A business owner in a remote part of the country is concerned the cost of living in his community will soar after the only supermarket in town, Woolworths, closes its doors.
Providing an essential service to the small town of Nhulunbuy for half a century, Woolworths is in the process of closing its store in the remote East Arnhem Land location in the Northern Territory in the new year.
The next closest Woolworths store is in Katherine, a 727km drive away.
Since the announcement, locals and businesses have been asking questions about what their future will look like.
What will be the impact of Woolworths leaving Nhulunbuy?
Banubanu Beach Retreat co-owner, Fulvio Inserra, is extremely worried about the impact the Woolworths Gove closure will have on the price of supplies, with freight and transport costs much higher in the outback.
“One of the benefits of having a good supermarket here is that when we need to, it’s not the price of the produce, plus freight,” the co-owner told Yahoo News.
“Freight’s the biggest killer for us.”
Nhulunbuy in remote East Arnhem Land has a population of about 3,600 and is the fourth-largest township in the Northern Territory. Source: Google Maps
Fulvio says freight costs are the “single biggest barrier” to securing cost-effective services and goods into the area.
“That’s a far more important issue that the town needs to address than Woolies, because that will impact directly on pricing,” he said.
Local Kim Bryant recently told the consumer advocacy organisation, CHOICE, the lack of food security in town has weighed heavily on the community.
“Obviously, cost of living is an issue for the whole country and the whole world at the moment, but in remote areas it’s particularly challenging,” she said.
The Nhulunbuy supermarket is stocked via an ocean barge, “making it our most difficult store to access”, a Woolworths spokesperson said.
Yahoo News understands that, to deliver stock to the town, it usually takes a minimum of four days in transit over a distance of more than 4,000km.
Will another grocery store take Woolworths’ place?
The Woolworths in Nhulunbuy is one of the chain’s most remote and difficult stores to access, a spokesperson said. Source: Christopher F, Google Maps/ARDS Aboriginal Corporation
Fulvio admits the major grocery shake-up in town is “annoying”, but he is optimistic a new supermarket will take Woolworths’ place.
“This will not be a town with no supermarket,” he said sternly.
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However, for a new grocery store to open in the remote town, Fulvio hopes it offers a similar price point, can sustain itself, and has as much variety as Woolworths, given the fragile supply chain.
Ahead of the planned store closure, Fulvio said he has already been working to ensure his business can adapt in the new year and is looking to support local farmers and vendors to minimise the impact.
“Just got to make it work,” Fulvio said. “We’ve invested millions up here.”
Why did Woolworths close the remote location?
Fulvio said he had moved to Nhulunbuy from Melbourne 18 months ago and knew the closure “was a possibility” as the Rio Tinto-owned bauxite mine outside of town will cease production in 2030.
For 55 years, Rio Tinto had driven the economy of Nhulunbuy, which is home to the Yolngu people.
The Woolworths store had opened half a century ago to serve the Rio Tinto community, but given its planned exit, the store is closing.
“We are in conversation with another organisation about whether they would like to take over the running of the supermarket. If this goes ahead, we expect it to happen by 30 June 2027,” a Woolworths spokesperson confirmed.
While the transition might be bumpy, Fulvio sees it as a “great opportunity for this town to reinvent itself, and it will”.
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