Major retail chains look to Ireland

The Government's lifting of the planning cap for superstores has raised the prospect of a number of major international retail chains coming here.

Apart from Ikea, which has signalled plans to develop a furniture outlet in Ballymun, north Dublin, Costco - the US-based warehouse club giant - is eyeing the possibility of opening its first Irish store, also in Dublin.

The Seattle-based multinational, which has 449 outlets in eight countries, including 15 stores in the UK, tried to open a €15 million outlet at the Fonthill Industrial Park in west Dublin six years ago. However, it was refused permission by Bord Pleanála because the planned 11,500 sq m retail store was considered unsuitable for a site zoned industrial.

Costco, recently described by Fortune magazine as the only company Walmart fears, is famous for its discount "shopping club" where customers pay an annual fee of about €25 in exchange for bulk goods and luxury items at bargain prices.

The company claims to be the biggest seller of fine wines in the US, and its typical member has been described as "more Jean Chardonnay than Joe Six-Pack".

According to Fortune magazine, the average Costco store now generates nearly double the revenue of Walmart's warehouse club. While it has not formally approached the Government, Walmart is believed to be examining the possibility of a move to Ireland. The US-based multinational had international sales of $47.5 billion last year - in part thanks to its 277 outlets in the UK, which are branded as ASDA.

Although best known in Britain for groceries, the company has expanded greatly in the non-food product lines. In the US, Walmart is closely associated with the Bush administration, having backed the Republican Party in the recent presidential election (unlike Costco, which donated money to the Democrats).

Walmart was last year given the "Corporate Patriotism Award" for supporting US troops in Iraq through initiatives like the provision of phone cards to field hospitals so that wounded soldiers could call home.

B&Q, the UK-based DIY giant, is also believed to be lining up for expansion in Ireland. The company already has three stores in the Republic and is due to open a fourth - in Cork - next March.

A spokeswoman for B&Q said yesterday it was "examining with interest" the Government's decision.