Barry's of Mallow expects revenue from its Costcutter convenience store franchise in the Republic and its Quickpick retail outlets to increase by 16 per cent this year after adding new stores.

By the end of the year, Barry's will have added 34 new Costcutter stores, creating 500 jobs.

Revenue from the 205 Costcutter and Quickpick outlets in the Republic is forecast to reach €570 million this year and €680 in 2007, according to John McAllen, the group's chief operating officer.

"The business is growing very well at the moment and we are in a very strong position," said Mr McAllen, adding that the group expects to open a further 40 Costcutter stores in 2007, creating about 600 more jobs.

The outlets are owned by individual retailers, but operate under the Costcutter franchise which Barry's acquired for the Republic in 2000.

So far this year, with the help of its individual retailers, Barry's has invested €50 million developing its corporate and retail brands and it plans to invest a further €60 million next year.

In addition to the franchise, Barry's has a distribution business which supplies independent retailers throughout the Republic from its warehouse in Mallow.

In July it acquired Kilkenny Wholesale in a bid to increase revenue at the division, which was first established in 1955 and now employs more than 200 staff.

Mr McAllen said that the distribution business will have revenue of about €200 million this year.

In its latest accounts for the year to the end of January 2005, the group, trading as James A Barry, reported profit after depreciation, exceptional items and taxation of €1.3 million, down from €1.6 million in the previous year.

In a statement accompanying the accounts, the company said the wholesale business made a profit, while the retail business made a loss.