Country Grocer is buying the four 49th Parallel Grocery stores in Ladysmith, Chemainus, Cedar and Duncan, bringing the number of Country Grocer locations on Vancouver Island to 11.
The deal takes effect Feb. 20. The purchase price was not disclosed.
The Richmond family — shareholders of 49th Parallel Grocery — thanked the communities it has served, and those who have worked for the company over the past 46 years.
“We are delighted to see the business become part of a bigger, multi-generational, family-operated grocery business with similar family and community values as 49th Parallel Grocery,” said Peter Richmond, president and chief financial officer of 49th Parallel Grocery Group of Companies. “Country Grocer is the ideal ownership group to keep the independent voice alive and well here on Vancouver Island.”
Country Grocer co-founder Wally Large said the company’s ownership team has an “incredible amount of respect for the Richmond family and the amazing job they have done serving the communities that they operate in.”
“Much like the Richmond family, Country Grocer’s operations began as humble beginnings in 1984 here on Vancouver Island, and today is operated by a multi-generational ownership team who will be dedicated to continuing the legacy of quality service to these communities for years to come.”
The Island Independent Buying Group/Country Grocer Group currently runs seven stores in Greater Victoria, Cobble Hill, Lake Cowichan, Nanaimo and on Salt Spring Island.
Founded in 1977, 49th Parallel Grocery’s four locations have a combined 80,000 square feet of retail space and employ about 380 people, who will now become part of Country Grocer’s staff.
The company said no layoffs are expected.
Craig Cavin, Country Grocer’s operations director for Victoria and the south Island, said the acquisition is “one step in the start of a few that we’re going to take long-term.”
He said the last time a store was added was about 10 years ago with the Bowen Road location in Nanaimo.
The purchase of 49th Parallel Grocery is the first big move of the current generation of family involved in the business, Cavin said.
The transition to the Country Grocer brand will begin with the Duncan location, he said.
“Hopefully we’re going to get that done in March,” Cavin said. “From there, there will probably be a month, a month-and-a-half in between each store. Chemainus will be next, and then Ladysmith and then Cedar, so over the course of about six months, we’ll hope to get them all done.”
While the new stores come at a challenging time in the grocery business, amid rising inflation, he said the timing has worked out well. “The Richmond family who’s involved, they don’t have anybody in that next generation to carry on.”
The process leading to the purchase, and one family taking over from another, began to take shape in September, Cavin said.
“It’s nothing more than they’re done, and us picking up where they left off and carrying on what they’ve built so far.”
He said the expansion will help the company deal with the pressures of inflation — along having its own warehouse, located in Chemainus.
“Adding these stores allows us to increase our buying power, which in turn should help lower our costs and help control the costs of what we’re putting on the shelves for our customers.”
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