IGA Supermarket, Coolum and Glasshouse, Australia

ustralia has a couple of real-life survivors. Mel and Gill Luke have managed not only to bring consistent growth to their two stores–in a country where independent market share is only 10%–but have battled developers to preserve their prime spot in a popular resort area.

The Lukes' IGA Supermarket in Coolum, located on the Sunshine Coast in Queensland, serves a relaxed, resort community of about 14,000—a population that increases by 50% over the December/January period and around Easter. So the thought of a big chain moving in isn't exactly desirable to the locals.

The most recent challenge was a proposed Woolworth's, which came right in the middle of a major refurbishment of his store. "With the help of our supplier, Metcash, and the local community, we've been able to deal with the major chains," he says.

Forty minutes away from Coolum in the Glasshouse Mountains, the Lukes operate—IGA Everyday. The store is so popular that it draws traffic to other retailers in the area. In both locations, the Lukes have taken advantage of Community Chest—a program developed by the IGA in Queensland. Through this program, grocers give back 1% of sales on certain products to the community. "Last year we passed on $4,000 to four community groups in Coolum," Luke notes. "In Australia the chain stores find it difficult to relate to the community—that's our point of difference."

The Lukes are looking at opening a third store later this year in another coastal resort area near Coolum. "If I didn't have the IGA brand to fly above the store, I'd think twice about doing it," says Luke.