Fairway Market received coverage from investment banks that offered the deal to investors about a month ago. The share pricing was pegged between US$10 and US$12 with shares being traded between US$17 and US$19 per share.
Fairway is a grocery store operation that has been well-received for their IPO as well as their subsequent trading. Based out of NY, the grocer is similar to a cross between Trader Joe's and Whole Foods. It is solidly positioned with measured growth prospects. Many shoppers agree that it is very much like Whole Foods, only cheaper with the feel of Trader Joe's but with a wider selection of food and products available.
In the period ending December 2012, Fairway gained US$646 in annual sales out of its dozen or so store locations. The company forecasts it can still build another 40 stores in the NY Metro area and even up to 100 if they expand up to Boston and Washington DC.
The major risk issue with the store is other market players, such as the major chains. The market will become all the more competitive making it harder for Fairway to increase in size and number in the long run.
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