Musgrave dips to UK loss
IT’S NOT just in Ireland where Musgrave is having to invest in price cuts to attract customers to its retail brands in what is a hugely competitive sector in these recessionery times.
Latest accounts for Musgrave Retail Partners GB Ltd show it made an operating loss of £547,000 last year compared with a surplus of £3.4 million in 2010.
The directors’ report states that this was due to a “strategic investment in value to reduce prices in stores and improve the offer for consumers”.
Musgrave operates the Budgens and Londis retail operations in the UK. As is the case in Ireland, the shops are owned and operated by local traders with Musgrave’s wholesale arm supplying them with products and the Irish company promoting the brands.
While it made a loss at a trading level, Musgrave was pulled back into the black by chunky interest income of £2.5 million.
The accounts also show that turnover rose by 14 per cent to £919 million.