Chelsea Kim’s convenience store comes under fire as competition heats up

AUSTRALIAN FOOD PROFESSIONAL has been left devastated by a defection from his convenience store in Melbourne.

Key points:Chelsea, who runs a chain of convenience stores in the Melbourne CBD, has been criticised for taking on rival convenience stores by the same nameA $100 million plan to close the business was rejected by the governmentThe company’s former director of retail said the decision was “shameful” and “disappointing”A defection by the former director has reignited debate about the future of Chelseafood, which was forced to close its stores after a competition to sell groceries in the CBD last year.

Key Points:The Chelscas business has been operating in Melbourne’s CBD since 1997Chelsca is now seeking a buyer, but a $100million plan to relocate to the inner-west is being rejectedBy 2017, it would have been a major business for the companyIt’s a $500 million company that has operated in the inner west since 1997 and has been profitable for two decades, but with the company’s future now in doubt, former Chels director of marketing, Andrew Wilson, said the business’s current owners should not have taken on a competition.

“If we were in a situation where we were selling to an overseas competitor, which would have made it very difficult for the community to have access to what we sell,” he said.

“I would have liked to see Chelsha stay in Melbourne but it’s disappointing to see the company go away.”

Mr Wilson said he could not understand why the company was forced into a business that had failed to produce consistent returns.

“The fact is we have to compete and the community has to compete, and if you are doing it for a profit and there’s not a good return on investment, why would you want to invest in something that doesn’t deliver?” he said

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