Norman Robert Tieck
Norman Robert Tieck (February 2, 1916 – 2001) was an Australian businessman and retail pioneer. In 1954, Tieck, along with Harold Cornock, acquired Franklins, a Sydney-based grocery chain. Under their leadership, Franklins developed into Australia's first discount supermarket chain, expanding from 10 stores at acquisition to 75 stores by 1978.
In 1978, under Tieck's leadership, Franklins introduced the No Frills brand, Australia's first generic supermarket brand. Tieck's innovative approach to retail, focusing on a No frills business model and low prices, significantly impacted the Australian grocery industry. This innovation, along with Tieck's overall business strategy, helped shape modern supermarket practices in Australia and influenced retail trends across the industry.
Early life and career
Norman Robert Tieck was born on February 2, 1916, in Leichhardt, an inner suburb of Sydney, to Karl Ludwig Tieck and Maude Adeline Victoria Mace. His father, Karl Tieck, had migrated from Germany around 1910 and operated a shoe repair shop in Five Dock, Sydney.
Tieck's formal education ended at age 13 when he left Petersham Boys High School in 1929. He began his career at Edwards Dunlop & Co., where he started in the office and studied accountancy in his spare time.
Business career
Early experience
In 1938, at the age of 22, Tieck joined Woolworths Group (Australia) as their youngest trainee manager. He quickly rose through the ranks, spending a year as a trainee, five years managing stores, and two years as a buyer. Tieck managed various city and country stores, including locations in Oxford Street, Sydney, Rockdale, Newcastle West, and Wollongong.
Grocery & General Merchants Ltd
In 1950, Norman Tieck was appointed general manager of Grocery & General's metropolitan store section. Norman and his business partner Harold Cornock traveled to the United States to study developments in the industry abroad.
In 1951, Tieck opened Australia's first supermarket in Hurstville on December 20.
In 1952, Tieck became managing director of Grocery & General Merchants Ltd and its 36 subsidiaries. He successfully rescued and rehabilitated the company, which had been facing significant financial difficulties. Under his leadership, the company returned to profitability within two years.
Founding of Franklins
In 1954, Tieck and his business partner Harold Cornock purchased all ten Franklin stores from Frank Lindstrom for approximately $15000-$20000, marking the beginning of Franklins Stores Pty Ltd.
Under their leadership, Franklins rapidly expanded and became known for its no-frills approach and low prices. Key milestones in Franklins' growth include:
- 1958: Acquisition of Oram's chain of 17 service groceries.
- 1960: Acquisition of McEwans chain of 10 stores.
- 1963: Purchase of five Big A food stores, bringing the total to 61 stores.
- 1978: Introduction of the No Frills brand of groceries.
By 1979, Franklins had grown to 80 stores within a 20-mile radius of Sydney and achieved annual sales of $300 million.
By 1982, Franklins stores had gained a reputation for offering competitive prices on grocery items, contributing to Sydney's status as the most affordable capital city for food in Australia.
Sale of Franklins
In 1979, Tieck and Cornock sold Franklins to the Hong Kong Dairy Farm Group for $33.6 million. The decision was made to ensure a wider and more permanent base for the business beyond family ownership.
Business philosophy and impact
Tieck's business philosophy centered on offering low prices through a no-frills operation. Key aspects of his approach included:
- Focusing on packaged goods, avoiding fresh meats and produce
- Maintaining a no-advertising policy to keep costs down
- Introducing the "No Frills" generic brand
- Emphasizing simplicity and clear communication in business dealings
- Prioritizing integrity and honesty in all business transactions
- Avoiding borrowing money or mortgaging assets
This approach significantly influenced the Australian retail landscape, with Franklins consistently rated as the cheapest grocery chain in Sydney.
Later career and ventures
After selling Franklins, Tieck established The Gwynvill Group with his sons Garry and Paul. Through this company, he engaged in various business ventures:
Property development
Cordeaux Heights: A 440-acre development near Wollongong, resulting in 1,000 suburban dwellings
Shopping center developments in Moorebank, Chester Hill, and Hillsdale (Southpoint)
International ventures
Jacksonville, Florida: Property development projects in the United States
Payless Shoes: A joint venture with Graeme Skilbeck to establish a chain of shoe stores in Australia
Community involvement
Tieck was active in various community and advisory roles:
- 1977-1979: Member of CSIRO State Committee in New South Wales
- 1979-1982: Following his departure from Franklin's, Norman Tieck was appointed to the newly formed Canberra Development Board in August 1979. This appointment recognized his significant business experience, having built Franklin's turnover from $300,000 to $300 million over 26 years.
- 1985-1988: In November 1985, Norman Tieck was appointed to the National Capital Planning Committee, which advised the National Capital Development Commission on planning, development, and construction of Canberra. He was named as one of two members with special qualifications.
- 1986-1993: Director of ANUTECH Pty Ltd, the research organization of the Australian National University. In March 1987, he was appointed as a director of ANUTECH Pty Ltd, the research organization of the Australian National University.
Personal life
Tieck married Jean Albon Bowmaker on August 28, 1941. They had three children: Garry (born 1944), Paul (born 1946), and Beverley Jean (born 1948).
In his personal life, Tieck lived in Lane Cove, enjoyed fishing and gardening, and was known to cut his own grass. He drove a two-door Chrysler and occasionally gambled at the American Club.
Recognition and legacy
In 1984, Franklins was honored as one of the six inaugural members, worldwide, of the US Food Marketing Institute's International Hall of Fame in Dallas, Texas. This recognition highlighted the significant impact Tieck and Franklins had on the retail industry both in Australia and internationally.
Norman Tieck's career, particularly his success with Franklins, established him as a significant figure in Australian retail history. His innovative approach to retail management and accurate predictions about industry trends influenced the development of the Australian supermarket landscape.
In December 1997, Tieck resigned as chairman and director of all Gwynvill Group companies, passing the business to his sons Garry and Paul.
See also
History of Retail
Supermarkets in Australia
Franklins