MegaMart Portmore to Close on June 30 After 27 Years

MegaMart Portmore, the retail giant's first Jamaican store, will close its doors on June 30, marking the end of 27 years of operation. The decision, made by Chairman Gassan Azan, will affect around 200 employees. Azan described the move as 'a very hard decision', citing the store's loss-making status and its reliance on the company's Montego Bay operation for subsidy.

The 75,000-square-foot Portmore location has been a staple in the community since 1999. However, Azan revealed that the store had been losing money for some time, forcing the company to seek a way to mitigate its losses. The Montego Bay operation, while also facing challenges, had been subsidising the Portmore branch before it was severely impacted by Hurricane Melissa last year.

According to Azan, the hurricane 'devastated' the Montego Bay store, leaving it unable to continue subsidising the Portmore branch. He explained that the Portmore store was 'a loss-making store', and that Montego Bay was 'subsidising it'.

As part of the company's efforts to strengthen its operations, MegaMart has embarked on a 'strategic consolidation' of its stores. This move aims to improve the company's long-term sustainability. The Waterloo Road, St Andrew, and Mandeville, Manchester, locations will take over as the company's primary stores.

The company has thanked customers and employees for their loyalty and contributions over the years, describing the Portmore location as 'an important part of our history'. Azan expressed his appreciation for the community's support, saying 'it's bittersweet for me to have to deal with this'.

In discussing the challenges the retail industry is facing, Azan pointed to the rise of online shopping and direct imports as key factors. He noted that MegaMart's large-format model depends heavily on non-food sales, which have been struggling. The company plans to relocate some workers across the wider group, but the final number has not yet been determined.

The MegaMart network currently employs around 700 people, with the Portmore branch accounting for approximately 200 of them. Azan hopes to reopen in Montego Bay, but with a smaller footprint than the previous operation. He currently has no timeline for when the western Jamaica location could resume operations.

Despite the challenges facing the retail industry, Azan believes that MegaMart remains committed to its customers and employees. He expressed his gratitude for the support and expressed his hope for a successful future.

'If we were to modernise Portmore, it would cost us US$3 million, maybe more, of capital to change out all the equipment and modernise the store,' Azan said.

It is worth noting that the rise of online shopping has made it increasingly difficult for large-format retailers like MegaMart to compete. The Portmore location was a significant part of the company's history and identity, and its closure marks a significant shift in the retail landscape.