- Ian Allen/Staff Photographer
MegaMart's newest store located at 29 Upper Waterloo Road in St. Andrew.
Ayanna Kirton, Staff Reporter
LOCAL RETAIL and wholesale outlet, MegaMart has opened a new location in St. Andrew. The new store which is located on Upper Waterloo Road will be officially opened on Wednesday next week.
A third store from Jamaica's first wholesale shopping club is slated for construction in Montego Bay beginning early 2004.
MegaMart's, chief executive officer (CEO), Gassan Azan said the island-wide expansion was part of a 10 -year plan conceptualised in 1997 after studying the concept of the "super store" in foreign markets.
Although Azan had expressed interest in listing MegaMart on the Jamaica Stock Exchange, those plans have halted for the near term. Instead, the company will use private equity to finance expansion, he said, and he estimated that any plans to go public would be revisited in 2005.
Describing MegaMart as one of the largest private sector investments in Jamaica, Azan said the start up costs for the Portmore store (MegaMart's first location), amounted to approximately US$10 million. For the Waterloo location, Azan said start up costs were in the range of J$350 million and expected the return on investment to be made within six years of operation. An additional J$120 million for the cost of the shell of the building was absorbed by Christopher Issa, the current owner of the Waterloo Road property.
MARKET SHARE
Combining the option of wholesale or retail shopping for the consumer while providing a wide selection of products in one location is MegaMart's strategy for keeping the competition at bay. "By building a better facility with every thing under one roof we have managed to capture the market share of a number of our competitors, "said Azan. Extending store hours on Sundays also added to MegaMart's popularity. "Sunday shopping was a controversial issue at one point," said Azan, "There were hardly any stores open on Sundays and now it has become our second busiest shopping day of the week."
Due to its location and added services, the majority of shoppers may assume the Waterloo Road branch will target the higher end of the market. Azan points out however that the store aims to meet the needs of a cross section of people, those living uptown and in other neighbouring communities.
"The lawn and garden and wines and spirits sections are two new departments we have added to the Waterloo location," said Azan. "We try to tailor our stores to suit the area we're located in based on our assessment of the market," he said.
