Major expansion of the Texas Homebase DIY business in the Republic is to be undertaken by the Hampden Group following rationalisation of "non-core" businesses, including the £1.1 million (€1.39 million) sale of the group's investment in the KwikFit (NI) car exhausts and tyres concern.
Mr David Russell, chief executive, commenting on the group's 1998 financial results, said that the main plank of the board's strategy is to focus on the potential for expanding the Texas Homebase chain beyond the three existing outlets in Dublin.
"We are actively seeking sites for more stores in Dublin, Cork, Limerick and Galway," he said. "But we also see opportunities for store openings in other provincial towns such as Waterford, Athlone, Sligo, Tralee and Naas."
Admitting that the search for new stores depends on planning permission, he emphasised that sites for such stores had been identified in a number of areas and that negotiations on new stores were under way with retail property developers as well.
Although the Texas Homebase business is run as a franchise of the Sainsbury's food retailing combine, Mr Russell said there were no plans for new joint Sainsbury's/Homebase developments in the Republic.
Financial results for calendar 1998 show a £0.8 million reduction in profit before exceptional items and tax to £1.5 million on turnover down £2.0 million at £43.2 million. In the Republic, "like-for-like" sales rose 3 per cent at the three Texas Homebase outlets in Dublin.
This growth rate is considered to be "disappointing" compared to the general increase in retail sales in the Republic and a review of marketing strategy is under way to improve the sluggish performance.
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