Michelle Slater
SUPERMARKET chain Ritchies has announced it is closing its Churchill store by mid-September, leaving about 40 employees without a job.
Ritchies told its staff and customers on Thursday that it was shutting shop after the company was unable to reach a new lease agreement with its landlord.
Ritchies chief executive Fred Harrison told the Express that the company was “devastated” by the decision, which also includes closing the in-store Mitre 10 and liquor outlet.
Mr Harrison said the 15-year lease was due to expire in October after the site was taken over by a new owner about five years ago.
“We’ve been trying to come up with a new agreement but we can’t agree on the rental component, we’ve been asked to vacate,” Mr Harrison said.
“He is asking a figure we believe is too high. It’s his building and so it’s his prerogative, now we have to move out.
“We feel disappointed we are letting the local community down as our shoppers were loyal. Unfortunately, the landlord holds the aces as they own the property.”
Mr Harrison said senior managers had offered staff the opportunity to work in its other stores, but he acknowledged the nearest outlet was more than an hour away.
He said the Churchill store had been operating out of Hazelwood Village for the past 15 years, and was established before Woolworths opened in the neighbouring West Place shopping centre.
“Woolworths had impacted our sales, but this was always going to happen when they moved in,” Mr Harrison said.
“We were a great alternative to Woolies, business was divided between the two supermarkets in Churchill.”
Landlord agent Jeffrey Richardson said there was not enough trade in Churchill to support both supermarkets, which meant the local Ritchies was “not economically viable”.
Mr Richardson said the landlord was “assessing options for the future of the space”.
The news has sparked an outcry from the local community, with one local shopper launching a change.org petition to save the supermarket which has attracted nearly 400 signatures.
Churchill and District Community Association president Margaret Guthrie said the closure would have a flow-on effect through the town and would mean less choice for shoppers.
“People are very upset at the news. We have a major anchor tenant leaving Hazelwood Village and we don’t know if there will be another tenant or if we will be left with a large empty space,” Ms Guthrie said.
“The more vacant spaces, the more it looks dismal and people will shop elsewhere where it’s more lively.”
Member for Morwell Russell Northe said he had reached out to Ritchies and was also trying to contact the property owners to let them know of the level of community discontent.
Mr Northe said he was hoping both parties could negotiate a lease to enable Ritchie’s to continue to trade in Churchill.
‘We have already seen the withdrawal of some services in town despite new homes being built and new families coming to town,” Mr Northe said.
“In a community where there is a higher average level of disadvantage, Ritchies closing would be a massive blow to a town which has endured a lot.”
