Andrea Coy, general manager of the Hi-Lo Food Stores chain. - File

Hi-Lo Food Stores, the retail subsidiary of conglomerate GraceKennedy, is in expansion mode having acquired two supermarket operations from the Wayne Chen-led Super Plus.

"It was done in the last few weeks. We are still working out the final details but it is pretty much a done deal," Chen said Wednesday.

The Super Plus boss declined to say how much the businesses were being sold for, deferring to Hi-Lo which also declined comment.

The sale of the Pavilion and Bogue operations, located respectively in Kingston and Montego Bay, brings to six, the number of outlets offloaded by the once dominant Super Plus chain in a push for cash to pay down its burdensome debts.

Operations cut

It cuts the operation to 14 stores nationwide, Chen said. At peak, the group had 33 outlets.

Its unclear whether, in terms of revenue, the deals would have reshaped market share, but assessing the line-up by stores alone, Hi-Lo, with its 13 stores now growing to 15, would have moved into second place behind Progressive Grocers, a consortium of indepen-dent supermarket owners.

Hi-Lo was incorporated in Jamaica in 1954 but was acquired by GraceKennedy only 25 years ago as a chain of six stores. It now falls under the conglomerate's GK Foods division.

Confirming the deal Thursday, Hi-Lo Food Stores General Manager Andrea Coy said the chain was once again in growth mode.

"We have taken a decision now that we are in a better position to expand into some key geographical areas," Coy said.

"We had put expansion on hold to basically settle the business and perfect some operational issues, which is now done, and we are in a position to expand to those key areas."

Super Plus owned only the stock and equipment at the stores, which both operated from leased space.

Pavilion was an 18,000-square foot operation, while Bogue was 26,000 square feet. A convenience store that Chen operates at the location is being converted into a pharmacy, which he will still control.

"Half-Way Tree was an area that we wanted to get into so the Pavilion presented that opportunity," Coy said. "In the Montego Bayarea, there is a lot of development taking place on the outskirts in Bogue."

Hi-Lo will have to contend for now with formidable rival MegaMart for business in Montego Bay. The Gassan Azan-owned operation is a sprawling 95,000-square foot supermarket in the neighbouring and primarily residential community of Catherine Hall.

Hi-Lo, she said, was content for now with the 15 stores in the chain, but would not pass up a bargain were the opportunity to emerge.

"The focus this year is two new stores ... . If, however, an opportunity does present itself for one of those geographical areas, we will not pass up the opportunity."

Coy said the two stores would add 100 jobs to Hi-Lo's workforce.

Chen said he was not expecting any major job losses to result from the change of ownership at the supermarkets and that most wor-kers would be rehired.

"We had shrunk the staff at those stores. Most of the people at those stores are being rehired by Hi-Lo and because our people are well trained, they have found work in the industry."

Stores sold

So far this year, Chen has sold to other operators Super Plus stores at Clock Tower (also in Half-Way Tree), Stony Hill and Liguanea in St Andrew and Spanish Town, St Catherine.

The Trafalgar Road branch in New Kingston was shuttered and the land and building sold to National Commercial Bank, which plans to house a staff canteen and other operations there.

Whether more stores will go on the sale block is something not even Chen himself seems certain of.

"It is hard to say, but not at this time," he said.

dionne.rose@gleanerjm.com