THE events of Black Wednesday, 10 January 2024, was one triggering point for one of the country’s largest retailers in CPL Group of companies to sell its supermarket chain business Stop & Shop.
Founder and Director of the CPL Group, Sir Mahesh Patel revealed this to Post Courier Online at the aftermath of its successful signing of the Sale of Business Agreement to Taylor Pacific.
Sir Mahesh stated that when asked whether Black Wednesday was one event that prompted the business to seriously reassess its strategy and served as a trigger for the decisions it made.
CPL had four of its supermarkets and pharmacies looted and burnt to the ground as a result of civil unrest, following a stand-down of services by police personnel in Port Moresby over pay issues.
This resulted in losses that amounted close to K100 million.
“Black Wednesday may have been a trigger point, where we instigated a strategy check – and asking ourselves that if we had limited funds, where would we invest? – the unanimous vote was – healthcare.
Beside this Sir Mahesh was asked about what change the Stop & Shop chain will go through and its direct or indirect impacts to the business, which is expected with any change of ownership.
His comments were surprisingly seamless with Taylor Pacific taking on all operations of Port Moresby’s household supermarket chain.
The first being the branding to stay as Stop & Shop and the maintaining of staff employed in the chain.
“Yes, absolutely (the name stays). All staff directly related to the Stop & Shop operations will be re-employed by Taylor Pacific.
“The rest will stay on with the CPL Group- so, 100 percent of the front-line staff and approximately 40 percent of the support team will move across.
A key feature of the Stop & Shop as a business for fresh produce and farmers around the country, was something the CPL founder wanted to be maintained in the deal.
“We all have agreed that the legacy will carry on- Taylor Pacific is very keen and very keen and committed to keep supporting them.
City Pharmacy will continue its roots that saw it purchase Stop & Shop from Steamships, within the supermarket chain according to Sir Mahesh.
“Yes, the CPL Group will continue to operate the pharmacy outlets inside Stop & Shop.
The deal however does not include servicing infrastructure like CPL’s large warehouse in Gerehu alongside the CPL Foundation which will be supported by both organisations moving forwaesd.
“The warehouse will remain with CPL. It will be business as usual for the foundation within the CPL Group, and will also be supported by the Taylor Pacific Group, where it relates to farmers and SME’s,” he added.
