Musgrave set to expand in North

CASH and carry group, Musgrave, is making a major play for a share of Northern Ireland's retail market, with plans to open 120 SuperValu and Centra supermarkets there over the next three years.

The move is expected to boost Musgrave's turnover by more than £100 million and secure up to 7 per cent of the North's retail market for the Cork-based, privately-owned company.

Musgrave said yesterday that its multi-million pound expansion plans for that market include 50 SuperValu and 70 Centra stores spread throughout Northern Ireland by the year 2000. The group first entered the Northern Ireland market earlier this year, purchasing four shopping centres and a supermarket in Belfast from J & J Haslett for an undisclosed sum. The shops, at Knock, in east Belfast; Dundonald, Co Down; Carrickfergus, Co Antrim; Banbridge and Downpatrick, Co Down, have been trading under the SuperValu banner since August.

The expansion plans will include a number of greenfield sites, while it will also be relying on attracting a large number of established supermarkets to switch from other chains to one of the Musgrave brands, a spokeswoman said. The company, which is preparing to open a central warehouse and distribution depot in January, is also expecting to increase its workforce substantially, she added. It currently employs 150 people in Northern Ireland.

Musgrave's expansion plan is more ambitious than had been previously signalled. The Cork-based group's chief executive, Mr Hugh Mackeown, had indicated it was aiming to have up to 50 SuperValu supermarkets in Northern Ireland by the end off the decade. A chain of this size, he said, would increase Musgrave's turnover by around £100 million.

In the Republic, Musgrave operates close to 400 retail outlets. It owns the franchises to the 166-strong chain of SuperValu and L&N supermarkets and operates the franchise to the Centra and Centra QuickStop chain of 225 convenience stores. It also owns 90 per cent of the Spanish supermarket chain, Dialsur.

Musgrave's plans follow moves by a number of major British multiples to gain a foothold in the Northern Ireland market. Sainsbury is moving ahead with its plans to establish up to nine new stores in Northern Ireland and is expected to open in Ballymena, Co Antrim and at Newtownbreda, in Co Down over the coming months. Sainsbury has, however, run into planning problems at its proposed site at Coleraine, Co Derry, where one of the objectors is the rival supermarket chain, Wellworths, which is owned by the Fitzwilton group.

Meanwhile, Tesco opened the first of its new stores in the North earlier this week, in the centre of Belfast. The 13,000 square feet Metro supermarket employs 180 people.

The North's retail market is currently dominated by chain-store multiples, with the ABF's Stewarts and Crazy Prices groups estimated to account for up to 39 per cent of the total retail market. Wellworths has around 21 per cent, while Dunnes Stores, has around 7 per cent. Independently-owned supermarkets operating under various brands have to date only managed to take a relatively small portion of the market, accounting for around II per cent of total retail business.

In the Republic, however, brands such as Supervalu have made greater inroads into the overall retail market, and are estimated to hold up to 26 per cent of that market.

The Musgrave group has established itself as a major force in the Republic. Last year it reported a 26 per cent rise in pretax profits to £17.9 million with turnover up 21 per cent to £738 million. It is currently estimated to account for 17.6 per cent of the Irish retail market, ranking third behind Quinnsworth and Dunnes Stores.