Blackburn IGA on South Parade closing due to financial struggle
Blackburn’s only supermarket could disappear from the local shopping strip in less than two weeks, with the desperate owners revealing they are only taking home food — not profits — to support their families.
East
Don't miss out on the headlines from East . Followed categories will be added to My News.
Years of “terrible” business has led to the owners of Blackburn’s only supermarket closing the store before the end of the month.
Blackburn IGA is likely to disappear from Blackburn Station Village in less than two weeks — 10 years after the supermarket was purpose-built — with the owners having been unable to find a buyer for the business.
Manager Li Xue, whose mother and brother own the IGA franchise, said the family had been desperately working to terminate their long-term lease at 66 South Pde, Blackburn, which would hopefully occur before October 31.
He said the business had been struggling financially for years and could not continue running.
“We won’t be able to operate,” he said. “There’s no business.”
Mr Xue said his family had been trying to sell the franchise to keep it alive, but had been unable to find a buyer in 18 months.
Mr Xue said business at the supermarket had been particularly bad since work on Blackburn railway station — opposite the supermarket — began in 2016.
He said the on-and-off construction work for more than a year incurred a huge financial loss for the business and cost the loyalty of some regular customers.
“We were drained by that year,” he said.
“We were throwing out thousands of dollars of stock every week.”
The business has been unable to come back from the financial loss, according to Mr Xue, who said the issue was worsened because business hadn’t picked up much since the works stopped.
The manager said he had to come back from another country to help his brother with the store so that his brother could get another job.
“We can’t pay ourselves … It’s been terrible,” he said.
Mr Xue said the men weren’t taking home any money to support their families, only produce from the shop floor.
Mr Xue said the 950sq m supermarket had an average of 300 customers a day, but they were all “convenience buyers”, purchasing one item at a time.
“We don’t get trolley shoppers here,” he said.
But Mr Xue said the store had not been in a profitable position since his family bought it in December 2014.
He said they’d tried everything to turn it around.
“We don’t know what we’re doing wrong,” he said.
The Xues are the third owners of Blackburn IGA, which opened in September 2008 after Blackburn RSL sub-branch sold its bowling green to allow the supermarket to be built.
Mr Xue said he had no idea what would become of the building, and was not sad to see the supermarket go, but very relieved.
MORE: ‘DAGGY’ SHOPPING CENTRE’S FACELIFT 45 YEARS IN THE MAKING
STRUGGLING SHOPPING CENTRE’S $40M NEW LEASE ON LIFE
HOW DELIVEROO HELPED REVIVE A BOX HILL FOODIE FAVOURITE
“It’s been very hard for my family,” he said.
He’s asked for everyone to come in and help them out by buying the last of his stock before the closing date.
Most stock is being sold 15 per cent off, while the huge range of wine is discounted by 10 per cent.
The end of the Blackburn IGA franchise comes after locals mourned the closure of the IGA supermarket at Blackburn North Shopping Centre in January, which had been operating for 20 years.
Blackburn shoppers will now have to get their groceries at a nearby shopping centre, with the closest being Blackburn North Shopping Centre or the Blackburn South shopping precinct.