Sainsbury presses ahead with NI plan

BRITISH grocery giant Sainsbury is pressing ahead with its plan to develop a chain of stores in Northern Ireland, but a spokesman…

BRITISH grocery giant Sainsbury is pressing ahead with its plan to develop a chain of stores in Northern Ireland, but a spokesman said yesterday that it had made no decision about establishing an operation in the Republic.

Recent speculation in retailing circles had it that Sainsbury was about to open in the Republic, either through acquisition or a greenfield operation.

Some retail sources said that the British company was close to completing a deal to buy out Dunnes Stores. However, a Sainsbury spokesman said yesterday that the company was not talking to Dunnes. Sources close to Dunnes also dismissed the speculation as completely unfounded.

The Sainsbury spokesman declined to discuss other options in the Irish market, insisting that the company had not made any decision. But he added that Sainsbury constantly considered all markets.

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Asked if the group was in negotiations on possible acquisitions in Northern Ireland the spokesman refused to comment. These were "confidential decisions", he said.

Last week a judicial review rejected Sainsbury's plan to set up a store in Coleraine, Co Derry. The group was considering the review which may offer "a way forward", he said.

But Sainsbury was moving ahead with its plans to establish seven to nine new greenfield stores in Northern Ireland, he said. Stores will be opened in Ballymena, Co Antrim on December 10th and in Newtownbreda, Co Down, in March 1997. It is awaiting the result of a planning inquiry following its application for permission for a store in Derry.

"We are hopeful that the result will be available early next year and, if we are successful, we plan to open there in late 1997," he said.

A planning application has been made for a development at Sprucefield near Lisburn, Co Antrim and the group is about to lodge an application to build on the edge of Newry, Co Down.

Sainsbury was still looking at a number of other possible locations in Northern Ireland, he said.

The large British grocery groups are interested in diversifying outside Britain because of the maturity and competitiveness of the domestic market.

Just over a year ago, Sainsbury announced a £100 million sterling investment plan to enter the market in Northern Ireland. While the group has no involvement in the Republic's £4.2 billion grocery market, it has an interest through its stake in Texas Homecare.