My 2 centsAfter taking some time doing some research, I find that company quite interesting
CEO Matt Lurie late 30’s the CEO began by establishing a Toronto Farmers’ market in High Park in 2004 to test the viability of fair-priced organic products.
By the age of 20 he signed the 1st Subway franchise. By 23, he was one of the youngest Multi units by owning 3.
OG started trading as a public company on October 24th 2016
May 30th 2017 launch of private label brand ‘’ Kitchens Originals’’. They area adding more and more private lavbels.
February 13th 2018 launches online sales with Instabuggy
March 18th 2018 Partners with Hop Compost to divert food waste
40K square foot scalable distribution centre (Etobicoke) with capacity to service up to 15 stores.
Stores have in the area of 10,000 to 12,000 skus covering all product categories allow for one stop shopping.
The store in Oakville is about 12 years old and still has a meat department with a butcher. This is going to be phased out from what I heard. By square footage, it is more profitable to have groceries than having a butcher ‘’a dying art’’.
The 4th store in Liberty Village opened on October 10th and it seems a hugh success for having visiting it a few times .
They are opening the 5th store (Leaside neighbourhood) in 2019.
They signed the agreement for the 6th store (Location not disclosed yet).
They are looking at opening a store about every 6 to 8 months. Toronto and the GTA belt can absorb IMO about 20 to 25 stores in dense area. Once Ontario is done, will they move out of the province or will a major will have stepped in before that?
In September 2018, Farm Boy was bought by Empire (Sobeys’) for $800M for 26 locations 2x sales.
Float is low and if they execute properly, going to market is not an urgency. I think they may go within a year @ much higher level.
I bought shares recently @ .355 and added a few more Friday @.37.
This is not a trading stock. This is a long term stock for a RSP. The share price will increase on Q results, opening of more location, updates, interest in the stock until, IMO, it is taken over by a major.