and most profitable New World supermarkets in New Zealand, featured on the 2019 NBR Rich List with an estimated $60 million.
The Blackwells featured on the 2018 NBR Rich List with an estimated $65 million.
The Blackwells have for many years owned professional basketball team the Breakers.
Three years ago, they announced a newly formed company, Breakers Basketball, would take control.
Mr Blackwell was reported in October to be in an investment group buying Burger King from its receivers.
Mr Witehira said yesterday he did not wish to comment on the planned deal.
His Victoria Park store is estimated to be worth about $25 million.
Mr Witehira rose to prominence in 2016 when the exsuper market shelfstacker won the Outstanding Maori Business Leaders Award from the University of Auckland Business School.
Executives say the numbers in the Albany sale are extremely large.
The supermarket could be sold for $50 million$60 million because it turned over $150 million$200 million annually, making it by far New Zealand’s highest revenueearning supermarket.
Chris Wilkinson, of consultants First Retail Group, said the tipped sale was significant deal.
‘‘Supermarkets of this scale rarely come to the market.
‘‘Even then, this isn’t an open opportunity to all comers and is limited to those at an exceptional level that have progressed through Foodstuff’s curated ownership journey.’’
Mr Witehira reflected the continuing evolution of Foodstuffs’ ownership model, with greater diversity, external commercial acumen and staged progression through the various business models across the coop, he said.
‘‘He’s connected, respected and is seen by many as a leader in the sector.’’ — The New Zealand Herald