Dealz eyes Cork and Dublin for €10m investment in 10 new stores
Retailer has 66 stores already operating
Dealz sells a range of goods including cut-price groceries, stationery and general merchandise.
Discount retailer Dealz, which operates in the UK as Poundland, says it will invest up to €10 million opening about 10 new stores in the Republic next year, and it is on the lookout for even more.
The retailer, which currently operates 66 stores in the Republic, is targeting further expansion in areas including Dublin and Cork. Barry Williams, managing director of the group in the UK & Ireland, says the group has already signed deals for five of the new stores.
“We are saying 10 stores. But I think there is room for even more. It is all about getting the right sites,” he said. “If we ended up getting another 20 stores over the next year, there’d be no complaints from us.”
Mr Williams said it was becoming easier to find sites in Ireland as other retailers migrate online, increasing the number of empty retail premises in urban locations: “The market is opening up. Landlords and store owners are starting to wake up to the challenges, and they are finding that there are not that many good [lease] covenants out there.”
South African group
The company, which is ultimately owned by South African retail investment group Pepkor, launched the Dealz concept in Ireland in 2011. It sells a range of goods including cut-price groceries, stationery and general merchandise.
Dealz now operates more than 100 outlets, with about 46 stores in Poland and Spain in addition to its Irish network. Poundland has 850 UK stores
Almost half of the Irish Dealz estate also contains in-store concessions of Pep&Co, a discount clothes offering that is derived from a similarly-named standalone clothing chain owned by Pepkor.
The Pep&Co concept was launched in Ireland early last year, with the aim of taking business from retailers such as Penneys. All of the new Dealz stores planned for next year will include a Pep&Co.
Mr Williams said there were no plans to open standalone Pep&Co stores in Ireland. He conceded the market is tough, but said he was happy with the launch into the Irish apparel market: “My understanding is that the overall clothing market is not growing. So we are taking share off someone.”