The MegaMart store on Waterloo Road in St. Andrew.

Gassan Azan is investing US$13 million ($870 million) to develop a shopping centre on lands at Catherine Hall in Montego Bay, which will become the home of the third and largest MegaMart store owned by the Kingston-based businessman.

MegaMart, a two-store operation with sales that topped $2.5 billion more than a year ago - and "has grown since then," said Azan - is a popular membership warehouse supermarket that had its start in Portmore, St. Catherine.

Largest of the three

The Montego Bay store, at 94,000 square feet, is to be the largest of the three, said Azan. It is expected to be the centrepiece of the shopping centre development being done on some eight to nine acres of land in the city.

"All areas in the regular stores, will be expanded in the Montego Bay store," Azan told the Finan-cial Gleaner.

"We believe Montego Bay will give very robust sales."

The cost of developing the supermarket will eat up US$5 million to US$6 million of the shopping centre's total development cost.

But beyond that Azan said he would spend an additional US$4 million to US$5 million to equip MegaMart Catherine Hall. Overall, the supermarket will represent a US$10 million ($670 million) investment.

He now plans to open for business in August 2007, eight months behind his original deadline. The permits he said, took nine months longer than anticipated.

Azan has chosen to build his shopping centre, the foundation for which is now being laid, in the section of Montego Bay that sits close to Bogue and pinned as a zone of business growth. His development will also be ringed by the upscale residences at the Montego Freeport, and middle income dormitory neighbourhoods of Catherine Hall and West Green.

Azan, who also owns the Bashco harberdashery stores, plans to rent the shops he is building. He says his Bashco store in Montego Bay will remain at its present location on Barnett Street.

He projects that MegaMart Catherine Hall will pull in annual sales of $1.5 billion to become the biggest money earner of the three.

- lavern.clarke@gleanerjm.com