Retail SectorIrish retailer Homestore and More plans to open 12 new outlets over the next two years as part of its €10 million expansion programme.
The rapid growth strategy is being funded by Home Retail Group, the parent company of Argos and Homebase, which purchased a 33 per cent stake in the Irish business last February.
Homestore and More operates just two outlets; one in Belgard Retail Park in Tallaght and one in Airside Retail Park in Swords. However, the retailer already has six more units in the pipeline, including the former TK Maxx store in Blanchardstown shopping centre where it will occupy 2,230sq m (24,000sq ft) of space at an annual rent of around €500,000.
A further five locations will be unveiled by the end of the year and property sources claim the homewares brand is close to securing a deal in Limerick, as well as the Fonthill Retail Park in Clondalkin.
The retailer is also eyeing up outlets in Cork, Waterford and south Dublin.
Homestore and More was established a little over two years ago by Jonathan Stanley, the founder of the successful Let's Talk Phones business which was sold for €5 million to Eircell in 1998, prior to its merger with the UK mobile phone operator, Vodafone.
The chain's format - with its 12,000 product lines across 18 different departments - is similar to that of the American giant Bed, Bath and Beyond, and industry sources claim Homestore and More's strong performance is a result of the booming homewares sector.
In recent years, all the major department stores have expanded their operations in this market with Dunnes Stores opening its first standalone homewares outlet on South Great George's Street in November 2004.
According to property sources, the investment into the chain by Home Retail Group, the parent company of Argos and Homebase, has been crucial to the retailer's growth, not only in financial terms, but because of the higher profile it gives the brand.
As one agent pointed out, "many developers and landlords won't talk to retailers unless they're sure they are a bankable outfit but, when you have someone like Argos behind you, then the negotiations become easier".
Last month Home Retail Group posted a pre-tax profit of €554 million (£376 million) in the year to March 2006, a 12 per cent increase on the previous year.
Florence Stanley of agent CB Richard Ellis is handling all negotiations on behalf of Homestore and More.
