Eason adds Hughes & Hughes outlets to chain

Irish bookseller Eason & Co has added six franchised outlets to its chain of stores, including three shops belonging to rival Hughes & Hughes, which is run by businessman Derek Hughes.

Eason has reached agreement with Hughes & Hughes for its stores in St Stephen’s Green, Santry and Ennis to transfer and operate as Eason franchises from May 2013.

Franchise stores will also open this year in Mallow, Shannon and Killarney. These are expected to create about 35 new jobs. Mr Hughes said becoming an Eason franchisee “makes sense” for the business “given the decline in the overall book market and the threat from online”.

“The Eason multicategory business offers a more robust commercial model in addition to a very strong brand and business organisation,” he added.

Hughes & Hughes was founded in 1986. It was placed into receivership in early 2010, owing €9 million to Ulster Bank, but Mr Hughes acquired the rights to the name later that year and, with the backing of Aidan Masterson and Pierce Molony of Bus Stop newsagents, he opened six shops under the Hughes & Hughes name.

'Under review'
Two of those, Dundrum and Dundalk, have already closed while its shop in Swords is "under review". Eason already had a shop in Swords and a franchise opportunity was not available.

Mr Hughes said going the franchise route with Eason would reduce its dependence on book sales – they account for just 40 per cent of Eason’s revenues – and cut out central overheads.

"What's important is that there is a profitable company going forward and that jobs can be maintained," he told The Irish Times . "The hard commercial decision needed to be made."

Mr Hughes said 33 jobs would be retained at the franchised stores.

Conor Whelan, Eason's managing director, said he was "pleased to be able to add a significant number of new franchises this year including the three former Hughes & Hughes stores".

Consumer sentiment
He said trading in 2012 was "challenging" with like-for-like sales experiencing a single-digit percentage decline.

“We are still cautious about overall like-for-like sales,” he said. Eason opened its first franchise in Monaghan in 2005 and these additions will bring the total to 30 later this year.