Members have voted in favour of the sale of the four IGA supermarkets at Wauchope, Timbertown, Port Macquarie and Sovereign Place, and three liquor outlets, to Ritchies.
Under the Rules of the Co-op, to be eligible to vote members had to have an equity interest in the Co-op and have spent >$1,000 with the Co-op in the preceding financial year. Co-op 100 members do not have an equity interest and were not eligible to vote.
Respective downloads -
- Key facts about the vote
- Disclosure statement and Independent Expert Report
- Ritchies proposal announcement
- Member Information Booklet, July 2024
- 2024-27 Strategic Plan
- Ritchies website
- Co-op members support Ritchies sale announcement
Frequently asked questions
Why did members have to vote on the proposed sale?
Under Section 359 of the Co-operatives National Legislation a special resolution of Hastings Co-op’s active Shareholder members is required “to approve the sale or lease of the undertaking of the co-operative that relates to its primary activity and the value of which represents greater than 25% of the book value of that activity”. The proposed sale of our four IGA + Liquor stores meets this criteria.
In order for the Ritchies transaction to proceed 75% of eligible members who meet the active Shareholders conditions had to vote in favour of the sale.
Who was eligible to vote?
Active Shareholders were invited to vote. As per the Hastings Co-op Rules (Constitution) on our website, an active Shareholder is a member who has equity in the Co-op and has spent $1,000 in the preceding financial year. Voting material was distributed to eligible members in September.
Note: Co-op 100 members do not have an equity interest and were not eligible to vote.
What happen now that the members voted in favour of the sale?
The Special Resolution of members will be registered with NSW Fair Trading, and the Board will now work to finalise the Contract of Sale with Ritchies in line with the memorandum of understanding we have agreed. We will then proceed to transfer ownership of the supermarkets as soon as practical and most likely in February 2025.
How many staff are employed in Hastings Co-op’s IGA supermarkets at present and how will they be affected?
There are approximately 250 casual and permanent staff employed by Hastings Co-op’s four IGAs. Our Memorandum of Understanding sets out that all of these staff will be offered employment contracts with Ritchies on terms no less favourable overall to those they currently enjoy (where their current contracts are within industry standards). All staff will have all of their annual leave paid out by the Co-op and will have their employment tenure and entitlements to long service leave and sick leave preserved.
What will happen to Shareholders’ shares?
There will be no impact on the shareholders interests in the Co-op. The Co-operative will continue to operate its remaining businesses and manage its physical assets.
What is next for Hastings Co-op?
Our 2024-27 Strategic Plan sets out or vision for the future of the Co-op, which includes developing mutually beneficial partnerships and relationships; enhancing member benefits and offerings and expanding our membership base.
Our plans for the future includes developing Co-op properties to generate rental income, provide member investment opportunities and enhance the community, member offers with third parties and affiliated relationships with other co-operatives, investing in our business and seeking new opportunities to better serve members’ needs.
What businesses would Hastings Co-op retain?
The Co-op will continue to own and operate our bulk fuel distribution business, gas sales and distribution arm, two Ampol service stations, the Port Macquarie franchise of Enterprise Rent A Car and the Bottle-O Wauchope. We will also retain physical assets such as the Wauchope IGA and Department Store sites.
What would the terms of the lease for Wauchope IGA involve?
The terms are still being negotiated and will be communicated once confirmed.
Will Hastings Co-op still offer memberships (Shareholders and Co-op 100)?
Yes. The sale of the supermarkets would necessitate re-drafting some of the Co-op rules, and these changes would be presented to members at this year’s Annual General Meeting.
Will Hastings Co-op still co-ordinate the Community Chest Grants Program?
Ritchies offers a Community Benefits Program which would replace the Community Chest Grants Program. The Co-op would continue to identify new ways to be involved with and support our local community.
Will local clubs be added to the Community Benefits Program?
Definitely. Hastings Co-op may also be a beneficiary in future.
How can I find out more about Ritchies?
Ritchies is Australia's largest independent supermarket business, with $1.5 billion sales per annum.
They are 70% privately owned meaning the people who own the business work in the business. They are proud of the fact that they are essentially a family business with the independence, flexibility and 'collective muscle' to benefit customers.
They aspire to being 'The Friendliest Team' and have a proud history of giving back, including more than $53 million via their Community Benefits Program alone.
For more information visit www.ritchies.com.au
What long term benefits are there in the Ritchies partnership?
This is a significant investment in the local community and Ritchies will continue to provide employment opportunities for locals. They are also committed to working with local suppliers and will be making arrangements for their buying team to meet with local suppliers.
Ritchies will be a tenant of our Wauchope IGA store and, and as a result we will generate a rental income which will enable us to seek new opportunities to invest in the local community and economy.
We are working with Ritchies to negotiate specific benefits for Hastings Co-op shareholders.
Ritchies offers a fuel discount to customers and has expressed a commitment to partner with us to offer this discount via our service stations.
As part of this sale transaction we are discussing opportunities to co-brand the Ritchie’s stores and will continue to seek opportunities to partner with them to support local businesses and community events.
How will the proposed change affect grocery and liquor prices?
With almost 80 supermarkets and 72 liquor stores across three states Ritchies has the size and scale to compete with the duopoly. They have also committed to introducing their Woolworths RAW pricing program in our four IGAs, where key lines in grocery, dairy and frozen will be price matched. Liquor is a key business area for Ritchies and you can also expect to see prices a lot cheaper than they are today.
One point of difference for Ritchies is that they have two weekly catalogues - meaning double the specials. They also have a Ritchies loyalty program where customers receive regular offers, prizes and competitions.
How many Ritchies stores are there?
Ritchies has grown from four stores 154 years ago to almost 80 supermarkets and 72 liquor stors across Victoria, Queensland and NSW, with a more than 6,400 employees. Their growth and success has been achieved largely through the acquisition of existing stores, including Coles supermarkets. Their approach to acquisitions is to do so with ‘positive intent’ and learning from each other. Will there be a refurbishment of any of the stores?
Ritchies has advised that they would introduce a new, expanded product range and price points in the stores. In the short-term they would refresh the layout of some stores and implement branding changes. A comprehensive review of the stores would be conducted as part of their store refurbishment schedule.
Would Ritchies continue long-term relationships with community partners and stakeholders?
Ritchies shares many of the Co-op’s community-focused values and would continue to support local community groups and charities. The Ritchies Community Benefit Program alone has presented more than $53 million to thousands of clubs, school and charities since 1993.
Will customers still be able to redeem Return and Earn vouchers at the supermarkets?
This is still being explored and plans will be communicated with customers once confirmed.
What will happen to current Co-op account holders i.e. schools and businesses that have IGA accounts?
Ritchies will continue to offer business accounts and will work with existing account holders to transition to the Ritchies business account processes.
Members currently get 4c/per litre grocery discount from a fuel sale when they spend $30 or more at a Co-op IGA? Do Ritchies offer a similar discount, or will they set up an arrangement with the Co-op's fuel division?
Ritchies offers fuel discounts to their existing customers and will be exploring an arrangement to offer fuel discounts to all customers of the four IGA supermarkets. We are exploring this option with Ritchies with the aim of offering this discount to customers via our two Ampol service stations.
How can members provide feedback?
We invite members to contact us via the feedback button below or the hard copy feedback form available at Hastings Co-op’s Head Office at Level 1, 9-13 High Street, Wauchope and all four IGA + Liquor stores.
If members would like to update their contact details visit www.hastingscoop.com.au/update or phone the Corporate Centre on 02 6588 8999.
Important member information will generally be communicated via email, the Hastings Co-op website and Facebook pages